Andrew Freedman Featured in The Deal Discussing the Effect of the Government Shutdown on Activist Campaigns

Olshan Co-Managing Partner and Chair of the firm’s Shareholder Activism Practice Andrew Freedman was quoted in The Deal (subscription required) discussing how the ongoing government shutdown and resulting furloughs at the SEC have created a regulatory vacuum that has altered the disclosure and review process. Without the SEC’s involvement, companies and activist investors engaged in proxy fights are unable to submit confidential “bedbug” letters to challenge each other’s filings. The absence of SEC review removes a procedural step that can slow the pace of these campaigns. Andy contends this lack of SEC involvement cuts both ways.  “We are constantly having to deal with bed-bugging the SEC regarding false and misleading statements that companies are putting out during activist campaigns,” Andy said. “If the shutdown were occurring in March and April, when most of the contested proxy statements are getting filed, the impact of the lack of SEC involvement and ‘proxy policing’ would loom larger than it does now,” he added.