SEC suffers three recent losses despite increased focus on trial readiness

Abstract

Purpose

To contrast SEC Chair Mary Jo White's enforcement rhetoric with the results of recent SEC enforcement actions.

Design/methodology/approach

Discusses a speech in which White explained the benefits she believes result from taking cases to trial. Proceeds to review three recent cases in which the Commission has lost after a jury trial or summary judgment motion.

Findings

Based on three recent SEC losses, White may be correct in her prediction that trials promote “public accountability for both defendants and the government.”

Practical implications

Some defendants in SEC enforcement actions may ultimately prevail if they refuse to settle with the Commission.

Originality/value

This article analyzes the early results of the SEC's newly-announced enforcement policies.

Citation

Bettigole, B., Kelly, K. and Kruly, C. (2014), "SEC suffers three recent losses despite increased focus on trial readiness", Journal of Investment Compliance, Vol. 15 No. 1, pp. 35-37. https://doi.org/10.1108/JOIC-01-2014-0008