Corporate Update

  • New York Law Journal

    'Slack Technologies' and the Future of Section 11

    By John C. Coffee Jr. | March 15, 2023

    On April 17, the Supreme Court is set to hear argument in Slack Technologies v. Pirani, a case which seemingly deals with a technical issue of standing under Section 11 of the Securities Act of 1933, but which could render that provision largely irrelevant. In his Corporate Securities column, Professor John Coffee discusses both the implications of Slack and the predictable attempts by issuers and underwriters to downsize Section 11 further by manipulating its tracing requirements.

  • New York Law Journal

    Bonuses, Clawbacks and Bad Behavior

    By Philip Berkowitz | March 8, 2023

    Departing employees who leave, whether voluntarily or otherwise, may claim they earned a bonus and that the employer's failure to pay it on their termination constituted a breach of contract or even a violation of wage payment laws. Recently issued SEC regulations and announcements from the U.S. Department of Justice with regard to bonus policies have imposed new obligations on employers, and new areas of liability.

  • New York Law Journal | Analysis

    Defense Witness Immunity: Time for Supreme Court To Weigh In

    By William F. Johnson | March 1, 2023

    In his Corporate Crime column, William Johnson discusses how different circuit courts use different tests when deciding to immunize a defense witness. Some circuits have strict requirements for obtaining such an order while others have taken a more equitable approach. In Theryn Jones v. United States of America, the Supreme Court has a meaningful opportunity to address this long-standing split in the circuits on whether a more balanced standard should apply to requests for defense witness immunity.

  • New York Law Journal

    Fifth Circuit Orders Bankruptcy Court to Abstain from Deciding Issues Relating to Public Electricity Market

    By Corinne Ball | February 22, 2023

    In her latest Distress M&A column, Corinne Ball discusses the recent decision in 'Elec. Reliability Council of Texas v. Just Energy,' which she believes participants in state-regulated industries, such as utilities, should pay special attention to. The decision, ordering abstention, "raises the possibility that a state-regulated debtor may face real challenges in a reorganization if it seeks to dramatically alter its obligations to a state or quasi-state agency."

  • New York Law Journal | Analysis

    The New Gray Zone? A Potentially New Approach to Attorney-Client Privilege in Internal Investigations for Current Employees Who Have Given Notice

    By Lara Flath and Judy Flumenbaum | February 8, 2023

    The First Department's holding in 'BDO' is one that corporations and outside counsel conducting internal investigations and considering potential privilege issues should keep in mind.

  • New York Law Journal

    Waivers of Defenses in Guaranties: Unconditional or Unenforceable?

    By Barbara M. Goodstein | February 1, 2023

    The key takeaway from the appeal court's analysis is obvious. Although waiver language can be broadly written, a waiver of defenses associated with standard guaranty "absolute and unconditional" language may not, in and of itself, waive a defense based on the statute of limitations.

  • New York Law Journal | Analysis

    ESG in 2023: Politics and Polemics

    By David A. Katz and Laura A. McIntosh | January 25, 2023

    Directors should also pay close attention to the ongoing cultural and political conflicts relating to ESG. With high stakes on all sides, the level of reputational risk in this area is likely to increase for the foreseeable future.

  • New York Law Journal | Analysis

    Extraterritorial Fraud: When Can the Government Sue?

    By John C. Coffee Jr. | January 18, 2023

    The bottom line is that extraterritoriality in regulatory cases appears to lie today largely in the eye of the beholder. All that a judge has to assert is that some conduct by a person in the United States was "integral" to the fraud.

  • New York Law Journal | Analysis

    Should White-Collar Defendants Be Jointly and Severally Liable for Forfeiture Judgments?

    By Evan T. Barr | January 4, 2023

    A circuit split has emerged as to whether the logic of 'Honeycutt' should be extended to benefit defendants facing joint and several liability for forfeiture in connection with fraud or other economic crimes, where the amounts in question routinely exceed tens of millions of dollars.

  • New York Law Journal | Analysis

    The CFPB Seeks Power Through Proposed Registry

    By Jeffrey Alberts | December 28, 2022

    The CFPB closed out 2022 with a deceptively innocuous-sounding proposal to require nonbank financial companies to report certain public orders and judgments relating to consumer protection violations. However, it is clear that this proposal is a powerful one-way ratchet the CFPB can use to expand regulatory control over fintechs and other nonbank financial companies.

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