Sectors
Foley & Lardner LLP partner James Lundy addressed the impact a ruling from the U.S. Supreme Court in a major securities case would have on the industry in the Law360, “SEC To Lean On Congress As Defense In High Court Case.”
The U.S. Supreme Court is set to hear arguments in Ongkaruck Sripetch v. U.S. Securities and Exchange Commission, and a ruling in the case is expected to help resolve a circuit split between the Second and Ninth Circuit over the SEC’s ability to collect disgorgement without demonstrating that investors were economically harmed by fraud.
The ruling “will be incredibly helpful for the defense bar guiding their clients,” Lundy, a former SEC attorney and co-leader of Foley’s Securities Enforcement Subgroup, explained. “It will be incredibly helpful for the securities industry so they have clarity going through the investigative process, so they understand what the risks are in terms of the financial impact to their firms if they decide to settle.”
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