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Two High Court Securities Cases Could Clarify Pleading Rules

In granting certiorari in Facebook Inc. v. Amalgamated Bank and Nvidia Corp. v. E. Ohman J:or Fonder AB, the U.S. Supreme Court signaled its intention to provide further guidance concerning application of the heightened...more

SCOTUS To Focus on the Securities Fraud Pleading Standard in Two Cases Next Term

In a pair of orders issued this month, the U.S. Supreme Court signaled plans to provide further guidance in its upcoming Fall term concerning application of the heightened standard for pleading securities fraud claims...more

SCOTUS Unanimously Resolves Securities Fraud Circuit Split

On April 12, 2024, the U.S. Supreme Court unanimously held that, in the absence of an otherwise misleading statement, a failure to disclose information required by Item 303 of Regulation S-K (“Item 303”) does not support a...more

Out from the Shadows: The SEC Succeeds on Shadow Insider Trading Theory

The Securities and Exchange Commission obtained a victory in a closely-watched trial when a jury found Matthew Panuwat liable for insider trading based on a “shadow trading” theory. The jury’s verdict, as well as increased...more

Item 303 Circuit Split to be Heard in the Next SCOTUS Term

On September 29, 2023, the U.S. Supreme Court agreed to weigh in on the validity of a familiar allegation in private securities litigation—that a failure to disclose under Item 303 of Regulation S-K (“Item 303”) supports a...more

‘Forming’ a Rift: District Judge Rejects Decision in Ripple Labs, Inc.

On July 31, 2023, Judge Jed Rakoff of the Southern District of New York (“SDNY”) sided with the Securities Exchange Commission in SEC v. Terraform Labs Pte. Ltd. by holding that sales of crypto assets to retail investors on...more

A Stumbling Block in the SEC’s Crypto Crackdown: SEC v. Ripple Labs, Inc.

On July 13, 2023, a decision by Federal District Judge Analisa Torres of the Southern District of New York dealt a significant blow to the Securities and Exchange Commission’s enforcement efforts in the crypto space by...more

Rate Expectations: SEC Charges Credit Ratings Agency For Undisclosed Adjustments to Ratings

On February 16, 2021, the Securities and Exchange Commission (“SEC”) filed a civil complaint against Morningstar Credit Ratings LLC (“Morningstar”), a credit rating agency, alleging violations of the disclosure and internal...more

Florida Court “Deals” Blow To Alleged Stock Dealer

A recent decision out of the Southern District of Florida highlights the importance of businesses taking an expansive approach when considering whether to register as a broker dealer and the applicability of other...more

When Near-Perfect Isn’t Good Enough – Lawsuit Alleges Securities Law Violations By COVID-19 Test Manufacturer

The global coronavirus pandemic has brought confusion and uncertainty to just about every aspect of life, but one thing remains constant: following a dramatic drop in stock price, an issuer’s public statements will be...more

Court Grants Preliminary Injunction Blocking Cryptocurrency Sale Over Alleged Securities Law Violations

A recent decision out of the Southern District of New York emphasizes the importance of considering all obligations under the federal securities laws for any transaction that might involve a “security.” Despite SEC statements...more

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