News & Analysis as of

Buyback Programs

Akin Gump Strauss Hauer & Feld LLP

EU Publishes New Best Practices Guidance, including Updated Ownership Test and Additional Control Guidance

Key Takeaways - On 3 July 2024, the Council of the European Union (the “EU Council”) published its revised Update of the EU Best Practices for the effective implementation of restrictive measures (“Best Practices”).This...more

Wilson Sonsini Goodrich & Rosati

Charter Communications Fined $25 Million for Violating Stock Buyback Related Internal Accounting Controls Requirements

On November 14, 2023, the U.S. Securities and Exchange Commission (SEC), with two Commissioners dissenting, announced settled charges against Charter Communications Inc. (Charter) for violating internal accounting controls...more

Bracewell LLP

SEC Adopts New Repurchase Disclosure Rules

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The US Securities and Exchange Commission has adopted a package of amendments, originally proposed in late 2021, to the disclosure requirements for corporate issuers’ share repurchases. The SEC stated that the new rules are...more

Mayer Brown Free Writings + Perspectives

1% Stock Buyback Tax: US Treasury, IRS Release Interim Guidance

On December 27, 2022, the US Treasury Department and the Internal Revenue Service (“IRS”) issued Notice 2023-2 (the “Notice”), which provides taxpayers interim guidance (until regulations are issued) on how the new 1% excise...more

Nelson Mullins Riley & Scarborough LLP

SEC Reopens Proposal on Stock Buyback Rules

The SEC has reopened the period for submission of comments on its December 2021 rule proposal regarding corporate stock buybacks. The proposed rules would, among other things, require companies to file a notification on a new...more

Bennett Jones LLP

Canada Proposes New Tax On Share Buybacks

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The federal government's 2022 Fall Economic Statement (Economic Statement), released on November 3, 2022, introduced a new tax on share buybacks by public corporations in Canada. Under the proposal, which would come into...more

WilmerHale

Surprises and Questions Around the New Stock Buyback Tax

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One of the headline tax changes in the Inflation Reduction Act of 2022, Public Law 117-169, is a 1% excise tax on stock repurchases by public companies. Public issuers should be aware that the new tax, which applies beginning...more

Morgan Lewis

SEC Proposes Enhanced Disclosure Rules for Stock Repurchases

Morgan Lewis on

The US Securities and Exchange Commission has proposed amendments to its rules regarding disclosure about issuer repurchases of its equity securities, often referred to as buybacks, including a new proposed Form SR to be...more

Conyers

Alternative Financing in the Shipping Industry

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In the decade since the global financial crisis, ship financing has undergone considerable change. Traditionally, debt financing with banks and equity financing were the most common methods used by shipping companies to raise...more

King & Spalding

SEC’S Expansive View of “Accounting Controls” Draws Unusual Dissent from Two Commissioners

King & Spalding on

On October 15, 2020, the Securities and Exchange Commission issued a settled administrative order charging Andeavor LLC with failing to devise and maintain adequate internal controls surrounding its buyback of company stock...more

Eversheds Sutherland (US) LLP

Buyer beware: tax complications can thwart vacation buyback programs

COVID-19 has disrupted many aspects of work and play, leaving employees with canceled vacations and hesitance to schedule additional travel. As a result, employers are grappling with an unusual dilemma - managing ever-growing...more

Hogan Lovells

Banking and finance regulatory news, April 2020 #2

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Recent regulatory developments of interest to financial institutions. COVID-19: EBA and PRA approach to regulatory reporting and Pillar 3 disclosures - On 2 April 2020, the PRA published a statement on amendments made to...more

White & Case LLP

European Central Bank launches Emergency Bond-Buying Programme as a Response to the Coronavirus Pandemic

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The European Central Bank has launched a EUR 750 billion bond purchase programme designed to mitigate the enormous economic and financial risks to the Eurozone caused by the coronavirus pandemic. The creation of the "Pandemic...more

White & Case LLP

Bond Repurchases – an Issuer's Guide to Questions to Ask and Points to Consider (March 2020 Update)

White & Case LLP on

The White & Case Capital Markets team updates its March 2018 publication on bond repurchases given the current environment where issuers may consider whether, if their bonds are trading at a discount to par, they should...more

King & Spalding

Company Debt Buybacks

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As market uncertainty continues, companies are taking proactive measures to ensure short- and medium-term liquidity, including by fully drawing on revolving credit facilities. In turn, financial institutions would be wise to...more

Neal, Gerber & Eisenberg LLP

Policy Buyback Settlement Cannot Extinguish Coverage for Former Subsidiary

On July 11, 2019, in Magnetek, Inc. v. The Travelers Indem. Co., Case No. 17 C 3173, Judge Robert Gettleman of the Northern District of Illinois issued an important decision preserving insurance coverage for a former...more

Jones Day

Share Buybacks Under Fire

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The Background: Corporate share buybacks skyrocketed in today's low interest rate environment and the trend is likely to continue. The Issue: Although stock buybacks are an efficient method to return cash to shareholders,...more

Akin Gump Strauss Hauer & Feld LLP

US Solar Structures: Cash Equity Considerations

The solar financing market is maturing. You can tell because new money is crowding into the market, and the capital stacks are getting more complicated. Many of these funky structures even have names, like the “Double...more

Searcy Denney Scarola Barnhart & Shipley

Dieselgate: Bringing a Face to Scandal Impacting Volkswagen Owners

A Volkswagen manager pleaded guilty to conspiracy and violating the Clean Air Act and could get seven years in prison. A Volkswagen engineer who agreed to testify against the Volkswagen manager was sentenced to three years in...more

Morrison & Foerster LLP

EU Market Abuse Regulation - Requirements for U.S. Issuers

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The EU Regulation on Market Abuse (“MAR”) came into effect on 3 July 2016, replacing the previously existing Market Abuse Directive and expanding the application of the EU’s market abuse regime. In addition to detailing...more

Farella Braun + Martel LLP

Developments in SEC Private Company Enforcement: Sophisticated VC’s in the Role of Victim

The announcement that San Francisco private company Hampton Creek faces an SEC inquiry related to their alleged “buyback” program of vegan mayo comes as no shock... As soon as the facts were initially reported it seemed only...more

Searcy Denney Scarola Barnhart & Shipley

VW ‘Dieselgate’ Settlement Benefit Consumers, Environment

News of “Dieselgate” broke in the Fall 2014, when vaunted vehicle-maker Volkswagen was accused of dodging federal emissions laws by rigging its automobiles so they would pass smog tests. The summer of 2015 saw the scandal...more

Downs Rachlin Martin PLLC

Volkswagen Class Action Update

Proposed settlement filed in Volkswagen class action - The class plaintiffs, the government and VW filed a proposed settlement agreement in court yesterday. I wanted to provide you with a copy of the proposed settlement...more

Dorsey & Whitney LLP

California’s Latest Attack on Franchise Industry Goes Into Effect

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A new California law (AB 525, effective January 1, 2016) makes it harder for franchisors to terminate defaulting franchisees, requires franchisors to buyout franchisees in some cases, and adds new burdens for evaluating...more

Carlton Fields

Florida Appellate Court Adopts Test to Distinguish Direct Shareholder Actions From Derivative Actions

Carlton Fields on

Addressing what it acknowledged was a “murky question” under Florida law, Florida’s Fourth District Court of Appeal recently outlined the test for determining when shareholders may maintain a direct action against a...more

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