General Statements of Regulatory Compliance and Securities Fraud Claims

Posted by Roger Cooper, Jared Gerber, and Lisa Vicens, Cleary Gottlieb Steen & Hamilton LLP, on Saturday, March 23, 2019 Editor's Note: Roger Cooper, Jared Gerber, and Elizabeth Vicens are partners at Cleary Gottlieb Steen & Hamilton LLP. This post is based on a Cleary Gottlieb memorandum by Mr. Cooper, Mr. Gerber, Ms. Vincens, Breon Peace, Matthew Slater, and Alexis Collins. It has been a not infrequent occurrence over the past years that, after a company announces bad news or corporate mismanagement, securities class actions have been filed challenging general statements made by the company about its compliance with regulatory requirements or its own ethics policies and procedures. [On March 5, 2019], in Singh v. Cigna Corp., the Second Circuit issued yet another strong decision rejecting that tactic. In the wake of Cigna, it is now clear in the Second Circuit that generalized statements that a company has established policies to comply with regulatory…

Read more detail on Recent Business Law posts –

This entry was posted in Business law and tagged , , , , , , . Bookmark the permalink.

Leave a Reply