Client Alert
Recent SEC Regulation FD Action Emphasizes Importance of Corporate Compliance Policies and Corrective Action
September 30, 2009
Last week, the SEC settled a civil action brought against a former executive of American Commercial Lines, Inc. (“ACL”), in which the SEC alleged that the former executive aided and abetted ACL’s violation of Regulation FD and Section 13(a) of the Securities Exchange Act of 1934. The settlement is significant not because of the penalty imposed on the former executive but because of the steps ACL had taken which led the SEC to decide not to bring an enforcement action against ACL itself. The settlement emphasizes that effective Regulation FD compliance programs, coupled with prompt remedial action in the event of a Regulation FD violation, may minimize the risk of corporate sanctions.
Click here to read our client alert discussing the recent SEC action.
If you have any questions regarding the recent SEC action, please contact either the Womble Carlyle attorney with whom you usually work or one of our Corporate and Securities attorneys listed on the following webpage: WCSR Corporate & Securities Attorneys.
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