Chinese Manufacturing and Imports
May 27, 2008
All companies must live with the risks and uncertainties inherent in their businesses. Doing business with Chinese manufacturers, however, recently has proven to be more risky than some companies had anticipated.
Attorney-Client Privilege in Corporate Internal Investigations
May 27, 2008
Corporate scandals over the past decade have led to an encyclopedia of new statutes, regulations, initiatives, and programs, at the state, federal, and global levels. Corporations have responded with new or revised ethics codes and rules governing business conduct. Along with this mass of law, corporations have been expected to police themselves through stringent compliance and reporting programs. The current business cycle may make compliance efforts even more difficult.
What the Subprime Crisis Could Mean for Your Company
May 27, 2008
The continuing economic crisis, driven in large measure by the subprime mortgage meltdown, is affecting major segments of the economy. Not a day goes by that there is not something in the press regarding the effects of billions of dollars of mortgage failures. Criminal investigations into all industries involved in the process are underway. The Department of Justice is considering creating a task force, much in the same way the Bush Administration created the Corporate Fraud Task Force in the aftermath of the Enron failure.
401(k) Participants May Sue for Breach of Fiduciary Duty
May 27, 2008
In a closely watched case arising under the Employee Retirement Income Security Act of 1974, as amended ('ERISA'), the U.S. Supreme Court recently clarified the right of employees to sue plan fiduciaries for mismanaging their individual 401(k) accounts. <i>LaRue v. DeWolff, Boberg & Associates, Inc.</i>, 128 S. Ct. 467, 42 EBC 2857 (2008)
Fear and Loathing in Preservation
April 25, 2008
Most in-house counsel know the types of inquiries that should trigger evidence preservation or collection protocols. Once there is reason to believe there will be litigation or investigation, the duty to preserve kicks in immediately. But what's next?
Spring-Loading Options
April 25, 2008
Delaware courts are beginning to analyze claims concerning the controversial practice of spring-loading options. Spring-loading is the granting of options just prior to the release of favorable company information (in the company's possession at the time of the grant). The options are granted at a market price on the day of the grant. They are said to be 'spring-loaded' because upon release of the favorable news, the stock price is expected to rise and the options would then become 'in-the-money.'
Parent Corporations and Their Subsidiaries' Liabilities: Guidelines
April 25, 2008
There are many reasons to insulate parent and sibling entities from known exposure to which a particular subsidiary is subject. These include, in addition to the tort and federal regulations at issue in the <i>Forsythe</i> and <i>Bestfoods</i> cases, mentioned herein, vulnerability to the taxes, regulation and jurisdiction of a state or foreign nation. Protecting against such vulnerabilities are an important task for corporate counsel. This article explains.
