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Cornerstone Research

Number of Accounting-Related Securities Class Action Filings and Settlements Remained Steady in 2024 as Size of Settlements Shrunk

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The number of accounting-related securities class action filings and settlements remained steady in 2024, with the number of filings increasing slightly and for the third consecutive year, according to a new report from...more

Cornerstone Research

Number of Securities Class Action Settlements Rises Slightly as Median Settlement Amount Declines from 2023 13-Year High

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The number of securities class action settlements increased slightly in 2024 while the size of those settlements declined, according to a new report from Cornerstone Research. The report, Securities Class Action...more

Cooley LLP

Misleading political spending disclosure alleged to run afoul of the securities laws

Cooley LLP on

How did federal racketeering and conspiracy charges against a politician and a 501(c)(4) organization controlled by him lead to another company’s alleged securities law violations? According to this SEC Order against...more

Lowenstein Sandler LLP

SEC Charges Public Company with AI Washing

On January 14, 2025, the U.S. Securities and Exchange Commission (SEC) charged Presto Automation Inc. (Presto) with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 for misleading artificial...more

Morgan Lewis

Current Developments in SEC Enforcement for Public Companies and a Look Ahead 2024–2025

Morgan Lewis on

The US Securities and Exchange Commission (SEC) brought a number of notable enforcement proceedings against public companies in fiscal year 2024, which ended September 30, 2024, and into the first quarter of fiscal year 2025....more

Stinson - Corporate & Securities Law Blog

SEC Announces Settlement with Express, Inc. for Failure to Disclose CEO Perks

On December 17, 2024, the Securities and Exchange Commission (“SEC”) announced that it had settled charges against Ohio-based Express, Inc. (“Express”). The SEC ultimately found that Express violated Sections 13(a) and 14(a)...more

Skadden, Arps, Slate, Meagher & Flom LLP

Recent SEC Cyber-Related Enforcement Actions Emphasize the Importance of Robust Disclosure Controls

On October 22, 2024, the Securities and Exchange Commission (SEC) announced enforcement actions against several technology companies for making materially misleading disclosures regarding cybersecurity risks and intrusions....more

Ropes & Gray LLP

SEC Announces Settlements with Four Issuers regarding Cybersecurity Disclosures

Ropes & Gray LLP on

On October 22, 2024, the Securities and Exchange Commission (“SEC”) filed settled enforcement orders involving four current and former public companies – Unisys Corp., Avaya Holdings Corp., Check Point Software Ltd, and...more

Ropes & Gray LLP

Capital Markets & Governance Insights - October 2024

Ropes & Gray LLP on

SEC Developments - In Twin Actions, SEC Charges Former Kubient CEO for Fraud and Former CFO and Audit Committee Chair for Failing to Investigate and Perpetuating CEO’s Fraud....more

Kohrman Jackson & Krantz LLP

Keurig Pays the Price for Misleading 'Recyclable' K-Cup Claims

The Securities and Exchange Commission (SEC) recently charged Keurig Dr Pepper Inc. with making inaccurate statements about the recyclability of its K-Cup single-use beverage pods in violation of securities laws. The case...more

Keating Muething & Klekamp PLL

SEC Fines Four Companies $7M for Violating Cyber Disclosure Rules

On October 22, 2024, the Securities and Exchange Commission charged four companies with making materially misleading disclosures about their cybersecurity risks. Each of the companies—Unisys Corp., Avaya Holdings Corp., Check...more

Jones Day

SEC's and Private Litigants' Continued Focus on "AI Washing"

Jones Day on

On September 4, 2024, U.S. Securities and Exchange Commission ("SEC") Chair Gary Gensler reiterated concerns about artificial intelligence-related ("AI") disclosures and the need for companies to communicate accurately about...more

McDermott Will & Schulte

SEC Fines Director for Failing to Disclose Close Friendship With Senior Executive

McDermott Will & Schulte on

In a novel enforcement action, the US Securities and Exchange Commission (SEC) charged a member of the board of directors of a New-York-Stock-Exchange (NYSE)-listed manufacturer of personal and household products for...more

