What are the consequences of violating FD?
The SEC explicitly stated that FD does not create a private right of action: that is, class action plaintiffs lawyers can t sue you for violating FD. The SEC can commence an enforcement proceeding against you (either administratively or in federal court) for engaging in selective disclosure. The selective disclosure must have been reckless or intentional to justify relief. The SEC will be looking for egregious examples to bring as test cases.
