sec

SEC fines Nasdaq $10M over Facebook IPO

Analysts might attribute more blame with the Nasdaq now over Facebook's bungled initial public offering last year thanks to a new decision from the U.S. Securities and Exchange Commission.

The SEC is charging the American stock exchange with a $10 million penalty over poor decisions made as well as systems set up during the IPO and secondary trading scheme for shares of the world's largest social network.

According to the government agency itself, this is the largest penalty ever slapped against an exchange.

The SEC issued a memo on Wednesday detailing the rationale behind the decision. Here'… Read more

LulzSec case in U.K. brings sentences for 4 men

LONDON -- Four members of the LulzSec hacking group were sentenced in court Thursday after pleading guilty to various computer hacking-related charges.

Ryan Ackroyd, 26; Jake Davis, 20; and Mustafa al-Bassam, 18, were all sentenced together with Ryan Cleary, 21, over a two-day hearing at Southwark Crown Court, London.

Each member of the LulzSec hacktivist group admitted to various hacking charges, including taking down corporate and government Web sites between February and September 2011.

Presiding Judge Deborah Taylor sentenced Ackroyd to 30 months -- serving half -- and Davis 24 months in a Young Offenders institution, serving at least 12 … Read more

Australian police arrest alleged leader of LulzSec hacking group

The Australian Federal Police has reportedly arrested a man who describes himself as the "leader" of the LulzSec hacking group.

The 24-year-old man was arrested on hacking charges Tuesday in the coastal town of Point Clare, according to ABC News Australia, which first reported the arrest. The report did not reveal that man's identity.

The arrest comes two weeks after three members of hacker group pleaded guilty in a British court to carrying out cyberattacks against various media and entertainment companies and the U.K. National Health Service.

LulzSec emerged on the hacking scene in 2011, claiming … Read more

Twitter needs to deal with the Twitter Accuracy Problem

Twitter's had a bad couple of weeks.

First, the Boston marathon bombings and subsequent manhunt led many (including me) to question the role of fast-moving, potentially inaccurate real-time Twitter reporting and its effect on mainstream news.

Then today, a false tweet from a hacked Associated Press Twitter account claimed that the White House had been bombed and that President Obama had been injured. The news caused a sudden plunge in the stock market (and, one can probably assume, some massive profit-taking by the hackers).

Twitter has always had an accuracy problem. It's a lot of voices, its information … Read more

LulzSec hackers plead guilty to attacks on Sony, Nintendo, more

Three members of hacker group LulzSec have pleaded guilty in a British court to carrying out cyberattacks against various media and entertainment companies and the U.K. National Health Service, according to media reports.

Ryan Ackroyd, 26; Jake Davis, 20; and Mustafa al-Bassam, 18, today all pleaded guilty to a computer hacking-related charge at Southwark crown court in London. They will be sentenced May 14 along with Ryan Cleary, who pleaded guilty to cyberattacks last year.

Ackroyd, who went by the hacker name "Kayla," admitted to trying to hack into several Web sites, including Sony, Nintendo, News Corp.'… Read more

SEC OKs material disclosures on Facebook, Twitter

The Securities and Exchange Commission confirmed today that public companies can announce key information on social media sites such as Facebook and Twitter, so long as investors are informed as to which accounts may publish news.

The acknowledgment was published in the SEC's report of investigation on Netflix, and makes room for social media disclosures to be in compliance with Regulation Fair Disclosure (Regulation FD), a rule that requires companies to distribute material information to investors and the general public non-exclusively. In essence, companies and their executives can reveal news on investor-aware accounts without fear of retribution.

"Companies … Read more

Nasdaq gets OK to pay out $62M for botched Facebook IPO

The Securities and Exchange Commission today approved Nasdaq OMX Group's plans to distribute as much as $62 million in cash to investors involved in Facebook's botched IPO.

The stock exchange operator will give funds to brokerages that lost money due to Nasdaq glitches that delayed the May 18 debut of Facebook shares by half an hour.

After the stock finally started trading, would-be investors complained they were not able to confirm changes or cancellations made to Facebook orders starting as early as 4:30 a.m. PT. Later on in the morning, some traders said they had not … Read more

SEC probe on Facebook pre-IPO sales ends in financier's arrest

To many investors last year, it must have seemed like an amazing opportunity -- giving financier Craig Berkman thousands in cash in exchange for early dibs at Facebook's highly coveted pre-IPO shares.

Berkman, 71, seemed trustworthy. He was a former gubernatorial candidate for Oregon, the state's Republican chairman between 1989 and 1993, and an ex-investment banker.

Little did they know that Berkman was said to have pocketed that money -- totaling $8 million -- and then allegedly used it to pay off debts and fund personal expenses.

Berkman was arrested in Florida today for allegedly defrauding investors in … Read more

HP's Autonomy acquisition probed by U.K. regulators

Hewlett-Packard has a way of quietly announcing its dealings with Autonomy in its annual and quarterly regulatory filings.

In its quarterly report to the U.S. Securities and Exchange Commission today, the company announced that the U.K. Serious Fraud Office has launched an investigation into the alleged irregularities of HP's acquisition of Autonomy.

Here's what HP wrote in its filing:

As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the U.S. Department of Justice and the SEC related to the accounting improprieties, disclosure failures … Read more