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A&O Shearman

SEC Charges Company With Reg FD Violations For Disclosing Information Via Posts On CEO’s Social Media Accounts

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On September 26, 2024, the Securities and Exchange Commission (“SEC” or “the Commission”) charged a sports-betting company (the “Company”) with violating Regulation Fair Disclosure (“Reg FD”) by disclosing material, nonpublic...more

Rivkin Radler LLP

When A Shareholder Loses Control of Their S Corporation

Rivkin Radler LLP on

If given their druthers, most transactional corporate attorneys would prefer to spend their day practicing “happy law,” by which they typically mean transactions that involve capital formation, mergers and acquisitions, joint...more

KPMG Board Leadership Center (BLC)

An asset owner view on shareholder engagement

Q&A with Yumi Narita, NYC Office of the Comptroller - In late May, Yumi Narita, Executive Director of Corporate Governance at the New York City Office of the Comptroller, spoke with Stephen Brown, Senior Advisor, KPMG Board...more

A&O Shearman

Was the richest person in the world overpaid?

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Chancellor Kathleen McCormick of the Delaware Court of Chancery grappled with this question in a recent derivative lawsuit challenging Tesla’s performance-based equity award with a potential USD55.8 billion maximum value and...more

Fenwick & West LLP

Delaware Chancery Court Orders Recission of Elon Musk Moonshot Grant in Important Case on Transactions with Potential Corporate...

Fenwick & West LLP on

Background on Moonshot Award Practices - In the years leading up to the slowdown in the IPO markets in late 2021, it had become increasingly common for high-growth technology companies to grant large equity incentive...more

Foley & Lardner LLP

Navigating Board Turbulence: Lessons From OpenAI

Foley & Lardner LLP on

OpenAI, the high-flying developer of the groundbreaking ChatGPT AI chatbot and its associated foundational large language models, recently made headlines that set the corporate governance world abuzz. On a quiet Friday in...more

Allen Matkins

Nevada Supreme Court Finds CEO's Statements To Shareholders, Directors And Officers May Be Protected Activity

Allen Matkins on

Nevada, like California, has enacted an anti-SLAPP law that is intended to protect citizens' First Amendment rights to petition the government for redress of grievances and to free speech by limiting the chilling effect of...more

Allen Matkins

Judge Rules Beneficial Owner of Shares Lacks Standing to Bring Direct Claims Against Corporation and its CEO

Allen Matkins on

The plaintiffs in Chan v. ArcSOFT, Inc., 2023 WL 2788585, believed that they had been misled in a buyout of their shares and so they sued the company and its Chief Executive officer.  One of the plaintiffs, Marc Chan, did not...more

Allen Matkins

Is It Possible For Shareholder To Remove The CEO?

Allen Matkins on

UCLA Law Professor Stephen Bainbridge recently answered the question of whether shareholders may remove a corporation's chief executive officer and chairman of the board from a Delaware perspective.  Like Delaware, California...more

Skadden, Arps, Slate, Meagher & Flom LLP

Insights: The Delaware Edition - June 2023

In a case of first impression, the Court of Chancery held recently that officers, like directors, owe their companies a duty of oversight, although the scope of that will vary with their responsibilities. Two other Chancery...more

Paul Hastings LLP

Delaware Court of Chancery Dismisses Duty of Oversight and Care Claims Against Directors

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In our February 14, 2023 Stay Current, we discussed a Delaware Court of Chancery decision allowing shareholder derivative claims to proceed against a corporate officer for alleged oversight duty failures stemming from...more

J.S. Held

Crosscurrents: The Growing Impact and Future of the Chief Sustainability Officer

J.S. Held on

The famous quote by Mahatma Gandhi — “The world has enough for everyone's need, but not enough for everyone's greed” — aptly reflected business sentiments prevalent decades ago. At that time, the sole intention was to fulfil...more

Allen Matkins

If The Court Of Chancery Is Predictable, Why Does Anyone Bother To Go To Court?

