Morrison Foerster partners Kate Driscoll and Nate Mendell, both former federal prosecutors and members of the firm’s Investigations + White Collar Defense Group, hosted the eighth episode of When Your Life Sciences Are on the Line, where leading practitioners and thought leaders share the insights and advice needed to manage business and legal risk in the life sciences sector.
In this episode, Kate and Nate speak with Edward Imperatore, a partner in Morrison Foerster’s Investigations + White Collar Defense Group, about the current securities enforcement trends in the life sciences industry. They highlight the shift in focus by the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) from crypto-related enforcement to more traditional securities fraud, such as accounting and disclosure fraud and insider trading. Additionally, they discuss the factors attracting regulatory scrutiny in the life sciences sector, including rapid growth and M&A activity. The conversation also delves into recent and novel applications of insider trading, such as shadow trading and “pillow talk” cases, emphasizing the importance of ensuring an appropriate scope for insider trading policies and maintaining internal controls. Edward provides insights into the implications of recent cases like SEC v. Panuwat and offers practical advice for life sciences companies to mitigate risks of SEC and DOJ scrutiny.
