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How Will Courts Determine Business Expense Legitimacy Under SEC's New Disgorgement Authority?
As courts, the Securities and Exchange Commission (SEC) and defendants wrangle with new limits on the Commission's authority to seek disgorgement of ill-gotten gains, one question has dominated: How will courts determine which business expenses are legitimate and which are not? Answering that question will force defendants facing SEC enforcement actions to focus on demonstrating the legitimacy of expenses in developing their litigation strategies.
Over the past four years, Congress and the Supreme Court have reshaped the SEC's authority to obtain disgorgement of ill-gotten gains. The Supreme Court's decision in Kokesh v. SEC, 137 S. Ct. 1635 (2017) — which addressed the statute of limitations for the SEC's ability to obtain disgorgement — left open the question of whether the SEC even had authority to seek disgorgement. The Supreme Court took up that issue when, in 2019, it granted review in Liu v. SEC, 140 S. Ct. 1936, 1940 (2020). The Supreme Court's decision in June 2020 ultimately upheld the SEC's authority to obtain disgorgement but also narrowed the circumstances in which the SEC can seek it. And earlier this year in the National Defense Authorization Act, Congress passed legislation expressly reaffirming the SEC's ability to obtain disgorgement.
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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.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.