The recent economic roller coaster face experienced by many corporations around the world has resulted in an unprecedented numbers of people in need of a white collar lawyer in Arizona. As the director of the FBI confirmed last fall, 24 large financial institutions have been investigated for some type of alleged fraud. Whether or not these investigations will result in a filing of charges, it is clear that the current financial crisis will bring about a wave of violations and civil suits alleging violations of the Security Exchange Act of 1934 based on purported material misstatements about a public company’s performance. These companies will soon become the clients of a white collar lawyer.
While these new cases may be bigger and have a higher profile than cases in the past, the legal issues are no different than those faced by any case involving a white collar lawyer. Most of the current cases center themselves around classic securities fraud. So while they may be bigger and more extensive, they involve the same basic issues as any other white collar crime.
A white collar defense lawyer in Arizona is likely to argue that the alleged statements were in fact not material, and therefore cannot form the basis of a legal liability. What counts as a material statement? Statements are considered material when there is a substantial likelihood that a reasonable shareholder would consider the matter relevant enough to affect his or her vote. (more…)