Number of defendants settling with SEC is down 8% in '09

The number of defendants agreeing to settlements with the Securities and Exchange Commission dropped for the second straight time in fiscal 2009, declining nearly 8% to 626 defendants from 673 in fiscal 2008, according to a report released today by NERA Economic Consulting.
DEC 07, 2009
The number of defendants agreeing to settlements with the Securities and Exchange Commission dropped for the second straight time in fiscal 2009, declining nearly 8% to 626 defendants from 673 in fiscal 2008, according to a report released today by NERA Economic Consulting. While the number of defendants dropped, the average settlement more than doubled to $10.7 million, from $4.7 million in fiscal 2008 said NERA, which tracks securities litigation. That rise in average settlement value was due to three large settlements: a $200 million settlement with UBS AG for allegedly helping customers evade U.S. taxes, a $350 million settlement with Siemens Aktiengesellschaft of Germany, and $177 million with Halliburton Co. and its former subsidiary KBR Inc. In both the Siemens and Halliburton cases, the companies were accused of violating the Foreign Corrupt Practices Act. Without those three large settlements, the average settlement would have been $4.4 million, according to Elaine Buckberg, senior vice president of NERA Economic Consulting. “NERA” stands for National Economic Research Associates. It's not clear why the number of defendants declined, and “I hesitate to interpret the decline as predicting a further decline in 2010,” said Ms. Buckberg. “The SEC is under enormous pressure to be stronger on enforcement.”

Latest News

SEC fines Zoe Financial $450K over undisclosed referral conflict
SEC fines Zoe Financial $450K over undisclosed referral conflict

Salespeople at the firm often went beyond the matching algorithm to recommend network advisors on its Zoe Wealth platform, according to the regulator.

Senate vote on NIL bill could reshape college athletes' paydays
Senate vote on NIL bill could reshape college athletes' paydays

The Protect College Sports Act would cap school payments and codify NIL rights, with implications for advisors guiding young athletes.

'I'm done': Pandemic memories push business owners toward the exit
'I'm done': Pandemic memories push business owners toward the exit

"I know the number that I want to be able to retire on, and now I just want out," says Wilmington Trust's Marguerite Weese, describing a common refrain among business-owner clients.

Northern Trust bulks up family office team with New York hires
Northern Trust bulks up family office team with New York hires

Bessemer and Brown Brothers Harriman veteran Robert Ludricks III and private markets specialist Olof Akesson join the ultra-high-net-worth push on the East Coast.

SEC accuses trucking operator of running $127 million Ponzi scheme
SEC accuses trucking operator of running $127 million Ponzi scheme

765 investors were promised 260% annual returns on truck leases

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains