Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) filed a Form 12b-25 notifying the Securities Exchange Commission that the Company is unable to file its Annual Report on Form 10-K for the year ended December 31, 2021 (the “Form 10-K”) within the prescribed time period, and does not expect to file it by the extended filing date pursuant to SEC Rule 12b-25, as a result of delays related to internal investigation work and remediation efforts.
On February 1, 2022, the Company filed a Current Report on Form 8-K (the “February 1 Form 8-K”) disclosing, among other things, that a special committee of independent directors of the Company (the “Special Committee”) had completed a previously announced independent investigation into allegations of inaccurate Company disclosures. Since then, the Company continues to implement the appropriate remedial actions approved by the Special Committee and continues the additional investigative work and remedial work as recommended by the Special Committee, under the direction of the Executive Chairperson and reporting to the Audit Committee of the Company’s Board of Directors. That work may result in further findings and remedial actions.
Sallah Astarita & Cox is a national securities law firm comprised of former SEC Staff Attorneys and Broker-Dealer Attorneys. Securities enforcement matters handled nationwide – call 212-509-6544 for more information
As the proposed class action complaint against Morgan Stanley for its deferred compensation program winds its way through the Courts, former Morgan Stanley brokers are asking if they are better served by filing their own claims in arbitration.
In many cases, the answer is yes.
Delays in Court Cases
The proposed class action was filed in New York in December 2021. As of today, March 30, the defendants have still not filed an answer, after three months.
The Morgan Stanley defendants instead filed a motion to compel arbitration, arguing that the claims need to be heard in a FINRA arbitration. While the parties wait for the judge to decide the motion, the case is stayed. Nothing is happening.
If the case had been filed as an arbitration, by now arbitrators would have been appointed, and a hearing date set, probably for December 2022.
Court vs. Arbitration
While there are numerous reasons to file this case as a class action, there are always issues with class actions, and issues with bringing cases in court. Most of those issues are time and money.
I have represented parties in sophisticated federal court litigation, and in hundreds of FINRA arbitrations. There is no doubt that court is better for some cases, particularly where extensive discovery is needed from the other side. Arbitration just isn’t the forum if you need lots of documents or testimony from the other side.
However, the Deferred Compensation cases are based on documents we already have – our client’s compensation reports, and the plans themselves.
Arbitration is at least as fair as court, and certainly more expeditious. Brokers realize that and we are receiving calls from former Morgan Stanley brokers whose deferred compensation was withheld when they resigned from Morgan Stanley.
More Information
We are interested in speaking to other former Morgan Stanley brokers, as well as former Wells Fargo brokers regarding their experience with the deferred compensation programs.
Call our firm at 212-509-6544 or email us at mja@sallahlaw.com.We represent advisors in all 50 states.
The Securities and Exchange Commission today announced that Martha Legg Miller, Director of the Office of the Advocate for Small Business Capital Formation (OASB), is leaving the agency at the end of April. Sebastian Gomez Abero will serve as Acting…
The Securities and Exchange Commission today proposed rule changes that would require registrants to include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks that…
The Securities and Exchange Commission today announced three awards totaling approximately $3 million to whistleblowers who provided information and assistance in three separate covered actions. In the first order, the SEC issued an award of…
The Securities and Exchange Commission today charged Crosby Independent School District (Crosby ISD) and its former Chief Financial Officer, Carla Merka, with misleading investors in the sale of $20 million of municipal bonds in order to pay its…
Bitcoin is a virtual ‘cryptocurrency’ traded much like real money.
Bitcoin is a virtual currency known as a ‘cryptocurrency that can be traded between buyers and sellers much like “real” money is.
One of the very first and most high-profile cryptocurrencies launched, Bitcoin is also the most well-known of this virtual money. Bitcoin first emerged in 2009 and its creator is allegedly called Satoshi Nakamoto, though several theories exist as to Nakamoto’s real identity, according to Business Insider.
A bitcoin is essentially a digital computer file that is stored in something called a digital wallet, which can be accessed by software and apps.
Visit https://www.livescience.com/bitcoin-definition for more on Bitcoin, including
The Securities and Exchange Commission today announced an award of about $14 million to a whistleblower who published an online report exposing an ongoing fraud. The whistleblower, who days later shared the same information with the SEC and was…
The Securities and Exchange Commission today charged siblings John and JonAtina (Tina) Barksdale with defrauding thousands of retail investors out of more than $124 million through two unregistered fraudulent offerings of securities involving a digital…
Bloomberg is reporting that the SEC is investigating nonfungible token (NFT) creators and marketplaces for securities violations, according to a report from Bloomberg.
Anonymous sources in the report claims that the SEC is investigating whether “certain nonfungible tokens […] are being utilized to raise money like traditional securities.”
According to Bloomberg, over the past several months, attorneys in the SEC’s enforcement unit have sent subpoenas demanding information about the token offerings.
As part of its review, the SEC is seeking information on so-called fractional NFTs, which involve breaking down the assets into units that can be easily bought and sold, said the people, who asked not to be named as the probe hasn’t been disclosed publicly.
Former SEC Senior Attorneys and Broker-Dealer attorneys at Sallah Astarita & Cox represent crypto investors and promoters across the country. For more information, call them at 212-509-6544.
