In the last two years, plaintiffs’ lawyers have increasingly been bringing lawsuits under the Securities Act of 1933 (“Securities Act”), such as claims relating to public offerings, in state rather than federal court. ...more
In the last two years, plaintiffs’ lawyers have increasingly been bringing lawsuits under the Securities Act of 1933 (“Securities Act”), such as claims relating to public offerings, in state rather than federal court....more
A decision last week from the U.S. District Court for the Southern District of New York illustrates the broad reach of prosecutors and regulators in pursuing recipients of insider trading tips, despite the case-law...more
12/14/2018
/ Appeals ,
Breach of Duty ,
Dirks v SEC ,
Embezzlement ,
Fraud ,
Illegal Tipping ,
Insider Trading ,
Judge Rakoff ,
Motion to Dismiss ,
Personal Benefit ,
Rule 10b-5 ,
Securities Act of 1933 ,
Securities Fraud ,
US v Newman ,
US v Salman
The U.S. Supreme Court yesterday rejected the Securities and Exchange Commission’s longtime method of appointing administrative law judges (ALJs) to hear actions brought by its enforcement division. In Lucia v. Securities and...more
6/22/2018
/ Administrative Law Judge (ALJ) ,
Administrative Proceedings ,
Appeals ,
Appointments Clause ,
Constitutional Challenges ,
Enforcement Actions ,
Final Written Decisions ,
Lucia v SEC ,
Officers of the United States ,
Remand ,
Reversal ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Special Trial Judges (STJs)
Stock traders who thought they could trade freely on gifts of inside information so long as the givers were not their close friends should rethink their strategy. The U.S. Court of Appeals for the Second Circuit this week...more
The Supreme Court yesterday agreed to consider whether the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) precludes state court jurisdiction in actions that solely allege violations under the Securities Act of...more
A five-year statute of limitations applies to actions by the Securities and Exchange Commission for disgorgement, the U.S. Supreme Court ruled today. The decision imposes a significant new limit on the SEC’s ability to seek...more
In a case with important consequences for SEC enforcement, the U.S. Supreme Court has agreed to address whether a five-year statute of limitations applies to SEC actions seeking disgorgement of ill-gotten gains.
Courts...more
A recent federal appellate decision casts new doubt on the SEC’s practice of using its own administrative law judges (ALJs) to hear actions brought by the SEC Enforcement Division.
In a decision late last month, the U.S....more
The U.S. Supreme Court earlier today rejected an attempt to cut back on liability for insider trading where people give inside tips to family members and friends. In Salman v. United States, the Court unanimously held that...more
A federal appellate court recently held that the five-year statute of limitations in 28 U.S.C. § 2462 applies to actions by the Securities and Exchange Commission for declaratory relief and disgorgement. The decision extends...more
New York’s highest court earlier this month adopted a more lenient standard for reviewing certain types of corporate transactions between companies and controlling shareholders, similar to that adopted two years ago by...more
5/17/2016
/ Arm's Length Principle ,
Business Judgment Rule ,
Buyouts ,
Controlling Stockholders ,
Corporate Counsel ,
DE Supreme Court ,
Entire Fairness Standard ,
Going-Private Transactions ,
Kenneth Cole ,
Popular ,
Shareholder Litigation ,
Standard of Review ,
Young Lawyers
A case heading to the Supreme Court could dramatically change insider trading law that bars trades by recipients of stock tips. In consenting earlier this year to hear the defendant’s appeal in United States v. Salman, 792...more