Recent SEC Enforcement of Regulation FD: Lessons to be Learned

After a temporary lull in Regulation FD enforcement activity, recent cases, including the Office Depot action, are strong reminders that the SEC remains focused on Regulation FD compliance and of the value to public companies of having Regulation FD policies, procedures and training programs.

Office Depot Violations of Regulation FD

The SEC recently settled Regulation FD charges against Office Depot and its now former CEO and CFO alleging that they provided "signals" to analysts and select institutional investors that the company would not meet earning expectations. Both executives agreed to pay civil penalties of $50,000. Office Depot agreed to pay a $1 million penalty to settle the Regulation FD matter and other unrelated charges.