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Category: Penalties and Disgorgement

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SEC Enforcement

Global Infrastructure Settlement Reflects SEC’s Tougher Approach on Penalties

When it comes to settlements with the SEC’s Division of Enforcement (“Enforcement Division”), a question respondents often ask is how the SEC arrives at a given penalty amount?  This blog post will discuss the SEC’s current approach to determining penalty...
January 5, 2022

About Our Blog

Securities Enforcement & Litigation Insider is a source of insights, information, and analysis on a wide range of topics relevant to securities litigation, with a focus on notable developments in the securities space, including U.S. Securities and Exchange Commission (SEC) enforcement, rulemaking, and other regulatory trends and development. Patterson Belknap’s Securities Enforcement & Litigation team has extensive experience handling highly complex lawsuits and internal investigations. Our blog team includes experienced litigators and corporate advisors, and is led by a former senior counsel for the SEC Division of Enforcement with extensive experience investigating and litigating securities laws violations, providing a unique, interdisciplinary perspective on securities law.

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Blog Contributors

  • Contact H. Gregory Baker.

    H. Gregory Baker

    212.336.2871

    Email

  • Contact Shelley Attadgie.

    Shelley Attadgie

    212.336.2733

    Email

  • Contact Michael F. Buchanan.

    Michael F. Buchanan

    212.336.2350

    Email

  • Contact Alejandro H. Cruz.

    Alejandro H. Cruz

    212.336.7613

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  • Contact Gerald F. DeSantis, Jr..

    Gerald F. DeSantis, Jr.

    212.336.2450

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  • Contact Josie Dikkers.

    Josie Dikkers

    212.336.2231

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  • Contact David Erroll.

    David Erroll

    212.336.2009

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  • Contact Amy N. Vegari.

    Amy N. Vegari

    212.336.2216

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  • Contact Kaiying Wang.

    Kaiying Wang

    212.336.2196

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  • Contact Anthony J. Wong.

    Anthony J. Wong

    212.336.2200

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  • Contact Justin Zaremby.

