News & Analysis as of

Stock Promoters

Oberheiden P.C.

Promoters, Endorsers, and Brokers: Understanding the Rules on Securities and Cryptocurrency Investment Advertising

Oberheiden P.C. on

Promoting securities, cryptocurrency, and other investment opportunities is fraught with legal risks. Individuals who engage in promotional activities must ensure that they have a clear understanding of the federal laws and...more

Goodwin

SEC Announces Focus Areas for Next Stage of Marketing Rule Exams

Goodwin on

On June 8, 2023, the Division of Examinations (EXAMS) of the Securities and Exchange Commission (the SEC) published a Risk Alert regarding its priorities for the next stage of examinations with respect to Rule 206(4)-1 (the...more

Venable LLP

Keeping Up with Disclosures: SEC Punishes Kim Kardashian for Crypto Promotion

Venable LLP on

​​​​​​​On Monday the U.S. Securities and Exchange Commission issued a cease-and-desist order to Kim Kardashian for failing to disclose that she received $250,000 to promote EthereumMax’s digital tokens, “EMAX tokens,” on...more

Whitman Legal Solutions, LLC

Selling Real Estate Securities: Promoter Compensation (and why Kim Kardashian is paying a $1.26 million settlement to the SEC)

On September 30, 2022, the SEC charged Jonathan William Mikula and five other individuals with securities fraud for promoting securities without disclosing their compensation. The issuers of those securities also were charged...more

Pietragallo Gordon Alfano Bosick & Raspanti,...

To the Moon or To the Jail? Social Media Stock Promoters Are Back in the Government’s Crosshairs

Recent enforcement actions show that the federal government is once again clamping down on online boiler rooms. Last year, the Securities and Exchange Commission filed a civil complaint against Steven Gallagher, with the...more

Morrison & Foerster LLP

Hong Kong SPACs: Five Things You Need To Know

The “SPAC”-ulation is over! On September 17, 2021, the Stock Exchange of Hong Kong Limited (the Stock Exchange) issued a much anticipated consultation paper on Special Purpose Acquisition Companies (SPACs). It is...more

Goodwin

Hong Kong SPAC Regime Under Consultation; What to Expect From Potential New Parameters

Goodwin on

On September 17, 2021, the Hong Kong Stock Exchange (“SEHK”) published a consultation paper on the proposed Special Purpose Acquisition Companies (“SPAC”) listing regime in Hong Kong, setting out the initial framework with...more

Allen Matkins

Promoters And California’s Limited Offering Exemption

Allen Matkins on

I was admitted to the bar the same year that the legislature completed its parturition of a new limited offering exemption under the Corporate Securities Law of 1968 – California Corporations Code Section 25102(f). AB 1518,...more

Stinson - Corporate & Securities Law Blog

Enforcement Sweep Snares Issuers for Paid Stock Promotions

The SEC announced enforcement actions against 27 individuals and entities behind various alleged stock promotion schemes that left investors with the impression they were reading independent, unbiased analyses on investing...more

King & Spalding

Eleventh Circuit Confirms that Issuers are not Required to Disclose Retention of Outside Promotional Firms

King & Spalding on

On December 15, 2016, the United States Court of Appeals for the Eleventh Circuit affirmed the dismissal of a securities class action against Galectin Therapeutics Inc., a Georgia-based biotechnology company. The suit...more

Carlton Fields

Dismissal for Drugmaker Affirmed: Galectin Had No Duty to Disclose Payments to Promoters

Carlton Fields on

In re: Galectin Therapeutics, Inc. Securities Litigation, No. 16-10324, 2016 WL 7240146, ____ , F2d ___ (11th Cir. Dec. 15, 2016). The Eleventh Circuit recently addressed the circumstances under which a public company...more

Dechert LLP

Central Bank of Ireland Consults on an Draft UCITS Rulebook Including the Possible Removal of the Promoter Requirement

Dechert LLP on

The Central Bank of Ireland (“Central Bank”) has today issued a consultation paper (CP 77) on the publication of a draft UCITS Rulebook. The consultation period will close on 28 March 2014. The UCITS Directive is...more

Allen Matkins

Just Who Is A Promoter And Why You May Want To Know

Allen Matkins on

The California General Corporation Law uses, but does not define, the term “promoter”. For example, a promoter can be criminally prosecuted. Corporations Code Section 2251 provides that any promoter “who knowingly and...more

Allen Matkins

Did The FBI Violate The CSL?

Allen Matkins on

Earlier this week, the Securities and Exchange Commission announced that it had charged a penny stock promoter in the San Diego area with fraudulently arranging the purchase of $2.5 million worth of shares in a penny stock...more

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