Popular, Securities Litigation, Securities and Exchange Commission (SEC)

New York Federal Judge Orders $125 Million Penalty Against Digital Asset Infrastructure Company

A&O Shearman on 8/13/2024

On August 7, 2024, a digital asset infrastructure company (the “Company”) was ordered to pay a $125 million civil penalty for its failure to register institutional sales of its XRP token with the Securities and Exchange...more

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

Cornerstone Research on 8/12/2024

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

SEC Achieves Jury Verdict In Cryptocurrency Fraud Case

A&O Shearman on 4/17/2024

On April 5, 2024, a jury in the Southern District of New York found cryptocurrency startup Terraform Labs PTE Ltd. (the “Company”) and its co-founder, Do Kwon, liable for securities fraud. The jury sided with the SEC in...more

Increase in Securities Litigation and Regulatory Scrutiny Concerning Artificial Intelligence

Patterson Belknap Webb & Tyler LLP on 3/6/2024

Several recent lawsuits, and comments by the U.S. Securities and Exchange Commission (“SEC”) and Federal Trade Commission (“FTC”), underscore the increasing litigation and regulatory scrutiny concerning the use of artificial...more

SPACs Poised to Turn a Corner in 2024: Annual Risk Update

Woodruff Sawyer on 2/23/2024

Here we are again—another year of SPAC ennui. We’re hearing derisive comments about the death of SPACs, unending deadline extensions, almost 200 liquidations, 70 deal terminations, and general SPAC malaise. If you’ve followed...more

The Distributed Ledger: Blockchain, Digital Assets and Smart Contracts - January 2024

Skadden, Arps, Slate, Meagher & Flom LLP on 1/30/2024

SEC Wins Summary Judgment on Howey Issue in Terraform Litigation - On December 28, 2023, Judge Jed Rakoff in the Southern District of New York issued a summary judgment decision in SEC v. Terraform Labs Pte. Ltd., a...more

SEC Cryptocurrency Enforcement Activity

Cornerstone Research on 1/29/2024

Since the first action in July 2013, the SEC has brought a total of 173 cryptocurrency-related enforcement actions as of December 31, 2023, comprising: 108 litigations, and - 65 administrative proceedings....more

Cybersecurity Enforcement Update: NYDFS Adopts Final Amendments to its Cybersecurity Regulations and SEC Sues SolarWinds Executive

Faegre Drinker Biddle & Reath LLP on 11/17/2023

Recent activity by the New York Department of Financial Services (NYDFS) and the Securities and Exchange Commission (SEC) highlight the continued focus by government regulators on cybersecurity. As these and other regulators...more

Client Alert: The SEC Charges SolarWinds and Its CISO with Fraud: Key Takeaways

Jenner & Block on 11/3/2023

This week, the SEC filed a high-profile litigation asserting fraud and internal controls charges against software company SolarWinds Corporation and its Chief Information Security Officer, Timothy G. Brown, in connection with...more

Client Alert: Ripple, and Terra, and Coinbase, Oh My!

Jenner & Block on 8/14/2023

Three federal judges in the Southern District of New York sit at the center of the long-running battle between the SEC and the crypto industry, overseeing cases that may eventually bring clarity to the industry. After two...more

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

Vinson & Elkins LLP on 8/7/2023

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

SDNY Order Clouds the Water on SEC Crypto Jurisdiction

Kohn, Kohn & Colapinto LLP on 8/4/2023

On July 13th, Judge Analisa Torres of the United States District Court for the Southern District of New York entered an order that was quickly celebrated by the crypto world (SEC v. Ripple Labs, Inc., No. 20CIV10832ATSN;...more

Securities and Derivative Litigation: Quarterly Update - July 2023

Dechert LLP on 7/24/2023

Examine a major Ninth Circuit decision affirming dismissal of a Section 14(a) derivative action based on a forum-selection clause; Highlight the Third Circuit’s adoption of the Omnicare standard for securities fraud claims;...more

