News & Analysis as of

Penalties Disgorgement Securities and Exchange Commission (SEC)

Lowenstein Sandler LLP

Two Recent SEC Enforcement Actions Against Registered Investment Advisers Underscore That Regulatory Compliance Is Still Relevant...

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In the first half of August, the U.S. Securities and Exchange Commission (SEC) announced settlements with two different registered investment advisers for violations of the Investment Advisers Act of 1940. Specifically, on...more

Akin Gump Strauss Hauer & Feld LLP

CryptoLink - July 2024 Updates

CryptoLink is a compilation of news stories published by outside organizations. Akin aggregates the stories, but the information contained in them does not necessarily represent the beliefs or opinions of the firm. Akin's...more

ArentFox Schiff

Investigations Newsletter: Commonwealth Financial Network Must Pay $72 Million in SEC Enforcement Action

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Commonwealth Financial Network Must Pay $72 Million in SEC Enforcement Action - Late last week, a Massachusetts federal judge ordered Commonwealth Financial Network to pay over $72 million due to its “egregious” failure to...more

Adams & Reese

Beyond Borders: Navigating Global Business Compliance with the FCPA

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On March 7th, the Department of Justice (DOJ) announced a new whistleblower reward program intended to help prosecutors bring more foreign corruption cases. Under the new program, individuals who report corporate misconduct...more

Cornerstone Research

Total Monetary Penalties

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In March 2023, the SEC imposed a total monetary settlement of $79.5 million in SEC v. Barksdale et al., of which $56.3 million consisted of disgorgement and prejudgment interest. This was the largest monetary penalty imposed...more

Thomas Fox - Compliance Evangelist

Albemarle FCPA Enforcement Action: Part 1 – Background

Last week, Albemarle Corporation (Albemarle), a publicly traded specialty chemicals manufacturing company headquartered in North Carolina, agreed to pay more than $218 million to resolve investigations by the U.S. Department...more

The Volkov Law Group

Albemarle Settles DOJ and SEC FCPA Cases for $218 Million (Part I of III)

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Albemarle Corporation (Albemarle), a specialty chemicals manufacturing company located in Charlotte, North Carolina, agreed to pay more than $218 million to settle FCPA investigations with DOJ and the SEC stemming from...more

Proskauer - The Capital Commitment

2022 SEC Enforcement Results – Takeaways for Fund Managers

Yesterday the SEC’s Division of Enforcement announced its Enforcement Results for Fiscal Year 2022, and there are a few key takeaways for fund managers. The Commission brought 760 total enforcement actions in FY 2022,...more

The Volkov Law Group

Oracle Joins Ranks of FCPA Recidivists: Settles SEC Case for $23 Million (Part I of II)

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Oracle Corporation settled its second FCPA case in ten years.  Oracle agreed to pay $23 million to resolve allegations that its subsidiaries in Turkey, India and the United Arab Emirates maintained slush funds to bribe...more

White and Williams LLP

A Changing Climate: the Rising Tide of ESG Liability and Implications for D&O Coverage

The latest legal buzzword, ESG, represents the environmental, social and governance factors that many corporations are now required to consider and disclose alongside traditional financial information such as operating...more

ArentFox Schiff

Investigations Newsletter: Former CEO Indicted for Misleading Investors About COVID-19 Test Kits

ArentFox Schiff on

Former CEO Indicted for Misleading Investors About COVID-19 Test Kits - A federal grand jury in New Jersey indicted Marc Schessel—the former CEO of SCWorx Corp.—on two counts of securities fraud for allegedly misleading...more

Patterson Belknap Webb & Tyler LLP

Global Infrastructure Settlement Reflects SEC’s Tougher Approach on Penalties

When it comes to settlements with the SEC’s Division of Enforcement (“Enforcement Division”), a question respondents often ask is how the SEC arrives at a given penalty amount? This blog post will discuss the SEC’s current...more

Jones Day

New York High Court Finds Disgorgement Payment Insured "Loss" Rather Than Uninsurable "Penalty"

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Reversing the New York Appellate Division, First Department, the New York Court of Appeals, in a 6–1 landmark decision, held that a $140 million disgorgement payment is an insured "loss," after a long history of insurance...more

