Expert Witness Problem Undermining SEC Enforcement Efforts

The Securities and Exchange Commission’s trial win rate is at just 58 percent since the start of its current fiscal year on Oct. 1, down from between 76 and 84 percent in recent years, despite Director Mary Jo White’s call last year for the agency to be a “strong, effective cop on the beat,” and bring more cases to trial. One possible reason for the low win rate? Weak witness testimony. In many cases, leading expert witnesses will not or cannot testify for the government as they work for major U.S. companies and may have a conflict of interest, or be jeopardizing a relationship with a potential client.