Allen Matkins on

In a recent posting on the Business Law Prof [sic] Blog, William S. Boyd School of Law Professor Benjamin Edwards wrote about a recent order issued by Nevada state District Court Judge Timothy C. Williams.  The case involved...more

Barnea Jaffa Lande & Co.

Israeli National Labor Court Rules Investors Are Not Employers

The Israeli National Labor Court recently issued a ruling addressing a claim to “lift the corporate veil” in a dispute between two groups of shareholders in a company. The National Labor Court’s ruling did not allow the...more

Skadden, Arps, Slate, Meagher & Flom LLP

Two Directors Share Lessons on Building a Highly Functioning Board

Alexander M. Cutler, lead director of DuPont de Nemours, Inc. Q: Based on your experience, what are some of the key elements of a highly functioning board? A: Recognizing that there is no “one size fits all” blueprint, my...more

Goodwin

Delaware Chancery Court Dismisses Cigna Derivative Suit Over Failed Anthem Merger

Goodwin on

Delaware Chancery Court Dismisses Cigna Derivative Suit Over Failed Anthem Merger; The PCAOB Sanctions Former KPMG Vice Chair Of Audit For Failure To Supervise Senior Members Of KPMG's Audit Practice; Ninth Circuit Affirms...more

Allen Matkins

Court Orders Discovery In Derivative Action Challenging Racial Diversity

Allen Matkins on

Last year, the City of Pontiac General Employees' Retirement System filed a derivative suit against the Board of Directors and Chief Executive Officer of Cisco Systems, Inc.  The gist of the complaint was that the "Defendants...more

Allen Matkins

May The Board Let The CEO Decide To Sell The Company?

Allen Matkins on

Professor Stephen Bainbridge recently addressed the question of whether a board of directors could delegate to the CEO the decision about when and whether to sell the company.  Professor Bainbridge points out that the CEO is...more

Fox Rothschild LLP

Appeals Court: Business Owners Not Vicariously Liable For Discrimination Claims Under NYC Human Rights Law

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On February 11, 2021, the New York Court of Appeals issued an opinion holding that employees, company agents, directors, officers and shareholders are not “employers” and, therefore, are not vicariously liable for...more

Morris James LLP

Director to Attend Board Meeting Under False Pretenses to Meet Quorum Requirements Invalidated Board Action

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Delaware courts will use their equitable powers to invalidate otherwise valid board actions tainted by inequitable deception. Where a director is “‘tricked or deceived into attending a board meeting … the general rule is that...more

Morris James LLP

Chancery Sustains CEO’s Contract Claims in WeWork Litigation

Morris James LLP on

In re WeWork Litig., Consol. C.A. No. 2020-0258-AGB (Del. Ch. Oct. 30, 2020). A company facing a liquidity crisis (the shared working space company, WeWork), its outgoing CEO (Adam Nuemann), and two related SoftBank...more

A&O Shearman

18th Annual Corporate Governance & Executive Compensation Survey 2020

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In last year’s Survey, we noted that concern for environmental and social issues (the “E” and the “S” of “ESG”) had reached an inflection point, having taken center stage from the more traditional governance issues (the “G”...more

White & Case LLP

E&S Disclosure Trends in the UK

White & Case LLP on

In March 2020, the UK Financial Conduct Authority (the “FCA”) published consultation paper CP 20/3 concerning proposals to enhance climate-related disclosures by listed issuers and clarification of existing disclosure...more

Cooley LLP

Blog: Addressing the challenge of board racial diversity

Cooley LLP on

After taking up the challenge of increasing board gender diversity, companies are now increasingly facing the challenge of achieving board racial diversity. Recent social unrest over systemic racial injustice has pushed...more

White & Case LLP

2019 Half-year in review: M&A legal and market developments

White & Case LLP on

We set out in the attached Newsletter a number of interesting English court decisions and market developments which have taken place in the second half of 2019 and their impact on M&A transactions. This review looks at these...more

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