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SEC Investigations

People's United Bank Logo

Investors bring this class action against companies they believed would build a Jay Peak Ski Resort in Vermont—People’s United Financial, Inc. and People’s United Bank. But according to the complaint, the money they put up went to an alleged Ponzi scheme, finally uncovered in a two-year investigation by the Securities and Exchange Commission (SEC).

Longfin Logo

What should investors think of a company that holds an initial public offering, projects astronomical growth, then admits it lacks even personnel who are skilled in proper reporting? The complaint for this class action alleges that Longfin Corporation stock rose and plunged in a matter of months, based on false impressions of the corporation which were provided or sustained by its management, in violation of the Securities Exchange Act of 1934.

General Cable Products

The Foreign Corrupt Practices Act (FCPA) forbids US companies from engaging in corruption, even outside the US. The complaint for this class action claims that General Cable Corporation paid bribes in six different countries, generating millions of dollars through means that were unsustainable and likely to lead to regulatory scrutiny. Because this is a securities complaint, the primary allegations are the company’s false statements, inflating its stock price, in violation of the Securities Exchange Act of 1934. 

Citizens Old Annual Report Cover

The complaint for this class action alleges that Citizens, Inc. sells insurance policies in foreign countries in order to evade US regulations. It claims that it uses improper growth projections to enroll customers in programs where dividends are used to buy the company’s stock, and sells policies that require payment of US taxes as if they were tax-exempt. Among other things, the company has not held a conference call in two years, and the complaint claims it is under investigation by both the SEC and IRS.

Sinovac Logo

Bribery and corruption are secretive activities, but securities laws still require the honest reporting of these actions. According to the complaint for this class action, Sinovac Biotech Ltd. violated the Securities Exchange Act of 1934 by not reporting an instance of bribery by the company’s CEO, Weidong Yin. An analyst company’s accusation about the bribery caused the stock price to fall, set off an internal investigation, and resulted in a subpoena from the SEC. 

The Crypto Company Logo

The complaint for this class action claims that the 17,000% surge in the value of The Crypto Company’s stock was caused by manipulation and that the company did not disclose this to investors. It quotes company filings that speak of control of company financial reporting, and then cites the SEC’s decision to suspend trading in Crypto’s securities based on concerns about the compensation the company paid for stock promotion, the plans of insiders to sell their stock, and possible manipulative transactions in the company’s stock in November 2017. The complaint alleges that the company’s failure to provide information about all these things are violations of the Securities Exchange Act of 1934.

This shareholder derivative lawsuit was filed for the benefit of Xerox Corporation against certain members of the company's Board of Directors who are accused of breaching their fiduciary duties to shareholders by failing to provide appropriate oversight and internal controls relating specifically to Xerox's acquisition of Affiliated Computer Services, Inc. and the resulting SEC investigation surrounding some of that firm's accounting practices.