    Justin Zaremby

    212.336.2194

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Firm Highlights

Firm News
Firm Secures Complete Patent Litigation Victory on Behalf of J&J
On August 31, 2026, Patterson Belknap secured a victory on behalf of Janssen Pharmaceuticals, Inc. (a subsidiary of Johnson & Johnson) in a Hatch-Waxman patent infringement litigation relating to Spravato®, its blockbuster esketamine nasal spray approved for the treatment of treatment-resistant depression and major depressive disorder with suicidal ideation. This litigation was initiated after an ANDA filing by Sandoz, Inc. (“Sandoz”) in 2023, seeking FDA approval for its generic version of Spravato. Janssen asserted that Sandoz’s proposed generic product would infringe certain claims of U.S. Patent Nos. 11,446,260, 10,869,844; 11,173,134; and 11,311,500.  Sandoz counterclaimed for declaratory judgment that each of the asserted patent claims was invalid under 35 U.S.C. §103 and/or § 112.  On August 31, 2026, the U.S. District...
Blog Post
AI Companies Find Value in Bankrupt Companies
Spirit Airlines filed for bankruptcy in November 2024 and, after emerging from bankruptcy, filed again in August 2025. During the second case, the company tried to find a way to keep the airline in business but to no avail. In May 2026, Spirit Airlines pivoted towards a wind-down and ceased operations. This summer, as a part of its wind-down, Spirit Airlines began marketing its remaining assets. It had plenty of traditional assets to sell. For example, the debtors’ bid procedures motion filed in May 2026 listed the following assets: takeoff and landing slots at LaGuardia Airport; aircraft hangar(s); corporate headquarters; training center; multi-family residential buildings; ground service equipment; spare engines; flight simulators; aircraft maintenance equipment; and assets related to the...
Publication
DOJ Revises Justice Manual to Strengthen False Claims Act Enforcement
On September 18, 2026, the Department of Justice announced two revisions to the Justice Manual aimed at strengthening False Claims Act (“FCA”) enforcement. The first revision reinforces DOJ's longstanding position that sub-regulatory guidance cannot impose legal obligations beyond those established by statute or regulation. The second—and, for companies facing qui tam litigation exposure, the more consequential—directs DOJ attorneys to consider exercising the government's dismissal authority when it declines to intervene in a qui tam action. In particular, where the government does not seek immediate dismissal, the new guidance calls for DOJ to revisit that assessment as the litigation progresses. In other words, when DOJ declines to join a whistleblower lawsuit, its attorneys are now encouraged to affirmatively dismiss unmeritorious complaints....
Event
Greg Baker to Speak at Practising Law Institute's Broker/Dealer Regulation and Enforcement 2026
On Thursday, October 8, Partner Greg Baker will speak on a panel at the Practising Law Institute's Broker/Dealer Regulation and Enforcement 2026 conference titled "Ethical Issues Facing Lawyers in the Financial Services Industry." Mr. Baker will join James Q. Walker (Partner, Ashurst Perkins Coie), Allison Cambria (Head of Litigation and Regulatory Enforcement - Americas, Deutsche Bank), Ilene B. Marquardt (Head of Legal Engagement, Client Relationship Group, Wells Fargo Advisors), and Christopher K. Williams (Associate General Counsel, Fidelity Investments) to share guidance on managing conflicts of interest and privilege issues. To learn more, please click here.
Publication
DOJ Issues Press Release on Liability for Unregistered Foreign Agents
On September 16, 2026, the Department of Justice (“DOJ”) issued a press release “remind[ing] the public of federal laws that require individuals to register as foreign agents when they act in the United States at the direction or control of a foreign government or foreign principal, and that they will face civil and criminal liability if they fail to do so.” The press release points specifically to two federal laws that require such registration: the Foreign Agents Registration Act (“FARA”), 22 U.S.C. § 611 et seq., and 18 U.S.C. § 951. The press release is a departure from former Attorney General Pam Bondi’s February 5, 2025 memorandum to DOJ employees, which directed that criminal charges under FARA should be limited...
Firm News
Barbara Mullin Named Among Benchmark Litigation’s 2026 Top 250 Women in Litigation
Partner Barbara Mullin has been named one of Benchmark Litigation’s 2026 Top 250 Women in Litigation. The ranking uses an extensive research process, including “months of investigation into individual litigators’ professional activities as well as client feedback surveys and one-on-one interviews” to identify women who are “top players” in their field. To learn more, please click here.
Blog Post
Delaware Bankruptcy Court Crafts Test Concerning Post-Confirmation “Related-To” Jurisdiction
The filing of a bankruptcy case creates an estate consisting of the debtor’s legal and equitable property. The estate will continue until the debtor’s confirmed plan of reorganization or liquidation goes effective. It will then terminate, and the property will either revest in the reorganized debtor or be transferred to another entity such as a post-confirmation liquidation trust. Now and then, bankruptcy judges face this issue: after plan confirmation, when can a liquidation trustee assert state law claims in a lawsuit filed in the bankruptcy court? In terms of a bankruptcy court’s subject matter jurisdiction, the question can be articulated this way: when can a bankruptcy court have post-confirmation related-to jurisdiction over such claims under 28 U.S.C. section 1334?[i] A bankruptcy judge...
Blog Post
You Win Some and Lose Some: Judge Liman Decides Competing Motions to Compel
On September 4, 2026, District Judge Lewis J. Liman (S.D.N.Y.) granted in part and denied in part Plaintiff Lashify, Inc.’s (“Lashify”) motion to compel discovery and denied Defendants Qingdao Network Technology Co., Ltd., d/b/a UCoolMe and Vivicute Limited’s (“UCoolMe”) motion to compel. Lashify, Inc. v. Qingdao Network Tech. Co., Ltd., No. 25-cv-4183 (S.D.N.Y. Sep. 4, 2026). Lashify’s Motion to Compel Lashify moved to compel UCoolMe to provide responses to discovery requests relating to: (i) product samples and raw materials; (ii) manufacturing; (iii) employees and supply chain; (iv) marketing; and (v) finances. Id. at *2. The Court found that each of those topics were relevant under Fed. R. Civ. P. 26(a) and that UCoolMe did not sufficiently respond to discovery requests related to...
