Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Civil Liability of Rating Agencies
In the wake of the financial crisis, credit rating agencies have been named in dozens of lawsuits by investors seeking to recover on the huge losses suffered when the subprime market collapsed. Despite widely reported shortcomings in recent years, the rating agencies have largely prevailed in these cases on motions to dismiss. In the few cases in which plaintiffs have been allowed to proceed to discovery, it is hardly certain that the rating agencies will face substantial liability for their contribution to the subprime collapse.
While courts have begun to address claims for alleged past misconduct, the new Dodd-Frank Wall Street Reform and Consumer Protection Act relaxes the pleading standard in future private securities cases against rating agencies and rescinds a Securities and Exchange Commission rule which previously exempted rating agencies from liability for false ratings in public registration statements. The new law increases the rating agencies' future exposure to civil liability. Below, we examine how rating agencies have fared in the courts to date and how they might fare under the new rules.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
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.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.