This Week In Securities Litigation

by Dorsey & Whitney LLP
Contact

The Commission, in conjunction with the Manhattan U.S. Attorney’s Office, filed an insider trading case against a sitting U.S. Congressman, his son and others. The case, based on a drug trial failure at a firm on whose board the Congressman sat, comes at a time when the Congressman is still under investigation regarding his board membership and promotion of the firm’s stock.

The Commission also brought two other insider trading cases along with one based on an incorrect earnings projection. Two additional cases involved offering frauds and two others centered the failure to disclose conflicts detrimental to clients by investment advisers.

SEC Enforcement – Filed and Settled Actions

Statistics: Last week the SEC filed 5 civil injunctive cases and 5 administrative proceedings, excluding 12j and tag-along proceedings.

Conflicts; In the Matter of Jinesh P. Brahmbhatt, Adm. Proc. File No. 3-18635 (August 9, 2018) is a proceeding which names as a Respondent the founder of Jade Private Wealth Management, LLC, a defunct investment adviser that provided concierge services to athletes. Both its founder and the firm suffered from a lack of finances. Success Trade Securities, Inc., and its founder, both of whom are the subject of another Commission action, befriended Respondent and over a period of about four years beginning in 2009 loaned him about $1.2 million. The money supported Jade and its founder. While the transactions were denominated as loans they were treated more like gifts between the two firm owners who were acquaintances. Employees of Jade began working at the broker dealer. When Success Trade had financial difficulties Jade recommended to its clients that they invest in the notes of the broker which had returns as high as 30%. Over a four year period clients were also encouraged to roll over about $20 million in notes of Success Trade. No disclosure was made of the relationship between the firms. The Order alleges violations of Advisers Act sections 206(1) and 206(2) based on a breach of fiduciary duty in failing to disclose the conflict. Respondent resolved the proceedings, consenting to the entry of a cease and desist order based on the sections cited in the Order and to a bar from the securities business and from participating in any penny stock offering. Respondent will also pay disgorgement of $1,258,691, prejudgment interest of $170,134 and a penalty of $150,000. See also In the Matter of Ramnik S. Aulakh, Adm. Proc. File No. 3-18634 (August 9, 2018)(Mr. Aulakh was the COO of Jade and aided and abetted the actions detailed in that proceeding; resolved with the entry of a cease and desist order on the same basis, a similar bar order and the imposition of a $50,000 penalty).

Soft dollars: In the Matter of Knowledge Leaders Capital, LLC, Adm. Proc. File No. 3-18633 (August 9, 2019) is a proceeding which names the registered investment adviser as a Respondent. The firm, with the approval of its internal committees, used about $1 million to purchase research from an affiliated firm. Specifically, the managing director of the firm and its CIO developed proprietary software that the firm used with regard to its management decisions. Over time the amount paid for the software increased. No disclosure was made of the conflict. When the CIO became the majority owner of the firm and its CEO he had it self-report. The firm cooperated with the staff in its investigation and took remedial steps including agreeing to implement a series of undertakings. The Order alleges violations of Advisers Act section 206(4) regarding failure to properly implement a compliance system. The firm consented to the entry of a cease and desist order based on the section cited in the Order. It also agreed to pay a penalty of $50,000.

