The State Secrets Issue In SEC V. Deloitte

Law360, New York (November 10, 2011, 12:57 PM EST) -- As more and more China-based companies are embroiled in enforcement actions, one of the obstacles that the U.S. Securities and Exchange Commission may face in obtaining documents is the state secrets claim as raised by Shanghai-based Deloitte Touche Tohmatsu CPA Ltd. (D&T Shanghai). The accounting firm attempted to resist a subpoena on the grounds that the document production would violate China’s state secrets law, and consequently may lead to imposition of criminal sanctions on those responsible for disclosure.[1]

Given that D&T Shanghai did not challenge the...
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