James P. McLoughlin, Jr., Neil T. Bloomfield, and Frank E. Schall issued a Client Advisory titled “Timely Disclosure of Investigation Loss Contingencies: The SEC’s Aggressive Enforcement Stance.” The Advisory discusses SEC v. RPM International, Inc., No. 16-01803 (D.D.C. filed Sept. 9, 2016), in which the SEC has pushed its aggressive litigation strategy in pursuit of its policy of compelling registrants to accelerate loss contingency disclosures. The SEC filed against RPM International, Inc. and its general counsel, Edward Moore, alleging the failure to disclose a material loss contingency and record an accrual as a result of the filing of a qui tam complaint against RPM and a subsidiary and a resulting Department of Justice investigation. RPM International doubles down on the SEC’s effort to require earlier disclosures of loss contingencies based upon internal evaluations without waiting for the classic internal triggers of a government demand or notice of a pending action by the government. Click to read the full Client Advisory.
Jim McLoughlin’s extensive regulatory, litigation and arbitration track record includes arbitrations before numerous industry and general arbitration organizations; civil trials and appeals in various state and federal courts across the country; and criminal investigations, trials and appeals in matters from anti-terrorism to antitrust to securities fraud. He has represented clients in responding to and defending investigations by the SEC, IRS, FINRA, DOJ, FTC, CFTC, OCC, FRB, FDIC, NC Attorney General’s Office, the United Kingdom FCA, the Monetary Authority of Singapore, Hong Kong Monetary Authority, Central Bank of Brazil, the Brazilian IRS and the Korean FTC, among others.