The new Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act” or the “Act”) will have significant consequences for public companies across every industry. Indeed, less than a week after President Obama signed the Act into law, there has already been a complaint filed under the Act’s “whistleblower” provisions, according to the announcement of the filer’s legal counsel. Undoubtedly, there will be many more such filings and many more such announcements. Companies should take steps to better position themselves for whistleblower complaints, government investigations, and securities litigation and enforcement under the Dodd-Frank Act. Ultimately, these steps boil down to the not-so-new issue of how to create a corporate culture that minimizes the securities fraud risk exposure of the company, its officers and directors, and its employees. In this article, we briefly summarize the provisions of the Act from a litigation/enforcement perspective and then discuss these steps companies can take to prepare for the new regulatory scheme. Read the entire article here.

For more information, please contact Vinson & Elkins lawyers David Woodcock or Michael Holmes. Visit our website to learn more about V&E's Securities Litigation and Enforcement practice, or e-mail one of the practice contacts.