SEC Proceeding Regarding Municipal Debt Offering

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The SEC dropped their investigation into the defendants’ municipal debt offering.

Defense counsel retained Cornerstone Research and Professor David Smith of the University of Virginia in an SEC investigation involving a municipal debt offering. The SEC alleged that the offering prospectus had omitted material information.

Professor Smith’s report was submitted to the SEC as part of a Wells submission.

Two months after the offering, the municipality submitted a late filing notice. Professor Smith performed an event study analysis of the bond’s pricing data. He concluded that there was no evidence that the late filing notice had a negative impact on the price of the bond. Professor Smith’s report was submitted to the SEC as part of a Wells submission.

The SEC decided not to proceed against any of the parties it was investigating.


For additional information about this case, contact Sasha Aganin or Iris Jiang.


Case Expert

David C. Smith

Virginia Bankers Association Professor,
Associate Dean for Center Development & Research,
McIntire School of Commerce,
University of Virginia