Here at Procopio, we have declared 2026 to be a year of growth. What does that mean? We are focused on growing our connections with our clients, growing their enterprises, and growing our capabilities to best serve them.
We are pleased to begin another year working hand in hand with our clients throughout California, the United States, and the world.
It is our wish that you find 2026 to be both peaceful and prosperous. We are ready and willing to do our part to help make that a reality.
Best wishes,
Dennis J. Doucette
Procopio Managing Partner
What to Expect from the SEC’s Examination Focus in 2026
What will be the SEC's focus in 2026? According to Jennifer Trowbridge and Nathan Gelbrich, the federal agency said it will continue its focus on certain topics in examinations, including information security and operational resiliency, emerging technology including AI, Regulation SCI compliance, and anti-money laundering obligations. Investment advisers, broker-dealers, fund managers, and other financial professionals should start preparing now.
Public company boards now operate in a more challenging environment, notes Dennis Doucette, as regulators expect more, investors are better organized, and activists have better tools. If you're with a publicly traded company, you may find it interesting to learn how the old practice of checking an “independent” box once a year and recycling proxy text is no longer enough.
In the latest development with the Corporate Transparency Act (CTA), the Eleventh Circuit has held that it is constitutional, but FinCEN’s March 2025 interim final rule exempting domestic U.S. entities from beneficial ownership information (BOI) reporting remains in force, notes Juan Arau. Practically, most U.S.-formed companies remain exempt today, foreign reporting companies continue to have BOI obligations, and risk remains that administrative policy could change.
The SEC’s New Guidance on PSEs: What Broker-Dealers Need to Know
The SEC has released new guidance on when a rep-owned payment entity (PSE) can receive transaction-based compensation without needing separate broker-dealer registration, notes Ruba Qashu. The update outlines the conditions firms must follow: Tightly held ownership by registered reps, full supervision by the existing broker-dealer, restricted activity by the PSE, and solid recordkeeping. It does not permit PSEs to act like independent broker-dealers. Instead, it gives firms a practical path for using rep-owned entities for administrative and compensation purposes while staying compliant.
A Guide to Brown Act Changes Coming in 2026: What You Need to Know About SB 707
Local public agencies across California must comply with several updates to the Brown Act's open meeting and teleconferencing rules under SB 707 now that 2026 has begun, note Greta Proctor and Kevin Davis. The impact depends on whether an entity is considered an “eligible legislative body” as defined in SB 707. Charter schools are not, meaning only general changes will apply to them.
GAO Report Signals Intensified IRS Scrutiny of Puerto Rico Act 60 Residents
The IRS appears to be entering a new and far more aggressive phase of enforcement focused on taxpayers claiming Puerto Rico residency and Act 60 incentives or benefits, note Jorge Obén-Cuadros and Eric Swenson. The IRS has lacked current data and has not prioritized examinations, but that period is apparently now over at least as it relates to examinations of U.S. persons who have already claimed tax benefits under Act 60. A new GAO report suggests increasing pressure from Congress, which could mean the IRS is preparing to intensify audits involving residency, income sourcing, and eligibility for Puerto Rico’s tax incentives.
Procopio Bolsters IP Litigation Bench with Partner Benjamin Herbert
Award-winning intellectual property litigator Benjamin Herbert has joined Procopio as a partner in its growing Litigation Team. Ben brings significant experience in patent and trade secret litigation across a wide range of advanced technologies to an IP Litigation practice with a deep bench of seasoned litigators. Based in Procopio’s Irvine, California, office, he joins Procopio from the Los Angeles office of Miller Barondess, where he was the co-leader of the firm’s intellectual property practice.
“Ben is a significant addition to our litigation team,” said Dennis Doucette, Managing Partner of Procopio. “His courtroom accomplishments and his experience with litigating high-tech patent and trade secret disputes will serve our clients well.”
Ben has represented technology companies in federal courts, in appeals before the U.S. Court of Appeals for the Federal Circuit, and in proceedings before the U.S. Patent and Trademark Office. His work spans digital communications, semiconductor architecture, medical devices, and other complex systems. He also advises clients on strategic patent issues and licensing.
Stay Ahead in 2026: Key Webinars for Charter Schools
Procopio's award-winning Education and Charter School attorneys will host three significant webinars this month to help charter school leaders comply with California laws and regulations in 2026:
JANUARY 14
New Employment Laws for the New Year | 12:00 – 1:15 pm PT | complimentary for CCSA-member charter schools
In partnership with the California Charter Schools Association (CCSA), join Wendy Tucker for a high-impact session covering the most important employment law updates taking effect in the new year.
SPED Best Practices - Part II | 12:00 – 1:00 pm PT | complimentary for charter schools
All California charter school teams are invited to join David Graham on January 21, 2026, for part II of Procopio's special education webinar series for charter school teams in the 2025-26 school year.
AI Innovator One Stop Systems Sells German Subsidiary After Years of Growth Following Acquisition
Kudos to client and enterprise computing innovator One Stop Systems (Nasdaq: OSS) in the sale of its German subsidiary Bressner Technology GmbH for $22.4 million, subject to closing issues. This follows OSS’s acquisition of Bressner in October 2018 for $5.6 million, a nice ROI.
