Generic-drug maker Mylan Inc. is the most recent company being put under investigation by the Securities Exchange Commission for selective disclosure of material information. In a meeting held last September, Mylan allegedly provided confidential earnings information to a small group of investors—a move considered illegal if not later publicized. Yet few of these cases make it to court, explained Professor Roberta Karmel, a former SEC commissioner and Centennial Professor of Law: “Private plaintiffs such as investors can’t pursue litigation because of the way the law is written. That leaves the burden entirely on the SEC to enforce against such violations.”
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