Legal
Relying on Wisdom of the Crowd Raises Risks
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For growth companies, securities attorneys advise extra caution when contemplating some recently legalized approaches to wooing investors.
Legal
Ironridge Wins Ruling Against SEC’s Use of Administrative Courts
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A judge ruled that the Securities and Exchange Commission can not use its own administrative court to pursue its securities law charges against emerging growth company financier Ironridge Global Partners, dealing a setback to the SEC’s frequent use of administrative law proceedings that some argue are unconstitutional. The Nov. 17 ruling by Judge Leigh Martin May, of the U.S. District Court in Atlanta, forced the commission to withdraw subpoenas and cancel an administrative law hearing that had been scheduled for Dec. 7. The SEC has 60 days to file with the 11th Circuit Court of Appeals in Atlanta to try to overturn Judge May’s ruling.
Legal
PIPE Investor Cranshire Capital Sanctioned by SEC Over Allocation of Expenses
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Cranshire Capital Advisors, an once active investor in the private-investment-in-public-equity market, was sanctioned by the Securities and Exchange Commission for allegedly having investors in its main fund bear expenses that should have been paid by its general partner.
Legal
SEC Issues $3.08M in Fines Over Pre-IPO Facebook, Twitter Share Sales
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Efstratios “Elias” Argyropoulos and his firm Prima Capital Group were ordered to pay $3.08 million in fines and disgorgement of profit plus interest for allegedly misappropriating $3.5 million from investors who thought they would receive shares in Facebook Inc. (FB) and Twitter Inc. (TWTR) before their initial public offerings.
