Throughout the week over at Securities Docket, I highlight the most interesting columns and blog posts from around the web on the subjects of SEC enforcement and securities litigation. Here is a digest of my picks for the week ending August 20:

Subprime Securities Suit Headed to Trial Following Summary Judgment Rulings

The D&O Diary | Kevin LaCroix | Aug 20, 2010

But perhaps the most interesting thing about this ruling is Judge Ungaro’s grant of partial summary judgment for the plaintiffs on the issue of falsity. It is relatively rare for any case to get to the point where a decision on this kind of issue is even ripe, and in most cases courts are inclined to leave these kinds of issues to the jury. I actually can’t recall ever having seen a court granting summary judgment in the claimants’ favor on the issue of falsity. The plaintiffs will still have to prove that these false statements were materially misleading, were made with scienter, and cause damages. However, it will be a singular development when the court instructs the jury that the court has already concluded that the statements are false.

FASB's Tort Bar Gift

WSJ | Aug 20, 2010

In the eternal war between the plaintiffs bar and corporations, the lawsuit pack already owns the Senate and many state courts. Now it seems the nation's accountants want to give the lawyers another edge. The Financial Accounting Standards Board (FASB) will soon begin considering whether to require companies to account for the potential cost of ongoing litigation. Supporters insist this is merely about disclosure, but the proposal would hurt investors by offering roadmaps for new litigation and bigger settlements.

Can the S.E.C. Avoid Scrutiny of Its Settlements? - DealBook Blog

DealBook | Peter J. Henning | Aug 17, 2010

Unlike a federal court case, an administrative proceeding is instituted before the S.E.C. commissioners, who can approve the filing and settlement without further outside review. Because those commissioners voted to approve the proposed settlement already, the successful — and unquestioned — resolution of the case would be a foregone conclusion.

The Latest Securities Litigation Target: For-Profit Educational Companies

The D&O Diary | Kevin LaCroix | Aug 17, 2010

Among the very, very latest trends in securities class action lawsuit filings are suits against for-profit educational companies. Just since the middle of last week, at least five companies in this sector have been tagged with new lawsuits, four of which were securities class actions.

In Lehman’s Demise, an Elusive Search for Culprits

DealBook | Peter Henning | Aug 16, 2010

The Chimera of Greek mythology was a grotesque beast that ravaged the countryside. In the Lehman Brothers bankruptcy, one search for such a beast involves looking into whether short-sellers spread false rumors about the firm to drive down its stock price in the months before its demise. The latest object of that search is the Och-Ziff Capital Management Group, which bankruptcy lawyers contend may have received and passed on a false rumor about Lehman before the firm declared bankruptcy in September 2008.

PRC Foreign Investment: SEC Unfurls FCPA Enforcement Flag

Westlaw Precedent Watch | Helen H. Chan | Aug 16, 2010

While the FCPA is technically U.S. law, its jurisdiction extends to all U.S. listed companies regardless of their domicile. The GE settlement demonstrates that the SEC is more than capable of reaching into other countries, even China, to discipline U.S. securities issuers.

The Southern District of New York Offers Riches

The Conglomerate | David Zaring | Aug 16, 2010

I've been perusing the fates of lawyers in the US Attorney's Office in the Southern District of New York.... My guess is that a gig in the Southern District is the greatest path to wealth maximization in the federal government that there is - I say this impressionistically, of course, but the fact is that the financial regulators rarely get picked up by investment banks, and the SEC enforcer to partner rate is pretty low.