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John K. Wells

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John Wells focuses his practice in the areas of complex commercial litigation, securities litigation and regulatory matters. He frequently represents financial services clients, including broker-dealers, investment advisors, banks and private equity funds, in matters before the Securities and Exchange Commission, Financial Industry Regulatory Authority, U.S. Department of Justice and state regulatory authorities, as well as in state and federal courts and arbitration forums across the country. John has broad experience in a wide variety of litigation matters, including contract disputes, business torts, employment matters, restrictive covenants, securities fraud and securities class actions, multi-district litigation, shareholder and partnership disputes, products liability, wrongful death and real estate litigation. John also manages corporate internal investigations across multiple jurisdictions and industries.

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The SEC has adopted new rules which would permit companies to offer and sell securities through online crowdfunding. Crowdfunding is a method of raising capital by monetary contributions from a large number of people, usually through the Internet. The new rules will allow small businesses and entrepreneurs to more easily raise capital, and will permit average citizens to invest in startups and early stage businesses. Companies are no longer required to offer securities only to accredited investors; now, anyone can participate in an equity offering, subject to certain investment limits. The new rules were enabled by the 2012 JOBS Act, which created an exemption to the existing securities laws to make equity crowdfunding possible. The SEC has been working on crafting new rules since that time. (These new crowdfunding rules should not be confused with, and do not replace, other rules adopted pursuant to the JOBS Act several years ago that expanded the ability of issuers to raise capital using Rule 506 0f Regulation D.)
Continue Reading SEC Permits Companies to Sell Securities Through Crowdfunding