April 30, 2026|Publications
Partner Ashwin Ram authored an article analyzing the SEC’s February 2026 overhaul of its Enforcement Manual and how the changes fundamentally reshape the Wells process for companies and defense counsel. The article explains that, for the first time, the SEC now affirmatively expects staff to share key “salient, probative evidence” with Wells recipients before submissions are due, significantly narrowing longstanding informational asymmetry. It outlines four core categories of evidence, documents showing the alleged misstatement, falsity and scienter, materiality, and investigative testimony, and examines new procedural guardrails, including compressed submission timelines, limits on post-Wells engagement, mandatory rejection of submissions referencing settlement, and heightened internal approval requirements. The article evaluates how these reforms alter defense strategy, emphasizing evidence-specific advocacy, early production demands, and strategic use of disclosures to assess case strength, while cautioning that selective disclosure and the absence of Brady-style obligations preserve meaningful constraints on transparency.
To view the full article, click here.
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