Securities and Exchange Commission v. Pattison

A federal court jury in San Francisco found that Compass Lexecon’s client, Michael Pattison, was not liable for alleged securities fraud, aiding and abetting securities fraud, or aiding and abetting the filing of misleading reports in connection with an alleged options backdating scheme. Compass Lexecon expert Professor Kenneth Lehn testified on behalf of Pattison regarding materiality, which jury polling after the trial confirmed was the single largest factor in the jury’s verdict. (The jury did find Pattison liable for books and records violations under rule 13b2-1 and 13b5, which do not have materiality as an element.) Pattison was represented by Patrick J. Richard and James H. Vorhis of Nossaman LLP. The Compass Lexecon team included David Ross, Jessica Mandel, Anne Marie Yale, Peter Clayburgh and Laura Yergesheva of our Chicago office.