SEC Annual Report Indicates Shift in Enforcement Focus

Gerald Hodgkins is quoted in Corporate Counsel regarding the SEC’s annual enforcement report. Reflecting on the data, Mr. Hodgkins says, “You’re seeing more cases that are really honed in on the operating metrics and financial goals of the company. These newer cases are focused on particular operating goals, operating metrics. It has increasing emphasis by the SEC’s division of enforcement.”

Mr. Hodgkins believes the SEC is pushing to protect individual investors. He says, “There’s an appreciation by the current leadership at the SEC that operating metrics or financial goals are important to investors. It’s also important to send a message to public companies that they need to focus on this area and make sure the metrics and financial information they provide is accurate.”