U.S. Bankruptcy Court Approves Stipulation for Creditor in Healthcare Debtor Case
A U.S. Bankruptcy Court has approved a key stipulation on behalf of our client Banc of California, a creditor in a Chapter 11 case with a healthcare provider. Procopio Partners Maria Pum and Steve Casselberry negotiated a structured payment plan representing Banc of California that ensures the healthcare provider continues to make payments without interruption to its ongoing operations.
We represent many clients in the financial services industry in a wide array of legal matters including litigation such as bankruptcy and real estate. Many of our litigators bring clients deep experience navigating bankruptcy courts on behalf of both creditors and debtors.
Equestrian-Centered Coachella Valley Development Approved by County Board
Congratulations to client Thermal Ranch LLC on receiving unanimous approval from the Riverside County Board of Supervisors for world-class equestrian facility surrounded by hundreds of homes and retail outlets in the eastern Coachella Valley community of Thermal, a project that will exceed $1 billion. Procopio Partner and Land Use practice leader Jim Vaughn led the entitlement and CEQA review process with support from Matt Abbot.
County planning staff signed off lengthy environmental reviews of the project and said necessary steps were being taken to address and mitigate the project’s environmental impacts for this mixed-use project on 620 acres. Thermal Ranch will consist of a 231-acre world class equestrian facility that will provide a new, permanent home for the Desert International Horse Park, as well as 110 custom estate homes, 161 single-family homes, 191 condominiums, workforce housing, an RV park, and a future phase consisting of a hotel, resort condominiums, and a retail/entertainment center.
Please welcome the latest addition to our award-winning family law practice, Danielle Sanderlin! As part of the team led by Michele B. Brown, Danielle focuses on family law matters that encompass divorce proceeding issues, legal separation, parentage matters, child custody and visitation, move-away/relocation cases, grandparent visitation, child and spousal support, restraining orders, contempt actions, characterization issues, reimbursements, and post-judgment modifications. Danielle was previously a law clerk with Procopio, assisting in drafting Marital Settlement Agreements, Requests for Orders, subpoenas, and court filings in complex family law matters, as well as conducting legal research and supporting attorneys with case strategy, financial analysis, and preparation for hearings and settlement negotiations. Danielle began her career with Procopio as a legal intern in 2023, supporting matters in family law and corporate litigation. She has served as a legal extern for the Honorable Dennis M. Cota of the U.S. District Court for the Eastern District of California. Danielle is also a veteran of the U.S. Navy and was stationed in San Diego. Thank you for your service, Danielle!
Kudos to Real Estate Partner Sara Neva on her latest recognition from the San Diego Business Journal, a finalist in the 2025 Businesswomen of the Year Awards! This is the latest of many accolades for Sara; learn more about her and her practice.
Procopio IP litigator Mindy Morton shared insights on U.S. trade secret litigation Dec. 11 in San Francisco as part of PLI's Advanced Trade Secrets 2025: New Challenges, Solutions, Technologies, and Imperatives. Mindy and her fellow panelists looked back on the last nine years since the passage of the federal Defend Trade Secrets Act in an event held in person and online. Mindy is active in the legal world of trade secrets, serving on key committees with The Sedona Conference and the American Bar Association, and was named earlier this year to the WIPR Global Trade Secrets rankings.
Procopio IP Team Leader Miku Mehta led an engaging panel of life science and high-tech patent practitioners Dec. 5 at the 26th Annual Berkeley-Stanford Advanced Patent Law Institute held at Stanford University. Miku drew out his panelists' in-house and client counseling perspectives on 35 USC 112, including enablement, written description, indefiniteness and functional claiming. They covered 4 recent Federal Circuit cases, USPTO training and prosecution trends, and counseling strategies with respect to inventor engagement and prosecution practice, with several insightful questions and comments from the audience. The BCLT annual conference draws some of the deepest thinkers in intellectual property practice and policy, with this year's event featuring a fireside chat with former USPTO Director Andrei Iancu.
In a timely discussion given the explosion of AI in the workplace and society, patent prosecution attorney Eli J. Sharp of our Washington, D.C., office spoke October 28 on the state of the microchip industry, AI, and the evolution of 5G and 6G technology at the 2025 American Business Expo XMAS conference in Miami, Florida. Eli provides patent counseling, prosecution and litigation services to clients in various technology sectors, such as AI, telecommunications, computer software and hardware, machine learning, IoT, cloud technology, RF systems, medical devices, printers, consumer devices, smart fabrics, renewable energy, and oil and gas equipment.
As we kick off the new year, now is the time to look at your business with fresh eyes and ensure you’re positioned for growth while managing risk and securing value. A fresh review of your outside legal counsel should be part of that process. At Procopio, we work with corporate leaders across a wide range of industries to tackle today’s toughest legal and business challenges. From corporate governance and mergers & acquisitions, to intellectual property strategy and complex litigation, our team brings practical, results-driven counsel to every engagement. Whether you’re planning for expansion, refining your compliance framework, protecting your innovations, or positioning your company for the next stage of growth, Procopio stands ready to help. Explore the full scope of the services and industries we support. Here’s to a strategically aligned, productive year ahead.
This publication is not intended to provide legal advice for a specific situation
or to create an attorney-client relationship.
Procopio, Cory, Hargreaves & Savitch | 525 B Street Suite 2200 San Diego, CA 92101
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