On July 15, 2011, the SEC obtained a Temporary Restraining Order freezing the assets of Compania and Coudree, two Swiss entities, based on allegations of insider trading in the stock of Arch Chemicals (ticker symbol: ARJ). A preliminary injunction hearing had been scheduled for Thursday, July 28, 2011 before Judge Cote, at which the SEC would have had to show a likelihood of success on the merits of their insider trading case. Rather than proceed with this hearing, however, the SEC entered into an Order by Consent with Compania and Coudree whereby the SEC agreed to forego the preliminary injunction hearing, and thus avoid having to show a likelihood of success in their case. The SEC also agreed to lift the asset freeze on Compania and Coudree's accounts so they could resume trading (in exchange for Compania and Coudree depositing an agreed upon sum of money to be held in escrow with the court pending a hearing on the merits of the SEC's allegations). Ira Lee Sorkin of Lowenstein Sandler in New York is representing Compania and Coudree.
Most notably, the SEC took the rare step of issuing a letter to all the financial and brokerage institutions that may have information about this case advising them that Compania and Coudree's assets were no longer frozen and the companies could trade in the securities markets.
The case is SEC v. Compania Internacional Financiera S.A., et al. (No. 11-cv-4904 SDNY).