Private Company Compliance: Investigations, Regulations, and Litigation | NACD | Louis Lehot

Louis Lehot Legal Podcasts

Ever since former U.S. Securities and Exchange Commissioner Mary Jo White announced the Silicon Valley Initiative, we have seen the enforcement division moving into the private company sphere. Major compliance and governance failures, such as Theranos, FTX, and IRL, have put the spotlight on what is communicated internally and externally in employee, customer, and investor communications. In fiscal year 2022, the U.S. Securities and Exchange Commission (SEC) launched 760 total enforcement actions, including hundreds of stand-alone, follow-on, and individual actions running the gamut from failures of conduct to “first-of-their-kind” to cases charging trading securities law violations. Money ordered in SEC actions comprised over $6 billion, almost doubling the prior year’s amount.

What is the role of the compliance function in the pre-initial public offering company, and who owns it, how do you get started, and when do you start deploying resources? When the government or a plaintiff comes knocking on the door, what is the role of directors in managing the response? The panel explores what the role of the compliance function is and why directors should care.

The NACD Private Company Compliance: Investigations, Regulations, and Litigation Webinar was sponsored by Foley and Partners Louis Lehot and Thomas Carlucci joined this discussion together with:

* Claudia Fan Munce - Venture Advisor NEA, Board Member of Best Buy, Arteris.IP, BMO Financial Corp., Faculty at Stanford University Graduate School of Business

* Scott Kupor - Managing Partner, Andreessen Horowitz; Lecturer, Stanford University Graduate School of Business; Board Director, Cedar, Headway, Pearl Health, Ultima Genomics, Foursquare, Labster, Journera, SnapLogic, MIO Partners, The Global Impact Investing Network, Silicon Valley Community Foundation, St. Jude Children’s Research Hospital, Genesys Works

* Jeff Thomas - Executive Vice President, Corporate Platforms, Nasdaq, Inc.

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