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The Supreme Court Rejects “Pure Omissions” Liability under Section 10(b)

The U.S. Supreme Court has now resolved the split in lower courts, discussed in our March 14, 2024 post, over whether plaintiffs may bring a securities fraud claim based solely on a corporation’s omission from public filings...more

Unusual Musk Trial Highlights Risks Facing Public Company Executives

Amidst all the controversy and legal proceedings involving Elon Musk, one could overlook the fact that he and his company Tesla are on trial now in U.S. District Court for securities fraud. Yet they are: a jury has been...more

Defense Bill Significantly Bolsters SEC’s Disgorgement Authority

The National Defense Authorization Act (“NDAA”) became law on January 1, 2021 after Congress overrode a presidential veto of the legislation. While the NDAA appropriates funds for defense-related activities and the...more

Supreme Court Rejects SEC Practice on Appointing Administrative Law Judges

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

Supreme Court Limits SEC Ability to Seek Disgorgement by Holding Five-Year Statute of Limitations Applies to Such Actions

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

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