In a rebuke to the SEC, on Monday, November 29, 2011, U.S. District Court Judge Jed Rakoff (SDNY) refused to sign a consent judgment approving a $285 million settlement between the Agency and Citigroup. At issue is a lawsuit filed in October 2011 by the SEC alleging that Citigroup created and sold mortgage bond investments
Subject to Inquiry
Latest from Subject to Inquiry - Page 34
The FSA approach to UK Anti-Bribery & Corruption Enforcement
The Financial Services Authority (“FSA”) has clarified its approach to UK Anti-Bribery and Corruption (“ABC”) Enforcement.…
Avon investigated for corruption by the SEC for alleged offences in China
Last week Avon, the US door-to-door and online cosmetics manufacturer, announced that the US Securities Exchange Commission (SEC) has placed it under formal investigation in connection with allegations of bribery in China.…
“Corruption – The New Corporate Challenge” by Nick Kochan and Robin Goodyear – book launch at McGuireWoods offices 18 October 2011
This evening, 18 October 2011, Nick Kochan and Robin Goodyear are launching their new book on corruption.…
GIFTS AND HOSPITALITY and the BRIBERY ACT
The Government has made it clear that there is no intention in this legislation to criminalise corporate hospitality or other expenditure which is reasonable and proportionate. It is accepted that this is a recognised and established part of doing business.…
“UK corruption health-check: growing threat, inadequate response”
Transparency International published a research report on 15 June 2011 on the prevalence of corruption in the UK.…
Supreme Court Clarifies Who “Makes” a Statement Under Rule 10b-5
Yesterday, in a 5-4 split decision, the United States Supreme Court ruled that for purposes of SEC Rule 10b-5, a mutual fund investment advisor cannot be held liable for material misstatements in its client’s prospectus because those statements are ultimately controlled by the client. Janus Capital Group, Inc. v. First Derivative Traders, No. 09-525, slip…
After Initial Setback, Supreme Court Holds that Plaintiffs in Halliburton Fraud Action May Obtain Class Certification
On June 6, 2011, the U.S. Supreme Court held in Erica P. John Fund, Inc. v. Halliburton Co., 563 U.S. ____ (2011) that plaintiffs accusing Halliburton Co. of securities laws violations do not have to prove loss causation in order to obtain class certification.
The Halliburton plaintiffs sought class certification for shareholders who allege that…
DOJ, FCPA and Pharma: Participation Pays
As discussed in a July 2010 Subject to Inquiry post, DOJ put Big Pharma on notice that it intended to aggressively investigate potential violations of the Foreign Corrupt Practices Act (FCPA) within the pharmaceutical and medical device industry. Well, they meant what they said.
Johnson & Johnson, the New Jersey-based multi-national pharmaceutical, medical devices…
SEC Agrees To Its First Non-Prosecution Agreement
On December 20, the SEC announced that it had entered into a non-prosecution agreement with Carter’s Inc., allowing Carter’s to avoid prosecution in exchange for cooperation with a fraud investigation. This is the first non-prosecution agreement issued by the SEC since its announcement in January 2010 of new measures designed to strengthen SEC enforcement by…