News & Analysis as of

Securities and Exchange Commission (SEC) Enforcement Actions Securities Violations

Ropes & Gray LLP

Capital Markets & Governance Insights - October 2024

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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

Alston & Bird

SEC Fines Manager for Ineffective MNPI Controls While Serving on Ad Hoc Creditor Committee

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Our Investment Funds and White Collar, Government & Internal Investigations Groups examine a recent Securities and Exchange Commission enforcement order involving control of inside information....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

McDermott Will & Emery

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

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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 & Emery

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

McDermott Will & Emery 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

Moore & Van Allen PLLC

SEC Settlement Reminds Firms to Periodically Review Their Use of Models, Calculators and Tools When Making Client Recommendations

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On October 2, 2024, the Securities and Exchange Commission (“SEC”) announced it had settled enforcement proceedings against Thrivent Investment Management, Inc. (“Thrivent”), a SEC dually-registered broker-dealer and...more

Hogan Lovells

SEC brings Regulation FD enforcement action for selective disclosure via social media

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On September 26, the SEC announced that it had charged public company DraftKings Inc. with violating Regulation FD, or “Fair Disclosure,” under the Exchange Act. The SEC alleged that the company selectively disclosed...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update: Oct. 1 Quarterly Review

The Nutter Securities Enforcement Update is a periodic update of noteworthy recent securities enforcement activity, settlements, decisions, and charges. We provide brief summaries that highlight recent enforcement action...more

Carlton Fields

FINRA and SEC Float Concerns Over Social Media Finfluencers

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Social media marketing is an important form of advertising in our digital world, particularly with a target audience of younger investors. This has caught the eye of FINRA and the SEC....more

Mayer Brown Free Writings + Perspectives

SEC Charges Company with Misleading Recyclability Claims

In September 2024, the Securities and Exchange Commission charged a consumer products company (the “Company”) with having made inaccurate claims regarding the recyclability of its single-use coffee pods.  The SEC found that...more

Woodruff Sawyer

Close, but No Cigar: Ensuring Accuracy in Public Disclosures

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A recent enforcement action by the Securities and Exchange Commission (SEC) highlights the risks companies face when public disclosures may be viewed as misleading or fail to account for updated information....more

Morgan Lewis

Securities Enforcement Roundup – September 2024

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In this issue of our monthly Securities Enforcement Roundup, we highlight top securities enforcement developments and cases from September 2024. In September 2024 (the last month of the US Securities and Exchange Commission’s...more

Bradley Arant Boult Cummings LLP

Whistleblower Language in Separation Agreements Results in Large Settlements with SEC

On September 9, 2024, the Securities and Exchange Commission (SEC) announced settlements with seven public companies relating to their use of separation agreements that the SEC says violate whistleblower protection rules by...more

Carlton Fields

SEC Penalties for Off-Channel Communications: Still Blowing in the Wind

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The SEC has increased its enforcement efforts against firms that are registered as broker-dealers and/or investment advisers for alleged violations of federal securities laws involving “off-channel communications.” Such...more

Fenwick & West LLP

SEC Charges Biotech Co. with Misleading IPO Investors

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On September 13, the SEC charged Zymergen Inc., a biotechnology company, with misleading IPO investors about the company’s market potential and sales prospects....more

BCLP

Social Media Posts Result in SEC Fines for Regulation FD Violations

BCLP on

On September 26, 2024, the SEC announced that it had settled charges with DraftKings Inc. for selective disclosure of material non-public information on the CEO’s personal X (formerly Twitter) and LinkedIn accounts in...more

Nelson Mullins Riley & Scarborough LLP

OpenSeason: The SEC’s Enforcement Activity Threatens OpenSea and NFTs

Although the excitement for non-fungible tokens (NFTs) may have faded since its peak in 2022, the world’s largest NFT marketplace, OpenSea, has new and unwanted attention from the SEC. In addition to a potential enforcement...more

Patterson Belknap Webb & Tyler LLP

UPDATE: Shadow Trading Conviction Draws Maximum Penalty

On September 9, 2024, the Hon. William Orrick of the District of Northern California imposed the maximum penalty sought by the Securities and Exchange Commission (“SEC”) against Defendant Matthew Panuwat—a civil fine of three...more

A&O Shearman

SEC Charges Company With Reg FD Violations For Disclosing Information Via Posts On CEO’s Social Media Accounts

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On September 26, 2024, the Securities and Exchange Commission (“SEC” or “the Commission”) charged a sports-betting company (the “Company”) with violating Regulation Fair Disclosure (“Reg FD”) by disclosing material, nonpublic...more

A&O Shearman

SEC Reaches Three Separate Resolutions In Continued Focus On Whistleblowers And Rule 21F-17(a)

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In September 2024, the Securities and Exchange Commission (“SEC” or “the Commission”) resolved three separate actions against corporate entities for reaching agreements with employees, potential employees, and clients that,...more

DLA Piper

Blockchain and Digital Assets News and Trends - September 2024

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This monthly bulletin is designed to help companies identify important legal developments governing the use and acceptance of blockchain technology, smart contracts, and digital assets....more

Vinson & Elkins LLP

Failure to Act: SEC Brings Individual Charges Against CFO and Audit Committee Chair in Corporate AI Fraud Case

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On September 16, 2024, the United States Securities and Exchange Commission (“SEC” or the “Commission”) brought charges against Kubient, Inc.’s (“Kubient”) former chairman and chief executive officer (“CEO”) for allegedly...more

Kohn, Kohn & Colapinto LLP

Fifth Circuit Ruling on Whistleblower Awards from Bankruptcy Collections Underscores Shortcoming With SEC Program

Whistleblowers who exposed what has been called “one of the biggest frauds in Texas history” are not eligible to receive Securities and Exchange Commission (SEC) whistleblower awards based on the collections recovered in a...more

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