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Director Discretionary Compensation Awards Tested by Entire Fairness Standard According to Delaware Supreme Court

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In a recent decision by the Delaware Supreme Court in In re Investors Bancorp Stockholders Litigation, the court found that director equity grants based on director discretion are subject to an entire fairness standard of review irrespective of whether stockholders have previously approved the equity incentive plan. According to the... Read More

Topics: Employment, Executive Compensation, Litigation, Public Companies and Securities

SEC Brings Enforcement Action for Inadequately Documented Perks but Does Not Impose Penalty

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The SEC charged a biopharmaceutical company with committing a series of accounting controls and disclosure violations, including the failure to properly report as compensation millions of dollars in perks provided to its then-CEO and then-CFO. According to the SEC, Tennessee-based Provectus lacked sufficient controls surrounding the reporting and disclosure of... Read More

Topics: Litigation, Public Companies and Securities

SEC Busts Fraudulent Initial Coin Offerings

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The SEC charged a businessman and two companies with defrauding investors in a pair of so-called initial coin offerings, or ICOs, purportedly backed by investments in real estate and diamonds. The SEC alleges that Maksim Zaslavskiy and his companies have been selling unregistered securities, and the digital tokens or coins... Read More

Topics: Litigation

Duka Beats Fraud Charge in SEC Administrative Court

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Barbara Duka was an employee of Standard & Poor’s Ratings Services. The SEC contended that Duka loosened S&P’s methodology for rating commercial mortgage-backed securities to help the company generate ratings business from issuers. S&P had settled allegations against it in a separate matter. The SEC brought charges against Duka in... Read More

Topics: Litigation

SEC Charges Chief Compliance Officer for Failure to Verify Information

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David I. Osunkwo was a principal at Strategic Consulting Advisors, LLC, or SC Consulting. SC Consulting offered compliance consulting and CCO services to two SEC registered investment adviser firms under common control, Aegis Capital, LLC and Circle One Wealth Management, LLC. Respondent Osunkwo, a principal at SC Consulting, was designated... Read More

Topics: Investment Advisers, Litigation