Daily Archives: June 14, 2024, 8:36 am

Former General Counsel and CCO Chris Mendez Joins Crowell & Moring’s Financial Services Group | Crowell & Moring LLP

Christopher Mendez, former general counsel and chief compliance officer at several investment management firms, has joined Crowell & Moring’s Financial Services Group as senior counsel in New York, bringing in-depth experience advising on fund formation and other corporate matters. Source: Former General Counsel and CCO Chris Mendez Joins Crowell & Moring’s Financial Services Group | Crowell & Moring LLP

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Ether ETF Approval Could Come This Summer, SEC Chair Says – Bloomberg

Final approval of exchange-traded funds linked to Ether, the world’s second-most popular digital asset, could come during the summer, Securities and Exchange Commission Chair Gary Gensler told lawmakers. “Individual issuers are still working through the registration process that’s working smoothly,” Gensler said during a Thursday hearing before a Senate Appropriations subcommittee. Gensler’s remarks are yet another indication that the much-awaited…

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PCAOB Expands Liability for Auditors Involved in Firm Violations – WSJ

The Public Company Accounting Oversight Board expanded liability for individuals involved in firm violations and proposed tighter rules around one of the ways auditors gather evidence to detect financial misstatements. The U.S. audit watchdog on Wednesday voted, 5-0, to change the threshold for liability for contributors to accounting firms’ violations of auditing standards, lowering it to negligence from recklessness. The…

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Musk Pay Victory Removes Cloud at Tesla, but Fresh Legal Fight Looms – WSJ

Tesla shareholders’ backing of Elon Musk’s multibillion-dollar compensation package helps clarify his immediate future atop the world’s most valuable automaker. Now the electric-car company has to figure out how to pay him. Musk and Tesla face legal opposition to the stock-option deal that was passed in 2018, now valued at roughly $48 billion. The latest vote is also being challenged…

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Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict

“This case affirms what court after court has said: The economic realities of a product—not the labels, the spin, or the hype—determine whether it is a security under the securities laws,” said SEC Chair Gary Gensler. “Terraform and Do Kwon’s fraudulent activities caused devastating losses for investors, in some cases wiping out entire life savings. Their fraud serves as a…

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SEC Files “AI-Washing” Enforcement Action Against AI-Based Start-Up Founder | The D&O Diary

There are several points about these circumstances that bear emphasizing. The first is that the enforcement action was accompanied by a parallel criminal complaint… Another thing that readers will want to note is that Joonko was a private company, yet its CEO is the subject of a SEC enforcement action alleging violations of the federal securities laws. It is not…

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