Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

In a settled enforcement action, the SEC assessed a civil money penalty against a director of Medient Studios, Inc. for two missed Section 16 filings. But there was really only one transaction that was missed.  One was a missed Form 3 for option grants upon becoming a director.  In addition, the SEC says the director should have filed a Form 5 at the end of the year reflecting the information for the same transaction on the missed Form 3.

It may look like the SEC is continuing to pursue a “broken window” enforcement policy but that may not be technically true. Digging a little deeper, Medient and its former CEO and Chairmen were the subject of prior litigation by the SEC in an earlier enforcement action.  So when the Enforcement Division shows up, apparently this is a rock they look under for directors who did not engage in otherwise alleged unlawful behavior.