SEC’s Enforcement Director Slams Delays in Litigation, Document Production

On May 12, the SEC’s Division of Enforcement Director Gurbir Grewal delivered remarks at the Securities Enforcement Forum West Conference. His remarks note that while a “zealous advocacy” is required, delay tactics, slow document production, and other “dilatory or obstructive” efforts may impact cooperation credit that the agency extends as a courtesy to those who oblige the investigation. Other areas of interest Grewal touched on are delays in document release and overuse of attorney-client privilege. He noted when “application [of attorney-client privilege] appears clearly unwarranted,” it will be probed which includes adding an attorney to an email chain for the purpose of claiming privilege. He added that the Commission does not “play games” when it issues a Wells notice, which alerts a firm to the charges the Commission plans to file.