Fenwick securities enforcement co-chair Michael Dicke spoke with Reuters about the SEC, fake news and short sellers on a Legal Currents podcast.
“Fake news” is nothing new, especially to corporations dealing with short sellers—investors who bet on falling stock prices and have long been accused of deliberately spreading false information in order to drive bigger gains. The SEC enforcement division has brought surprisingly few cases against abusive short sellers, and companies similarly have not had much success pursuing private litigation against short sellers.
Dicke, formerly the Associate Regional Director for Enforcement in the SEC’s San Francisco regional office, discusses what companies can—and can’t do—to combat fake news being spread by short sellers.
Listen to the podcast on theReuters website.