BLT: March 2014

 

Articles

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Business & Corporate

KEEPING CURRENT: In Stanford-Related Cases, Supreme Court Allows State-Law Fraud Class Actions, Limiting the Extent of Federal Preclusion

On February 26, 2014, the Supreme Court held that state-law fraud class actions brought against attorneys, insurance brokers, and others arising from Ponzi-scheme claims involving R. Allen Stanford could proceed. In Chadbourne & Parke LLP v. Troice, the Court held that such claims were not prevented by the Securities Litigation Uniform Standards Act (SLUSA). The Court’s decision narrows the extent of the preclusive effect of SLUSA on state-law fraud claims that bear some relationship to nationally traded securities.

Business & Corporate

KEEPING CURRENT: Supreme Court Extends SOX Whistleblower Protection to Contractor Employees

On March 4, 2014, the U.S. Supreme Court issued its opinion in Lawson v. FMR LLC, No. 12-3, ruling that Section 806 of the Sarbanes-Oxley Act (SOX), which bans retaliation against whistleblowers, applies not only to employees of public companies but also to employees of contractors and subcontractors who carry out work for public companies, significantly expanding the coverage of SOX.

Business & Corporate

DELAWARE INSIDER: Great Hill: To the Survivor Goes the Privilege?

In Great Hill Equity Partners IV, LP v. SIG Growth Equity Fund I, LLLP, the Delaware Court of Chancery recently considered whether the attorney-client privilege over pre-merger communications between a target company and its counsel passes to the surviving corporation in a merger governed by Delaware law. The decision highlights the possibility that pre-merger communications made with the expectation that they would be privileged could wind up in the hands of an adverse party, and provides guidance on how to avoid this unintended consequence of a merger.

Business & Corporate

Inside Business Law

Increasingly over the last few years, businesses and their lawyers have been grappling with the issue of businesses’ social responsibility and sustainability. Within that time period, numerous committees within the Business Law Section have undertaken initiatives and presented CLE programs aimed at keeping Section members at the heart of developments in this area of the law. This month's “Inside Business Law” highlights some of those efforts and introduces a new Corporate Social Responsibility Law Task Force, which has been formed to coordinate the Section's efforts.