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SEC Monitoring Insider Trading and Disclosure Issues in Light of COVID-19 SEC Monitoring Insider Trading and Disclosure Issues in Light of COVID-19

SEC Monitoring Insider Trading and Disclosure Issues in Light of COVID-19

On March 23, 2020, Stephen Peikin and Stephanie Avakian, the Co-Directors of the Division of SEC Enforcement issued a statement that the SEC is closely monitoring potential insider trading and disclosure issues in light of the COVID-19 pandemic. Peikin and Avakian specifically noted that in these “dynamic circumstances, corporate insiders are regularly learning new material nonpublic information that may hold an even greater value than under normal circumstances” particularly if “earnings reports or required SEC disclosure filings are delayed due to COVID-19.” In light of the foregoing, the SEC admonished companies “to be mindful of their established disclosure controls and procedures, insider trading prohibitions, codes of ethics, and Regulation FD and selective disclosure prohibitions to ensure to the greatest extent possible that they protect against the improper dissemination and use of material nonpublic information.”

Should you have any questions or concerns about enhancing your compliance protocols during this period, please do not hesitate to contact Ice Miller’s White Collar Defense & Investigations Group for assistance.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.
 
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