BLT: October 2014



Business & Corporate

What Banks Should Know About the Eighth Circuit’s Decision in Choice Escrow & Land Title, LLC v. BancorpSouth Bank

On June 11, 2014, the Eighth Circuit issued a decision regarding cyber security and who should bear the loss for unauthorized funds transfers. In Choice Escrow & Land Title v. BancorpSouth Bank, the Eighth Circuit’s decision was markedly more favorable to financial institutions than the First Circuit’s decision in Patco Construction Co. v. People’s United Bank. This case is informative for all banks as the issue of loss allocation for fraudulent payment orders continues to evolve.


Business & Corporate

KEEPING CURRENT: SEC Charges Broker-Dealer for Failure to Protect Against Insider Trading by Employees

The SEC for the first time brought charges against a broker-dealer for failure to adequately protect against insider trading by its employees. The charges stem from a broker’s use of a customer’s confidential information to purchase shares in a company being acquired by a private equity firm. The various channels of obtaining material nonpublic information and the risks of potential misuse make monitoring of trading by the firm, its registered representatives, and its customers critical to complying with the supervision requirements.

Business & Corporate

KEEPING CURRENT: The New York State Supreme Court Commercial Division: Past, Present, and Future

The success of the Commercial Division of the New York Supreme Court can be measured by the depth and breadth of the cases over which its judges preside, the active and innovative management techniques employed by individual judges to manage cases of ever-increasing complexity, and the desire of nearly all counsel who are litigating a business case to have their matter heard in the Commercial Division.

Business & Corporate

DELAWARE INSIDER: Private Company Financings: Delaware Court Provides Guidance for Boards and Venture Funds

The Delaware courts have now decided several notable cases concerning inside rounds – and in particular the fiduciary duties of boards in approving them. The recent decision of the Delaware Court of Chancery in In re Nine Systems Corporation Shareholders Litigation is especially instructive for private company directors, investors, and the lawyers who advise them.