Financial Regulation International
US
SEC Hits Hard in latest Regulation FD Enforcement Case
Harry J.Weiss,Wilmer, Cutler & Pickering,Washington DC
On September 9, 2003, the SEC announced a Regulation FD settlement with Schering-Plough Corporation and its former chairman
and CEO.
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This settlement is the first Regulation FD enforcement case since November 2002 when the SEC announced its first group of
Regulation FD enforcement actions.
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The SEC alleged, among other things, that Schering-Plough privately told analysts that earnings were going to come in below
street estimates. In its complaint and cease and desist order, the SEC emphasised the importance of demeanour and tone in
private meetings, as well as the difference between public guidance that is conditional or qualified, and private guidance
that is more definitive.