The Recorder (California)
January.27.2012
This article, authored by Securities Litigation and Regulatory Enforcement Group Leader Michael Torpey and San Francisco securities litigation and regulatory enforcement managing associate Amy Laughlin, discusses possible trends in securities litigation for 2012. An excerpt from the article is included below.
The agency is under increased financial pressure and has repeatedly expressed its position that a costly trial is irresponsible when a reasonable settlement can be won instead. But advertising this view may undermine the SEC's negotiating position, particularly in a challenged financial environment where frustrated investors who have experienced significant losses want an admission or verdict of guilt. With all this pressure, the SEC will likely be called on this year to review its overall enforcement strategy, resulting in perhaps fewer settlements and more trials and holding individuals accountable rather than the firms at large.