ArentFox Schiff

Managing Third-Party Risk: Recent FCPA Action Reflects Government’s Continued Focus on Intermediaries

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Amec Foster Wheeler Energy Limited (the Company), a subsidiary of John Wood Group plc (Wood), a United Kingdom-based global engineering company, agreed to pay more than $41 million in penalties and disgorgement for alleged...more

Winstead PC

SEC Brings “Naked Short Selling” Case

Winstead PC on

“Naked short selling” is often claimed by struggling public companies to be the source of their woes. But there have been relatively few cases addressing naked short selling. Recently, however, on May 19, 2021, the SEC...more

Winstead PC

Four Things You Need to Know About the Extended Limitations Period for SEC Disgorgement

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The Securities and Exchange Commission’s disgorgement powers have made legal headlines a couple of times over the last few years – most notably, with the U.S. Supreme Court’s decisions in Kokesh v. SEC, 137 S. Ct. 1635 (2017)...more

Allen Matkins

Nevada Finds Disgorgement Is No Penalty

Allen Matkins on

In 2017, the U.S. Supreme Court held that disgorgement in an SEC enforcement action is subject to the five-year limitations period in 28 U.S.C. § 2462 that applies to an "action, suit or proceeding for the enforcement of a...more

Foley Hoag LLP - White Collar Law &...

SEC Enforcement Releases Its Annual Report: Filed Cases Down But Agency Obtains Record Monetary Relief

On November 2, 2020, the SEC’s Division of Enforcement issued its Annual Report for fiscal year 2020. The Report provides a useful look at Enforcement’s accomplishments, priorities, and challenges over the past year. Notably,...more

Faegre Drinker Biddle & Reath LLP

SEC Disgorgement: Looking to the Future

On March 3, 2020, the Supreme Court heard arguments in the case of Liu v. SEC, No. 18-1501. This article summarizes what transpired at the hearing, in which the arguments centered on a challenge to the ability of the U.S....more

Holland & Knight LLP

Supreme Court Considers SEC's Authority to Seek Disgorgement in Judicial Proceedings

Holland & Knight LLP on

The U.S. Supreme Court heard arguments in Liu v. SEC, a case in which the petitioner challenged the U.S. Securities and Exchange Commission's (SEC) statutory authority to pursue the remedy of disgorgement in federal court....more

Dorsey & Whitney LLP

SEC Disgorgement: Who Gets the Money?

Dorsey & Whitney LLP on

Liu v. SEC, No. 18-15-1, argued before the Court last week, is potentially one of the most important cases to be heard by the Supreme Court on SEC Enforcement. The question under consideration is whether the Securities and...more

A&O Shearman

United States Supreme Court Hears Oral Arguments In Liu v. SEC to Determine Whether the SEC Can Seek Disgorgement in Judicial...

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On March 3, 2020, the Supreme Court heard oral arguments in Liu v. SEC, No. 18-1501, once again taking up the question of whether the Securities and Exchange Commission (“SEC”) may seek disgorgement as equitable relief in a...more

Seyfarth Shaw LLP

SCOTUS Oral Argument Suggests SEC Disgorgement Will Survive—But Might Be Limited To Victim Compensation

Seyfarth Shaw LLP on

Seyfarth Synopsis: On Tuesday, March 3, 2020, the Supreme Court heard oral arguments in Liu et al v. Securities and Exchange Commission, in what some thought would be a landmark case on the SEC’s power to seek disgorgement...more

Cozen O'Connor

Supreme Court Appears Unlikely to Further Curtail SEC Disgorgement Authority

Cozen O'Connor on

The fate of the Securities & Exchange Commission (SEC)’s ability to obtain disgorgement moved one step closer to a decision this week with oral arguments before the Supreme Court in Liu v. SEC. The high court appeared willing...more

Bass, Berry & Sims PLC

Oral Argument Suggests Disgorgement May Survive Supreme Court Review in Liu v. SEC

In Liu v. SEC, one of this Term’s most closely watched securities cases, the U.S. Supreme Court seemed poised during oral argument on Tuesday to affirm but potentially clarify the SEC’s ability to seek disgorgement in federal...more

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