TheCorporateCounsel.net

Earlier this week, Alan Dye noted on the Section16.net blog that the SEC announced cease and desist orders against five issuers and six individuals based on violations of Section 16(a), Section 13(d) and Item 405 disclosure obligations. Alan’s blog notes:

[I]t looks like:

All of the five issuers were charged with “causing” Section 16(a) violations by undertaking but failing to assist insiders with Section 16(a) reporting requirements

Three of the issuers also were charged with violating the proxy and 10-K disclosure requirements by failing to disclose insiders’ reporting violations under Item 405

Three of the individuals were officers or directors and were charged with violating Section 16(a)

The other three individuals were 10% owners of one or more companies and were charged with failure to comply with Sections 13(d) and 16(a).

All of the respondents consented to the orders and civil money penalties. Most of the alleged violations occurred in the 2017-2022 timeframe, but the SEC’s press release suggests that there may be more to come—it says today’s orders are part of “the SEC’s ongoing investigation of potential beneficial ownership violations.”

You may recall that we last saw a series of Section 16 and beneficial ownership reporting sweep cases way back in 2014.

– Dave Lynn