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Cady Bar the Door Insight & Commentary on SEC Enforcement Actions and Related Issues

Monthly Archives: June 2013

SEC Buys Itself a Headache

Posted in SEC Litigation, SEC Structure

If you’re reading this, you’re surely aware of the several-years-old-now fight between the SEC and some federal judges regarding the SEC’s policy of settling cases while allowing defendants to neither admit nor deny the claims against them.  Very briefly, the SEC contends that its policy allows it to settle cases against companies that would otherwise… Continue Reading

Lenny Dykstra Is Open for Business!

Posted in Broker-Dealers, FINRA

On Dealbreaker last week, Bess Levin hilariously reported former baseball player Lenny Dykstra’s release from a California prison after his guilty plea and sentencing for three felony counts – bankruptcy fraud, concealment of assets, and money laundering.  As Levin noted, with his new free time, Dykstra might be available to weigh in on your investment… Continue Reading

Companies Finding Little Use for Quick, Efficient Way to Avoid Liability

Posted in Compliance, Insider Trading

When I was on the SEC’s enforcement staff, I had a case once where we were pretty sure our prospective defendant had engaged in insider trading.  Our conversation with his lawyer went something like this:¹ Us:       Did your guy sell those shares on the basis of material, nonpublic information? Him:   No way.  In fact, he… Continue Reading

SEC Sues Badin for Insider Trading in Smithfield Foods Acquisition

Posted in Insider Trading, SEC Litigation

The May 29th announcement that China-based Shuanghui International Holdings had agreed to acquire Virginia-based Smithfield Foods came with a lot of news value.  First, the $4.7 billion price tag for Smithfield is large by any measure.  Second, this deal – the largest-ever acquisition of a U.S. company by a Chinese company – has offered great… Continue Reading