Daily Archives: January 25, 2024, 5:32 pm

SEC Charges Northern Star SPAC for Material Misrepresentations in its IPO-Related Disclosures

The Securities and Exchange Commission today announced that Northern Star Investment Corp. II, a special purpose acquisition company (SPAC), agreed to settle charges that it made misleading statements in forms filed with the SEC as part of its January 2021 initial public offering (IPO). According to the SEC’s order, Northern Star stated in its SEC filings that neither the company,…

Read More

Beware of potential securities litigation over risk-factor disclosures | Reuters

Plaintiffs are increasingly focusing their securities litigation claims on risk-factor disclosures in Securities and Exchange Commission filings. In the wake of some recent decisions from the 9th U.S. Circuit Court of Appeals in this area, those charged with preparing risk factor disclosures should pay special attention to updating risk factor and cautionary language to make sure that disclosures do not…

Read More

FTX Bankruptcy Judge Says New Probe Should Be Limited and Fast – Bloomberg

A federal judge moved to limit the cost and length of a new outside investigation of FTX Trading, the fraud-tainted crypto firm, saying its insolvency case should not be disrupted by another multimillion-dollar probe. US Bankruptcy Judge John Dorsey sided with lawyers for FTX and its creditors, who argued that the new investigation ordered by an appellate court should be…

Read More

Quiet ESG Task Force Still Digging for Fraud, SEC Official Says

SEC enforcement lawyers still are looking for securities fraud tied to environmental, social and governance issues as the agency’s ESG Task Force approaches its third anniversary, a senior commission official said Wednesday. The Securities and Exchange Commission task force was designed as a “clearinghouse of information” without staff focused solely on bringing ESG cases when it launched in March 2021,…

Read More

Hewlett Packard Enterprise tells SEC it was breached by Russia’s ‘Cozy Bear’ hackers

Hackers with suspected ties to the Russian government gained access to the technology manufacturer Hewlett Packard Enterprise Co.’s (HPE) cloud-based email environment, the company said Wednesday. In a filing with SEC regulators on Wednesday afternoon, HPE said it was notified on December 12 that hackers connected to Cozy Bear, also known as Midnight Blizzard, had breached its network and spent…

Read More

British billionaire Joe Lewis pleads guilty to insider trading

British billionaire Joseph Lewis pleaded guilty Wednesday in New York federal court to securities fraud related to insider trading. Lewis’ company, Broad Bay Ltd., also pleaded guilty in the same proceeding to participating in a scheme to hide his ownership of shares of a pharmaceutical company by making false filings and misleading financial statements. Broad Bay will pay $50 million…

Read More

What’s Uniting the SEC’s Crypto Cases

Over the past week, we’ve heard from two different judges question lawyers with the SEC and crypto exchanges (Coinbase and Binance) about whether the federal agency has any sort of case against either crypto trading platform. Last week’s newsletter focused on the hearings held that week (of course) but this week’s rescheduled hearing in the SEC’s case against Binance also…

Read More

NERA: 2023 Fed Court Securities Suit Filings Increased for the First Time in Four Years | The D&O Diary

The number of securities class action lawsuit filings increased in 2023 for the first time in four years, according to a new report from NERA. According to the report, the number of filings increased more than 10% in 2023 compared to 2022. On the other hand, the number of cases resolved in 2023 declined during the year. The January 23,…

Read More

Bank of America warns return-to-office laggards with ‘letters of education’

Bank of America has sent “letters of education” to employees who have not been showing up at the office, warning them of disciplinary action, in the latest move from a large company to push staff back to the workplace. One of the messages said its recipient had failed to meet the bank’s “Workplace Excellence Guidelines” for work location “despite requests…

Read More