Any party who issues, sells or promotes securities is forbidden from making false or misleading statements and from omitting material information regarding the security. What is a material omission? According to the U.S. Securities and Exchange Commission (SEC), a...
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Securities Law
SEC Scrutinizes Rules on Stock Trading by Executives
Corporate executives and their trading practices are being further scrutinized by the U.S. Securities and Exchange Commission (SEC), which is reviewing possible rule changes, as well as possible abuses of existing rules pertaining to stock trading options. The SEC’s...
Ex-Informant Sued Yet Again by SEC
Adam Ford, an attorney representing Gentile, characterized the SEC’s latest complaint as "an embarrassment for what was once a reputable government agency.” “We expect to get these bogus allegations promptly dismissed, as we have with the prior three complaints the...
Robinhood Brokerage Accused of Securities Violations
According to legend, the heroic outlaw Robin Hood robbed from the rich to give to the poor. But, according to a pair of lawsuits filed by the Securities and Exchange Commission (SEC) and the state of Massachusetts, Robinhood Financial LLC is accused of taking...
Former MiMedx CEO and COO Convicted on Securities Fraud Charges
In 2019, the former CEO and COO of MiMedx were indicted for allegedly engaging in a fraudulent scheme to inflate the Georgia-based wound care company's revenue. Roughly a year later, both men have been found guilty on securities fraud charges. Specifically, former CEO...
Update on SEC vs. Gentile
The U.S. District Court for the District of New Jersey issued an order in the matter of U.S. Securities and Exchange Commission v. Gentile. The order dismissed the amended complaint filed by the SEC seeking an injunction against former government informant Guy Gentile.
Ex-CEO of Hertz settles federal charges in accounting scandal
Former Hertz Chairman and CEO Mark Frissora agreed to repay the car rental company nearly $2 million in incentive-based compensation stemming from charges that he facilitated fraudulent financial statements. The charges – related to a Securities and Exchange...
Under Armour receives Wells notice amid SEC probe
In July, the U.S. Securities and Exchange Commission (SEC) sent Wells notices to Under Armour and two of its executives. The notices of possible enforcement action are part of a probe into the activewear company's accounting practices, which the SEC claims may have...
SEC issues notice seeking forensic tools for monitoring blockchains
The U.S. Securities and Exchange Commission (SEC) is looking for forensic tools to more closely monitor the crypto industry, particularly with regard to blockchain smart contracts. The regulator issued a notice on July 30, requesting solicitations from companies that...
11 Class Actions Claim Crypto-Asset Exchanges Violated Securities Laws
Enthusiasm for Bitcoin has factored largely in many decisions to invest in the cryptocurrency market. But according to 11 class actions filed on April 3 in the Southern District of New York, four crypto-asset exchanges and seven digital token issuers took advantage of...
