On May 18, 2022, the Fifth Circuit issued an opinion vacating a Securities and Exchange Commission (“SEC”) Administrative Law Judge’s (“ALJ”) decision that George Jarkesy, Jr. (“Jarkesy”) and his investment adviser Patriot28, L.L.C. (“Patriot28”) committed securities fraud.
On May 6, 2022, the Securities and Exchange Commission (“SEC”) announced a $5.5 million settlement of charges against NVIDIA Corporation (“NVIDIA”) for allegedly failing to adequately disclose in the Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) section of its Forms 10-Q the fact that cryptomining was a significant factor in the year-over-year growth in its more traditional gaming business.
On April 18, 2022, the Securities and Exchange Commission (“SEC”) announced the fourth enforcement action arising from its EPS Initiative, charging Rollins Inc. (“Rollins”) and its former chief financial officer (“CFO”) with violating Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Sections 13(a), 13(b)(2)(A), and 13(b)(5) of the Securities Exchange Act of 1934 (“Exchange Act”) by engaging in improper accounting practices in order to boost the company’s publicly reported quarterly earnings per share (“EPS”) to meet research analysts’ consensus estimates.
On March 9, 2022, the Securities and Exchange Commission (“SEC”) announced Proposed Rules on cybersecurity risk management, strategy, governance, and incident disclosure (“Proposed Rules”) to address concerns of increasing cybersecurity threats to public companies.
For those facing a potential enforcement recommendation at the close of a white collar investigation, choosing whether to litigate against or settle with the government agency is a critical strategic crossroads.
Following hot on the heels of the eagerly anticipated release of a proposed rule regarding climate-related disclosures (The Enhancement and Standardization of Climate-Related Disclosures for Investors), the Securities and Exchange Commission’s (“SEC”) Division of Examinations (“the Division”) released its Examination Priorities for FY 2022 on March 30, 2022.
Foreign Corrupt Practices Act Enforcement Leaders at the DOJ and SEC Signal Increased Enforcement, an Upswing in Coordinated Investigations and Resolutions, and a Focus on Individual Actors to Dismantle Corporate Wrongdoing
Both the SEC and DOJ are looking to stay ahead of emerging trends in securities enforcement by looking for a role for regulators in today’s marketplace trends
The Securities and Exchange Commission’s (the “SEC”) escalating focus on investment advisor compliance is continuing into 2022.
Earlier this week, the Securities and Exchange Commission (“SEC”) announced a $125 million settlement of charges against Nikola Corporation (“Nikola”), a publicly-traded company created through a special purpose acquisition company (“SPAC”) transaction, for allegedly defrauding investors by misleading them about its products, technical advancements, and commercial prospects.
On August 3, 2021, Securities and Exchange Commission (“SEC”) Chair Gary Gensler made headlines when he dubbed the current cryptocurrency landscape the “Wild West.”