Regulatory Enforcement

In the Security and Exchange Commission’s now-famous “Statement on the Relationship of Cooperation to Agency Enforcement Decisions,” the Commission outlined criteria it would consider when determining how much to credit firms for “self-policing, self-reporting, remediation and cooperation.” According to the statement, cooperative behavior actions by companies could result in reduced charges, lighter sanctions, mitigating language […]

According to a recent study by PricewaterhouseCoopers, the total number of private securities class action cases filed in 2003 was 175, down from 218 the prior year and only 89 percent of the yearly average over the past six years. Though the general trend is down from a high of 245 cases in 1998, the […]

Last week, the chairman of $435 million railcar manufacturer filed a lawsuit against his own company. The suit was filed by Alan James after the board of The Greenbrier Companies adopted a poison pill against his wishes. The suit alleges that board members breached their fiduciary duties to shareholders, and seeks a rescission of the […]

According to a recent study, the number of securities litigation cases with accounting allegations remains well above historical averages. Settlement values are creeping up, as well.

Did the Securities and Exchange Commission let off the hook a company it had charged with wrongdoing because it cooperated with an investigation? It sure seems like it at first glance. Last week, the regulator announced that Judge Barefoot Sanders, United States District Judge for the Northern District of Texas, entered an order dismissing the […]

Applied Micro Circuits Corp. is the latest company to agree to corporate governance changes as part of an overall settlement of a shareholder lawsuit. The designer of microchips for optical networks was sued after it was accused of making a series of false statements during late 2000 and early 2001, which allegedly boosted its stock […]

When the Securities and Exchange Commission recently charged Siebel Systems with violating Regulation Fair Disclosure, the maker of business software enjoyed a couple of dubious firsts. For example, it was the first company to be charged for a Reg. FD violation for the second time. In addition, the Commission charged Siebel with violating Exchange Act […]

Has the legal community declared war on Sarbanes-Oxley? Probably not. But, there is some evidence that they are either beginning to chip away at the nearly two-year-old legislation, or at least willing to challenge some of its provisions. “It’s easier to attack it than a year ago,” asserts David Katz, partner at Wachtell, Lipton, Rosen […]

Bonita Springs, Fla.-based real estate developer WCI Communities announced that a former division president recently filed a lawsuit against the company and top management. Robert Hanna filed the suit June 30 under Sarbanes-Oxley whistleblower provisions, alleging he was terminated for raising issues after the company inflated yearly expectations and dumped assets at the last minute […]