SEC Raises the Stakes for Negligent Corporate Directors
Officers and directors of public corporations are facing increasing scrutiny from the SEC, says White & Case trial lawyer Gregory Little in this interview with Richard Levick. Which means more prosecution is likely:
“… the SEC has also announced a willingness to pursue civil cases in which defendants are accused of negligence only. Traditionally, the SEC pursued individuals engaged in intentional misconduct leading to investor losses. By pursuing negligence-based claims, the SEC will increase the number of potential targets to include those who had no intent to deceive investors but simply did not act in a reasonable manner. If a business decision results in significant shareholder loss, there may be a tendency to view all actions and disclosures surrounding that decision as unreasonable. The bottom line is the SEC will potentially be bringing more claims with a significantly reduced burden of proof.”
Read the full interview, What’s Next in the Boardroom: Greg Little on Criminal and Civil Litigation and Investigations – Levick
