Special Issue: The 'Hottest Issues' Get Hotter; The Bayou Hedge Funds Fraud
December 27, 2006
Investor confidence and market behavior can be impacted greatly by events that do not necessarily correlate. In the case of the Bayou Hedge Funds fraud, these unique and non-recurring events fueled a fire in the hedge fund industry that has spread, but not necessarily due to the particulars of the Bayou Hedge Funds failure. But, when dealing with significant investments made by pension funds, corporate entities, along with foundations and trusts, a healthy dose of skepticism is natural and appropriate. Not unlike the transition from the Enron scandal to the formation of the Public Company Accounting Oversight Board, hedge fund investors may extrapolate the troubles at the Bayou Hedge Funds to all hedge funds. As a result, questions of the need for regulatory oversight for a stronger accountability within the industry arise.
The Growth of Litigation: A Global Trend
December 26, 2006
For the past three years, our law firm, Fulbright & Jaworski LLP, has conducted its Litigation Trends Survey, based on responses from senior-level in-house lawyers at companies in a variety of industries and at various revenue levels. In the first year, we surveyed only United States companies. Last year, we expanded our survey to encompass companies in the United Kingdom as well. This year's edition of the Litigation Trends Survey ' in recognition of the increasing globalization of the world economy and our own firm's rapid international expansion ' drew on responses from companies around the world. The survey results generally confirmed what prompted us to expand the scope of the Survey to begin with ' that companies are increasingly operating more globally and therefore face greater and more frequent challenges in protecting their interests in areas far from home.
Averting Data Security Threats From Portable Electronics
December 22, 2006
The proliferation of flash drives, iPods, camera cell phones, Black-berries, and similar electronic devices has put all companies at added risk for insider theft. With the use of these devices, downloading significant amounts of data is easy, virtually instantaneous, and often very difficult to detect. These risks apply to essentially all companies that allow employees access to electronically stored, confidential, and proprietary information.<br>So what is today's company supposed to do to protect its valuable, sensitive information in the face of the risks posed by new portable devices?
Data Security Breaches Offshore
December 22, 2006
Outsourcing decisions should be based in part on a comparison of data security in-house and at each vendor location; generally this is evaluated in terms of staff vetting, physical access security, database security, communications security, etc. But another vital consideration should be the effectiveness of each candidate location's legal preventive measures and remedies for data theft or misuse ' and the complexity and cost of securing those protections. This article, which surveys the state of data security legal protections in India, shows that making such a comparison is no simple matter.
Just-in-Time Benchmarking
December 22, 2006
Benchmarking has long been a difficult undertaking for private service providers and for law firms in particular. While firm partners historically have tracked firm-wide metrics such as billings, profits per partner and individual productivity, firms have until recently not had the means or opportunity to benchmark performance at the practice group, office location and timekeeper level with any accuracy or currentness.<br>This article, as the title implies, discusses how refined performance measures are made possible by a new benchmarking tool, West Peer Monitor' from Thomson West
Client Attrition Analytics
December 22, 2006
While the managers of professional services firms often view market pressures as the driving force that determines whether clients remain loyal or choose to shop elsewhere for added services, a new study by the Redwood Think Tank indicates that firms have tremendous sway over which clients become long-term business partners.
Automotive Insolvencies
December 22, 2006
The unique environment of the automotive industry has resulted in the insolvencies of tier-one and tier-two suppliers developing distinct characteristics. Unlike many industries, automotive suppliers typically have only a handful of customers, without whom they have no business to reorganize or sell in an effort maximize values for creditors. This gives customers significant control in the options a debtor has when faced with severe financial distress. However, because of Original Equipment Manufacturers' (OEM) just-in-time methods of production ' unlike customers in many businesses that can simply decide not to do business with an insolvent entity ' OEMs and large tier-one suppliers cannot purchase automotive parts or assemblies elsewhere.
Alternative Routes To U.S. Markets Impact Reporting Requirements For Chinese Companies
November 30, 2006
According to the U.S. Securities and Exchange Commission's Web site, there are currently 144 domestic Chinese companies registered with the Commission. This number is deceiving, however, since more and more Chinese companies are entering the U.S. through business combinations with U.S. domestic listed companies or through off-shore holding companies, utilizing the wholly-owned foreign enterprise (WOFE) structure. While the end result is the same ' a listing on a U.S. exchange ' the decision to 'domesticate' in the United States or remain a 'foreign private issuer' can have significant ramifications for the company's ongoing regulatory compliance obligations. Foreign private issuers continue to enjoy certain levels of relief from the U.S. compliance regime by virtue of the fact that they are also required to comply with their local, or 'home country', reporting requirements.
China's World Trade Compliance
November 30, 2006
Board of Editors member, Prof. Usha Haley, spoke at the U.S.-China Economic and Security Review Commission Hearing on China's World Trade Compliance. In Part One, she addressed subsidies, their forms and complications. In Part Two, she covers how profitable and available those subsidies are and how profitable companies are that serve the China market.
<b>Sales & Service Strategies:</b> Nine Ways to Provide Superior Client Service
November 30, 2006
Improving client service is especially important, as general counsels of large companies have revealed to BTI Consulting that more than two-thirds would not recommend their primary law firm, 50% plan to try a new law firm for a substantive matter this year and they plan to cut nearly 40% of their outside firms by 2008. With decreasing client loyalty, firms need to spend more time improving client service as well as building barriers to entries to other outside law firms.
