Topics:

Litigation

• U.S. Supreme Court Rules in Jones v. Harris Associates; Vacates and Remands Gallus v. Ameriprise Financial
• Court Allows Class Action Against Evergreen Entities and Fund Trustees to Proceed
• District Court Judge Rules in Favor of Plaintiffs in Schwab YieldPlus Fund Case
• First Circuit Rejects the SEC’s Interpretation of Rule 10b-5
• Second Circuit Vacates Dismissal of Section 10(b) Claims Against Citigroup Entities, Affirms Dismissal of Section 36(b) Claims
• Court Rules State Market Timing Claims Precluded by SLUSA

New Rules, Proposed Rules and Guidance

• SEC Releases AML Guidance on Beneficial Ownership Information
• SEC Adopts Restrictions to Short-Selling Practices
• SEC Adopts Amendments to Rules Requiring Internet Availability of Proxy Materials
• SEC Adopts Money Market Fund Reforms
• FINRA Provides Guidance on Blogs and Social Networking Websites

Legislation

• Senate Committee Approves Restoring American Financial Stability Act of 2010
• Congressman Introduces Banking Integrity Act

Other News

• SEC Staff Evaluating the Use of Derivatives by Funds
• Closed-End Fund May Not Exclude Shareholder Proposal to Amend Bylaws Directing Board to Terminate Advisory Agreement
• IDC Issues Task Force Report on Board Oversight of Subadvisers
• SEC Makes Enforcement Changes

Enforcement Actions

• SEC Charges Madoff’s Director of Operations with Falsifying Accounting Records and Siphoning Investor Funds
• SEC Charges State Street for Misleading Investors About Subprime Mortgage Investments
• SEC Charges Advisers for Unlawful Short Selling Practices
• SEC Files Settled Insider Trading Charges Against Evergreen Insider
• SEC Settles Charges Against Adviser’s CFO/CCO for Aiding and Abetting Adviser’s Fraud
• SEC Settles Charges Against Investment Adviser Representative for Aiding and Abetting and Causing Morgan Stanley’s Advisers Act Violation

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