Backdating Investigations
April 30, 2007
As federal investigators examine the stock option programs of more than 160 companies, innumerable other companies launch internal investigations. As top executives resign, shareholders file dizzying numbers of derivative class action suits. Finally, as the Securities Exchange Commission and Department of Justice bring enforcement actions and criminal charges, the media is vilifying the so-called stock option backdating scandal as the biggest example of corporate abuse since Enron. The option backdating media frenzy focuses upon investigations by federal prosecutors and other regulatory agencies into public companies that have employed stock option compensation plans for corporate executives and employees.
Backdated Options
April 30, 2007
On Feb. 8, 2007, the Internal Revenue Service ('IRS') made an usual offer to employers: on very short notice ' by Feb. 28, 2007, employers could inform the IRS of their intent to pay the back taxes and penalties owed by (non-insider) employees who exercised stock options with 'an exercise price of less than fair market value of the underlying stock on the date of grant in 2006.' Under this Program, companies with backdated options programs were 'allowed' to calculate and pay, by June 30, 2007, on behalf of their employees who exercised such options, a 20% penalty tax, and an additional 1% interest on underpayments, owed by such employees under ' 409A of the Internal Revenue Code ('IRC').
Competition Law and Distribution in East Asia
April 27, 2007
While franchise lawyers, both domestically and in foreign jurisdictions, tend to focus their primary attention on matters of importance that are specific to franchise relationships, most are keenly aware that franchising is essentially just a form of distribution. Therefore, laws and regulations of broader impact can often be of critical importance. While distribution systems may often escape the applicability of franchise laws, franchise relationships nevertheless often have to deal with those affecting distribution generally.
Personal Liability for Excess Verdicts
April 27, 2007
In today's litigious environment, physicians consistently struggle with rising malpractice premiums. For those inclined to stop reading here, this article will not attempt to rehash the contentious debate over why malpractice premiums continue to rise. Rather, we want to discuss a fairly new and rapidly growing problem for physicians: personal liability for excess verdicts.
Consumer-Generated Content Is Hot
April 27, 2007
Over the past year, a growing number of companies have begun to sponsor promotions involving consumer-generated content. For example, Frito-Lay and Unilever each ran contests in which consumers were invited to create commercials and the winning spots were aired on television. These types of promotions offer many advantages for marketers. If a promotion is executed well, it could generate publicity for a relatively small investment. Consumers are also likely to spend more time on a company's Web site watching videos and learning about the company's products than they would otherwise. Moreover, a company may end up with a great commercial at a fraction of the price they would have had to pay an agency to develop it.
Lawyer Ads in Cyberspace
April 27, 2007
New York State's new ethical rules governing attorney advertising, which went into effect on Feb. 1, 2007, specifically address the use of Internet and electronic technology to advertise attorney services and serve as an example of how other states may revise their attorney advertising rules as well.
Cyber-insurance: An Added Layer of Security
April 27, 2007
Confidential client records and work product are the core of any law firm's work product. Most firms understand the necessity of archiving computer and paper files in a safe, off-site location. But what about the active files on a computer? If they are compromised by a hacker, or otherwise threatened by criminal activity, how would it affect a firm's operation?
Movers & Shakers
April 26, 2007
News about lawyers and law firms in the product liability field.