Insider trading: SEC v. Collins, Civil Action No. 18-cv-7128 (S.D.N.Y. Filed August 8, 2018); U.S. v. Collins, No. 18 crim 567 (S.D.N.Y. August 8, 2018). Each action names as a defendant Christopher Collins, a Congressmen from New York, Cameron Collins, his son and Stephen Zarsky, the father of Cameron’s then girlfriend (now fiancée). The action centers on the announcement by Australian Pharmaceutical Company Innate Immunotherapeutics, Ltd. following the the close of trading on Monday, June 26, 2017 of negative drug trial results for the firm’s only pharmaceutical product. The share price plunged 90%. Congressman Collins has been a member of Innate’s Board of Directors for three years. He was one of the firm’s largest shareholders. By 2014 Innate began developing a drug known as MIS416 which was intended to treat multiple sclerosis. A clinical trial to test the efficacy of the drug began. On June 22, 2017 Innate’s CEO sent an email at 6:55 p.m. to the board of directors, including Christopher Collins, with the results. The trial had been a failure, according to the email: “Top-line 12 month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo.” The Congressman was attending a Congressional Picnic at the White House at the time he received it. His responding email stated that the results made no sense. The Congressman then began trying to call his son. Six missed calls were placed from 7:11 p.m. to 7:15 p.m. At 7:16 p.m. father and son spoke on the phone for over six minutes. Cameron learned what his father already knew – the drug trial failed. While the firm informed the directors it also decided not to announce the results of the drug trial until after the close of business on Monday, June 26, 2017. The next morning Cameron Collins began placing orders to sell his Innate shares. On Friday and Monday he continued to place orders, at times canceled them, and then placing additional orders. By the time of the company announcement on Monday he had sold almost 1.4 million, avoiding losses of about $570,000. Others told by Cameron Collins or Mr. Zarsky about the trial failure also sold shares. Those included his girlfriend, Mr. Zarsky, his wife and a friend of Cameron as well as Mr. Zarsky’s brother, his sister and a long standing friend. At times their trading represented the bulk of the trading volume in the market for the stock. All avoided substantial losses. Subsequently, Congressmen Collins, his son and Mr. Zarsky were interviewed by the FBI. The three men lied, according to the indictment. The indictment alleges five counts of securities fraud, two counts of conspiracy, one count of wire fraud and three counts of making false statements. The SEC’s complaint alleges violations of Exchange Act section 10(b) and Securities Act section 17(a)(1). The two cases are pending. Lauren Zarsky, Cameron’s girlfriend, and her mother Dorothy settled with the Commission, consenting to the entry of permanent injunctions based on the sections cited in the complaints. Lauren Zarsky agreed to pay disgorgement of $19,440, prejudgment interest of $839 and a penalty equal to the amount of the disgorgement. See SEC v. Lauren Zarsky, Civil Action No. 18-cv-7129 (S.D.N.Y. Filed August 8, 2018). Dorothy Zarsky agreed to pay disgorgement of $22,600, prejudgment interest of $975 and a penalty equal to the amount of the disgorgement. See SEC v. Dorothy Zarsky, Civil Action No. 18-cv-7130 (S.D.N.Y. filed August 8, 2018). Lauren Zarsky, a CPA, also agreed to be suspended from appearing or practicing before the Commission as an accountant with the right to apply for reinstatement after five years.

Fictitious trades/false books: SEC v. Palermo, Civil Action No. 18-cv-03747 N.D. Ga. Filed August 8, 2018) is an action which names as a defendant Salvadore Patermo, formerly a trader at J.P. Turner & Co. LLC which is now defunct. Mr. Palermo had purchased market-linked certificates of deposit in a quantity that exceeded the firm’s inventory limits. Rather than sell the instruments he placed a series of fictitious trades which made it appear that he had sold them. That resulted in the inventory records at the firm being inaccurate. The complaint alleges that he aided and abetted violations of Exchange Act section 17(a) by the firm. The case is pending. See Lit. Rel. No. 24229 (August 8, 2018).

Misleading projection: In the Matter of Ribbon Communications, Inc., Adm. Proc. File No. 83791 (August 7, 2018). Ribbon Communications, formed in October 2017, is a holding company for the combination of GENBRAND LLC and Sonus Networks, Inc. Sonus provides products and services for Cloud communications. Respondent Mark Greenquist was the CFO of Sonus. Respondent Michael Swade was the senior vice president of sales, Americas at Sonus. The Order centers on a revenue estimate for Q1 2015 made on January 8, 2015 and reiterated on February 18, 2015. On January 8, Sonus issued a press release quoting Mr. Greenquist as stating that he was “comfortable” with the consensus analyst revenue estimate for the first quarter of $74 million. The statement reaffirmed guidance given in December 2014. At the time the estimate was given, the CFO was aware of information which undermined the projection which included: The fact that revenue had been pulled forward in the last quarter of 2014, depleting the potential sales for the first quarter; and the fact that the back log of deals for Q1 2015 was low as were the sales. Despite being uncomfortable with the estimate Mr. Greenquist reiterated the Q1 2015 guidance of $74 million. Prior to the February 18th statement, which again reiterated the guidance, Sonus held its Global Sales Conference. During the Conference Mr. Swade directed the sale force to figure out how the gap between committed pipeline deals and those needed to make guidance would be closed. Internal e-mails confirm that the sales force was instructed to improperly reclassify enough deals for the first quarter to close the gap. Millions of dollars worth of deals were reclassified to support the projection. Ultimately most of the reclassified deals did not close in time to support the projection. On February 18, 2015 during the firm’s fourth quarter and full year 2014 financial results conference call Mr. Greenquist provided Sonus’ formal guidance for Q1 2015, reaffirming the $74 million projection. By March 24, 2015 the firm was forced to issue a press release correcting guidance in the wake of sale force updates to the revenue number. Guidance was revised down to a range of $47 to $50 million. The share price dropped over 33%. Ultimately the firm reported revenue of $50.1 million for the first quarter. The Order alleges violations of Securities Act section 17(a)(2) and Exchange Act section 13(a). To resolve the proceedings each Respondent consented to the entry of a cease and desist order based on the sections cited in the Order. In addition, Ribbon agreed to pay a penalty of $1.9 million while Mr. Greenquist will pay $30,000 and Mr. Swade $40,000.

