2009 was a notable year for securities litigation and regulatory enforcement, as the first consequences of the financial crisis had their days in court. Expect more to come in 2010.
The year started with a stern ruling from the Delaware Chancery Court that, no, shareholders at Citigroup could not sue the company’s leaders solely because directors made some pretty dumb decisions in years leading up to the mortgage meltdown. It ended with the Securities and Exchange Commission busting the powerful Galleon Group hedge fund, charging high-profile CEO Raj Rajaratnam with insider trading.
And those are just the legal proceedings that have already ...