Only 45 new accounting class actions were filed in 2012, the lowest number in recent years and a sharp drop from the 78 such cases filed in 2011. The decline in the number of accounting class actions was among several findings discussed in a new report released today by Cornerstone Research (Accounting Class Action Filings and Settlements—2012 Review […]
Bruce Carton
Posted inRegulatory Enforcement
‘Rogue’ Audit Partner Leads KPMG Resignations
Yesterday, KPMG stated that it had terminated the employment of the partner in charge of its audit practice in Los Angeles after the firm learned that the partner provide “non-public client information to a third party, who then used that information in stock trades involving several West Coast companies.” KPMG condemned the “rogue actions” of the partner, […]
Posted inFrom the Archive
Volume Rising in Opposition to SEC Settlement Practices
In November 2011, U.S. Judge Jed Rakoff was engaged in a high-profile, but seemingly quixotic, mission to upend the Securities and Exchange Commission’s standard settlement practices by refusing to approve its proposed $285 million settlement with Citigroup. In a decision that sent shock waves through the SEC and Wall Street, Rakoff concluded that he would […]
Posted inRegulatory Enforcement
DOJ Discloses it May Reduce Former Enron CEO Skilling’s Prison Sentence
A notice posted on the Justice Department’s website yesterday indicates that the DOJ is is considering entering into a sentencing agreement with former Enron CEO Jeffrey K. Skilling that would reduce his sentence. In 2006, Skilling was convicted on fraud and conspiracy charges related to the fall of Enron, and sentenced to 24 years in prison. Following his conviction, […]
Posted inFrom the Archive
Hedge Fund Survey Shows Misconduct Believed to be Widespread
A recent survey of hedge fund professionals indicates that misconduct is widespread in the industry, and that a very large percentage of professionals in the industry are prepared to report wrongdoing under a program such as the SEC’s new whistleblower program under Dodd-Frank. Law firm Labaton Sucharow LLP commissioned the survey, which was conducted via online questions posed by […]
Posted inRegulatory Enforcement
Departing SEC Chair Schapiro Joins Other Former SEC Officials at Promontory Financial
Former SEC Chairman Mary Schapiro has joined consulting firm Promontory Financial Group as a managing director and chairman of the firm’s governance and markets practice. Promontory primarily serves banks and financial services companies on strategy, risk-management, regulatory, and compliance issues. Schapiro was chairman of the SEC from January 2009 to December 2012. In a press release issued today, […]
Posted inRegulatory Enforcement
Lawmakers Demand Information on Cost of SEC’s Pursuit of Gabelli Litigation
As I discussed here in detail, on February 27, 2013 the U.S. Supreme Court unanimously rejected the Securities and Exchange Commission’s argument that the clock on its five-year statute of limitations to bring fraud cases should not begin to run until the time when the fraud is discovered. The 9-0 decision led many critics, including The Wall […]
Posted inRegulatory Enforcement
DOJ’s Breuer Joins Covington & Burling as Vice Chair
Lanny A. Breuer, the former Assistant Attorney General for the Criminal Division at the U.S. Department of Justice, will be rejoining the law firm of Covington & Burling as Vice Chair of the firm. The law firm stated that Breuer, who announced his resignation from the DOJ on January 30, 2013, will be based in Washington, D.C. and […]
Posted inRegulatory Enforcement
DOJ and SEC Allege $27 Million Insider Trading Scheme
The DOJ and SEC alleged yesterday that inside information shared with a hedge fund analyst and others by the chief information officer of Foundry Networks Inc. led to an over $27 million insider trading scheme. Prosecutors charged the Foundry executive, David Riley, and a hedge fund analyst named Matthew Teeple with conspiracy to commit securities fraud and three […]
Posted inFrom the Archive
Web Watch: Best of the Week Ending March 22
Throughout the week over at Securities Docket I highlight the most interesting columns and blog posts from around the web on the subjects of SEC enforcement and securities litigation. Here is a digest of my picks for the week ending March 22. Dechert Survey of Securities Fraud Class Actions Brought Against U.S. Life Sciences Companies […]
