Investor Disclosure Laws – A Case Study On May 3, 2021, the Securities and Exchange Commission (“SEC”) charged Under Armour Inc. with “misleading investors as to the bases of its revenue growth and failing to disclose known uncertainties concerning its future revenue prospects.”  In 2015 and 2016, Under Armour engaged in what is known as…

Didi Inc., a Chinese version of Uber, was listed on NYSE (DIDI) on June 30, the day before the Chinese Communist Party’s Founding Day celebration and four days before the United States’ Independence Day. Didi planned to raise approximately $4.4 to $4.9 billion from its IPO, offering 318,000,000 ADSs[1] priced at $14 per share. The…

On June 15th, the Securities and Exchange Commission (SEC) charged[1] six individuals for trading on two Silicon Valley Companies’ non-public information and illicitly profiting over $1.7 million. Nathaniel Brown was a senior revenue manager at Infinera Corporation (Infinera) and Marcus Bannon a major account manager at Fortinet, Inc. They repeatedly provided confidential information that impacted…

On June 22, 2021, the Securities and Exchange Commission (“SEC”) charged[1] Loci Inc. (“Loci”) and its CEO John Wise for raising over $7.6 million from an unregistered Initial Coin Offering (ICO) of LOCIcoin. Among the capital raised from the ICO, Loci illicitly misappropriated approximately $38,000 for his personal use. The defendants also violated the antifraud…

On June 15th, 2021, the Securities and Exchange Commission (“SEC”) charged First American Financial Corporation, a real estate financing service company headquartered in California for violating policies regarding procedure control of cybersecurity vulnerability. First American is a publicly traded company registered with the SEC under Section 12 (b) of the Exchange Act, and it agreed…

The SEC reopened the comment period for Universal Proxy Rules and accepted comments until June 7th, 2021. The reopened comment period is regarding the Commission’s proposal of amending the proxy rules to permit shareholders to vote by proxy for any combination of candidates for the board of directors, as they could if they attended the…

The SEC Charged Promoters of BitConnect.  On May 28th, 2021, the Securities and Exchange Commission (“SEC”) announced[2] its charge against five individuals with promoting a global unregistered digital asset security offering in 2017 and 2018. The five defendants, Trevon Brown, Craig Grant, Ryan Maasen, Michael Noble, and Joshua Jeppesen, belonged to a promoter network working…

On June 11th, 2021, the Securities and Exchange Commission (“SEC”) announce[1] the charge against Radjabli for orchestrating three individual fraudulent schemes.  The amount of money involved in each scheme increased as Radjabli went further. For example, in his third scheme, he took advantage of being a former practicing dentist and unlawfully raised approximately $20 million…

On June 7th, 2021, the Security and Exchange Committee (“SEC”) announced[1] a charge against Holly Hand, a former senior project manager at Neuralstem, a biopharmaceutical company currently known as Palisade Bio, Inc., and her intimate Chad A. Calice with violating the insider trading policy. Hand provides Calice with Neuralstem’s unpublic information, resulting in Calice avoiding…

On February 22nd, 2021, Lucid Motors announced[1] its proposed merger with Churchill Capital Corp IV (NYSE: CCIV), combing at a transaction equity value equals to $11.75 billion. Merger with CCIV would allow Lucid to raise capital like a public company, bolstering the development and marketing of Lucid’s first luxury electrical vehicle, Lucid Air. As Lucid…

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