March 18, 2014

SEC Brings Action for Disclosure Violations During Hostile Bid Defense

As noted in this Hunton & Williams memo, the SEC recently brought an enforcement action against Lions Gate Entertainment, charging it with failing to make full and accurate disclose as part of its efforts to repel a hostile takeover bid. As Lions Gate paid a substantial $7.5 million penalty in settlement, the case serves as a reminder that the SEC polices the disclosure practices of those instituting defensive measures when activist investors and hostile bidders emerge.