In their Taxation column, David E. Kahen and Elliot Pisem of Roberts & Holland discuss two recent Tax Court memorandum decisions relating to S corporations and a recent change in IRS policy regarding private letter rulings on common S corporation issues.
Corporate Litigation columnists Joseph M. McLaughlin and Yafit Cohn review a recent Delaware decision that again signals those courts will closely scrutinize personal and business relationships that are asserted as compromising a director's ability to consider a pre-suit demand impartially.
In her Secured Transactions column, Barbara M. Goodstein of Mayer Brown discusses the Hague Securities Convention. The vast majority of securities are now held through intermediaries rather than directly, and the number of cross-border transactions has increased exponentially. These developments have created legal uncertainty, which the convention attempts to remedy by offering a uniform set of conflict of laws rules to be applied on a global basis.
In their Corporate Governance column, David A. Katz and Laura A. McIntosh write: In what has been called a "breakout year" for gender diversity on U.S. public company boards, corporate America showed increasing enthusiasm for diversity-promoting measures during 2016. Momentum toward gender parity on boards is building, particularly in the top tier of public corporations.
In his Corporate Securities column, John C. Coffee Jr. analyzes the application of the Emoluments Clause to President-elect Donald J. Trump. He focuses on the specific nature of Trump's conflicts and how they expose him to foreign governmental pressure that will be largely invisible. He writes: Whether or not the Clause applies, tolerating the exposure of the President to foreign pressure is inexcusable.
In his Employment Issues column, Philip M. Berkowitz writes: The election of Donald Trump as President can reasonably be expected to upend the current established order of things in the world of employment law. In fact, President-elect Trump's election campaign, in large measure, was founded on arguments and issues that are uniquely the province of labor and employment lawyers: immigration law, health care, and discrimination law.
In a Corporate Crime column, Steven M. Witzel and Michael A. Kleinman of Fried, Frank, Harris, Shriver & Jacobson address how a Trump Administration might approach cybersecurity issues, particularly criminal prosecutions and regulatory oversight.
Terence E. Smolev and Christina Jonathan of Berkman Henoch Peterson Peddy & Fenchel write: Fiduciaries—both individual and corporate—run the risk of being charged with numerous crimes. Some crimes are intentionally committed, while some arise unintentionally but nevertheless create criminal liability. This article provides insight into some of the criminal charges fiduciaries may face.
It remains to be seen whether Yahoo Inc.'s recently revealed data breaches will nix its sale to Verizon Communications. But whatever happens, M&A lawyers say the Yahoo-Verizon deal illustrates the increasing importance of addressing the risk of a data breach when negotiating an acquisition.
In her Distress Mergers and Acquisitions column, Corinne Ball writes: Parties concerned with protecting sensitive information should be ready to provide concrete, factual arguments in favor of filing documents under seal. Recent New York decisions, and the 'In re Motors Liquidation Company' decision in particular, provide guidance to practitioners as to possible effective strategies for protecting such sensitive information.
In their Taxation column, David E. Kahen and Elliot Pisem write: Seemingly mundane questions concerning the proper allocation of consideration in determining the basis of purchased assets can have a surprisingly large impact. The authors discuss a recent decision of the Court of Federal Claims which illustrated precisely that point when tackling issues of goodwill under IRC §1060.
In their Corporate Litigation column, Joseph M. McLaughlin and Yafit Cohn, of Simpson Thacher & Bartlett, examine 'In re The Home Depot, Inc. Shareholder Derivative Litigation', which weighed in on a recurring question regarding the demand requirement on which courts have differed: whether pre-suit demand is required for claims alleging a violation of Section 14(a) of the Securities Exchange Act of 1934. 'Home Depot' is the latest in a series of shareholder derivative actions arising from high-profile data breaches to be dismissed in recent years, with the court holding that Delaware's demand requirement applies equally to Section 14(a) claims.
In her Secured Transactions column, Barbara M. Goodstein discusses the recent 'Forest Capital v. Blackrock' case, which brought to the fore the tension between UCC Articles 8 and 9—articles that have not always meshed seamlessly when it comes to the duties of securities intermediaries.
Two Atlanta lawyers have asked the U.S. Supreme Court to overturn a $2.7 million attorney fee sanction against Goodyear Tire & Rubber Co. awarded by the Ninth Circuit, saying the punishment is excessive and violates established rules for making such awards.
One day after President-elect Donald Trump agreed to pay $25 million to settle lawsuits over Trump University, he posted on Twitter that the payment was a "small fraction of the potential award." But Jason Forge, one of three plaintiffs attorneys at San Diego's Robbins Geller Rudman & Dowd who was involved in the settlement talks, said the amount each class member can expect to receive is unprecedented.
