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O’Melveny’s Close Quoted in SEC Today on SEC’s Request for Stay of Litigation in Case Involving Chinese Unit of Deloitte

August 01, 2012

O’Melveny & Myers LLP partner Matthew Close was quoted extensively in the July 31, 2012, SEC Today article “SEC’s Request for Stay of Litigation Signals Progress on Discussions with Chinese Regulators.” Close, a member of O’Melveny’s Securities Litigation Practice, commented on the US Securities and Exchange Commission’s recent request for a six-month stay in its litigation aimed at obtaining audit documents from the Chinese unit of Deloitte & Touche.

Close told SEC Today that the request is significant because it indicates US and Chinese regulators are making progress in their ongoing negotiations regarding US regulatory oversight of China-based auditors of US-listed companies and may be able to resolve the issue without further litigation. US regulators need to be able to exercise their jurisdiction while also respecting China’s sovereignty and its need to have some oversight of auditors and companies based in its country, Close explained. Close is part of an O’Melveny task force of lawyers in the US and China focusing on litigation against US-listed, China-based companies, and noted that the discussions are set against the backdrop of a wave of securities lawsuits being filed against Chinese companies listed in the US.