Growth Capitalist (https://growthcapitalist.com/category/premium-articles/legal/page/13/)
Legal developments affecting capital formation by pre-IPO private and public emerging growth companies
Six investment firms, including several active investors in equity private placements in emerging growth companies, will pay a total of more than $2.5 million in penalties after the Securities and Exchange Commission found that they violate its rule against shorting stocks within five days before participating in public offerings of the same shares.
The Securities and Exchange Commission is proposing a set of reforms to its administrative legal process in apparent response to criticism that defendants are treated unfairly in the SEC’s own internal courts.
The former CEO and CFO of OCZ Technology Group, which was once valued at more than $100 million and attracted private capital from dozens of institutional investors, are accused of accounting fraud in lawsuits filed by the Securities and Exchange Commission.
An attorney who once worked for white-shoe firm Sullivan Cromwell has been charged by the Securities and Exchange Commission for his role in helping China reverse merger consultant Benjamin Wey commit securities fraud in at least three emerging growth companies.
