Securities and Finance

Self-Reporting under SEC's MCDC Initiative

The SEC has been encouraging municipal securities issuers and underwriters to self-report under the Municipalities Continuing Disclosure Cooperation Initiative ("MCDC Initiative"). The initiative is intended to address "possible violations involving materially inaccurate statements relating to prior compliance with the continuing disclosure obligations specified in Rule 15c2-12 under the Securities Exchange Act of 1934." Issuers and underwriters frequently face important decisions as to whether lack of continuing disclosure with regard to certain items would constitute a "materially inaccurate misstatement" in the SEC's view.

Clients ask us to assist with actual or potential SEC investigations into the materiality of either disclosures made by the issuer or underwriter or the lack of ongoing disclosure by the issuer of information that the SEC may believe is material.

NERA's work in these cases involves a careful analysis of materiality using event studies as well as analysis of individual trade data and matrix pricing. An evaluation of the market efficiency of the security at issue is also an important aspect of the analysis to show whether the information would have been important enough to investors as to change the value of the securities. NERA experts also assist counsel in addressing claims as to whether bond prices moves or would have moved in response to a timely disclosure as well as opine on the size of the price move and whether it differs from the bond price move one typically sees on a day-to-day basis.

Name Title Location Phone Email
Dr. Andrew Carron Chairman New York City
+1 212 345 5407
+44 20 7659 8500
Lucy P. Allen Managing Director New York City +1 212 345 5913
Dr. Patrick Conroy Managing Director
Chair of NERA's Securities and Finance Practice
New York City +1 212 345 1466
Dr. Vinita Juneja Managing Director
Chair of NERA's White Collar, Investigations and Enforcement Practice
New York City
+1 212 345 3148
+44 20 7659 8618
+1 416 868 7314
Dr. Denise Neumann Martin Managing Director New York City +1 212 345 5296
Dr. Faten Sabry Managing Director
Bankruptcy Practice Chair
New York City
+1 212 345 3285
+44 20 7659 8618
Dr. David Tabak Managing Director New York City +1 212 345 2176
Dr. Jordan Milev Associate Director New York City +1 212 345 5516
Dr. Stephanie Plancich Associate Director New York City +1 212 345 7719
Dr. Jerry Arnold Affiliated Academic Los Angeles +1 310 570 3982
Title Type Author
Expert Analysis: Financial Crisis Anniversary - Trends In Credit Crisis Settlements Published Article By Faten Sabry, Sungi Lee, and Linh Nguyen
PDVSA’s Peculiar Oct. ’22 Bond May Carry Elevated Risks Report By Timothy McKenna and Raphael Starr
Securities Class Actions: 2016 Full-Year Review and Mid-2017 Flash Update Published Article By Stefan Boettrich and Svetlana Starykh
BSA/AML Compliance and Enforcement: An Update for the Securities and Derivatives Indu... Published Article By. Sharon Brown-Hruska
Not All MBS Settlements Are Equal White Paper By Faten Sabry, Sungi Lee, and Linh Nguyen
Securities Class Actions Appear to Be Largely ‘Price-Maintenance’ and Omissions Cases White Paper By Dr. David Tabak
Trends in Canadian Securities Class Actions: 2016 Update Report By Bradley A. Heys & Robert Patton
SEC Could Have Materiality Problem With MCDC Published Article