FCPA and Indemnification
June 24, 2010
To avoid personal exposure for any loss, not just losses under the FCPA, directors and officers will first seek indemnification from the corporation under any relevant corporate documents, such as the corporate charter or bylaws, or any employment agreements. If that fails, they will likely turn to directors and officers insurance coverage. Neither indemnity nor insurance, however, may be sufficient to protect a director or officer from personal exposure created by the FCPA.
Closely Held Corporate Shares Require a Discount
June 22, 2010
In divorce, it is sometimes necessary to value shares of a closely held corporation. But there are stocks in privately held companies throughout New York whose shares are not traded on the NYSE or NASDAQ. These companies often have only a handful of shareholders, many of whom are family members or close friends.
Physician and Pharmaceutical Industry Relationships
June 22, 2010
According to a national survey of doctors published in <i>The New England Journal of Medicine</i>, 94% of physicians have "a relationship" with the pharmaceutical, medical device or related industries. A research firm recently estimated that drug companies spend over $20 billion annually marketing directly to physicians. With statistics like these, it is not surprising that the public is becoming concerned that these ties may influence how medications are developed, marketed and prescribed.
Conducting an Effective and Preventative Compensation Review
June 21, 2010
With the passage of the Lilly Ledbetter Fair Pay Act, the EEOC's and OFCCP's increased focus on compensation discrimination, and the government's increased budget for these agencies, compensation decisions are destined to come under increased scrutiny from employees, their attorneys and the government.
Do-It-Yourself Lateral Hiring
June 21, 2010
Many firms believe that adding laterals is the easiest and least risky means to law firm growth. However, the reality is that many laterals (more than half in some firms) never achieve their promise or objectives in terms of bringing clients and revenue to the firm.
Conducting an Effective and Preventative Compensation Review
June 21, 2010
With the passage of the Lilly Ledbetter Fair Pay Act, the EEOC's and OFCCP's increased focus on compensation discrimination, and the government's increased budget for these agencies, compensation decisions are destined to come under increased scrutiny from employees, their attorneys and the government.
The Changing Role of the General Counsel
June 18, 2010
One of the major changes of the recession is how the boundaries of the client-lawyer relationship has been redrawn ' the power now firmly lies with the client as the status of general counsel within their own organization continues to grow.
Risk Retention: Throwing the Baby Out with the Bathwater
June 18, 2010
There is significant, ongoing debate in Congress, as well as among the industry's regulators, as to the direction and scope of financial reform measures designed to address the problems that were perceived to be the cause of the current economic crisis. But the public outcry driving financial reform may unwittingly create risk retention levels in securitization transactions that will ultimately affect Main Street's credit costs, and severely limit access to credit.
