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Regulation

  • Historically, federal courts generally agreed that scheme liability under SEC Rule 10b-5(a) and (c) requires something more than a misstatement or omission — with misstatements and omissions typically being litigated under Rule 10b-5(b) instead. However, the SCOTUS in Lorenzo v. SEC held that an individual who disseminates a misstatement, without other fraudulent conduct, is potentially liable under the scheme liability provisions of Rule 10b-5. Subsequently, a circuit split has emerged over the scope of Lorenzo's holding.

    March 01, 2023Stefan Atkinson and Yi Yuan
  • The Second Circuit's long-anticipated decision in United States v. Blaszczak limits the government's ability to bring fraud or insider trading prosecutions where the information used to achieve an advantage is regulatory information held by the government. It also brings the Second Circuit in greater alignment with the Supreme Court's wire fraud jurisprudence.

    February 01, 2023Harry Sandick, Anna Blum and Abigail Marion
  • If you use Whatsapp or similar platforms for work-related communications, then you've probably heard that regulators are putting an end to that practice. Ephemeral and encrypted messaging, they have noted, evades monitoring and prevents retention. A seldom used doctrine allows prosecutors to charge executives with misdemeanor offenses just for being in the position of power when others commit the misconduct. Rather than take a wait-and-see approach, companies and their leaders would do well to prepare for prosecutors to reach deep into their toolbox.

    February 01, 2023Andrey Spektor and Laura S. Perlov
  • General counsel may find themselves pulled into difficult conversations with top executives as the Securities and Exchange Commission tightens its rules on company insiders looking to dump their stock.

    February 01, 2023Maria Dinzeo
  • 2023 is shaping up to be a big year for small claims. Since making its debut in June of 2022, the Copyright Claims Board (CCB) has received over 250 claims, and at least 11 have made it to the "active phase," with more on the way. Active phase means a respondent was served, failed to "opt out," and now the esteemed three-member tribunal of copyright experts may finally get a chance to make some rulings.

    January 01, 2023Michelle Davis
  • The Housing Stability and Tenant Protection Act amended the Rent Stabilization Law and, among other draconian changes, severely curtailed landlords' incentives to modernize and otherwise improve rent regulated apartments by limiting the ability to recover the costs of individual apartment improvements (IAIs) to vacant apartments.

    January 01, 2023Randi Beth Gilbert, Richard T. Walsh, Jillian N. Bittner, and Niles C. Welikson
  • The FTX bankruptcy scandal that has shaken the largely unregulated cryptocurrency world has slowed but isn't likely to end the roll-out of celebrity-related, non-fungible digital token (NFT) offerings. But how might the FTX story impact a push for federal regulation of the NFT market?

    January 01, 2023Mark Cianci, Charles Humphreville, Kelley Chandler and Ty Owen