In his Corporate Securities column, John C. Coffee Jr. of Columbia University Law School examines executive compensation and clawback provisions, writing: The case for broad clawbacks comes into clearer focus when one looks closely at a series of recent corporate scandals, which each raise the same jaw-dropping question: What were those guys thinking?
The Delaware Court of Chancery appears positioned to once again decide whether to keep afloat a once-promising multibillion-dollar merger that has since struck the rocks in a pair of dueling breach of contract lawsuits.
Employment Issues columnist Philip M. Berkowitz discusses a risk alert released by the SEC Office of Compliance Inspections and Examinations on Oct. 24 warning that the agency "is reviewing a variety of documents," including compliance manuals, codes of ethics, employment agreements, and severance agreements, for language that is contrary to SEC regulations on disclosure of information in pursuit of whistleblower claims. This includes policies that would prohibit disclosures of confidential information and require employees to notify or obtain consent from the employer prior to disclosing confidential information. The commission, he writes, is going after companies that have internal policies, practices or agreements that contain offending language.
At issue in the consolidated cases 'Bank of America v. Miami' and 'Wells Fargo v. Miami' is a threshold question of standing, which does not often make headlines but is a crucial factor in gaining access to the courts for plaintiffs seeking redress from corporations. Rec
Brian Parsons has handled some big litigation assignments since joining the law department of Macy's Inc. in 2010, including appellate oral arguments and a deposition of a class representative in a nationwide class action. It's the kind of work often done by seasoned law firm partners, Parsons acknowledges.
The Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice have issued guidance signaling their interest in further cracking down on companies that make agreements with others that have the effect of limiting employees' mobility or keeping their wages down.
In his Corporate Crime column, William F. Johnson writes: To maintain maximum protection of legal privilege and confidentiality, corporations and their counsel would be well-advised to take a hard look at their disclosures to regulators and monitors, as recent court decisions have indicated that even compelled, narrowly-tailored disclosure could erode the expectations of privilege and confidentiality historically associated with such disclosures.
Appellate courts have wrestled for more than 20 years over where to draw the line between a copyrightable design and a useful article's function. The Supreme Court did not appear to be having it any easier on Monday.
In her Distress Mergers and Acquisitions column, Corinne Ball of Jones Day discusses the recent Second Circuit decision in 'Chesapeake Energy v. Bank of New York Mellon Trust', writing: 'Chesapeake' involved a dispute between bondholders and the issuing company regarding whether a "make whole" or pre-payment premium was required when the bond issue was refinanced. While the issue was discreet, the efficacy of a resort to the court for a speedy determination is now subject to question if there is an appeal pending—even one without a stay pending appeal.
A $4 million settlement this year between a group of female in-house claims litigators and Farmers Group Insurance served to highlight that gender pay inequity—and court actions to challenge it—are increasingly found among the upper echelons of Corporate America.
The AARP filed a lawsuit in federal court in Washington on Monday seeking to enjoin final rules for workplace wellness programs recently issued by the Equal Employment Opportunity Commission, claiming they allow employers to illegally access private health information of employees and use the data in a potentially discriminatory manner.
Elliot Pisem and David E. Kahen of Roberts & Holland discuss surprising and unfavorable results recently stemming from Internal Revenue Code §1234A, which governs the character of gain or loss attributable to the cancellation, lapse, expiration, or other termination of a right or obligation with respect to "property which is (or on acquisition would be) a capital asset."
A lawsuit in North Dakota federal district court could provide an early test of the reach of a federal appeals court decision that confronted what the judges called the “massive, unchecked power” of the Consumer Financial Protection Bureau.
The Equal Employment Opportunity Commission unveiled its latest strategic plan Monday, which will prioritize three new pieces of the agency's enforcement agenda: tackling nontraditional employment, protecting Muslims and Sikhs and ensuring the fairness of data-driven employment screening tools.
Corporate Litigation columnists Joseph M. McLaughlin and Yafit Cohn provide insight from the case 'SEC v. Jensen', where the U.S. Court of Appeals for the Ninth Circuit provided needed guidance on the scope of distinct requirements under the Sarbanes-Oxley Act—the certification requirement and the clawback provision.
The U.S. Securities and Exchange Commission saw a record number of enforcement actions this past fiscal year, a sign the commission is looking beyond headline-grabbing cases involving hundreds of millions of dollars, according to one attorney.
U.S. Justice Department lawyers, repudiating the misconduct allegations that Aetna Inc. and Humana Inc. raised in the government's blockbuster antitrust suit, accused attorneys for the health insurers of a "transparent" push to unravel the case before it's ever presented to a judge.
