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Conviction in Insider Trading Case Brings New Attention to 10b5-1 Plans

On June 23, the U.S. Department of Justice announced that Terren Scott Peizer, founder of Ontrak Inc., a Miami-based publicly traded health care company, has been sentenced to three and one half years in prison by a...more

Supreme Court Denies Certiorari in SEC Disgorgement Case

On June 6, the U.S. Supreme Court denied the petition for certiorari in the case of Navellier & Associates, Inc. v. Securities and Exchange Commission (SEC). This decision effectively upholds the lower courts’ rulings,...more

SEC Briefs Disgorgement and Investor Harm in Navellier v. SEC

In the recent Supreme Court case, Navellier & Associates, Inc. v. Securities and Exchange Commission (SEC), the petitioners sought a writ of certiorari challenging the decisions of the lower courts regarding the scope of...more

Supreme Court Limits SEC’s In-House Adjudication

On June 27, the U.S. Supreme Court released a 6-3 decision in SEC v. Jarkesy, et al., ending the Securities and Exchange Commission’s (SEC) long-standing use of in-house administrative law judge (ALJ) tribunals in cases where...more

US Supreme Court to Hear Nvidia Crypto Mining Case on Securities Pleading Standard

On June 17, the U.S. Supreme Court granted certiorari in Nvidia Corp. v. E. Ohman J:or Fonder AB, agreeing to hear Nvidia’s appeal of a Ninth Circuit ruling that revived shareholders’ fraud claims regarding Nvidia’s...more

US Supreme Court Limits Scope of Omission Liability for Section 10(b) Securities Fraud Claims

On April 12, in a long-awaited and pivotal decision, the U.S. Supreme Court unanimously ruled that private plaintiffs may not plead a federal securities fraud claim under Section 10(b) of the Securities Exchange Act of 1934...more

The US Attorney's Office for the Central District of California Announces Securities Fraud Task Force

On October 4, U.S. Attorney for the Central District of California Martin Estrada announced the formation of a new task force, the Corporate and Securities Fraud Strike Force....more

Exercise Caution Before Stating a Lawsuit is "Without Merit"

Many publicly reporting companies often respond to lawsuits by characterizing them as “without merit” in their securities filings. If the company does not prevail in such litigation, can it still be held responsible for...more

SEC Reaffirms 10b5-1 Plans Provide No Protection if Plans Not Established in Good Faith

On September 21, the Securities and Exchange Commission (SEC) announced charges against Cheetah Mobile, Inc.’s CEO and former president for insider trading, even though the questionable trades occurred under a 10b5-1 trading...more

SEC Settlement Shows Commission's Willingness to Waive Penalties for Investigatory Targets Focusing on Corrective Action

On January 28, the Securities and Exchange Commission (SEC or Commission) issued a press release, announcing the settlement of various fraud charges against a private technology company in light of their “significant remedial...more

Securities & Exchange Commission Tests New Insider Trading Theory

The Securities & Exchange Commission (SEC) is experimenting with a new theory of liability that potentially expands the bounds of the insider trading laws. Specifically, the SEC is requesting that a California court deem the...more

SEC Cases Offer Insight into Its Approach to Alleged COVID-19 Securities Fraud

A remote status conference was held June 28 for United States v. Mark Schena, currently pending in the U.S. District Court for the Northern District of California. In the recently unsealed superseding indictment, the SEC...more

9th Circ. Makes Motions to Dismiss More Difficult in Securities Litigation

On Aug. 13, a panel of the U.S. Court of Appeals for the Ninth Circuit issued an opinion in a securities fraud class action, Khoja v. Orexigen Therapeutics, No. 16-56069 2018 U.S. App. LEXIS 22371 (9th Cir. Aug. 13, 2018),...more

Halliburton II: Recognizing Costs to Companies, Justices Provide Securities Litigation Defendants New Opportunity to Defeat Class...

On June 25, 2014, the U.S. Supreme Court decided Halliburton Co. v. Erica P. John Fund, No. 13-317, __ U.S. __ (2014), slip op. (U.S. June 23, 2014) (Halliburton II), holding that defendants in a class action securities...more

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