• The Jumpstart Our Business Startups Act and Its Impact on Equity Research Analysts
  • May 21, 2012 | Authors: David B. Hennes; Carmen J. Lawrence
  • Law Firm: Fried, Frank, Harris, Shriver & Jacobson LLP - New York Office
  • On Thursday April 5, 2012, President Obama signed the Jumpstart Our Business Startups Act (the “JOBS Act”) into law, adopting measures designed to facilitate both public and private capital formation. The legislation is intended, in part, to encourage “emerging growth companies” (companies with less than $1 billion in revenue) (“EGCs”) to go public. As enacted, the JOBS Act significantly liberalizes the regulations governing research analysts and their coverage of these companies. The purpose of this memorandum is to provide an overview of the impact of the JOBS Act on the regulatory scheme governing equity research analysts and the potential liability arising from the issuance of pre-deal research.