The Financial Industry Regulatory Authority (“FINRA”) recently released its annual Risk Monitoring and Examination Activities Report (the “Report”).
To settle enforcement matters, the U.S. Securities and Exchange Commission (“SEC”) often seeks to require non-monetary conditions on top of civil monetary penalties from companies that have allegedly violated federal securities laws.
On January 1, 2021, the National Defense Authorization Act (NDAA) for Fiscal Year 2021 became law. Section 6501 of the NDAA includes amendments to the Securities Exchange Act of 1934 (the “Exchange Act”), expanding the Securities and Exchange Commission’s (the “SEC”) ability to obtain disgorgement and other equitable relief in cases involving securities fraud.
On November 30, 2020, shareholders in Pinterest, Inc. filed a derivative lawsuit in the Northern District of California against Pinterest and nine of its officers and directors.
A recent decision out of the Southern District of Florida highlights the importance of businesses taking an expansive approach when considering whether to register as a broker dealer and the applicability of other requirements under the federal securities laws …
The global coronavirus pandemic has brought confusion and uncertainty to just about every aspect of life, but one thing remains constant: following a dramatic drop in stock price, an issuer’s public statements will be scrutinized, and securities litigation may follow.
In early June, federal agencies brought some of the first enforcement actions against COVID-19 securities fraudsters, involving over $100 million in fraudulent claims and profits, making good on their promise to investigate and prosecute those seeking to fraudulently capitalize on the COVID-19 crisis.
Scrutiny into Paycheck Protection Program Loans Intensifies — Attracts SEC Attention
As COVID-19 continues to claim lives and disrupt the global economy, the U.S. Securities and Exchange Commission (the “SEC”) has begun taking a number of actions to protect investors from COVID-19-related frauds.
A recent decision out of the Southern District of New York emphasizes the importance of considering all obligations under the federal securities laws for any transaction that might involve a “security.”
The SEC’s Enforcement Division recently issued a statement emphasizing the “importance of maintaining market integrity and following corporate controls” during the stock market volatility caused by the COVID-19 outbreak.1