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- Dow Chemical Hit With First Securities Class Action Related to Trump Tariffs
Dow Chemical Hit With First Securities Class Action Related to Trump Tariffs
Plus a key appeal will be heard today related to prosecutions of pump-and-dump schemes.
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Matt Josephson, former AUSA and Trial Attorney with the DOJ, has joined Chaiken Ghali LLP as a partner in the firm’s Atlanta office.

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Tariff-Related Securities Suit Filed Against Dow Chemical
Since the outset of President Trump’s efforts to conduct trade policy through an active use of tariffs, I have been concerned about the possibility of tariff-related corporate and securities litigation. Inevitably, I have been concerned, investors will say that companies tried to soft-pedal the likely impact of tariffs on the companies’ financial results. But while I have worried about the prospects for this type of litigation, I have not been able to provide an example of what I was concerned about – that is, until now. Late last week, a plaintiff shareholder filed a securities class action against industrial materials company Dow, Inc., alleging that the company made misleading statements about the impact the Trump tariffs would have on the company…..
👉 The Complaint filed against Dow is here.
In this post, Kevin LaCroix writes that “as far as I know, this lawsuit is the first securities suit to be filed related to the Trump tariffs. I suspect strongly it will not be the last. I think there will be more to follow, perhaps many more.”
To me, the takeaway is not that SEC enforcement has slowed down — the fraud cases brought are significant and resource-intensive. It’s that the SEC is choosing a different way of talking (or not talking) about its work.
For those of us in the securities disputes bar, that means relying less on the press-release feed as an early-warning system. It may also mean rethinking how we track trends, advise clients on reputational risk, and gauge the Commission’s priorities.
I’ll be watching to see if this pattern holds into the fall. For now, it feels like we’ve entered a quieter, more disciplined phase of SEC enforcement optics — with plenty happening under the surface.
Fraud Enforcement at Stake in Influencers’ Pump-and-Dump Appeal
Seven social media influencers accused of hyping stocks online in order to sell their shares at inflated prices will try on Wednesday to convince a federal appeals court that charges against them were rightly tossed.
The US Court of Appeals for the Fifth Circuit ultimately endorsing a federal judge’s application of recent US Supreme Court precedent to the case could threaten future prosecutions of pump-and-dump schemes.
It would be an “earthquake,” said former Fifth Circuit Judge Gregg J. Costa, now a partner with Gibson, Dunn & Crutcher LLP.
It’s rare for a federal judge to dismiss an indictment. But here, the US District Court for the Southern District of Texas tossed the charges after concluding that the government’s legal theory was barred by Ciminelli v. United States.
Decided after the indictment here, the justices in Ciminelli held that a scheme to deprive victims of “potentially valuable economic information necessary to make economic decisions” isn’t fraud. Rather, the object of the scheme must be a traditional property interest.
Because the defendants here were merely accused of depriving their followers of truthful information about their personal trading intentions, the district court reasoned the indictment alleged a now-invalid fraud theory.
SEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint)
The President’s Working Group on Digital Asset Markets report on “Strengthening American Leadership in Digital Financial Technology” (the “PWG Report”) recommends that the SEC and CFTC coordinate to make America the best place in the world to innovate with blockchain technology and participate in crypto asset markets.[2] Specifically, the PWG Report recommends that the agencies should use their existing authorities to promote “regulatory clarity that best keeps blockchain-based innovation within the United States.” As part of this effort, the Divisions are coordinating to issue guidance “regarding the listing of leveraged, margined, or financed spot retail commodity transactions on digital assets” to implement the PWG Report recommendations.
This joint statement provides the Divisions’ view that current law does not prohibit SEC- or CFTC-registered exchanges from facilitating trading of these spot crypto asset products. As contemplated by the PWG Report, the Divisions’ coordination will promote trading venue choice and optionality for market participants within the United States. In line with these goals, the Divisions stand ready to support consideration by their respective agencies of exchange trading in certain spot crypto asset products.
Galaxy Tokenizes Its Shares on Solana Blockchain With Superstate
Digital asset investment firm Galaxy Digital (GLXY) is bringing its stock onto blockchain rails as equity tokenization is gaining steam.
The Nasdaq-listed company has partnered with blockchain firm Superstate to make its Class A common stock available as tokens on the Solana network through Superstate’s Opening Bell platform. The arrangement preserves the full rights of SEC-registered equity while allowing investors to hold and transfer shares on-chain, the firms said.
👉 The article adds that Galaxy’s approach “seeks to combine compliance with blockchain features such as fast settlement, transparency and around-the clock-availability.”

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👉 On August 27, 2025, Elizabeth Holmes’ X account became active again. The last tweet before that was in 2015. Can anyone email me and let me know what the rules are about tweeting from federal prison?
P.S. She is working out regularly!
824 days in prison, 824 workouts
— Elizabeth Holmes (@ElizabethHolmes)
12:23 AM • Aug 31, 2025
A historic first: We’ve partnered with @superstatefunds to allow stockholders to tokenize and hold $GLXY shares onchain. This milestone marks the first time a public company has tokenized its SEC-registered equity directly on a major blockchain. Effective immediately,
— Galaxy (@galaxyhq)
12:01 PM • Sep 3, 2025