McDermott Will & Schulte

SEC Fines Director for Failing to Disclose Close Friendship With Senior Executive

McDermott Will & Schulte on

In a novel enforcement action, the US Securities and Exchange Commission (SEC) charged a member of the board of directors of a New-York-Stock-Exchange (NYSE)-listed manufacturer of personal and household products for...more

Mayer Brown Free Writings + Perspectives

SEC Enforcement Sweep Brings Actions for Delinquent Ownership Reports

On September 25, 2024, the Securities and Exchange Commission announced the settlement of twenty-one enforcement actions related to untimely reports required by Section 13(d) or 13(g) of the Securities Exchange Act, Section...more

White & Case LLP

Time to Review Whistleblower Provisions: SEC Charges Seven Public Companies with Violation of Whistleblower Protection Rule

White & Case LLP on

On September 9, 2024, the US Securities and Exchange Commission (“SEC”) announced settled charges against seven public companies for violation of the whistleblower protection rule in connection with employment, separation,...more

Ballard Spahr LLP

SEC Announces Settlements with Seven Public Companies for Violations of Exchange Act Whistleblower Protections in Employee and...

Ballard Spahr LLP on

The SEC has begun to bring enforcement actions against companies whose employment and client agreements could appear to infringe on the right to report cases in violation of Section 21f-17(a) of the Exchange Act. On September...more

Jenner & Block

Client Alert: Key Takeaways from the SEC’s Latest Enforcement Sweep Regarding Violations of the Whistleblower Protections Rule

Jenner & Block on

Earlier this week, the SEC announced an enforcement sweep charging seven public companies with violating the whistleblower protections rule in various employment-related agreements. These charges reflect the SEC’s continuing...more

BCLP

ICAHN Settles With SEC for Failures to Disclose Key Details of Margin Loan Stock Pledges - Teaching Moment for Directors and...

BCLP on

On August, 19, 2024, the SEC announced settled charges against Carl C. Icahn and his publicly traded company, Icahn Enterprises L.P. (IEP), for failing to disclose information relating to Icahn’s pledges of IEP securities –...more

Cornerstone Research

Securities Class Action Filings 2024 Midyear Assessment - Non-U.S. Core Federal Filings

Cornerstone Research on

This is an excerpt from Securities Class Action Filings 2024 Midyear Assessment - This index tracks the number of core federal filings against foreign issuers (i.e., companies headquartered outside the United States)...more

Cornerstone Research

Securities Class Action Filings: 2024 Midyear Assessment - Summary of Trend Filings

Cornerstone Research on

This is an excerpt from Securities Class Action Filings 2024 Midyear Assessment - This figure highlights recent trend categories that have appeared in core filing activity. See the Glossary for definitions of each trend...more

Woodruff Sawyer

How to Minimize Risk in the Current Litigation Environment

Woodruff Sawyer on

This month's SPAC Notebook follows up on our recent discussion of risk mitigation and due diligence tips for foreign companies going public in the US. We want to share more information on the current litigation environment...more

Bracewell LLP

US Supreme Court Holds That Pure Omissions Are Not Actionable Under Federal Anti-Fraud Rule

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In a unanimous decision, the US Supreme Court held that pure omissions are not actionable under Rule 10b-5(b) under the Securities Exchange Act of 1934. Rather, the Court found that Rule 10b–5(b) prohibits half-truths, not...more

Sheppard Mullin Richter & Hampton LLP

Supreme Court Holds “Pure Omissions” Are Not Actionable Under Rule 10b-5(b)

In Macquarie Infrastructure Corp. v. Moab Partners, No. 22-1165, 2024 WL 1588706 (U.S. Apr. 12, 2024) (“MIC”), the United States Supreme Court (Sotomayor, J.) held unanimously that “pure omissions” in a Securities and...more

Jones Day

SEC Prevails in Novel "Shadow Trading" Insider Trading Trial

Jones Day on

The Securities and Exchange Commission ("SEC") won at trial in its first "shadow trading" case, holding a corporate official liable for insider trading for using nonpublic information about his company's acquisition to trade...more

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