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Retirement Plans and the Great Mutual Fund Scandal
During the past 2 years, the public has been inundated with reports of widespread misconduct by mutual funds and their managers. According to published studies (Zitzewitz E: Who Cares About Shareholders? Arbitrage-Proofing Mutual Funds. J Law, Economics and Organization (Oct. 2003); Zitzewitz E: How Widespread Is Late Trading in Mutual Funds? Stanford Graduate School of Business, Research Paper No. 1817 (Sept. 2003)), this misconduct accounts for an annual loss of approximately $5 billion a year due to the increased costs associated with market timing – quick trades to achieve short-term profits based on anticipated price swings — and $400 million a year due to late trading — an illegal practice allowing investors to buy or sell mutual fund shares at the fund's previously established net asset value (NAV) rather than the next day's NAV price.
Employee retirement plans subject to ERISA constitute a significant segment of the long-term investor community potentially harmed by late trading and market timing practices, raising the important issue of what fiduciaries who administer ERISA retirement plans must now do in the face of widespread mutual fund scandals. This article summarizes the steps that should be taken by trustees, investment committee members, and other fiduciaries of retirement plans governed by the Employee Retirement Income Security Act of 1974 (ERISA).
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.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Supreme Court Rules Rejection of Trademark License Does Not Rescind Rights of Licensee
Mission Product Holdings, Inc. v. Tempnology, LLC The question is whether a debtor's rejection of its agreement granting a license "terminates rights of the licensee that would survive the licensor's breach under applicable nonbankruptcy law."