That may be the case in a number of circumstances, including: a) when the corporation and/or employees with knowledge of the investigation intend to buy or sell company stock; b) when the fact of the investigation becomes broadly known to third parties as a result of the SEC subpoenas; and c) when the existence of the investigation makes any previous company disclosures materially misleading.
SEC investigations routinely involve a determination of the role that corporate officials played in any corporate securities violations.
The decision on whether corporate employees should be separately represented is a fact-specific one involving a determination of whether a given individual has "exposure" in the SEC inquiry.
This is one of the most difficult decisions that must be made in an SEC investigation.
You would be surprised at how many companies communicate with the SEC in a haphazard manner.
Every culture has etiquette and procedures, and the SEC is no exception.
For information on the format that is preferred by the SEC, visit www.