Last week, yet another federal court dismissed a shareholder derivative suit that claimed a company had failed to diversify its corporate leadership team. Shareholders had alleged that Opko Health Inc., a Miami-based medical company, failed to nominate or appoint minorities
Corporate Defense and Disputes
Proskauer's perspective on commercial litigation trends and legal developments
The Corporate Defense and Disputes blog, published by Proskauer Rose LLP, focuses on legal issues related to corporate litigation and defense strategies. It covers topics such as securities enforcement actions, insider trading cases, regulatory compliance challenges, and significant court rulings affecting corporate governance and financial services. The blog also addresses developments in labor and employment disputes, white collar defense, and complex commercial litigation. It provides analysis of regulatory enforcement trends, including SEC actions and administrative proceedings, as well as emerging issues like ESG regulations and anti-discrimination legal challenges. The content is aimed at corporate clients, legal professionals, and stakeholders interested in corporate legal risk management and dispute resolution.
Latest from Corporate Defense and Disputes - Page 10
SEC Investor Advisory Committee Considers Recommendations to Tighten Rules for Insiders’ Trading Plans
The Securities and Exchange Commission’s Investor Advisory Committee (the “IAC”) is considering recommendations from its Owner Subcommittee urging the Commission to tighten the affirmative defense and disclosure requirements for SEC Rule 10b5-1 trading plans. These recommendations follow recent statements by SEC…
July 2021 Update of the SEC’s Covered Actions for Potential Whistleblower Claims
Ex-Nikola Chairman Indicted for Securities Fraud
In April 2021, the SEC released several public statements that may have begun to cool a superheated SPAC market. FINRA soon followed suit, announcing in July 2021 a regulatory sweep aimed at SPACs. Now, for the first time, a criminal…
Second Circuit Holds that Accurately Reported Financial Statements Are Not Actionable and that Materiality Has a Half-Life
The U.S. Court of Appeals for the Second Circuit held earlier this week that a company’s accurately reported financial statements are not misleading simply because they do not disclose that alleged misconduct might have contributed to the company’s financial results.…
U.S. Federal Regulators Turn Up the Heat on Cryptocurrency Trading Platforms
With new types of digital assets and related business on the rise, federal authorities have been busy investigating. Recently, the SEC, FinCEN and the CFTC have imposed some notable settlements involving cryptocurrency trading platforms for allegedly operating without appropriate approvals…
MNPI Update: SEC Pursues “Shadow Trading” Insider Trading Case
The SEC recently charged a former employee of a biopharmaceutical company with insider trading in advance of an acquisition but with a unique twist: Trading the securities of a company unrelated to the merger. The employee, Matthew Panuwat, did not…
Supreme Court to Decide Whether Discovery Stays Apply to State-Court Securities Lawsuits This Fall
By Julia Alonzo
One of the most significant differences between bringing a securities lawsuit in state versus federal court is the application of the mandatory discovery stay set forth in the Private Securities Litigation Reform Act (the “PSLRA”). Following the enactment of the…
SEC Greenlights Board Diversity Requirements
After much debate, the SEC on Friday approved a Nasdaq proposal that will require listed companies to adopt several diversity-related measures. Nasdaq first made this proposal, which requires listed companies to publicly disclose diversity information about their board members and…
L Brands Settles Derivative Suits
On July 30, 2021, L Brands, the parent company behind Victoria’s Secret and Bath & Body Works, settled a rash of derivatives actions which had alleged “toxic” workplace conditions and “a culture of misogyny” at the company. We previously detailed…