Climate Change (Sort of) Subject of Supreme Court Argument

2021-01-27T21:00:19+00:00January 27th, 2021|General Counsel|

The United States Supreme Court recently heard a case on climate change that may help determine the fate of many similar lawsuits across the country.In July 2018, the Mayor and City of Baltimore filed suit in Maryland state court against over two dozen oil and gas companies. The state contends [...]

Regulation FD (Fair Disclosure) Requires Public Disclosure

2021-01-25T23:24:17+00:00January 25th, 2021|General Counsel|

Image credit: Lareina Giles Regulation Fair Disclosure is a U.S. Securities and Exchange Commission (SEC) rule. It prohibits companies from selectively disclosing material non-public information (MNPI) to investment professionals or key shareholders. Sometimes as simply Reg FD, the rule states that companies cannot selectively share MNPI with certain individuals covered [...]

Tyco Fire Products Settles PFAS Chemical Lawsuit

2021-01-18T21:05:43+00:00January 18th, 2021|General Counsel|

Tyco Fire Products is a company known for manufacturing and testing firefighting foam containing “forever chemicals.” Recently, it settled with hundreds of homeowners over contamination found in private drinking wells, specifically Perfluorooctanoic acid (PFAS, which is also known as “C8.”). The company agreed to settle a class-action lawsuit with 271 [...]

Board Diversity Bolstered by New Nasdaq Exchange Rules

2021-01-17T21:13:20+00:00January 17th, 2021|General Counsel|

The lack of gender and racial diversity at the highest levels of corporate America has long been an issue. A recent board diversity survey of 3,000 of the largest publicly traded companies yielded disappointing findings. The survey revealed that women make up a mere 21% of corporate board seats and [...]

New Mexico Businesses Seek Compensation for COVID-19 Closures

2021-01-16T21:01:54+00:00January 16th, 2021|General Counsel|

The New Mexico Supreme Court recently heard oral arguments on whether businesses can sue the state for compensation due to COVID-19 closures. The Court has not yet made a decision. This case was the third lawsuit on its kind in the New Mexico Supreme Court. Businesses sued the governor over [...]

Drones for Commercial Delivery Subject to New FAA Rules

2021-01-14T18:03:06+00:00January 13th, 2021|General Counsel|

The U.S. Federal Aviation Administration (FAA) issued new rules in December 2020 governing commercial drone activity. The move comes amid a growing interest in expanding the usage of drones to assist with delivery. Delivery items include food, medical supplies, books, and numerous other small items. The newly issued rules go [...]

The Dow Jones Industrial Average: A Brief History and Overview

2021-01-11T21:10:13+00:00January 11th, 2021|General Counsel|

On Tuesday, November 24, 2020, amid news that a formal transition to the Biden administration is commencing, the Dow Jones Industrial Average (DJIA) surpassed 30,000 points for the first time in history. Since that date, the DJIA has remained steadily above 30,000. This was a significant milestone for the index, [...]

Whistleblower Lawsuit Settled by Apria Healthcare

2021-01-09T21:46:47+00:00January 9th, 2021|General Counsel|

Image credit: depositphotos National respiratory and home medical equipment provider Apria Healthcare recently agreed to a $40.5 million settlement. A whistleblower alerted authorities to fraudulent billing practices. The U.S. Attorney’s Office, Southern District of New York, made the announcement. The lawsuit claimed that Apria submitted claims to federal health programs, [...]

Direct Listings on NYSE Approved by SEC as IPO Alternative

2021-01-07T21:05:07+00:00January 7th, 2021|General Counsel|

IPOs have been all the rage in 2020. At the end of December, the Securities and Exchange Commission (SEC) approved a rule that the New York Stock Exchange (NYSE) proposed. The new rule allows companies to raise new capital through direct listings, an alternative to traditional IPOs. The NYSE plan [...]

Shelf Registration as a Post-IPO Financing Option for Companies

2021-01-06T21:48:33+00:00January 5th, 2021|General Counsel|

Companies that have already gone public may want to preserve the option to offer additional shares on the market at a later date. This may correspond with a new product launch, a future acquisition, or other major corporate event involving a need for additional financing. The shelf offering process allows [...]

