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Such letters usually indicate that the agency is considering bringing an enforcement action.
In 2007, the DEA raised its sights, bringing an enforcement case against McKesson — now the nation's largest drug distributor and the fifth-largest corporation in the country.
When it does single out companies, it is usually in the form of the Occupational Safety and Health Administration bringing an enforcement action against what it deems an irresponsible employer.
In an extraordinary legal maneuver, the former chief executive of Waste Management, Dean Buntrock, sued the S.E.C. this week to block it from bringing an enforcement action against him stemming from an accounting fraud investigation that began in 1997.
Nothing in this subsection prohibits the securitiescommission (or any agency or office performing like functions) of any State from investigating and bringing an enforcement action with respect to fraud or deceit against any nationally recognized statistical rating organization or person associated with a nationally recognized statistical rating organization.
Nonetheless, the fact that the S.E.C. has now insisted that Xerox change its accounting, and that the company has refused to do so, would appear to indicate that the company and the regulator are on a collision course that could end in the commission's bringing an enforcement case against the company.
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And algorithms certainly cannot bring an enforcement action.
If not, this might influence a decision to issue guidance rather than bring an Enforcement action.
One possibility is that the SEC will bring an enforcement action.
"We are deeply disappointed with the S.E.C.'s decision to bring an enforcement action in this matter," Mr. Levander said.
In addition, early disclosure of an investigation may actually put more pressure on regulators to ultimately bring an enforcement action against the company.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com