Posted on: 24 September 2018
Staying on the right side of securities laws, especially at the federal level, can be a challenge. A corporate lawyer such as those with Carter West Law firm, however, works with clients who have interest in starting and maintaining businesses that have to be in compliance with securities regulations, especially publicly traded companies. They can serve the interests of individual investors or groups of them, corporate directors, company officers, and other stakeholders. Some practices also handle pending or ongoing litigation, mediation, or arbitration on behalf of their clients.
Everything a publicly traded enterprise shares with the world is subject to a high degree of scrutiny. Even the smallest press release has the potential to accidentally nudge a share price one direction or another, a problem that can cause people to lose or gain large sums of money. Given the temptation to goose numbers, there are serious concerns about the possibility that a firm or one of its officers might misrepresent information about the company in order to fraudulently obtain financial gains.
Many operations retain the services of at least one securities law attorney in order to make sure they don't end up in such a situation. The firm's corporate lawyer will examine all sensitive materials that might end up in the possession of the trading public to ensure that no allegations of fraud can be leveled against it. This includes, for example, making sure that officers of the company and other insiders are aware of when they can safely trade shares in the period prior to the release of privileged information, particularly earnings reports. It may also include instances when civil or criminal proceedings against the company are about to be announced.
Working with Other Interests
A securities law attorney doesn't necessarily have to represent the company itself. For example, a group of shareholders who question the firm's current direction or practices might seek counsel in order to create pressure for desired changes. Whistleblowers sometimes retain the services of corporate lawyers, too. Traders and brokerages also frequently ask for the help of attorneys versed in securities laws. The decisive factor is that an individual hiring a securities lawyer should have a stake in the company.
Such attorneys handle matters before a variety of regulatory bodies, including FINRA and the SEC. They also frequently represent their clients' interests before the boards of stock exchanges, especially in circumstances that might attract the attention of state or federal regulators.Share