When SEC Subpoenas Are Too Close For Comfort To Litigation

Law360, New York (November 6, 2012, 12:06 PM EST) -- Recent orders from a Texas federal district court may have far-reaching implications for how the U.S. Securities and Exchange Commission conducts investigations while a related enforcement action is pending.

The SEC contends that the court’s order imposing sanctions for a deposition without notice to defendants in a related enforcement action will curb its ability to aggressively investigate and prosecute securities law violations. In fact, the court’s order appears consistent with SEC procedures cautioning staff about investigations that overlap with a complaint’s allegations. What the order may...
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