by Megan Bannigan, Avi Gesser, Henry Lebowitz, Benjamin Leb, Jarrett Lewis, Melissa Muse, Michael R. Roberts, and Lex Gaillard Top row from left to right: Megan Bannigan, Avi Gesser, Henry Lebowitz, and Benjamin Leb Bottom row from left to right: Jarrett Lewis, Melissa Muse, Michael R. Roberts, and Lex Gaillard (Photos courtesy of Debevoise & Plimpton LLP) Last month, we wrote about how many companies probably need a policy for Generative AI tools like ChatGPT, Bard and Claude (which we collectively refer to as “ChatGPT”). We discussed how employees wer ..read more

by Michael T. Borgia, Alexander Sisto, and Robertson Park From left to right: Michael T. Borgia, Robertson Park, and Alexander Sisto. (Photos courtesy of Davis Wright Tremaine LLP) The U.S. Securities and Exchange Commission (“SEC” or the “Commission”) has ordered Blackbaud, Inc. (“Blackbaud”) to pay $3 million to resolve claims that it made materially misleading statements about a 2020 ransomware attack and failed to maintain adequate disclosure controls related to cybersecurity. The SEC’s March 9, 2023 order and accompanying press release focuses on three allegedly material misst ..read more

by Mark Chalmers, Billy Hicks, Kendall Howell, Paul D. Marquardt, Will Schisa, Daniel P. Stipano, and Charles Marshall Wilson Top row from left to right: Mark Chalmers, Billy Hicks, and Kendall Howell. Bottom row from left to right: Paul D. Marquardt, Will Schisa, Daniel P. Stipano, and Charles Marshall Wilson. (Photos courtesy of Davis Polk & Wardwell LLP) One year after Russia’s invasion of Ukraine, the United States and its allies imposed a new round of sanctions targeting Russia’s metal, mining, and banking sectors and signaled an increased focus on enforcement. On February 24, 2023 ..read more

by Scott H. Kimpel Scott Kimpel (Photo courtesy of Hunton Andrews Kurth LLP) On February 15, 2023, by a 4-1 vote, the US Securities and Exchange Commission (SEC) proposed new rules regarding an investment adviser’s obligation to custody assets. Unlike the existing rules, if adopted, the new rules would apply to all crypto assets. Currently, Rule 206(4)-2 under the Investment Advisers Act imposes various conditions on the custody of client “funds and securities,” but does not cover crypto assets unless they are also securities. Under newly proposed Rule 233-1 (which would replace Rule 206(4 ..read more

by Kirk J. Nahra, Ali A. Jessani, Arianna Evers, and Samuel Kane From left to right: Kirk J. Nahra, Ali A. Jessani, Arianna Evers, and Samuel Kane. (Photos courtesy of Wilmer Cutler Pickering Hale & Dorr LLP.) On Thursday, March 2, the FTC announced an enforcement action against BetterHelp, Inc., an online mental health counseling service, relating to claims that the company’s collection and use of consumer health data were unfair and deceptive acts and practices under Section 5 of the FTC Act. As part of the settlement, BetterHelp will be required to pay $7.8 million, which the FTC will ..read more

Editor’s Note: Recently, both the DOJ and the SEC brought, for the first time ever, criminal and civil insider trading charges against a corporate executive for his alleged fraudulent misuse of a 10b5-1 trading plan, which typically allows corporate insiders to pre-schedule sales of company shares to avoid accusations of insider trading. In this post, several former federal prosecutors and white collar defense attorneys provide their reactions to this case and its implications for future insider trading cases. Top row from left to right: Brian Jacobs, Gina Parlovecchio, Rachel Maimin, and Kat ..read more

Editor’s Note: the NYU Program on Corporate Compliance and Enforcement is publishing reactions to the American Bar Association’s annual White Collar Crime National Institute in Miami on March 2 and 3, 2023. From left to right: Michael Kim Krouse, Amy Jeffress, Jayce Born, and Baruch Weiss (photos courtesy of Arnold & Porter LLP) by Michael Kim Krouse, Amy Jeffress, Jayce Born, and Baruch Weiss Hot on the heels of DAG Monaco’s speech this morning, this afternoon featured a timely panel on the government’s enforcement agenda for sanctions and export controls. The speakers included Matthew ..read more

by Michael Borgia, Dsu-Wei Yuen, Andrew Lorentz, and Michael Buckalew From left to right: Michael Borgia, Dsu-Wei Yuen, and Andy Lorentz (Photos courtesy of Davis Wright Tremaine LLP) While ransomware attacks usually grab the headlines, business email compromise (BEC) attacks continue to cause massive financial losses for businesses. The FBI’s Internet Crime Complaint Center (IC3), reported BEC losses in the United States of nearly $2.4 billion in 2021.[1]  And the problem grew worse during the COVID-19 pandemic: losses from BECs increased 65 percent globally from July 2019 to December ..read more

by Katja Langenbucher Professor Katja Langenbucher FTX, Kraken, TerraLuna, and similar cases have recently prompted the SEC to move ahead with a long list of enforcement actions. While some applaud the securities regulator‘s push ahead, others criticize its lack of explicit rule-making. Yet some would prefer a banking regulator to step in and authorize a national trust bank charter for issuers of stablecoins. Against this background, the upcoming EU Markets in Crypto Assets Regulation (MiCA) provides an illustration of a tailor-made regime combining elements of securities and banking regulat ..read more

by Alexander H. Southwell and Snezhana Stadnik Tapia Left to right: Alexander H. Southwell and Snezhana Stadnik Tapia. (Photos courtesy of Gibson Dunn & Crutcher LLP) As with recent years, privacy and cybersecurity law and policy continued to evolve substantially over the course of 2022 in an effort to keep up with technological developments and shifting consumer expectations and policy priorities. Recently, in the tenth edition of Gibson Dunn’s U.S. Cybersecurity and Data Privacy Outlook and Review, we provided a review of some of the most significant developments on this topic in the U ..read more