Muni securities: SEC v. City of Victorville, Civil Action No. 13-cv-00776 (C.D. Cal.) is a previously filed action against the City of Victorville, California, its Airport Authority, and Janees Williams, a senior executive with the underwriting firm, among others. The action centered on a $13 million “tax increment” bond offering in which investors were not told that the that the tax revenue projections for repayment were overvalued by 36%. The court entered final judgments against the City and the Airport Authority based on Securities Act section 17(a)(2). The order as to the City also directs that it not issue any municipal securities until an independent consultant reviews their internal controls and practices and that person’s recommendations are implemented. The judgment as to Ms. Williams is based on Exchange Act section 10(b) and the fair-dealing in municipal securities provisions of Exchange Act section 15B(c)(1) and MSRB Rule G-17. The litigation continues as to the underwriting firm and another party. See Lit. Rel. No. 24227 (August 7, 2018).

Insider trading: In the Matter of Aaron R. Smith, Adm. Proc. File No. 3-18625 (August 7, 2018) is an action which centers on the acquisition of Valley Commerce Bancorp by CVB Financial Corporation, announced on September 22, 2016. Prior to that date Mr. Smith learned from his father, a director of Valley Commerce, about the deal. He misappropriated the information and traded, buying 6,000 shares of Valley Commerce stock. When the deal was announced the share price increased 37%. Mr. Smith had profits of about $41,000. The Order alleges violations of Exchange Act section 10(b). To resolve the proceedings Respondent consented to the entry of a cease and desist order based on the section cited in the Order. In addition, he agreed to pay disgorgement of $40,578.28, prejudgment interest of $3,205.07 and a penalty equal to his trading profits.

Offering fraud: SEC v. Murakami, Civil Action No. 1:17-cv-10928 (D. Mass.) is a previously filed action against adviser Yasuna Murakami and his two funds, MC2 Capital Management, LLC and MC2 Canada Capital Management, LLC in which the Court entered a final judgment. The complaint alleged that Defendants misappropriated about $1.3 million in investor funds in violation of Securities Act section 17(a), Exchange Act section 10(b) and Advisers Act sections 206(1) and 206(2). In a parallel criminal action Mr. Murakami pleaded guilty to wire fraud and was sentenced to serve six years in prison and pay restitution. The final judgement in the Commission’s action directed that the Defendants pay over $7.9 million in disgorgement and prejudgment interest to be satisfied from the restitution order in the criminal action. In a separate proceeding the Commission permanently barred Mr. Murakami from the securities business. See Lit. Rel. No. 24226 (August 6, 2018).

Unregistered broker: In the Matter of Gregory G. Young, Adm. Proc. File No 3-18623 (August 6, 2018). In November 2016 the Commission filed an emergency action against Blackbird Capital Partners, LLC, a firm registered as a member with the National Futures Association. The action charged the firm and its principals with securities fraud. SEC v. Blackbird Capital Partners LLC, Civil Action No. 2:16-cv-0119 (D. Utah). Mr. Young, who is not registered with the Commission, sold the securities of Blackbird and was paid transaction based compensation. The Order alleges violations of Exchange Act section 15(a)(1). To resolve the proceedings Mr. Young consented to the entry of a cease and desist order based on the section cited in the Order. He also agreed to the entry of an order barring him from the securities business or from participating in any penny stock offering with the right to reapply after five years. He will pay a penalty of $5,000.

