SEC Extends Order Granting Issuers Flexibility in Conducting Stock Repurchases
 
October 6, 2008
 

On October 1, 2008, the SEC extended its September 18 Emergency Order that temporarily broadened Exchange
Act Rule 10b-18’s safe harbor from liability for issuer repurchases. Under the Emergency Order, until 11:59 p.m. EDT on Friday, October 17, 2008, issuers need not comply with the restrictions regarding the timing of issuer repurchases. Further, the volume condition was modified temporarily so that such purchases effected by or on behalf of the issuer and any affiliated purchasers on any single day may not exceed 100% of the ADTV rather than the 25% as provided in Rule 10b-18. The SEC believes that these changes will give issuers the additional flexibility and certainty necessary to provide an important source of liquidity during such times of market volatility.

http://www.sec.gov/rules/other/2008/34-58703.pdf

For more information, contact:


305.789.7548
kara.maccullough@hklaw.com

Esther L. Moreno
305.789.7442
esther.moreno@hklaw.com

toll free: 1.888.688.8500

About Our Public Companies and Securities Practice
About Our Securities Litigation Practice