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SEC Changes Course, Concludes Mandatory Arbitration Provisions Do Not Conflict With Federal Securities Laws

The US Securities and Exchange Commission (SEC) recently changed its longstanding position disfavoring the inclusion of certain mandatory arbitration provisions in corporate certificates of incorporation or bylaws. As Chair...more

Department of Justice Launches Cross-Agency Task Force to Combat Trade Fraud

On August 29, 2025, the US Department of Justice (DOJ) announced the formation of a cross-agency Trade Fraud Task Force to “identify and combat trade fraud that threatens [US] economic and national security interests.”...more

Sixth Circuit Shields Internal Investigation Materials From Discovery

In a closely watched case, the US Court of Appeals for the Sixth Circuit recently took a significant step to protect the attorney-client privilege over materials produced during internal investigations by companies. On August...more

Securities Class Action Trends: AI and Biotech Cases Continue to Rise, Uptick in Alleged Losses and Average Settlement Values

Two leading consulting and expert firms – Cornerstone Research and NERA – recently issued their midyear reports on securities class actions. Both reports noted that the number of filings in H1 2025 remained steady, but...more

Dissemination of One’s Own Misstatements Does Not Create Scheme Liability, Says New York Court

On July 16, 2025, the US District Court for the Eastern District of New York dismissed a scheme liability claim in an enforcement action brought by the US Securities and Exchange Commission (SEC) against a company’s former...more

California Supreme Court Saves Delaware Forum Selection Clauses in Corporate Certificates of Incorporation

On July 21, 2025, the California Supreme Court issued a significant decision clarifying that a forum selection clause in a company’s certificate of incorporation is not unenforceable simply because the selected forum (here,...more

US DOJ Memo Clarifies DEI Compliance for Federal Funding Recipients

On July 30, 2025, US Attorney General Pam Bondi released a memo to all federal agencies titled “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination.” This document clarifies how federal...more

‘Whole-of-Government Approach’ Targets Healthcare Fraud From Every Angle

Just months after the US Department of Justice (DOJ) designated healthcare fraud as one of its key criminal enforcement priorities, two recent announcements underscore the federal government’s continued focus on combating...more

DOJ Resumes Foreign Bribery Investigations, Focusing on ‘Vindication of US Interests’

On June 9, 2025, the Department of Justice (DOJ) issued new guidelines for investigations and enforcement of the Foreign Corrupt Practices Act (FCPA), following a four-month pause of new FCPA investigations per President...more

US Supreme Court Upholds Wire Fraud Convictions, Says Economic Loss Not Required

When an executive learns that she is being investigated for fraud, her first reaction often is: “But I didn’t intend for anyone to lose money!” This entirely understandable response may well be true (and lead the executive to...more

Complaint Against Uniform Company for Customs Duties Underpayment Highlights False Claims Act Risks for Tariff Compliance

As we discussed in this April 7 blog post, the US Department of Justice (DOJ) can pursue civil penalties for tariff evasion under the False Claims Act (FCA), including against companies that are aware of tariff evasion by...more

SEC Announces New Cyber and Emerging Technologies Unit

On February 20, 2025, the US Securities and Exchange Commission (SEC) announced the creation of a new enforcement unit – the Cyber and Emerging Technologies Unit (CETU). The SEC’s announcement made clear that the new unit...more

US Supreme Court: Pure Omissions Not Actionable Under Rule 10b-5(b)

On April 12, 2024, the US Supreme Court reversed the US Court of Appeals for the Second Circuit’s decision in Macquarie v. Moab Partners and held that a pure omission cannot form the basis of a securities fraud claim under...more

Trending in securities class actions: Section 10(b) claims predominate, Ninth Circuit sees uptick, according to Cornerstone Report

Cornerstone Research (a top consulting and expert testimony firm) issued its 2023 Year in Review report, examining recent trends in securities class action filings. According to the report, in 2023 there was a slight uptick...more

Second Circuit Highlights Difficulty in Pleading Fraud Claims Involving the Interpretation of Clinical Data

Plaintiffs often file securities fraud claims against pharmaceutical companies alleging that the company misled investors about clinical data, despite the US Food and Drug Administration (FDA) subsequently approving the drug...more

DOJ Announces New Safe Harbor Policy for Voluntary Self-Disclosure in M&A

The Department of Justice continues to make clear that one of its principal corporate enforcement priorities is encouraging companies to voluntarily self-disclose misconduct. To that end, the DOJ recently announced its...more

Supreme Court Rules FCA Liability Turns on Subjective Belief, Not Objective Reasonableness

Key takeaways - The US Supreme Court held that for the scienter element of the False Claims Act (FCA), what matters is the defendant’s “knowledge and subjective beliefs” – not objective reasonableness...more

When the Whistle Blows, Listen Carefully – and Consider Self-Disclosure

On February 22, 2023, the US Department of Justice announced a new voluntary self-disclosure policy for corporate criminal enforcement in US attorney’s offices nationwide. The policy offers concrete and meaningful incentives...more

Buyer (and Seller) Beware: SEC Adopts Final Rules on 10b5-1 Trading Plans

The Securities and Exchange Commission has long focused on pursuing potential insider trading violations, and its recent enforcement efforts serve as a stark reminder that the Commission has made insider trading cases a...more

In re Nektar Therapeutics: Ninth Circuit Affirms Dismissal of Securities Class Action Arising from Failure of Clinical Drug...

Summary - On May 19, 2022, a panel of the Ninth Circuit unanimously affirmed the district court’s dismissal of a putative securities fraud class action accusing Nektar Therapeutics and several of its executives of...more

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