Dodd-Frank Opens SEC Courts to Directors (Boehme quoted)

Dodd-Frank Opens SEC Courts to Directors

Tony Chapelle – Agenda-A Financial Times service – December 13, 2010

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Most corporate directors realize that they’ve grown more legally vulnerable in the past two years. Now the Dodd-Frank Act could have many of them saying that it’s open season on directors.

In a provision of Dodd-Frank that has received little attention but that could have far-reaching consequences, the SEC has been granted two added powers in lawsuits against directors and officers.

“We will probably see an uptick in [SEC] administrative proceedings,” says Victor Vital, a partner in the white-collar defense practice at law firm Baker Botts. “Dodd-Frank makes it easier to seek penalties against directors and officers from a process-and-proof standpoint.”

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