Dallas Principal Rachael Jones was quoted in Bloomberg Law's article "Life Sciences Meet SEC as Agencies Ramp Up Information Sharing." The article examines the memorandum of understanding recently announced by the Food and Drug Administration and the Securities and Exchange Commission, which formalizes information sharing between the two agencies. It also considers what the agreement means for life sciences companies whose communications with the FDA could now reach SEC enforcement staff.
Drawing on her experience as a former federal prosecutor, Rachael explains that when enforcement personnel have an established procedure for obtaining information, it increases the likelihood of enforcement proceedings, whether brought by the SEC or through private class actions. She notes that companies must now ensure compliance on both the scientific and the securities sides of their business, and she expects to see greater integration between the departments handling those issues. Rachael also points out that a real-time record of company communications with the FDA could be especially useful in insider trading cases, where establishing a clear timeline is critical. It could also strengthen corporate fraud cases where a company's statements to the FDA don't match what it tells investors.
The full article can be found here.
