If the U.S. Securities and Exchange Commission contacts you by phone, summons, or subpoena, you do not want to proceed alone. When the SEC comes knocking with questions, concerns, or accusations, having a knowledgeable attorney by your side is critical to navigate the complexities of securities litigation. The Commission takes violations or enforcement matters seriously, and the repercussions associated with these matters can be significant.
Common Securities Litigation and Enforcement Matters
Securities litigation cases can arise due to a broad scope of issues such as unauthorized trade, insider trading, securities fraud, or disregard for regulations. Other common securities litigation and enforcement matters that require the assistance of adept legal counsel include the following issues:
- Internal compliance matters — Failure to maintain an effective compliance policy can leave a company open to increased risk of internal fraud, deceit, and other types of misconduct that give rise to securities law violations.
- Corporate transactions — Corporate transactions are an area that is typically subject to heavy scrutiny by the SEC. These matters can include hostile takeovers, proxy issues, and cross-border transactions.
- Bribery and corruption — Bribery and corruption are two major issues that can lead to an SEC investigation. Bribery and corruption includes violations of the Foreign Corrupt Practices Act and may involve a referral to the Department of Justice.
- Shareholder matters — Corporate governance issues are usually linked with securities litigation, such as derivative liability, breaches of fiduciary duty, and shareholder suits.
- Falsified financial statements — Falsified financial statements usually involve inflating earnings and assets or minimizing expenses and liabilities in order to deceive investors.
- Stock fraud — Stock fraud involves a wide range of practices used to induce investors into purchasing or selling shares of stock. This type of misconduct can include Ponzi schemes, unregistered initial public offerings, and pump-and-dump schemes.
- Accounting liability — The SEC through the Public Company Accounting Oversight Board investigates accounting issues within public companies to ensure the accuracy of financial reporting.
If an SEC investigation has been initiated against you or your company, it’s vital to contact a reliable securities litigation attorney to ensure your rights and interests are protected. You should not discuss the details of the case with anyone besides your attorney or post anything about it on social media. You must comply with any terms or deadlines in the federal subpoena — your attorney can best advise you regarding the steps to take in your situation.
Why is a Securities Litigation Attorney Necessary?
Securities litigation is a complicated area of law that requires specific knowledge regarding the procedures and nuances involved. SEC litigation is stressful, time-consuming, and costly. Failure in litigation can also come with serious penalties — as well as injunctions and disgorgement orders. If the matter involves alleged criminal conduct, you could also face jail time and criminal charges. With stakes this high, you can’t afford to be without experienced counsel.
In addition, an SEC litigation attorney doesn’t only represent their clients in the courtroom. They can help with a variety of tasks throughout the investigation phase, including assisting with internal corporate investigations, ensuring any audits are completed, and conducting discovery. Importantly, a substantial amount of documents will need to be produced through ESI (electronically stored information) discovery — a skilled SEC litigation attorney will make sure this process is streamlined, cost-effective, and efficient.
Contact an Experienced New York Securities Litigation Attorney
If you’re facing an SEC investigation or litigation, it’s essential to have a securities litigation attorney to obtain the best possible outcome. Brinen & Associates provides high-quality legal services for securities litigation and enforcement matters in a wide range of industries. Call (212) 330-8151 or send us a message to schedule a consultation.