SEC Case Signals Scrutiny of Pre-IPO Securities Trading

The Securities and Exchange Commission is using a recent enforcement case against a Silicon Valley investment firm that operated a pre-IPO company share exchange to highlight the agency’s new scrutiny of investments which have returns pegged to liquidity events such as public offerings or acquisitions.

Ironridge Hits Back at SEC Action on Section 3(a)10 Deals

Ironridge Global Partners is fighting back against a Securities and Exchange Commission suit to force the San Francisco-based firm to become a broker-dealer or halt its controversial equity-for-liabilities swap deals. The controversy is centered on a finance scheme pioneered by Ironridge that turns unpaid claims into equity and bypasses the requirement to hold restricted stock from trading.