In theory, companies are supposed to tell the truth to their investors. When they do not, or when the SEC or other regulatory bodies believe they do not, then civil litigation and administrative or criminal inquiry can ensue. Smith & Fawer has substantial experience on both sides of securities litigation, both prosecuting the claims of investors and defending companies and their officers in SEC inquiries.
Examples of the firm’s experience in this area include:
- Prosecution of a Section 16B “short swing” claim on behalf of a publicly-traded corporation against its largest investor;
- Defense of the CEO and Director of a publicly-traded company against an SEC inquiry into certain trading activities;
- Successful defense of a publicly-traded company in a suit for improper redemption of shares brought by its largest investor;
- Representation of multi-million dollar investor against a hedge-fund and its accountant for fraudulently inducing him into investing.