In a unanimous opinion yesterday, the Supreme Court limited the SEC’s ability to pursue civil penalties. The Court held that the five-year statute of limitations begins to run at the moment a fraud is committed, not when regulators become aware if it. In the case at issue, Gabelli v. SEC, the agency sued in 2008 for alleged violations occurring between 1999 and 2002. Chief Justice Roberts noted practical difficulties in determining when a large governmental agency first discovers a fraud, concluding that Congress had not intended to permit the SEC to bring such actions so late. Read the opinion here. For more, see Reuters.
Two days until the sequester. Congressional leaders are meeting at the White House this morning, but both sides appear to be bracing for $85 billion in across-the-board cuts on Friday, March 1. While yet another short-term bill might resolve immediate funding concerns, the parties thus far remain gridlocked on tax reform proposals, which both recognize as an important bargaining chip. House Speaker John Boehner has recently appeared more willing to tackle a comprehensive tax deal this Congress, but a solid democratic majority in the Senate is unlikely to concede to his current “no tax increases” position. For more, see NYTimes, BBC and Politico.
AT&T has announced plans to expand into Europe with new lines of business, including wireless home-monitoring and automation. The company will license its new Digital Life product to more than 30 companies worldwide, exceeding anticipated demand. The move shows that AT&T, the U.S.’s largest phone provider, is transitioning to become a more general technology company, as consumers are increasingly seeking around-the-clock wireless connectivity and product integration. For more, see Bloomberg.
[…] The Week in Review: SEC Litigation, Sequester Countdown and AT&T […]