Surge of Settlements Under the SEC’s MCDC Initiative Casts Doubt as to the Leniency of Settlement Terms for Self-Reporters

06/26/2015

A wave of settlements with municipal underwriting firms under the SEC’s Municipalities Continuing Disclosure Cooperation (MCDC) Initiative has brought renewed attention to continuing disclosure obligations in municipal offerings. But, it also raises questions about the initiative’s purportedly favorable settlement terms. On July 18, 2015, the SEC announced settlements with 36 municipal underwriters for willfully violating Section 17(a)(2) of the Securities Act. The underwriters agreed to pay a total of $9.29 million and to undertake remedial actions to settle SEC allegations that they sold bonds using offering documents that contained materially false or misleading statements or omissions about issuers’ compliance with continuing disclosure obligations pursuant to Rule 15c2-12.

To read the full article, click on the PDF linked below:

Surge-of-Settlements-Under-the-SEC’s-MCDC-Initiative-Casts-Doubt.PDF

For additional information, please contact one of the attorneys listed below:


SEC Enforcement Defense

 

Kit Addleman
214.651.5783
kit.addleman@haynesboone.com

Ronald W. Breaux
214.651.5688
ron.breaux@haynesboone.com

David Siegal
212.659.4995
david.siegal@haynesboone.com

Public Finance Chair

 

Cheryl K. Rosenberg
713.547.2074
cheryl.rosenberg@haynesboone.com

 

Email Disclaimer