Technology and Corporate Risk Management
May 27, 2004
It's a fact: Litigation costs have skyrocketed over the last two decades. In the securities industry, this trend is evident in that governmental inquires into the practices and dealings of financial and corporate entities on the heels of the MCI WorldCom and Enron scandals have shown no signs of abating. The shareholder actions resulting from these scandals have done little to restore investor confidence. To ameliorate the situation and shore up public confidence in a system that has been operating in a de facto mode of "irrational exuberance," a host of legislation has been introduced to address the need for greater accountability and transparency in the way our financial institutions and corporations conduct their affairs. The most significant legislation is the Sarbanes-Oxley Act of 2002 (SOX). Comprised of 11 parts and 66 sections, this is broadest piece of legislation out of Washington since the 1933 and 1934 U.S. Securities Acts.
Best of the Best Practices in Corporate Governance
May 27, 2004
This article summarizes certain best of the "best practices" in corporate governance, including those standards that have been implemented by many of the corporations at the forefront of governance reform.
Derivative Or Direct?
May 26, 2004
A sometimes confusing area of corporate litigation concerns whether a claim asserted by a stockholder in a lawsuit against a corporation's officers and directors is a "derivative" claim brought on behalf of the corporation, or a "direct" claim brought by the stockholder on his or her own behalf rather than the corporation's. The distinction is important, as the proper characterization of a stockholder claim can have a significant impact on the parties and how the lawsuit proceeds, in some instances determining whether it proceeds at all. In a new opinion, <i>Tooley v. Donaldson, Lufkin & Jenrette, Inc.</i>, the Delaware Supreme Court has cleared up some of the confusion, holding that a claim is derivative whenever the corporation has suffered the alleged harm and will be the beneficiary of the relief granted by the court.
Anti-Spam Law Impacts Legitimate e-Mail
May 26, 2004
Despite its clever name, the recently enacted CAN-SPAM Act does not in fact prohibit "spam." What the law does do is regulate "commercial e-mail," which is defined broadly. Accordingly, the legal department of every business that uses e-mail should be advising its employees to take immediate steps to comply with the Act, as violations carry stiff penalties.
What Your Company Needs To Know About Records Retention
May 26, 2004
A recent industry survey reported that nearly half of large companies currently don't have policies about when to keep and when to destroy their electronic records and those that do usually don't enforce them. If your company is one of these businesses, it is risking huge legal problems if someone in your company destroys an e-mail or information on backup tapes that relates to any existing or future litigation ' because your company may wind up being hit with sanctions for spoliation.
Cutting the Cost Of e-Discovery
May 26, 2004
Save everything!" That's the new corporate mantra in response to tougher regulatory requirements and the growing importance of electronic data discovery in litigation. But is "Save Everything!" the right response? CEOs and CFOs may think they'll sleep better knowing that every bit and byte is being saved ' but wait until the bills come in! That'll be an eye-opener!
Red Flag or Red Herring?
May 25, 2004
A review of the literature dealing with allegations of sexual abuse within the context of divorce and custody litigation, and the prevalence of false allegations in these cases.
Litigation
May 25, 2004
Recent rulings of importance to you and your practice.
Do You Know Your Federal Law?
May 25, 2004
Family law practitioners not only need to be thoroughly familiar with the applicable law of any state in which they practice, but some federal law as well. One of the areas in which federal law has been carving out preemption is that of retirement and life insurance death benefits.
Massachusetts: Early Days
May 25, 2004
Same-sex marriage formally came to the United States before dawn on Monday, May 17, in Cambridge, MA. In the first week that marriages were legal in the state, more than 1500 same-sex couples applied for marriage licenses, according to records compiled in the state.
