Author page: Securities Docket

Selective Disclosure of Information Regarding Cybersecurity Incidents

Last year, the Commission adopted rules requiring public companies to disclose material cybersecurity incidents under Item 1.05 of Form 8-K.[1]  Since then, staff in the Division of Corporation Finance have heard assertions that those rules may preclude a company from sharing additional information about a material cybersecurity incident with others, including their commercial counterparties.  Apparently, some companies are under the…

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Santander Culls WhatsApp From Spanish Investment Bank Phones – Bloomberg

Banco Santander SA has removed popular messaging software including WhatsApp from smartphones issued by the company to its investment bankers in Spain, the latest sign of how banks are clamping down on staff communications. The Spanish lender has recently told the investment banking staff at its Madrid headquarters that unauthorized messaging software needs to be deleted, people familiar with the…

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SEC’s AI Crackdown Signals Trickle of Cases Will Turn to Flood – Bloomberg

A spate of recent US enforcement actions is likely just the beginning of a crackdown on companies overhyping artificial intelligence to investors. Since March, the Securities and Exchange Commission has accused three companies of so-called AI washing, or misrepresenting how they use machine learning and other tools. The moves follow multiple warnings from Gary Gensler, the agency’s chair, and the…

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California Judge Breaks With New York Counterpart, Sends Ripple Securities Lawsuit to Trial

In her Thursday ruling, Hamilton said that Ripple’s lawyers urged her to “follow the reasoning” of U.S. District Court Judge Analisa Torres who, in a parallel case in the Southern District of New York (SDNY), ruled that XRP did not meet all the prongs of the Howey Test when sold directly to retail participants on crypto exchanges. Torres’ ruling constituted…

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U.S. House Members Visit Detained Binance Exec Tigran Gambaryan in Nigeria, Call for Release

U.S. lawmakers Rep. French Hill (R-Ark.) and Rep. Chrissy Houlahan (D-Penn.) visited Tigran Gambaryan in a Nigerian prison on Wednesday as the Binance executive remains incarcerated facing money-laundering charges due to his involvement with the crypto exchange. Visiting the country to discuss anti-terrorism efforts,”we also had the opportunity to advocate for an American that’s been wrongfully detained by the Nigerian…

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AIG Fends Off Appeal From Former Lawyer in Whistleblower Case

The former head of AIG’s legal operations center failed to show he reasonably believed he was reporting securities violations, dooming his bid to revive a whistleblower suit, a federal appeals court said Thursday. The worker lost his job a few months after AIG’s compliance team finished investigating his conflict-of-interest concerns. But a reasonable jury couldn’t conclude the lawyer thought he…

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Two New SCOTUS Opinions Securities Practitioners Should Read | LinkedIn

Although the flurry of Supreme Court opinions issued last Thursday and Friday did not include the one most anticipated by securities practitioners (i.e., SEC v. Jarkesy), decisions involving two other agencies could have significant ramifications for the Securities and Exchange Commission.  One of them could further insulate legacy SEC disclosure rules from First Amendment challenges, while the other threatens an…

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Auditors Pan Bid to Report Their Own Financials as Too Rigid

US accounting firms want more flexible rules for how they disclose details about their own finances, operations, and audit performance, calling proposals to expand mandatory reporting too rigid and costly. Firms want to continue reporting details about major changes in their business and their financial results as part of routine audit inspections to ensure sensitive or competitive details remain confidential,…

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