Litigation Fires Back Up
Most active litigation had been effectively frozen. Lundy said some cases could reopen as early as next week, depending on the presiding judge’s preference.
“Once you’re in litigation, it’s no longer just about what the SEC wants,” he said. Defense counsel will often push aggressively to restart the clock and regain momentum.
IPO Filings: A Traffic Jam of Historic Proportions
Companies hoping to go public — or even just seeking review for new stock issuances — continued preparing filings during the shutdown, creating a tidal wave of paperwork now hitting SEC desks all at once.
The Division of Corporation Finance issued guidance Thursday outlining how it plans to sift through more than 900 registration statements submitted during the shutdown.
A Crucial Break for Companies Already in the Pipeline
Unlike previous shutdowns, companies already in the middle of their IPO review process will not need to reset the clock with a delaying amendment, according to Scott Kimpel of Hunton Andrews Kurth LLP.
“One less hurdle,” Kimpel said. “They’re trying to lighten their own workload as they face nearly seven weeks of accumulated filings.”
Still, Kimpel expects it will take one to two months to clear the queue — not counting the new filings pouring in every day.
“Everyone needs to understand: nothing is going to move quickly,” he said. “There’s a five- or six-week line in front of you.”
