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CASE BRIEFS
A New York trial court will decide whether the 'disgorgement' portion of the largest securities regulatory settlement in history is covered under a $100 million Professional Liability policy. In a time of increasingly aggressive securities regulation the court's decision will likely have a wide impact on firms that have or are considering regulatory settlements.
The case stems from an investigation by the Securities and Exchange Commission and the NASD into how Credit Suisse First Boston (CSFB) allocated shares in 'hot' IPOs for which it served as an underwriter. In a civil suit filed in January 2002, the SEC charged that CSFB had violated federal securities laws and regulations as well as NASD rules by allocating IPO shares to customers who agreed to pay excessive commissions in unrelated securities transactions. Shortly after the suit was filed CSFB agreed to settle. Without conceding any of the SEC's substantive allegations, CSFB nevertheless consented to the entry of a permanent injunction against 'sharing profits of CSFB customers in exchange for allocations of shares in [IPOs] underwritten by CSFB.' It also agreed to make payments of $100 million to the U.S. Treasury, the SEC and the NASD. Of that amount, $30 million was deemed to be a 'civil penalty' and $70 million was deemed to represent 'disgorgement of monies obtained improperly by CSFB ' '
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.