MySpace, Facebook Privacy Limits Tested
July 30, 2007
The operators of MySpace and Facebook social networking sites assure their millions of subscribers that only designated 'friends' can read registrants' private postings. But do the postings stay private if the registrant becomes the plaintiff in an emotional distress case? Can the defendant get the texts of MySpace and Facebook messages to support a defense that the distress claim is bogus? And is the expectation of privacy by users of such sites higher than it is for customers of common e-mail providers such as Microsoft and Comcast?
Download Enforcers May Be Singing New Tune
July 30, 2007
Recent court decisions may force the Recording Industry Association of America ('RIAA') to re-evaluate its litigation tactics. In the past, RIAA members were able to file actions against the owners of Internet addresses if their sites were used by others to file share.
On the Move
July 30, 2007
Who's doing what; who's going where.
Insolvencies Created By Bad Actors
July 30, 2007
While the market is swimming with innovative and highly leveraged financial transactions, and many parties are enjoying sizeable gains, some of those involved in these enterprises ultimately will become insolvent. A fraction of these insolvencies will result from fraudulent investment schemes perpetrated by multiple parties acting in concert for their mutual benefit. Innocent victims, including creditors and investors, will bear the financial brunt of the insolvencies, and will be eager to recover from all parties that participated in the fraud.
Fourth Circuit Affirms Chapter 11 Dismissal
July 30, 2007
The Fourth Circuit, on June 15, 2007, affirmed the dismissal of a Chapter 11 reorganization petition filed by a tenant debtor in a commercial lease dispute. <i>Maryland Port Administration v. Premier Automotive Services, Incorporated (In re Premier Automotive Services, Incorporated).</i> As the Court of Appeals explained, the tenant had filed its Chapter 11 petition 'in order to forestall eviction on an obviously expired lease ' to prevent the [lessor] from evicting the debtor from the [lessor's] property,' seeking to tie up the landlord 'in endless, fruitless litigation.' According to the court, the Chapter 11 filing here 'demonstrate[s], unfortunately, how the good and useful ends of the bankruptcy process can be badly abused.'
Did the Delaware Supreme Court Break the 'Directors' Shield'?
July 30, 2007
<i>Credit Lyonnais Bank Nederland, N.V. v. Pathe Communications Corp.</i> stands for the proposition that directors and officers of a Delaware corporation that is either insolvent or in the 'zone' of insolvency owe fiduciary duties to creditors as well as stockholders. In essence, it provided a 'shield' to directors against shareholder suits alleging that directors breached their duties to shareholders by acting to protect creditors. Now, the Delaware Supreme Court may have "broken the shield."
Personal Conduct Exclusions in D&O Policies: The Limited Reach
July 30, 2007
Virtually every directors' and officers' ('D&O') insurance policy contains personal conduct exclusions. Insurers frequently rely on such exclusions to deny or limit coverage. For example, in many of the recent claims involving financial restatements or stock options, D&O insurers have asserted that the personal conduct exclusions, such as those relating to illegal profit, deliberate fraud, and deliberate criminal acts, diminish or preclude coverage. Although insurers frequently rely on these personal conduct exclusions, the personal conduct exclusions are, in practice, limited in scope and application. This article highlights some of the key limitations.
The Smoking e-Mail
July 30, 2007
Many articles talk about the new e-discovery rules, but few address how to use electronic information in examining witnesses. Electronic discovery has changed not just the rules of document production, but also how to use these materials when questioning and preparing witnesses. Here are some ideas on preparing for witness questioning.
