On May 12, 2020, Steven Peikin, the Co-Director of the Securities and Exchange Commission's Division of Enforcement (the "Division"), remotely presented a keynote address at the Securities Enforcement Forum summarizing actions that the Division has taken in connection with the COVID-19 pandemic. Mr. Peikin emphasized that COVID-19-related enforcement matters are a top priority for the Division. In particular, the Division's primary focus has been on (i) actively monitoring trading activity around announcements made by issuers in industries particularly impacted by the COVID-19 pandemic and (ii) investigating disclosures, impairments or valuations that may attempt to disguise previously undisclosed problems or weaknesses as related to the COVID-19 pandemic. The Division has developed a systematic process to review public filings from issuers in highly-impacted industries, with a focus on identifying disclosures that appear to significantly differ from others in the same industry. Mr. Peikin urged companies to follow their disclosure controls and procedures to protect against the improper dissemination and use of material non-public information given the increased number of corporate insiders with access to, and the potential increased value of, such information given the current volatile market conditions. Since February 7, 2020, the Division has suspended trading in the securities of more than 30 issuers as a result of questions about the adequacy and accuracy of COVID-19-related information. A link to the full remarks can be found here.
Originally published on May 13 2020
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2020. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.