Category: SEC enforcement
SEC Focuses on Whistleblower Protections in Employee Separation Agreements
Recent Securities and Exchange Commission enforcement actions have zeroed in on whistleblower protections in employee separation agreements, signaling that now may be the time for companies to closely review employee agreements and releases. On September 29, 2023, the SEC announced settled charges against New York-based registered investment adviser D. E. […]
Securities Litigation + Enforcement Highlights From Q2 2023
As 2023 reached its midpoint, Cooley’s securities litigation + enforcement practice continued its track record of obtaining victories for clients while serving as thought leaders on issues impacting the securities litigation and enforcement landscape. Below, we’ve rounded up key insights and developments from our team over recent months.
Cornerstone Research Report Highlights Rise in SEC Accounting and Auditing Enforcement
According to a new report by Cornerstone Research (a leading consulting and expert testimony firm), the Securities and Exchange Commission initiated 55% more actions involving accounting and auditing enforcement in fiscal year 2022 than it did in FY 2021. The report examines recent trends in the SEC’s enforcement of accounting […]
DOJ Issues Further Guidance, Warnings on Ephemeral Messaging Apps
At the March 2023 American Bar Association National Institute on White Collar Crime, senior Department of Justice officials offered their most expansive guidance yet about the dangers of using ephemeral messaging for company communications. Officials noted that when conducting an investigation, DOJ prosecutors will consider a company’s use of ephemeral and […]
Considering Texting About Work? Beware.
As the rise in remote work has led to an increased reliance on mobile devices to stay connected – with cellphones at our fingertips virtually 24/7 – the use of third-party messaging applications to communicate about work has become commonplace. From WhatsApp to Telegram, corporate executives, financial services professionals and […]
Buyer (and Seller) Beware: SEC Adopts Final Rules on 10b5-1 Trading Plans
The Securities and Exchange Commission has long focused on pursuing potential insider trading violations, and its recent enforcement efforts serve as a stark reminder that the Commission has made insider trading cases a priority. Consistent with these efforts, on December 14, 2022, the SEC unanimously voted at an open meeting […]
SEC’s Proposed Rules Highlight Continued Focus on Cybersecurity
On March 9, 2022, the Securities and Exchange Commission (“SEC”) proposed new rules which, if adopted, would require public companies to promptly disclose material cybersecurity incidents and, more generally, to provide more detailed disclosures regarding cybersecurity risk management, strategy, and governance practices. The rules – the latest in a series […]
Whistleblower Complaints and Rewards Explode Worldwide
What you need to know Since the onset of the COVID-19 pandemic, the number of whistleblower complaints received by regulators has exploded on both sides of the Atlantic. On November 15, 2021, the US Securities and Exchange Commission (SEC) reported that it paid out more in whistleblower awards in fiscal […]
SEC Enforcement Director Sets Aggressive Tone
Gurbir Grewal, the recently-appointed Director of the Securities and Exchange Commission’s Division of Enforcement, comes from a law enforcement background. Before joining the SEC, he served as New Jersey Attorney General, where he presided over cases against prominent companies alleging violations of state environmental law. Before that, he served as […]
DOJ Increases Efforts to Combat Cyber Breaches by Targeting Government Contractors
The US Department of Justice is increasing its arsenal to pursue cyber-related fraud by government contractors and grant recipients. The program, called the “Civil Cyber-Fraud Initiative,” was announced by Deputy Attorney General Lisa Monaco on Wednesday. The initiative – along with other recent steps taken by the federal government – […]