Insights Search
For more than a decade, the U.S. Securities and Exchange Commission (the “SEC”) has been able to bring enforcement actions in either federal court or the agency’s internal venue.
V&E SEC Update
On June 11, 2024, the United States Securities and Exchange Commission (the “SEC”) charged Illit Raz, the former CEO and founder of the since-shut-down artificial intelligence recruiting startup Joonko Diversity Inc. (“Joonko”), with defrauding investors by making false and misleading statements about a number of items — including the sophistication of the company’s technology.
Since generative AI burst into the mainstream, companies have raced to capitalize on its extraordinary promise. But as with any technological frontier, this promise does not come without risks, and companies can expect to encounter them with greater frequency as AI’s role in the economy continues to grow.
E-Trade was considering banning one of its users Keith Gill, known as Roaring Kitty, after he disclosed a significant stock position on social media. To comment on the issue, Rebecca Fike first appeared on CNBC and addressed the legality of publicly sharing stock holdings when followed by millions, which can have a significant impact on the market.
On May 23, 2024, the Securities Enforcement Forum West debuted its first-ever panel on the impact of artificial intelligence (“AI”) on securities enforcement, regulation, compliance, and practice, signaling an increased focus on the fast-evolving technology.
The U.S. Securities and Exchange Commission (“SEC”) and Department of Justice (“DOJ”) have been working increasingly collaboratively to combat unlawful trading practices and hold wrongdoers accountable, demonstrating effective interagency cooperation to protect investors and ensure the integrity of the financial markets.
V&E White Collar Update
In 2023, the Department of Justice (DOJ) achieved a record-breaking number of recoveries under the False Claims Act (“FCA”), underscoring its ongoing commitment to combating fraud against the federal government.
Consumer packaged goods companies know that sustainability sells. And in their efforts to market their products as sustainable, they’ve long contended with allegations of greenwashing—the practice of claiming their products are friendlier to the environment than they actually are.
Published in Oilman Magazine
Companies in the midst of government investigations and enforcement actions often must contend with follow-on civil litigation stemming from the same issues. Indeed, due to differing standards of proof, companies that are able to successfully ward off government enforcement actions may still find themselves mired in civil litigation that comes with even more significant discovery and exposure to financial liability.
Published in The Computer & Internet Lawyer’s September 2024 Issue
While much attention is given to compliance with applicable laws, such as the U.S. Foreign Corrupt Practices Act of 1977, many companies working on projects sponsored by Multi-Lateral Development Banks overlook that they have subjected themselves to an entirely separate regime of anti-fraud and anti-corruption regulations with serious consequences for non-compliance.
Republished by the Banking Law Journal, July-August 2024