A federal magistrate judge in the Southern District of Florida recently recommended sanctioning local counsel for allowing out-of-state lead counsel, who was not qualified in Florida and had never made an appearance to move the court for pro hac vice admission, to take the steering wheel as a backseat driver in a patent infringement lawsuit that was quickly dismissed for procedural missteps.

On March 12, 2025, the Securities and Exchange Commission’s Division of Corporation Finance issued a no-action letter clarifying “reasonable steps” issuers can take to verify the accredited investor status of purchasers, as required under Rule 506(c) of Regulation D, a safe harbor promulgated under the U.S. Securities Act of 1933, as amended.

On March 19, 2025, the U.S. Securities and Exchange Commission Division of Investment Management staff published two new questions and responses to Frequently Asked Questions (each, an FAQ) aimed at providing clarity on the “marketing rule” - Rule 206(4)-1 under the Investment Advisers Act of 1940, as amended. Generally, the new FAQs permit the use of extracted performance (including for individual investments) and certain performance-related characteristics on a gross basis in advertisements, without the need to include corresponding net-of-fee information, provided specific conditions are met.