Double-Take: SEC Disclosure Obligations in Parallel Investigations
Chicago Daily Law Bulletin
January 27, 2014
With greater frequency, organizations are being investigated by federal and state agencies or prosecutors either at the same time or in succession. Referred to as parallel investigations or proceedings, such investigations have been officially sanctioned as both legal and appropriate in 1970 via United States v. Kordel, see 397 U.S. 1 (1970). The article explores if and when a parallel investigation triggers disclosure obligation for a company that is subject to the rules and regulations of the Securities and Exchange Commission.