On September 10, 2014, the Securities and Exchange Commission (SEC) announced charges against 28 officers, directors, and major stockholders of public companies for violating Section 16(a) and/or Section 13(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act). These rules require prompt reporting about holdings and transactions in the stock of publicly traded companies. Six public companies were also sanctioned for contributing to filing failures by insiders or failing to report their insiders' filing deficiencies. A total of 33 out of these 34 individuals and companies agreed to settle charges and pay financial penalties totaling $2.6 million. See "SEC Announces Charges Against Corporate Insiders for Violating Laws Requiring Prompt Reporting of Transactions and Holdings," SEC Press Release No. 2014-190 (September 10, 2014), and "SEC Announces Fraud Charges Against Biotech Company and Former Executive Who Failed to Report Insider Stock Sales," SEC Press Release No. 2014-191 (September 10, 2014).
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Originally published in Business Law Today, November 2014.
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