Daily Archives: January 18, 2024, 7:51 am

SEC Scrutiny of Executive Perks Brings Pitfalls for Companies

Over the last decade, the Securities and Exchange Commission has brought 20 enforcement cases against public companies for not properly disclosing perks provided to executives—including two last year. The SEC’s expansive view of what constitutes a perk—and the low-dollar thresholds for disclosure—can make it challenging for companies to identify, quantify, and fully describe them. But failing to disclose perks can…

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The SEC Is at the Mercy of the Courts at a Perilous Moment | TIME

In November, the Supreme Court held oral argument inSEC v. Jarkesy. The case deals with whether the agency’s adjudication of fraud claims using its own administrative law judges deprives individuals of their Seventh Amendment right to a jury trial. The justices were all somewhat aligned in skepticism against the SEC’s in-house enforcement practice, with Chief Justice John Roberts coming close…

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NDAs – Bloomberg

But the SEC actually interprets this rule more broadly: They’re not allowed to even have the NDA. After all, if you sign an NDA saying “I will not disclose the company’s secret information,” that might deter you from reporting fraud to the SEC. You might think to yourself “uh oh, I signed an NDA, I can’t tell the SEC about…

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Bitcoin Bashed by JPMorgan CEO Jamie Dimon

JPMorgan CEO Jamie Dimon took another opportunity to publicly air his criticism about Bitcoin (BTC), saying his personal advice is to not get involved. The use cases for Bitcoin are “AML, fraud, sex trafficking and tax avoidance,” said Dimon, holding court Wednesday on CNBC from Davos. “I defend your right to do Bitcoin,” continued Dimon, who one month ago in…

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Supply Chain Woes Causing Inventory Build-Up Leads to Securities Suit | The D&O Diary

In my recent round-up of the Top D&O stories of 2023, I noted that one of the key drivers contributing to the number of securities class action lawsuit filings last year was the presence of macroeconomic factors affecting company operations and financial results. Among these factors was supply chain disruption. While the pandemic-related disruptions that snarled supply chains in 2021…

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Coinbase and SEC Dig in With U.S. Judge on Whether Securities Law Applies to Listings

The U.S. Securities and Exchange Commission (SEC) case against Coinbase delves into a ton of complexity, but before anything else, a judge has to decide whether transactions in about a dozen tokens traded on the U.S. exchange were securities. Both sides – the SEC and Coinbase – agreed in a Wednesday court hearing that the tokens themselves aren’t securities. The…

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