The Ripple Effect: SEC’s Battle Vs. Crypto Gains Some Clarity

DarrowEverett LLP on 7/19/2023

The U.S. Securities and Exchange Commission (“SEC”) is paying considerable attention to the world of cryptocurrency (“crypto”). According to the SEC website, the SEC has brought more than 50 enforcement actions against crypto...more

Inside the Courts – An Update From Skadden Securities Litigators - May 2023

Skadden, Arps, Slate, Meagher & Flom LLP on 6/1/2023

Supreme Court Hears Argument on Traceability Requirement in Circuit-Split Slack v. Pirani - Key Points - - Before the end of June, the U.S. Supreme Court is expected to issue a decision in a high-profile securities case...more

Continued SEC Scrutiny of Non-GAAP Disclosures

Wilson Sonsini Goodrich & Rosati on 4/7/2023

On March 14, 2023, the Securities and Exchange Commission (SEC) instituted cease-and-desist proceedings against DXC Technology Company (DXC) for alleged violations of Regulation G and other federal securities laws in its...more

Inside the Courts – An Update From Skadden Securities Litigators - March 2023

Skadden, Arps, Slate, Meagher & Flom LLP on 3/16/2023

Circuits Split Over Whether Targeting Is Necessary for Seller Liability - Key Points - - While courts have long held that solicitations must be tailored to a particular audience to precipitate statutory seller liability,...more

2022 Securities Litigation Year in Review

Jones Day on 2/8/2023

During 2022, securities case filings fell for the fourth consecutive year and were down slightly from 2021. The number of announced settlements rose substantially last year, as did total settlement amounts. The 2022...more

ESG and Securities Litigation

King & Spalding on 2/3/2023

Recent Trends Show Increased Focus on Allegations of "Greenwashing" Over the past few years, regulators, businesses, and the market in general have become increasingly focused on environmental, social, and governance (“ESG”)...more

SEC v. Ripple: Approaching Judgment Day

Latham & Watkins LLP on 1/20/2023

While a conclusion to the much-hyped case may be approaching, market participants should be wary of doomsday prognostications. As a new year begins, the digital assets industry is still enduring a deep and widespread crypto...more

Nutter Securities Enforcement Update: 2022 SEC Retrospective

Nutter McClennen & Fish LLP on 1/5/2023

2022 was a busy year for the SEC’s Enforcement Division. This 2022 Retrospective highlights some of the year’s notable cases, largest settlements, new and noteworthy theories, and court decisions worth remembering....more

SEC v. LBRY, Inc.: Federal Court Finds LBRY’s Crypto Token as a Security

Patterson Belknap Webb & Tyler LLP on 12/27/2022

It is no secret that over the last several years, there has been an exponential increase in the utilization of blockchain and digital assets. Crypto trading and lending platforms have grown rapidly and the total crypto market...more

Inside the Courts – An Update From Skadden Securities Litigators - December 2022

Skadden, Arps, Slate, Meagher & Flom LLP on 12/5/2022

Cornerstone Research reports that during the first six months of 2022, plaintiffs filed 110 securities class actions, a pace that is generally in line — 2.8% higher — with what we saw in the second half of 2021. Looking...more

Dismissal of Shareholder Derivative Suit for Failure to Allege Demand Was Excused

Goodwin on 11/3/2022

On September 27, 2022, U.S. District Judge Kevin McNulty of the District of New Jersey dismissed a consolidated derivative action allegedly brought on behalf of Cognizant Technology Solutions Corporation against certain...more

NFT Insider Trading – Can There Be A Crime If It’s Not A Security?

Sheppard Mullin Richter & Hampton LLP on 6/20/2022

We have previously addressed the recent indictment against Nathaniel Chastain, a former executive of a major NFT marketplace, for insider trading involving NFTs. The indictment charges Chastain with one count of wire fraud...more

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