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 27:

Do Defendant Companies Financially Underperform Following Securities Lawsuit Settlements?

The D&O Diary | Kevin LaCroix | Aug 27, 2010

Most securities lawsuits settle. The common assumption is that once the cases are settled, the litigation wraps up and everybody moves on. But does the litigation have a lingering effect on the defendant company? Is there a "hidden dark side" for companies that settle securities lawsuits? That is the question asked in a March 18, 2010 paper entitled "Lying and Getting Caught: An Empirical Study of the Effect of Securities Class Action Settlements on Targeted Firms"

The SEC Needs a Win Against Mozilo

Zamansky & Assoc. Blog | Jacob Zamansky | Aug 26, 2010

A win for the SEC against Mozilo would provide its enforcement team with the leverage they need to negotiate stiffer terms for settlements. Future settlements could and should include admissions of liability, as well as personal financial liability of the wrongdoer and his or her manager if applicable. For the SEC, this is a “bet the farm” lawsuit and one that could lay the groundwork for the future of enforcement on Wall Street.

SEC: No longer a doormat

FT | Jean Eaglesham and Brooke Masters | Aug 26, 2010

The far-reaching reforms instigated by Ms. Schapiro have two prime objectives – to make the regulator both more efficient and much better able to anticipate crises before they occur. In interviews with the Financial Times, senior SEC officials explain the work under way to achieve those aims – and the impact they hope it will have on Wall Street and corporate America.

The Subprime Mortgage Crisis on Trial

DealBook | Peter Henning | Aug 26, 2010

The Mozilo trial is scheduled to begin on Oct. 19, assuming the case is not dismissed. Look for the S.E.C. to try to make Mr. Mozilo the face of the mortgage crisis that led to the financial meltdown in 2008 to show that he misled investors in his company. Whether that proves securities fraud remains to be seen.

Giffen's Contribution to FCPA Case Law

FCPA Professor | Mike Koehler | Aug 24, 2010

Notwithstanding its mysterious conclusion, the Giffen enforcement action was instructive because it represented a rare instance in which an FCPA defendant mounted an aggressive legal defense. As a result, the long enforcement action yielded FCPA case law, even though the issues subjected to judicial scrutiny did not involve core FCPA elements. So what did we learn from the Giffen case law?