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 April 22.

Securities Suits Against Chinese Companies Continue to Mount

The D&O Diary | Kevin LaCroix | Apr 22, 2011

These three new securities class action lawsuits follow closely on the heels of the four accounting-related lawsuits involving Chinese companies filed earlier this month.... With these three latest lawsuits, there have now been a total of 14 securities class action lawsuits filed against Chinese and China-liked companies in 2011, out of a total of about 61 securities lawsuits that have filed so far this year, meaning that the suits against Chinese companies represent about 23% of all securities lawsuits filed so far this year. Ten of these have been filed just in the last 30 days. The signs are that this recent outburst of new lawsuit filings involving Chinese companies will likely continue.

Deconstructing the Galleon Insider Trading Case

WSJ | Jonathan Macey | Apr 22, 2011

The prosecution of Mr. Rajaratnam is not an isolated fight but rather part of an ongoing doctrinal war pitting the rather extreme views of the Securities and Exchange Commission against the carefully considered law of insider trading articulated by the Supreme Court. The SEC does not draw a distinction between trading on the basis of legitimate albeit unorthodox research and illegal trading on the basis of improperly acquired proprietary information. But it should.

What Does Effective FCPA Compliance Look Like?

Corporate Counsel | Ryan D. McConnell, Katharine Southard, and Charlotte Simon | Apr 22, 2011

Last week, Johnson & Johnson entered into a deferred prosecution agreement with the Justice Department for violating the Foreign Corrupt Practices Act (FCPA). Although the agreement has been touted as novel for the reduced fine J&J received in exchange for cooperating against other companies and individuals, the agreement confirms the importance of assessing FCPA policies and internal controls. Companies continue to struggle, however, with how corporate policies address FCPA risk. An empirical look at the Codes of Conduct of the Fortune 500 companies provides some answers.

Special Report: From Hannibal Lecter to Bernie Madoff

Reuters | Matthew Goldstein | Apr 21, 2011

Bernard Madoff -- the architect of history's biggest Ponzi scheme -- and Gary Ridgway - the Green River killer -- would seem to have little in common aside from being branded as "monsters" in the tabloids. But a team of FBI agents, the same ones who specialize in helping local police track down serial killers like Ridgway, are using their expertise in behavioral profiling to target white collar criminals like Madoff.

Topics