WSJ Scoop: $279 Million Whistleblower Award was from Ericsson Bribery Case

Record $279 Million Whistleblower Award Went to a Tipster on Ericsson

The record $279 million whistleblower award issued by the Securities and Exchange Commission earlier this month stemmed from a bribery case against telecommunications company Ericsson.

The award from the SEC’s cash-for-tips program was related to the $1.1 billion settlement the Swedish company reached with U.S. authorities in 2019 over allegations it conspired to make illegal payments to win business in five countries, in violation of U.S. antibribery laws, according to people familiar with the matter.

SEC Changes Introductory Disclaimer – Likely In Response to Discovery Dispute

If you regularly read speeches given by SEC Commissioners and staff, you may have noticed a change in the standard opening. For most of my career, the remarks always began with something to this effect:

“Before I begin, I must give the customary disclaimer that the views I express today are my own and do not necessarily reflect the views of my fellow commissioners or the staff.”

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But something has changed. Chair Gensler gave the disclaimer this way on May 10, 2023 in remarks to the Municipal Securities Disclosure Conference:

“My views are my own as Chair of the SEC, and I am not speaking on behalf of my fellow Commissioners or the staff (emphasis added).”

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The changed language likely results from discovery disputes in SEC vs. Ripple Labs….

Key SPAC-Related Litigation Developments

As I have chronicled on this blog (most recently, here), a wave of litigation has followed in the wake of the SPAC boom in late 2020 and early 2021. Since January 1, 2021, over 60 SPAC-related securities class actions have been filed, and there has also been a number of Delaware state court breach of fiduciary duty lawsuits, as well. Although many of these suits have only just been filed and therefore have not yet been subjected to judicial scrutiny, there have been several dismissal motion rulings in a number of these cases. A May 2023 memo from the Jones Day law firm entitled “SPAC Litigation: A Review of Recent Developments” (here) reviews the state of play in the various judicial rulings so far in the SPAC-related cases. As the memo notes, “many high-profile suits have recently survived motions to dismiss (at least in part), and at least one has been resolved through a significant settlement.”

Crypto Kiosks, Licensing Are Targets for California Lawmakers

The cryptocurrency sector could be the subject of new regulation in California, and industry lobbyists are pushing back to ensure their businesses can still operate under new proposed scrutiny.

The Golden State, home to nearly a quarter of the blockchain companies in North America, is trying to regulate the sector after last year’s collapse of the FTX exchange and other turmoil in the cryptocurrency market. With no looming federal action, state legislators want to put in a basic regulatory framework.

Corporate Earnings Forecasts Accurate Only 30% of Instances – Bloomberg

More than three out of four financial professionals said there was a strong likelihood that their companies’ earnings would fall within the guidance they give to investors — but this only happens rarely, according to the researchers. The study surveyed 357 CFOs, investor-relations professionals and other executives at public companies in 2021.

The paper finds that companies offer accurate guidance about 30% of the time….

Greek Property Investor Bluehouse in Trouble As Legal Headaches Mount

When real estate investor Yannis Delikanakis woke up from a 26-day coma in April 2020, he discovered that his bank accounts had been frozen and he’d been ousted from the private equity fund that he had co-founded 16 years earlier.

DeSantis looks like the choice for crypto enthusiasts in 2024

Crypto Twitter discussions about law and policy are informed chaos, a specialized cacophony. Despite the drama involved with Gov. Ron DeSantis’ announcement on Twitter that he was running for president in 2024, he made some alpha drops about his stance on crypto.

The key takeaways from Desantis’ remarks were that crypto owners “have every right to do Bitcoin,” and that central planners see Bitcoin as “a threat to them” that they want to regulate “out of existence.” He added that the Biden administration would ultimately seek to outlaw crypto, and he proudly emphasized that Florida last month became the first state to pass a law asserting it would never recognize a central bank digital currency (CBDC).

The announcement presents single-issue crypto voters with a stark choice.

Skadden Forces Lawyers Back to Offices Four Days Per Week

Skadden, Arps, Slate, Meagher & Flom is requiring lawyers to show up in the office four days per week, the law firm confirmed Thursday.

Skadden lawyers must work in person Monday through Thursday, under the new policy. The elite New York firm, among the largest in the US, previously required attorneys to be in offices Tuesday through Thursday, according to a source familiar with the matter.

“Our modified hybrid work model will harness the best aspects of remote working while fueling innovation and professional development through more frequent in-person collaboration,” the firm said in a statement.

Kyle Bass Says SEC ‘Blew It’ Twice in Handling of UDF Scandal

Activist investor Kyle Bass said the Securities and Exchange Commission was too lenient with a fraudulent Texas real estate fund he exposed years ago and is now botching his attempts to be paid as a whistleblower.

“I turned a fraud in where one of my analysts found a Ponzi scheme and the SEC actually just completely dropped the ball,” Bass, the founder of Hayman Capital Management, said in a Bloomberg Television interview Thursday, referring to United Development Funding. Bass brought his concerns about the company to the SEC and mounted an anonymous online attack against the company, earning an estimated $30 million by selling UDF stock short.