As we begin to prepare for a full schedule of events in 2024, starting with an event on Voluntary Self-Disclosure Policy for Export Controls Violations on January 16, 2024, the NYU School of Law Program on Corporate Compliance and Enforcement (PCCE) is taking a moment to reflect on our busy Fall 2023 program. First up: our September 6, 2023 Roundtable on SEC enforcement policy.
SEC Director of Enforcement Gurbir Grewal (©Hollenshead: Courtesy of NYU Photo Bureau)
by Antonia Apps, George Canellos, and Isabel Pitaro
The Securities and Exchange Commission (“SEC”) has long wanted to find the right case to pursue so-called “shadow trading,” where insiders armed with material nonpublic information about their own company use that information to trade in the securities of another company whose stock is closely correlated, such as a peer in the same industry.[1] In SEC v. Panuwat, filed last year, the SEC may have found the perfect vehicle for extending the insider trading laws to shadow trading. On January 14, 2022, the SEC secured its first victory in the case, when Judge Orrick of the United States District Court for the Northern District of California denied the defendant’s motion to dismiss in a broadly worded opinion that could have far-reaching implications for public companies and the investment community.[2]