In her Secured Transactions column, Barbara M. Goodstein, through a discussion of a recent decision in the 'Aéropostale' case in the Southern District of New York, highlights issues and risks that arise when non-traditional lenders find themselves entangled with the debtor in more ways than just debt financing.
The Illinois treasurer's office suspended billions of dollars in trading activity with Wells Fargo & Co. on Monday, becoming the second state to cut off business with the bank after its $185 million settlement over charges it created as many as 2 million unauthorized accounts.
The harrowing robbery of Kim Kardashian in Paris, Jesse James’ historical bank heists and even notorious bank robber Willie Sutton played into U.S. Supreme Court arguments on Tuesday as the justices wrestled with the level of intent needed to prove federal bank fraud.
In a request for sanctions filed in Washington federal district court, Aetna and Humana lawyers alleged the government withheld about 1 million documents. And they argued the government's alleged obstruction has "gravely undermined" the ability of the health insurers to mount a defense against claims from antitrust enforcers that Aetna's acquisition of Humana would drive up the price of insurance.
Daniel A. Fliman and Isaac S. Sasson provide an introduction to ad hoc committees, including insights into their benefits and operations, and an overview of certain legal considerations unique to such committees.
As business disputes grow in size and complexity, would a specialized court with judges who are experts in the matters, and who could speed up rulings and appeals, be a good idea in the United States? That was among the topics at a discussion given last week by The Hon. Mr. Justice Blair at the Times Square offices of Brown Rudnick.
State regulators, industry attorneys and vehicle manufacturers greeted the Federal Automated Vehicles Policy, published by the National Highway Traffic Safety Administration and U.S. Department of Transportation on Tuesday, as a positive step toward providing clarity and preventing an undesirable patchwork of local laws.
In their Corporate Governance column, David A. Katz and Laura A. McIntosh write: Overseeing FCPA compliance is no easy task. As a legal matter, boards are required to create and follow procedures designed to ensure compliance with applicable laws. Directors succeed in this task by fostering a culture of high ethical standards, by prioritizing compliance oversight, and often by personally investing time and effort in the company outside the boardroom.
In a win for Broadcast Music Inc. and the American Society of Composers, Authors and Publishers, a federal judge has shot down a recent determination from the U.S. Department of Justice that these performance rights organizations can't engage in so-called fractional licensing, which is crucial to their business model.
In his Corporate Securities column, John C. Coffee Jr. of Columbia Law School discusses the spread of "entrepreneurial litigation" to Europe, where major securities class actions have recently settled, and he writes that the most striking fact about those actions is the key organizational role in structuring them played by traditional American plaintiff law firms.
A new lawsuit against Samsung Electronics Co. alleges that the South Korean device maker had problems with exploding smartphone batteries even before the recent recall of its Galaxy Note 7, leaving at least one man with third-degree burns.
Loyal followers of Apple Inc. were excited last year when the company started a program that let them pay a little extra with the promise of getting the latest device each year. But now lawyers for a disgruntled subset of those consumers have sued Apple, saying they’ve been told to wait.
Whistleblower plaintiffs firm Phillips & Cohen announced Tuesday that Sean McKessy, the former chief of the U.S. Securities and Exchange Commission's Whistleblower Office, is joining the firm as a partner in Washington, D.C.
Applying a Delaware use of the business judgment rule, a Manhattan judge has dismissed a shareholder class action that alleged corporate breach of fiduciary duties connected to the 2015 merger of dry bulk shipping companies Baltic Trading Ltd. and Genco Shipping & Trading Ltd.
In his Corporate Crime column, Steven M. Witzel writes: In dealing with issues involving electronically stored information, Congress, courts and commentators are struggling to find the proper balance between preserving Fourth Amendment rights and providing effective tools for government investigations.
A former Monsanto Co. executive received a $22.5 million whistleblower award Tuesday for alerting U.S. securities regulators to improper accounting that inflated the agrichemical company's reported sales of Roundup, according to the lawyer who represented the tipster.
In her Distress Mergers and Acquisitions, Corinne Ball of Jones Day discusses a recent decision that established precedent for an emerging debtor that seeks insolvency relief locally to impose the local insolvency framework upon its financing affiliate, despite reliance upon a different jurisdiction for domicile and choice of law to enable such affiliate to raise capital from U.S.-based investors.
Four months after new rules adopted by the U.S. Department of the Treasury foiled Pfizer Inc.'s plans to acquire Allergan plc in a $160 billion tax inversion deal, the New York-based pharmaceutical giant has moved on to pick up a cancer drug maker with four Am Law 100 firms in tow.
A litigation funder facing a fraud investigation has asked a federal judge to rule that the U.S. Securities and Exchange Commission's administrative enforcement proceedings against unregulated parties are unconstitutional.