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I’m don’t like that this is being pursued by the SEC. Especially since the likely penalty will be a large chuck of money that gets paid to… the SEC. Too much li
by Nifty3929 3y ago
I’m don’t like that this is being pursued by the SEC. Especially since the likely penalty will be a large chuck of money that gets paid to… the SEC. Too much like extortion.
But as Matt Levine often reminds us - everything is securities fraud. If a bad thing happens and you did not warn investors about it beforehand, you can be sued for securities fraud by the SEC.
It’s almost like it’s illegal for investors to lose money, and the SEC enforces that requirement.
Investing is risky, bad things can happen, including execs that make mistakes (not talking about actual deception and fraud here) and investors should not be surprised when they sometimes lose money, or seek the strong arm of the government for relief.
- me-vs-cat 3y agoDon't you count the following as "actual deception and fraud"? > SolarWinds allegedly misled investors by disclosing only generic and hypothetical risks at a time when the company and Brown knew of specific deficiencies... > SolarWinds’ public statements about its cybersecurity practices and risks were at odds with its internal assessments... > SolarWinds and Brown engaged in a campaign to paint a false picture...
- mym1990 3y agoThis is like saying police officers shouldn't enforce speed limits because the ticket ends up back in the police department, and you could certainly make a point for a conflict of interest, but there is traceable proof. What actually happened in the SolarWinds instance seems to be actual deception and fraud. Plenty of companies go out of business due to competition, this isn't one of those instances.
- piperswe 3y agoTicket money shouldn't end up back in the police fund. It should go into the general fund.
- lima 3y agoIt's more like "if a bad thing happens and you knew about the risk and lied to investors about it".