Cracking Down On COVID-19 Fraud: U.S. And Canadian Securities Regulatory Enforcement Update

In every crisis, an opportunity; and in every opportunity, the potential for fraud. Unsurprisingly, there has already been a surge of companies purporting to develop vaccines and other treatments for COVID-19, as well as personal protective equipment (PPE), and those that issue securities may be subject to regulatory enforcement and possible legal actions. Securities regulators in the U.S. and Canada have indicated that they are actively scrutinizing market participants for disclosures related to COVID-19.

What you need to know

U.S. and Canadian regulators are investigating and bringing action against:

• Companies that hype COVID-19 related activity (therapeutics, vaccines, PPE etc.) to ensure that any such disclosures are truthful and accurate; and