Pandemic Category Archives — Securities Fraud Lawyers Blog Published by Securities Fraud Attorneys

As Peloton Plummets, What Can Investors Learn From Insider Trading?

Published on: January 24, 2022 | by Savage Villoch Law, PLLC

Peloton Interactive Inc. (“Peloton”) is making headlines this month – but not for the reasons its shareholders might hope. After reaching a peak of $162 per share at the height of the COVID-19 pandemic in December 2020, Peloton’s share price now sits at just $27. [1]

While the driving factors behind this downturn are many, the impact of the pandemic is undeniable. As an at-home exercise equipment company with the ability to connect users from their homes across the world via real-time classes, it’s no wonder the company and its stock soared through 2020’s COVID-19 lockdowns. Less clear, as of now, is Peloton’s staying power as consumer demand wanes, leading the company to hire consultants at McKinsey & Co. to review finances and to halt production on several of its models. [2]

In light of Peloton’s precipitous fall, some have turned their attention to massive stock sales undertaken by Peloton insiders before the downturn began. SEC filings from late 2020 and into 2021 show that insiders at Peloton sold approximately $500 million in stock before the price began to plummet. [3]

A Look Back at SEC Enforcement Actions in Fiscal Year 2021

Published on: December 27, 2021 | by Savage Villoch Law, PLLC

As 2021 draws to a close, it is a fitting time to revisit some of the main enforcement actions taken by the Securities and Exchange Commission (SEC) through fiscal year (FY) 2021, which ended on September 30^th, 2021.

In total, the number of new enforcement actions filed by the SEC in FY 2021 increased by 7% over the previous year, with 434 new enforcement actions. While the total number of enforcement actions – including new actions along with other “follow-on” or open proceedings – decreased slightly year over year in FY 2021, the SEC remained committed to its role as “cop on the beat for America’s securities laws,” as described by Chair Gary Gensler. [1] The SEC maintained a sharp focus on protecting the integrity of the country’s capital markets through enforcement actions against bad actors even in the face of the persisting COVID-19 pandemic persisted.

In announcing its progress on enforcement actions during FY 2021, the SEC concentrated on several key priority areas. Some of these priority areas, per a recent SEC Press Release, included “holding individuals accountable,” “ensuring gatekeepers live up to their obligations,” “rooting out misconduct in crypto,” “policing financial fraud and issuer disclosure,” “cracking down on insider trading and market manipulation,” and “swiftly acting to protect investors.” [1]

Tracing the Economic Impacts of the Pandemic: A Rise in Margin Investing

Published on: December 20, 2021 | by Savage Villoch Law, PLLC

As the world buckles in and adjusts itself to the newest wave of COVID-19, global economies appear to be looking to do just the same. In fact, central banks across the globe are now pivoting away from economy-stimulating monetary policies implemented at the start of the pandemic and toward tighter policies with higher interest rates. [1]

At the heart of the decision to pivot in this manner has been a focus on steadily rising inflation, which some policymakers fear the pandemic’s longevity will only amplify. [1] This fear stems from the fact that in large part, populations are learning to coexist with the virus.

As time passes and each new wave appears, is studied, and spreads toward dominance, people become generally better equipped to deal with the pandemic’s impacts – economic and otherwise. Whether because of rising vaccination rates or better overall caution and awareness, many now agree that the largest current threat to the economy is inflation rather than COVID-19. [1]

Beware of Stock Fraud Related to Alleged Cures and Treatments in the Covid-19 Era

Published on: August 5, 2020 | by Savage Villoch Law, PLLC

Stock fraud is awful, but it should not surprise you that it happens. There are bad people out there who think nothing of stealing money from anyone they can. Stock fraud, I bet, has been happening since corporations became a thing.

Stock fraud may occur when a company defrauds investors when convincing them to buy shares in their company. The investment fraud may be a market manipulation scheme. It may be an unethical brokerage firm forcing their brokers to sell the ‘stock of the day’ knowing full-well the stock is not worth a fraction of what the price the sell to you.

But, perhaps the worst form of stock fraud, to my mind, is the stock fraud that takes advantage of people’s fear about current events. Understandably, potential investors or victims of fraud are today extremely concerned and frightened about catching Covid-19. This is especially true for that frequent target of fraudsters, older people. Not only is this segment of the population more vulnerable to Covid 19, but their fears are likely at a higher level. This set of circumstances just creates a more fertile ground for investment fraud that takes advantage of loneliness and fear such as we have today with the pandemic. So, it is vital to get the word out to older people and their children or caretakers to be especially vigilant about investment fraud phone calls.