Court Rules Dodd-Frank’s Wells Notice Deadline Is Internal


Section 929U of the Dodd-Frank Act provides:

Not later than 180 days after the date on which Commission staff provide a written Wells notification to any person, the Commission staff shall either file an action against such person or provide notice to the Director of the Division of Enforcement of its intent to not file an action.

The same statute also provides an exception which allows the deadline to be extended in certain circumstances.

In SEC v NIR Group LLC, E.D.N.Y., CV 11-4723, the defendants sought certain discovery regarding the SEC’s compliance with Section 929U of the Dodd-Frank Act.  The court held the discovery was neither relevant nor reasonably calculated to lead to admissible evidence.

The court found the deadline in 929U imposes only an internal deadline on the SEC and not a right to be free from any agency action occurring beyond the internal deadline.

The court noted that the targets of an SEC probe that extended beyond the deadline may well be entitled to initiate an administrative proceeding or file a declaratory judgment action to compel agency action.

Check frequently for updated information on the JOBS Act, the Dodd-Frank Act and other important securities law matters.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Stinson Leonard Street - Dodd-Frank and the Jobs Act | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.