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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Disclosures of Artificial Intelligence Technologies – Governance & Securities Watch
The meteoric rise in generative artificial intelligence has dramatically altered the corporate landscape as companies increasingly invest in or incorporate artificial intelligence, including machine learning technologies (together referred to herein as “AI”), into their businesses. The increasing adoption of AI presents tremendous opportunities to harness data on a vast scale, but it also presents numerous […]
SEC Presses Companies to Vet Interest Rate Threat for Investors
SEC officials are looking for robust disclosures from companies this annual report filing season detailing the threat to their businesses posed by interest rates that remain at historic highs. US companies should refer to 1997 disclosure guidance as they draft updates to market risk disclosures including interest rate sensitivity assessments, said Lindsay McCord, chief accountant […]
Top US Cyber Agency Pushing Toward First Hack Reporting Rule
A new US notification requirement for victims of malicious hacks could push in-house counsel to disclose cyberattacks when faced with ransomware and other network compromises. Among the first-ever cyber regulations to be enforced by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the top US cyber authority, the proposed rules would require companies […]
Column: U.S. Supreme Court to decide if SEC disclosure violations are valid basis for shareholder fraud claims | Reuters
Securities class action defendants and their lawyers are very good at attracting the attention of the U.S. Supreme Court by predicting that terrible things will happen if the justices don’t intervene. The latest case in point: On Friday, the Supreme Court granted a petition by Macquarie Infrastructure Corp to review a 2022 ruling in which […]
SEC Charges California Advisory Firm AssetMark for Failing to Disclose Multiple Financial Conflicts
The Securities and Exchange Commission today announced that Concord, California-based registered investment adviser AssetMark Inc. has agreed to pay more than $18 million to settle charges related to undisclosed conflicts of interest involving a cash sweep program operated by its affiliated custodian and its receipt of millions of dollars in revenue sharing payments from third-party […]
SEC Charges Advisory Firm Bruderman Asset Management and its Principal for Failing to Disclose Misuse of Investment Funds
The Securities and Exchange Commission today announced that New York-based Bruderman Asset Management LLC (BAM) and its principal, Matthew J. Bruderman, agreed to settle charges related to their failure to disclose the misuse of proceeds raised from investment advisory clients and to the firm’s failure to implement reasonably designed written policies and procedures concerning the […]
SEC Charges GTT Communications for Disclosure Failures
The Securities and Exchange Commission today charged GTT Communications, Inc. with failing to disclose material information about unsupported adjustments the company made in several Commission filings, which increased GTT’s reported operating income by at least 15 percent in three quarters from 2019 through 2020. The SEC’s order credits GTT with promptly self-reporting, undertaking affirmative remedial […]
SEC Charges Lyft with Failure to Disclose Board Member’s Financial Interest in Private Shareholder’s Pre-IPO Stock Transaction
The Securities and Exchange Commission today charged Lyft Inc. for failing to disclose a company board director’s role in a shareholder’s sale of approximately $424 million worth of private shares of Lyft’s stock prior to the company’s initial public offering (IPO). According to the SEC’s order, prior to Lyft’s IPO in March 2019, a Lyft […]
Hedge Funds Facing More SEC Reporting Mandates, Gensler Says
Wall Street’s main regulators are advancing on a controversial bid to boost how much information big hedge funds must share with the US government. Securities and Exchange Commission Chair Gary Gensler signaled on Wednesday that his agency and the Commodity Futures Trading Commission may soon require large private funds to confidentially give more details on […]
SEC Charges Alternative Investment Platform YieldStreet for Misleading Investors
The Securities and Exchange Commission today announced a settled action against New York-based YieldStreet Inc. and its registered investment adviser subsidiary, YieldStreet Management LLC (together, YieldStreet), for failing to disclose critical information to investors in a $14.5 million asset-backed securities offering. According to the SEC’s order, in September 2019, YieldStreet offered securities to finance a […]