Tag Archives: securities litigation and enforcement

ILN Today Post

SEC Renews its Focus on Fake News

Compliance Week Interviewed Stradling shareholder Kathleen Marcus, co-chair of the Enforcement Defense & Investigations practice group and chair of the Compliance & Corporate Governance practice group, for an article about the SEC’s recent enforcement actions in this arena. Marcus commented that some of the firm’s clients have fallen “victim to fake websites that are putting out false information. It has actually been what I would refer to as a ‘bear attack.’ They have a short position in the stock and are leaking false negative information into the market in order to cause a temporary drop in the stock price so they can take advantage of their short position.” To combat this issue, Marcus recommends that companies have only a few designated people who can speak on its behalf, thus limiting the risk if all personnel understand the policy.

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