The Securities and Exchange Commission today charged Lordstown Motors Corp. with misleading investors about the sales prospects of Lordstown’s flagship electric pickup truck, the Endurance. Lordstown, which filed for bankruptcy in 2023, went public by merging with a special purpose acquisition company (SPAC) in 2020. According to the SEC’s settled order, Lordstown exaggerated the demand for the Endurance, claiming that…
Gemini Trust Co., the crypto exchange founded by twin entrepreneurs Cameron and Tyler Winklevoss, will return at least $1.1 billion to customers though the Genesis Global Capital bankruptcy as part of settlement with the New York Department of Financial Services. The New York-based firm will also pay a $37 million fine for various compliance failures to the New York Department…
Largely as a result of an influx of new actions in the fiscal fourth quarter, new SEC accounting and auditing enforcement actions increased in FY 2023 (which ended September 30, 2023) according to a new Cornerstone Research report. The number of new accounting and auditing enforcement actions increased by 22% in FY 2023, compared to the 8% increase in the…
A bipartisan group of members of Congress is urging the Securities and Exchange Commission to dump its proposal to restrict the use of advanced analytics and artificial intelligence by firms such as Robinhood Markets. In a Tuesday letter to SEC Chair Gary Gensler, 20 members of the House of Representatives described the agency’s proposed rule as overly broad and warned…
Since last summer, he has been housed at the Metropolitan Detention Center in Brooklyn, where he has spent much of his time working on the case, a person with knowledge of the matter said. Mr. Bankman-Fried has also shared crypto market tips with the guards, the person said, recommending investments in the digital coin Solana. Source: Sam Bankman-Fried Seeks Lenient…
The Securities and Exchange Commission is scrutinizing internal communications by OpenAI Chief Executive Sam Altman as part of an investigation into whether the company’s investors were misled. The regulator, whose probe hasn’t previously been reported, has been seeking internal records from current and former OpenAI officials and directors, and sent a subpoena to OpenAI in December, according to people familiar…
All of that is leading to a broad rethinking of the role of the CISO, says Ken Fishkin, senior manager of information security — essentially the acting CISO — for law firm Lowenstein Sandler LLP. “A lot of people are very nervous about being in a position like mine now because of this responsibility,” he says. “It’s a company issue,…
The US Justice Department’s bankruptcy unit has picked a former federal prosecutor who led the government’s case against the Unabomber to conduct a new outside investigation of FTX and its bankruptcy law firm. Robert J. Cleary has been picked as an examiner to lead the inquiry by the Office of the US Trustee, an arm of the Justice Department that…
The U.S. Securities & Exchange Commission has argued that Terraform Labs should not be allowed to hire law firm Dentons or pay litigation costs for employees during its bankruptcy, taking aim at a $166 million retainer payment to Terraform’s lawyers. The SEC said that Terraform had sent $166 million to Dentons since the start of 2023, and that those transfers…
Abdul Kallon has a resume that plenty of his partners at Perkins Coie would love to have: He was a federal judge for a dozen years. But since leaving the bench last year and rejoining private practice, Kallon has found that he needs his partners’ help to succeed at something he’s not done for over a decade: “business development.” Building…