Event
Michael Arlein to Speak on Barbri Webinar
On Thursday, October 1, Partner Michael Arlein will speak on a Barbri webinar titled "Planning for Cryptocurrency Investors: Estate Planning, Asset Protection, and Investments." Mr. Arlein will be joined by Matt E. Kirk (Partner, Holland & Knight) to explore the latest developments in federal cryptocurrency regulations and their impact on asset management and share effective planning strategies for owning and investing in cryptocurrency. To learn more, please click here.
Publication
Pharmacy Benefit Managers in the Crosshairs of Enforcement and Reform
Pharmacy benefit managers have been in the crosshairs of enforcement and reform efforts for several years. At the federal level, the Federal Trade Commission has obtained favorable settlements for the government, and Congress passed PBM reform in the Comprehensive Appropriations Act in February. Some states have also enacted their own legislation, which has become the latest battleground as PBMs level constitutional challenges to state efforts to regulate PBMs’ limitations on where and how patients can fill prescriptions. The outcome of these challenges may dictate whether other states take similar action, and whether PBM influence on pharmacy selection continues to grow. To continue reading Amy N. Vegari and Sarah Brand Wasson's article in The National Law Journal, please click here.
Firm News
Firm Secures Complete Patent Litigation Victory on Behalf of J&J
On August 31, 2026, Patterson Belknap secured a victory on behalf of Janssen Pharmaceuticals, Inc. (a subsidiary of Johnson & Johnson) in a Hatch-Waxman patent infringement litigation relating to Spravato®, its blockbuster esketamine nasal spray approved for the treatment of treatment-resistant depression and major depressive disorder with suicidal ideation. This litigation was initiated after an ANDA filing by Sandoz, Inc. (“Sandoz”) in 2023, seeking FDA approval for its generic version of Spravato. Janssen asserted that Sandoz’s proposed generic product would infringe certain claims of U.S. Patent Nos. 11,446,260, 10,869,844; 11,173,134; and 11,311,500.  Sandoz counterclaimed for declaratory judgment that each of the asserted patent claims was invalid under 35 U.S.C. §103 and/or § 112.  On August 31, 2026, the U.S. District...
Blog Post
AI Companies Find Value in Bankrupt Companies
Spirit Airlines filed for bankruptcy in November 2024 and, after emerging from bankruptcy, filed again in August 2025. During the second case, the company tried to find a way to keep the airline in business but to no avail. In May 2026, Spirit Airlines pivoted towards a wind-down and ceased operations. This summer, as a part of its wind-down, Spirit Airlines began marketing its remaining assets. It had plenty of traditional assets to sell. For example, the debtors’ bid procedures motion filed in May 2026 listed the following assets: takeoff and landing slots at LaGuardia Airport; aircraft hangar(s); corporate headquarters; training center; multi-family residential buildings; ground service equipment; spare engines; flight simulators; aircraft maintenance equipment; and assets related to the...
Publication
DOJ Revises Justice Manual to Strengthen False Claims Act Enforcement
On September 18, 2026, the Department of Justice announced two revisions to the Justice Manual aimed at strengthening False Claims Act (“FCA”) enforcement. The first revision reinforces DOJ's longstanding position that sub-regulatory guidance cannot impose legal obligations beyond those established by statute or regulation. The second—and, for companies facing qui tam litigation exposure, the more consequential—directs DOJ attorneys to consider exercising the government's dismissal authority when it declines to intervene in a qui tam action. In particular, where the government does not seek immediate dismissal, the new guidance calls for DOJ to revisit that assessment as the litigation progresses. In other words, when DOJ declines to join a whistleblower lawsuit, its attorneys are now encouraged to affirmatively dismiss unmeritorious complaints....
Event
Greg Baker to Speak at Practising Law Institute's Broker/Dealer Regulation and Enforcement 2026
On Thursday, October 8, Partner Greg Baker will speak on a panel at the Practising Law Institute's Broker/Dealer Regulation and Enforcement 2026 conference titled "Ethical Issues Facing Lawyers in the Financial Services Industry." Mr. Baker will join James Q. Walker (Partner, Ashurst Perkins Coie), Allison Cambria (Head of Litigation and Regulatory Enforcement - Americas, Deutsche Bank), Ilene B. Marquardt (Head of Legal Engagement, Client Relationship Group, Wells Fargo Advisors), and Christopher K. Williams (Associate General Counsel, Fidelity Investments) to share guidance on managing conflicts of interest and privilege issues. To learn more, please click here.
Publication
DOJ Issues Press Release on Liability for Unregistered Foreign Agents
On September 16, 2026, the Department of Justice (“DOJ”) issued a press release “remind[ing] the public of federal laws that require individuals to register as foreign agents when they act in the United States at the direction or control of a foreign government or foreign principal, and that they will face civil and criminal liability if they fail to do so.” The press release points specifically to two federal laws that require such registration: the Foreign Agents Registration Act (“FARA”), 22 U.S.C. § 611 et seq., and 18 U.S.C. § 951. The press release is a departure from former Attorney General Pam Bondi’s February 5, 2025 memorandum to DOJ employees, which directed that criminal charges under FARA should be limited...
Firm News
Barbara Mullin Named Among Benchmark Litigation’s 2026 Top 250 Women in Litigation
Partner Barbara Mullin has been named one of Benchmark Litigation’s 2026 Top 250 Women in Litigation. The ranking uses an extensive research process, including “months of investigation into individual litigators’ professional activities as well as client feedback surveys and one-on-one interviews” to identify women who are “top players” in their field. To learn more, please click here.
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