Monthly Archives: January 2024

Private-Fund Lobbyists Get Set for High-Stakes SEC Court Fight – WSJ

Regulators and the private-equity industry are gearing up for a trial that could determine the government’s ability to set rules for buyout funds, with some business interests hoping the case could loosen regulators’ hold on Wall Street. On Feb. 5, a three-judge panel for the Fifth Circuit Court of Appeals is set to hear oral arguments in a challenge private-fund lobbyists mounted…

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SEC Charges Founder of $1.7 Billion “HyperFund” Crypto Pyramid Scheme and Top Promoter with Fraud

The Securities and Exchange Commission today charged Xue Lee (aka Sam Lee) and Brenda Chunga (aka Bitcoin Beautee) for their involvement in a fraudulent crypto asset pyramid scheme known as HyperFund that raised more than $1.7 billion from investors worldwide. According to the SEC’s complaint, from June 2020 through early 2022, Lee and Chunga promoted HyperFund “membership” packages, which they…

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Insider Abstention and Rule 10b5-1 Plans by David Rosenfeld – SSRN

The issue of “insider abstention”—insiders who decide not to trade based on MNPI—has long bedeviled insider trading law and policy. Insider abstention is typically undetectable and unknowable, raising insurmountable issues of proof, while the general requirement that fraud be “in connection with the purchase or sale of a security” imposes a rigid legal barrier. But Rule 10b5-1 plans stand on…

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2023 Silicon Valley 150: Corporate Governance Report

Our 2023 Silicon Valley 150 Corporate Governance Report reviews the corporate governance practices and disclosures of the Valley’s largest public companies. This report uses the Lonergan SV150, which ranks the top 150 public companies with headquarters in Silicon Valley by annual sales. We noted the following key conclusions from our survey of SV150 corporate governance: Virtual meetings are here to…

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UK: The Economic Crime and Corporate Transparency Act 2023 — A Questionable Christmas Present | The D&O Diary

On 26th December 2023, the attribution rules relating to corporate criminal responsibility for economic crimes were extended to senior managers under The Economic Crime and Corporate Transparency Act 2023 (ECTA). So, who are senior managers for this purpose, and should they be worried? ECTA also introduces a new corporate offence of failure to prevent fraud which will come into force…

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Linklaters Secures Rare Dismissal of DOJ Insider Trading Charges Against Ramkumar Rayapureddy Two Weeks Before Trial | Linklaters

Linklaters’ U.S. Litigation, Arbitration, and Investigations practice has successfully defended Ramkumar Rayapureddy against insider trading charges brought by the Department of Justice (“DOJ”) in the Western District of Pennsylvania. In a nearly unprecedented event, the DOJ dismissed all charges with prejudice just two weeks before trial as a result of Linklaters’ defense. In November 2022, the DOJ charged Mr. Rayapureddy with one…

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ESG liability for companies and directors: a shifting landscape | Reuters

Since the United Nations Global Compact in 2004 first coined the phrase, “environmental, social, and governance” — or “ESG” — has changed the way we think about investing. ESG-related investments have grown 42 percent from 2018 to 2020, and, as of late 2021, “one of every three dollars of assets under management is invested in ESG strategies,” according to Nasdaq.com.…

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Insider Trader Who Made $1 Million on Merck-Pandion Deal Gets Five Months – Bloomberg

A man who made more than a $1 million insider trading on confidential information about Merck & Co.’s 2021 acquisition of Pandion Therapeutics was ordered to spend five months behind bars. Brandon Wong was sentenced Friday by US District Judge Edgardo Ramos in Manhattan. Wong pleaded guilty in April to insider trading based on deal information that his friend Seth…

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