The termination letter, dated February 14, 2025, stated that the SEC "did not intend to recommend enforcement action” against the client, in a case involving a complex accounting valuation issue. The SEC’s issuance of a termination letter recommending no enforcement action represents one of the most infrequent outcomes in securities enforcement. Only a small fraction of the hundreds of SEC investigations result in formal termination letters.

New York-based white-collar defense and investigations partner Mark Bini, counsel Kaela Dahan and associate Natalia Terezakis were able to demonstrate that Reed Smith’s client appropriately handled the accounting issue and caused no financial harm to investors and that the investigation should be closed without penalty.

"We were so excited to secure the termination letter, which was well deserved and entirely appropriate, so that our client can focus on their business," Mark Bini said.

A copy of the termination letter can be found on LinkedIn.