Offering fraud-EB-5: SEC v. Palm House Hotel, LLLP, Civil Action No. 24224 (S.D. Fla. Filed August 3, 2018). The Palmer House Hotel, LLLP, or PHH, is an entity controlled by Defendant Joseph Walsh. Defendant South Atlantic Regional Center, LLC, was a designated Regional Center by the United States Citizenship and Immigration Services or USCIS. It was managed by Defendant Walsh. Defendant Robert Matthews controlled the Palmer House Hotel (“Hotel”) and other entities. He was indicted on bank fraud and other charges in March 2018. Over a seven year period, beginning in November 2012, PHH raised almost $44 million from at least 88 foreign nationals through an EB-5 offering of PHH limited partnership interests. The offering materials, drafted by Mr. Walsh and his in-house counsel, purported to offer investors interests in a venture that would lend the investor funds to the Hotel as an EB-5 project. Rather than invest the funds raised from those seeking a path to citizenship in the Hotel to create jobs, large portions of the investor cash was misappropriated. For example, Mr. Walsh kept at least $8 million of the investor funds for his personal use. The complaint alleges violations of each subsection of Securities Act section 17(a) and Exchange Act section 10(b). The case is pending. See Lit. Rel. No. 24224 (August 3, 2018).

Insider trading; SEC v. Yan, Civil Action No. 17-cv-5257 (S.D.N.Y.) is a previously filed action which named as a defendant Fei Yan. Defendant traded on inside information in advance of two corporate acquisitions using information obtained from his wife, an associate at a law firm that worked on the deals. He attempted to conceal the activity by trading through the account of his mother who resides in China. The court entered a final judgment against him, based on consent. That judgment imposed an permanent injunction based on Exchange Act sections 10(b) and 14(e). It also ordered the payment of disgorgement of $119,429. The payment will be deemed satisfied by the forfeiture order in the parallel criminal action. In that case Mr. Yan pleaded guilty and is serving a 15 month sentence of imprisonment. See Lit. Rel. No 24225 (August 3, 2018).

Criminal cases

Offering fraud: U.S. v. Muraca, No. 1:17-cr-00739 (S.D.N.Y.) is an action in which a jury found Patrick Muraca guilty of wire fraud and making a false statement to the FBI. Mr. Muraca is the former president of Nuclea Biotechnologies, Inc. He founded two new businesses. Over a period of about one year, beginning in 2016, he raised about $1 million from investors, claiming that the funds would be invested in the two new entities. In fact he misappropriated much of the investor money. During an interview with the FBI after being arrested he made false statements to the agent. The date for sentencing has not been set.

Mark-ups: U.S. v. Blumberg, No. 2:14-cr-00458 (D.N.J) is an action in which Anthony Blumberg, formerly the CEO of ConvergEx Global Markets Limited, pleaded guilty in a scheme to commit securities and wire fraud. Specifically, from 2007 to 2011 Mr. Blumberg, and others acting under his direction at the firm, defrauded clients by adding excessive mark-ups or mark-downs to their transactions. The traders concealed the scheme by furnishing the clients with false documents. The firm made about $43.8 million as a result of the fraud. The date for sentencing has not been set. Previously three other participants in the scheme pleaded guilty.

Australia

International network: The Australian Securities and Investment Commission entered into collaboration with 11 international financial regulators and their related organizations, consulting on the proposed creation of the Global Financial innovation Network. The group issued a joint paper noting its objectives. Those include acting as a network for regulators to collaborate and share experience in innovative technology, to provide a forum for joint policy work and discussions and to give firms an environment in which to try cross-border solutions.

Hong Kong

Manipulation: The Market Trading Tribunal found that Samantha Keung Wai Fun, the former CEO of China AU Group Holdings Limited and her friend, Wu Hsiu Jung and a business partner, Chen Kuo Shen, engaged in misconduct when launching a share placement to raise about $135,500,000. Initially the firm only raised about $38,300,000. Subsequently it issued convertible bonds to raise up to $114,000,000 in additional funding. To ensure that the funding goal was met the promoters engaged in manipulative trading, creating a false impression of activity and interest in the market place, according to charges brought by the Securities and Futures Commission. The Market Trading Tribunal sustained the charges.

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.

© Dorsey & Whitney LLP | Attorney Advertising

Written by:

Dorsey & Whitney LLP
Contact
more
less

Dorsey & Whitney LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.