The Dodd-Frank Act, Part of Our Financial Regulation Series

2020-12-29T21:00:20+00:00December 29th, 2020|General Counsel|

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a major piece of financial legislation. Congress passed it in 2010 in the wake of the 2008 financial crisis. More commonly, people refer to this statute as simply the Dodd-Frank Act. Earlier, the perception was that big banks were “too [...]

Fox News Network Dismissed from Discrimination Lawsuit

2020-12-29T18:01:02+00:00December 28th, 2020|General Counsel|

The United States District Court for the Southern District of New York has ruled that Britt McHenry may proceed with her lawsuit against George Murdoch. McHenry’s claims include gender discrimination, sexual harassment, and retaliation. However, the court dismissed Fox Corporation, which owns the Fox News Network, as a defendant. U.S. [...]

Sarbanes-Oxley Act, Enacted in Response to Financial Scandals

2020-12-19T22:01:47+00:00December 19th, 2020|General Counsel|

Image credit: History News Network Congress passed the Sarbanes-Oxley Act of 2002 (sometimes called “SOX”) in response to a number of corporate high-profile financial scandals. These scandals involved accounting fraud by publicly traded companies such as Enron Corporation, Tyco International plc, and WorldCom. The full name of the legislation is [...]

Facebook Violated Antitrust Laws, Say FTC and More than 40 States

2020-12-14T21:00:29+00:00December 14th, 2020|General Counsel|

The Federal Trade Commission and more than 40 states have accused Facebook of illegally crushing its competition by acquiring rivals. The action requests that the court undo these the deals, which ramps us the FTC’s fight against one of the world’s largest tech companies with a move that could realign [...]

Voluntary Environmental, Social, and Governance (ESG) Reporting

2020-12-13T21:57:07+00:00December 13th, 2020|General Counsel|

* Image scredit: Corporate Compliance Insights Over the past few years, there has been an increasing focus on the reporting of company performance. Reporting now extends to environmental, social, and corporate governance (ESG) issues. Investors and policymakers alike have been demanding more detailed disclosures of corporate social responsibility information in [...]

Stock Warrants: Origin, Purpose and Key Differences from Options

2020-12-07T22:35:01+00:00December 7th, 2020|General Counsel|

Stock warrants and stock options are both financial contracts between two parties. An investor can use them to generate profit in an investment portfolio. Both warrants and options enable the holder to purchase or sell a company’s stock at a given price and on a given date. Although they have [...]

Drone Technology Being Used for M&A Site Visits

2020-12-23T15:47:26+00:00December 6th, 2020|General Counsel|

Goldman Sachs says that it’s been using drone technology to give its clients a “bird’s-eye view” of target companies, according to Stephan Feldgoise, the firm’s global co-head of mergers and acquisitions. Since COVID-19 has stopped nearly all in-person meetings, research, and travel in the due diligence process in M&A, Goldman [...]

Stock Options and Other Equity Compensation Plans

2020-12-05T20:26:01+00:00December 5th, 2020|General Counsel|

Startup companies commonly include stock options in employee compensation packages. They are a great tool to incentivize strong employee performance by linking pay to performance. Employee stock option plans also align executives’ financial interests with shareholders’ interests. What Are Stock Options? An employee stock option grants the right, but not [...]

Rule 10b5-1 Trading Plans Offer Affirmative Defense to Insider Trading

2020-12-01T21:15:13+00:00December 1st, 2020|General Counsel|

Insider trading has increasingly drawn negative media attention and enforcement crackdowns from the U.S. Securities and Exchange Commission (SEC) in recent years. The concern is that officers, directors, and other company insiders leverage their exposure to material non-public information (MNPI) to enrich themselves. These corporate insiders have access to unique [...]

The NYSE and NASDAQ: Key Similarities and Differences

2020-11-30T21:08:56+00:00November 30th, 2020|General Counsel|

The New York Stock Exchange (NYSE) and the Nasdaq Stock Market (NASDAQ) are the two largest stock exchanges in the world. Both are based in New York City and provide a trading platform for securities. Despite their similarities in size and purpose, there are notable differences in the types of [...]

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