SEC Settles Charges against Investment Bank for Proxy Statement Disclosure Violations

The SEC reached a $2.5 million settlement agreement with an investment bank charged with causing an issuer to publish a proxy statement that contained materially false and misleading disclosures about a valuation of the issuer.

The SEC Order found that the firm's presentation – which was used to solicit shareholder approval for a sale – described one of its valuations as being based on Wall Street analysts' "consensus projections," when in fact the valuation reflected neither analysts' research nor any "consensus."