Federal District Court Awards Approximately $3 Million in Stock Manipulation Scheme
By Lewis Tesser, Partner, and Timothy Nolen, Associate
A case out of the United States District Court for the Southern District of New York shows the danger of failing to respond to a complaint from the SEC. The case involved issues of business law, corporate law, civil procedure and default.
The case, Securities and Exchange Commission v. Lines, 2011 U.S. Dist. LEXIS 91354 (S.D.N.Y. August 16, 2011), involved an action brought by the SEC against defendants accused of stock manipulation. The defendants defaulted by failing to answer. Following the default, the Court ordered disgorgement of the defendants’ profits and civil penalties totaling almost $3 million.
At Tesser, Ryan & Rochman, LLP, we recognize the importance of responding in a thorough and timely fashion. Whether our clients are facing civil, administrative or even criminal action, our attorneys can advise clients how to respond to complaints or negotiate a resolution.