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Public Company Web Sites: A Marketing Tool Subject To Securities Laws
Following the enactment of the Sarbanes-Oxley Act, disclosures by public companies via their Web sites are increasingly required or encouraged. With the implementation of these new rules and the growth of the Internet, investors, as well as prospective investors, increasingly are relying upon a company's Web site for investment information. Public companies should recognize the value of their Web sites as marketing and investor-relations tools, subject to the boundaries of applicable legal standards and constraints.
The Securities and Exchange Commission (SEC) has stated that “[t]he federal securities laws apply in the same manner to the content of [companies'] Web sites as to any other statements made by or attributable to them.” For example, Web site content that is inaccurate or misleading may cause the company to be found liable to an investor who incurred a loss by buying or selling the stock of the company in reliance upon such content. Additionally, companies and their officers may be held criminally liable for misleading or false information posted on the company's Web site. Last year, the CEO of eConnect was sentenced to over 8 years in federal prison after pleading guilty to three counts of securities fraud and one count of criminal contempt. The SEC had charged eConnect and its CEO with securities fraud in connection with a scheme to artificially inflate eConnect's stock price using, among various techniques, false statements posted on its Web site. According to the SEC, during the period when the false statements were posted on the Web site, eConnect's stock increased by over 500%.
Under Scrutiny
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Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?