Welcome to the 2017 Year-End Report from the BakerHostetler Securities Litigation and Regulatory Enforcement Practice Team.
The purpose of this report is to provide a periodic survey of matters we believe to be of interest to general counsel, chief compliance officers, compliance departments, legal departments, and members of the securities and commodities industries.
This report highlights recent, significant developments, including:
- Supreme Court Cases, including a summary of the recent decision in Somers concerning the scope of Dodd-Frank whistleblower protections, a summary of the recent oral argument in Cyan concerning whether state courts have subject matter jurisdiction to adjudicate Securities Act claims, and an update on the Leidos litigation that concerned whether Securities and Exchange Commission ("SEC") regulations create a duty to disclose that can give rise to securities fraud claims.
- Securities Law Cases, including In re Petrobras Securities, where the Second Circuit added clarity to the extraterritorial application of U.S. securities laws in the class action context; the Ninth Circuit's view on "mixed statements" in In re Quality Systems, Inc. Securities Litigation; and the Second Circuit's view in Waggoner v. Barclays PLC on whether direct evidence of price impact is necessary to demonstrate market efficiency.
- Investment Adviser and Hedge Fund Cases, indicating the SEC's focus shift from high-profile Wall Street firms to small-time players, where, in nearly every case, the amount customers lost totaled less than $1 million.
- Commodities and Futures Regulation and Cases, including innovative technology programs in FinTech, and enforcement cases focusing on cryptocurrency, spoofing, anti-fraud enforcement, and compliance with regulatory requirements.
- Securities Policy and Regulatory Developments, including the SEC's focus on virtual currencies, the creation of the SEC's Cyber Unit to address cybersecurity concerns and assess the Commission's internal risk, and ratification of Administrative Law Judges.
We hope you find the information and commentary useful and encourage you to contact any of the practice team leaders listed at the end of the report.
View the 2017 Year-End Securities Litigation and Enforcement Highlights.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.