WisdomTree Receives SEC Wells Notice

TL;DR

SEC sent WisdomTree a Wells Notice, meaning they might sue. Big trouble possible.

AI Summary

On August 5, 2024, WisdomTree, Inc. filed an 8-K report to disclose a Wells Notice received from the Securities and Exchange Commission (SEC). The notice indicates that the SEC staff intends to recommend enforcement action against the company. The specific nature of the potential enforcement action and the alleged violations are not detailed in this filing.

Why It Matters

A Wells Notice signals potential SEC enforcement, which could lead to significant legal costs, fines, and reputational damage for WisdomTree.

Risk Assessment

Risk Level: high — A Wells Notice indicates the SEC staff intends to recommend enforcement action, suggesting a high likelihood of formal proceedings and potential penalties.

Key Players & Entities

• WisdomTree, Inc. (company) — Registrant
• Securities and Exchange Commission (SEC) (company) — Issuing body of Wells Notice
• August 5, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — e on which registered Common Stock, $0.01 par value WT The New York Stock Exc
• $119 million — ssets under management of approximately $119 million. A Wells Notice is neither a formal ch

Filing Documents

• x852428k.htm (8-K) — 26KB
• 0001214659-24-013865.txt ( ) — 237KB
• wt-20240805.xsd (EX-101.SCH) — 4KB
• wt-20240805_def.xml (EX-101.DEF) — 26KB
• wt-20240805_lab.xml (EX-101.LAB) — 36KB
• wt-20240805_pre.xml (EX-101.PRE) — 25KB
• x852428k_htm.xml (XML) — 5KB

01. Other Events

Item 8.01. Other Events On August 5, 2024, WisdomTree Asset Management, Inc. ("WTAM"), a wholly-owned subsidiary of WisdomTree, Inc., received a "Wells Notice" from the staff (the "Staff") of the U.S. Securities and Exchange Commission (the "SEC") advising WTAM that the Staff has made a "preliminary determination" to recommend that the SEC file an enforcement action against WTAM alleging violations of certain provisions of the U.S. federal securities laws. The recommendation may involve a civil injunctive action or other action allowed by law, and may seek remedies that include injunctions, disgorgement, pre-judgement interest, civil money penalties and such other relief as may be available. The alleged violations relate to three exchange-traded series of WisdomTree Trust managed by WTAM that pursued ESG-focused investment strategies (collectively, the "ESG Funds"). The Board of Trustees of WisdomTree Trust, after careful consideration of various factors, including the persistent lack of investor demand and limited prospects for future asset growth, approved the liquidation of the ESG Funds in December 2023. Each ESG Fund completed its liquidation in February 2024. During their periods of operations, the ESG Funds had, in the aggregate, average assets under management of approximately $119 million. A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. WTAM maintains that its actions have been in compliance with all applicable laws and regulations, and intends to pursue the Wells Notice process, which will include the opportunity to respond to the Staff's position.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WisdomTree, Inc. Date: August 6, 2024 By: /s/ Marci Frankenthaler Marci Frankenthaler Chief Legal Officer

View Full Filing

View this 8-K filing on SEC EDGAR