Rule 10b-5 Liability: The Second Circuit and 'Lorenzo'
May 01, 2023
Part Two of a Three-Part Article
This three-part series discusses the Second Circuit's recent Securities law landmark case, S.E.C. v. Rio Tinto. However, in order to discuss Rio Tinto, it is important to first understand the Supreme Court landmark cases upon which Rio Tinto is based: Janus Capital Group, Inc. v. First Derivative Trader, discussed in the first installment, and S.E.C v. Lorenzo, discussed here.
Victims' Rights In Corporate Deferred Prosecutions
April 01, 2023
Deferred Prosecution Agreements (DPAs) have become a significant part of white-collar criminal practice. But DPAs are not without controversy. These agreements have been attacked as too lenient, not forcing companies to be held accountable for illegal conduct. They are also seen as a way for prosecutors to appear tough on white-collar crime while not bringing charges against individuals.
What to Expect from the Next Era In White-Collar Enforcement
April 01, 2023
In February 2023, in a significant update to its corporate criminal enforcement policies and procedures, the DOJ announced a voluntary self-disclosure policy applicable in all U.S. Attorney's Offices nationwide. This article discusses the DOJ's recent pronouncements and recent cases with an eye toward identifying trends that companies should keep in mind when preparing for the next enforcement era.
Rule 10b-5 Liability: The Supreme Court and 'Janus'
April 01, 2023
Part One of a Three-Part Article
This three-part series discusses the Second Circuit's recent Securities law landmark case, S.E.C. v. Rio Tinto. However, in order to discuss Rio Tinto, it is important to first understand the Supreme Court landmark cases upon which Rio Tinto is based: Janus Capital Group, Inc. v. First Derivative Trader and S.E.C v. Lorenzo. Janus is discussed here in the first installment.
SEC to Continue to Punish Wrongdoers and Deter Misconduct
March 01, 2023
The Division of Enforcement will likely continue to use "every tool in its toolkit" and expect that public companies and other market participants will think rigorously about their business and appropriately tailor compliance practices and internal controls and policies to match.
Circuit Split Reflects Disagreement About the Relationship Between Scheme Liability and SEC Rule 10b-5(b)
March 01, 2023
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.
ESG 'Greenwashing' Litigation On the Rise
March 01, 2023
Increased attention paid to companies' public promotion of their environmental and sustainability programs is likely to continue in 2023, with further developments in regulation and litigation pertaining to "greenwashing" — a marketing practice which involves unsubstantiated or exaggerated claims about the environmentally friendly or socially-responsible attributes of an organization's products or services.
Second Circuit Narrows Reach of Wire Fraud and Insider Trading Prohibitions
February 01, 2023
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.
