The Securities and Exchange Commission is asking a court of appeals to delete a footnote ruling that most legal experts expected would prompt changes in the way the Commission crafts civil injunctions, one of its most widely used enforcement tools, Compliance Week has learned. NOTE Update According to an email received the morning this story […]
Regulatory Enforcement
Posted inRegulatory Enforcement
WorldCom Settlement With “Opt Out” Plaintiffs Expected
When Manhattan federal judge Denise Cote last month gave final approval to the $6.1 billion class-action settlement with WorldCom investors, it seemingly closed the books on the largest fraud in US history. Not so fast. According to several sources, a significant private settlement with WorldCom will be formally announced on or about Oct. 15. The […]
Posted inRegulatory Enforcement
Don’t Be Misled By Recent Dismissals; Trend Still Down
Arecent flurry of class action lawsuit dismissals might lead you to believe that federal judges have become fed up with seemingly frivolous lawsuits. But the overall trend for dismissals is still down, and the “types” of the latest dismissals provide that the plaintiffs can—and likely will—refile their cases. In the past few weeks alone, at […]
Posted inBoards & Shareholders
Lessons From The Not-So-Wonderful World Of Disney
The Walt Disney Company has transformed many engaging fairy tales and stories into fantastic animated and live-action movies. Unfortunately, over the last decade, the most intriguing Disney productions have emanated from its corporate executive suite. From the highly-publicized trial in Delaware Chancery Court regarding Michael Ovitz’s compensation and termination packages, to James Stewart’s gripping and […]
Posted inRegulatory Enforcement
Threat Of Morgan Stanley Fine Highlights Perils Of Email
Reports this month that the Securities and Exchange Commission is threatening to fine Morgan Stanley more than $10 million for failing to keep certain email highlights the perils that exist for companies that fail to manage electronic communications properly. Yelton The risks that organizations face when it comes to email retention—or failing to have and […]
Posted inRegulatory Enforcement
Case Serves As Reminder On Attorney-Client Privilege
Arecent ruling by a federal appeals court provides a pointed reminder to companies that they need to be careful when conducting investigations to ensure that they don’t give up the flexibility to fully cooperate with regulators and prosecutors. Although it has become commonplace for companies to agree to cooperate with government investigators, that pledge can […]
Posted inRegulatory Enforcement
Court Rebukes SEC’s Enforcement Of Regulation FD
Afederal judge in New York has issued the first rebuke of the Securities and Exchange Commission’s efforts to enforce Regulation Fair Disclosure—which bars U.S. companies from selectively disclosing to securities analysts material information that has not been made available to the public. Under “Reg. FD,” an issuer making an intentional disclosure of material, nonpublic information […]
Posted inRegulatory Enforcement
Ruling To Spark Changes In Wording Of Civil Injunctions
Arecent ruling by the 11th Circuit Court of Appeals is expected to prompt changes in the way the Securities and Exchange Commission crafts one of its most widely used enforcement tools, experts say. In a footnote near the end of its opinion in SEC v. Smyth, the U.S. Court of Appeals for the 11th Circuit […]
Posted inInternal Controls
Internal Controls Cited In Settlement With Exempt Issuer
In a recent administrative settlement involving an issuer that is not subject to the registration and reporting provisions of federal securities laws, the Securities and Exchange Commission raised eyebrows by premising its action, in part, on a weaknesses in internal controls. The case, settled in August, involved a so-called “Section 529” college savings plan, which […]
Posted inRegulatory Enforcement
Cutting Deals: KPMG & Deferred Prosecution Agreements
The U.S. arm of Big Four firm KPMG has agreed to pay $456 million in penalties in three installments over the next 16 months, to admit to a single count of conspiracy to commit tax fraud, and to accept an outside monitor of its operations as part of a deal with the government to avoid […]
