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By: Jeffrey M. Haber Self-reporting violations of the federal securities laws is an important part of the Securities and Exchange Commission’s enforcement regimen. For decades, the SEC has credited cooperative behavior that assists the Commission in its mission to protect investors. As such, when businesses self-report and rectify allegedly illegal conduct, and otherwise cooperate with Commission staff, the SEC has shown a willingness to forego the imposition of civil penalti

By Jonathan H. Freiberger For a variety of reasons, a party asserting a claim may choose to discontinue same.  In such circumstances, CPLR 3217 , provides the mechanism to do so.  [Eds. Note: this BLOG has addressed CPLR 3217 < here =">here</a>"> and < here =">here</a>"> .]   CPLR 3217(a), which addresses situations where a party asserting a claim may voluntarily discontinue a claim without the need for a court order, permits the party to do so, inter alia : (1) by serving o

By:  Jeffrey M. Haber In 245 E. 19 Realty LLC v. 245 E. 19th St. Parking LLC , 2024 N.Y. Slip Op. 00368 (1st Dept. Jan. 30, 2024) ( here ), the Appellate Division, First Department examined a couple of issues frequently discussed in this Blog: veil piercing/alter ego liability and fraudulent transfers.  As to the issue of fraudulent transfers, 245 E. 19 Realty provides us with the opportunity to examine a case involving the new Debtor and Creditor Law (“DCL”), which became ef

By: Jeffrey M. Haber In prior articles, this Blog examined CPLR § 3102, the statutory provision that permits pre-action disclosure. See here and here . We do so again in connection with our examination of the Matter of Khorassani v. Financial Industry Regulatory Authority , 2024 N.Y. Slip Op. 00354 (1st Dept. Jan. 25, 2024) ( here ). CPLR § 3102(c) provides that “ efore an action is commenced, disclosure to aid in bringing an action, to preserve information or to aid in arbi

By Jonathan H. Freiberger In order to protect homeowners, home improvement contractors are frequently required by municipalities to be licensed.  Unlicensed home improvement contractors are precluded from collecting payments due from homeowners.  Brightside Home Improvements, Inc. v. Northeast Home Improvement Services , 208 A.D.3d 446, 449 (2 nd Dep’t 2022).  This BLOG has discussed such issues < here =">here</a>"> and < here =">here</a>"> .  Along these lines, CPLR § 3015

By: Jeffrey M. Haber As readers of this Blog know, we have written about the duplication doctrine on numerous occasions. E.g. , here , here , and here . Courts apply the doctrine when a plaintiff alleges a breach of contract claim and a fraud claim that arise from the same facts and circumstances. In that regard, a fraud claim will be deemed duplicative of a contract claim when the fraud claim arises from the same facts, seeks the same damages and does not allege a breach of

By: Jeffrey M. Haber The objective of an auditor is to supervise the audit engagement, including supervising the work of engagement team members so that the work is performed as directed and supports the conclusions reached. 1 The engagement partner is responsible for the engagement and its performance. 2 Accordingly, the engagement partner is responsible for the supervision of the engagement team and for compliance with PCAOB standards, 3 including standards regarding usin

By Jonathan H. Freiberger Today’s BLOG article addresses the circumstances pursuant to which the buyer under a real estate sales contract is entitled to prejudgment statutory interest pursuant to CPLR 5001(a) on the return of its down payment upon seller’s breach of that contract. CPLR 5001(a) provides that “ nterest shall be recovered upon a sum awarded because of a breach of performance of a contract, or because of an act or omission depriving or otherwise interfering with

By: Jeffrey M. Haber The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), enacted on July 21, 2010, amended the Securities Exchange Act by adding Section 21F-17, “Whistleblower Incentives and Protection.” The purpose of these provisions was to encourage whistleblowers to report possible securities law violations by providing, among other things, financial incentives and confidentiality protections. To achieve this Congressional purpose, the Secur