These are some of the compliance-related stories that recently caught my attention.
CFTC Can’t Give Whistleblower Money Away by Jean Eaglesham in the Wall Street Journal
Since its Whistleblower Program was launched in 2011, the Commodity Futures Trading Commission has spent more on administrative costs than it has paid out in bounties, according to a Wall Street Journal analysis of the agency’s data. [More…]
An SEC investigation: to disclose, or not disclose? by Patrick Hunnius, Perrie Michael Weiner, Robert D. Weber, Caryn G. Schechtman of DLA Piper
In a recent decision, the Ninth Circuit addressed for a second time the question of whether an issuer’s disclosure of a Securities and Exchange Commission investigation can provide a sufficient basis for a plaintiff to plead “loss causation” in a securities class action. The court’s ruling – that disclosure of an investigation combined with “a subsequent revelation” can suffice to plead loss causation in a later civil action alleging securities fraud – should lead issuers to think more carefully about disclosure of such investigations at all.[More…]
6 Lawyers and Staff Caught in the Insider Trading Crosshairs by Casey Sullivan in Bloomberg DNA
With constant access to corporate information, lawyers can feel the urge to use it to their own financial advantage. We compiled a list of some of the lawyers and employees who have been caught in the prosecutors cross-hairs and pulled information about them from various media publications. [More…]