Policy Violations

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Industry Concerns Prompt SEC To Modify MCDC Initiative

In response to concerns raised by industry participants, the Securities and Exchange Commission (SEC) has made some modifications to its Municipalities Continuing Disclosure Cooperation Initiative (MCDC Initiative). The SEC...more

Arizona Golf Club Liable for Paperwork Violations on Its I-9 Forms

As regularly reported in the news, the crackdown on employers by the federal government continues. If your company is targeted and I-9 violations are discovered, civil fines for simple paperwork violations – even if no...more

Because M&A Due Diligence Was Not Already Complicated Enough…

A recent federal appeals court decision suggests that businesses looking at potential acquisitions or mergers have yet another, relatively new concern to their due diligence list when examining the target business: an...more

Three, Two, One, Blast Off! Illinois Court Finds Coverage for Blast Fax TCPA Violations

Last year, the Illinois Supreme Court held statutory damages of $500 per occurrence for violations of the Telephone Consumer Protection Act (TCPA) were not punitive in nature and reversed an Illinois appellate court decision...more

SEC Charges Investment Adviser With Improper Conduct in Two Proceedings

The Commission filed two settled administrative proceedings involving Western Asset Management Co., a subsidiary of Legg Mason, Inc. One centered on the failure of the firm to promptly disclose to clients that a coding error...more

Insurer Does Not Have a Duty to Defend Insured when Allegations in the Complaint are Intentional, Criminal Conduct Under E&O...

Utica Mutual Ins. Co. v. Amity Ins. Agency, Inc., 84 Mass. App. Ct. 1111; 993 N.E.2d 752 (published in table format in the North Eastern Reporter, not binding precedent) (entered, September 17, 2013). A recent decision...more

CFPB Sues Law Firm Over Alleged RESPA Violations

On October 24, the CFPB announced the filing of a lawsuit against a Kentucky law firm and its principals for allegedly violating Section 8 of RESPA by operating a network of affiliated companies in order to pay “kickbacks”...more

SEC: Zero Tolerance for Short Selling Violations

On September 17, 2013, the Securities and Exchange Commission (the “SEC”) announced enforcement actions against 23 firms for violations of Rule 105 of Regulation M. Rule 105 prohibits the purchase of securities in a follow-on...more

Another Frightening Warning to Management: You May Be Held Individually Liable For Violations of the FLSA

On September 20, 2013, the Eastern District of Missouri put executive level management on notice once again that so-called C-suite managers (in this case the CEO, President and Vice President) can be "employers" under the...more

Court Rules That Employees Involved In Alleged FMLA Violations Can Be Held Personally Liable

A federal district judge in Illinois recently ruled that a former employee may proceed with his interference and retaliation claims under the Family and Medical Leave Act (FMLA) against his former employer’s Human Resources...more

CFPB Takes Enforcement Action Against Payment Processor for Violations of Telemarketing Sales Rule

The CFPB filed a complaint and proposed order with the United States District Court for the Western District of Washington against a payment processor for the debt settlement industry alleged to have violated the...more

Foreign National Physician Sues Former Employer Provider Alleging Forced Labor Violations

A lawsuit brought by a foreign national doctor earning a six-figure income against the physician owner of his former employer alleging violations of a federal forced labor statute is being allowed to go forward, with the...more

Evaluating Employer Insurance Coverages to Defend against Claimed Violations of the Affordable Care Act

Employers have long been subject to lawsuits brought by employees for employment actions such as wrongful termination, discrimination and harassment. With the opening this week of the Health Insurance Marketplaces and the...more

United States v. Lang: Eleventh Circuit Clarifies How Structuring Violations Must be Pled in Federal Criminal Cases

On October 3, 2013, the United States Court of Appeals for the Eleventh Circuit issued its decision in United States v. Lang clarifying how future indictments for structuring in violation of 31 U.S.C. § 5324(a)(3) must be...more

SEC "Zero Tolerance" Nets Nearly Two Dozen Firms for Alleged Violations of Short Sale Rule

Hedge fund and other private investment fund managers, both domestic and foreign, those registered or not, beware. SEC Chairman Mary Jo White's crackdown on securities violations continued last Tuesday with the announcement...more

DOJ And NLRB Agree To Cooperate In Investigating Labor And Immigration Law Violations

On July 8, 2013, the U.S. Department of Justice (DOJ) announced that the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) had entered into a Memorandum of...more

SEC Charges Former Head of Investor Relations with Violating Regulation FD for Indirect Selective Disclosure

On September 6, 2013, the SEC announced that it had brought charges against, and settled with, the former head of investor relations at an Arizona-based solar energy company for alleged violations of Regulation FD. Regulation...more

Renewed Focus on an Old Rule: SEC Steps Up Rule 105 Enforcement Efforts

On September 17, 2013, the Securities and Exchange Commission (SEC or “Commission”) announced settled enforcement actions against 23 firms for short selling in violation of Rule 105 of Regulation M, which limits the ability...more

Fix My Merger – Lessons from FTC Bureau Director Feinstein on the Use of Consent Orders to Remedy Anticompetitive Mergers

In her first speech since becoming Director of the Federal Trade Commission’s Bureau of Competition, Deborah Feinstein highlighted five benefits arising from addressing antitrust violations through consent orders and...more

Tell One, Tell All, The Risks Of Selective Disclosure

On September 6, 2013, the SEC charged the former head of investor relations at First Solar Inc., an Arizona-based solar company, with violating Regulation FD, which is designed to prevent issuers from selectively disclosing...more

Meeting Held 26 Miles From District Office Violates OMA

The Public Access Counselor of the Illinois Attorney General’s office recently issued a binding opinion holding that a board of trustees for a fire protection district violated section 2.01 of the OMA by “holding a meeting at...more

Washington Announces Enforcement Action Against Mortgage Transmitter

On August 26, the Washington State Department of Financial Institutions announced that it issued a statement of charges against a company that accepts and transmits mortgage payments on behalf of homeowners in the state,...more

Bad Faith Sentinel - August 2013

In This Issue: - Eastern District of Pennsylvania: Insurer’s “Paid When Incurred” Practice is Not Bad Faith or a Violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law - California Court...more

Tracking Patterns of Violations in Mines

In the mining industry MSHA enforcement of “pattern of violations” sanctions can be devastating to a mine operator’s business....more

The Final Nail In the Coffin on EPA’s Enforcement Initiative Against Historic PSD Violations? The Third Circuit Agrees That PSD...

Only last month, the 7th Circuit ruled that alleged violations of the Clean Air Act’s PSD requirements are not ongoing....more

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