ABA Journal - Law News Now

Legal Marketing & Consulting

Wachtell Lipton Client Memo Urges SEC to Target Rumor-Mongers

Posted Jul 15, 2008, 04:12 pm CDT
By Molly McDonough

New York's Wachtell, Lipton, Rosen & Katz sent a call to arms this week to clients. In the memo, the M&A powerhouse urges U.S. securities regulators to be more aggressive in attacking rumor-mongers and in policing other industry abuses.

The memo calls for a 45-day study by the Securities and Exchange Commission to report on the extent to which "abusive and manipulative short-selling and spreading of false rumors is taking place," Dow Jones reports.

Anticipating that the SEC will find abuses, Wachtell Lipton's July 14 memo (PDF) then recommends that the SEC adopt appropriate rules and seek enforcement actions against wrongdoers.

Dow Jones reports that Wachtell Lipton's client memo comes on the heels of an unusual… Continue reading...

• Comments: 0
• E-mail / Share
• Permalink
• Print