Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation

Executive and Director Compensation Reductions in the COVID-19 Era: An Ongoing Review of Russell 3000 Disclosures

As many businesses discharge, furlough, or drastically reduce pay to large shares of their workforces, some compensation committees are announcing their decision to cut base salaries and annual bonuses for C-suite executives as well as board cash retainers. The Conference Board, in collaboration with Semler Brossy’s research team and ESGAUGE Analytics, is keeping track of […]

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Courts Cut Shareholders Slack on Section 11 Claims

In the past several years, the number of claims filed against newly public companies under Section 11 of the Securities Act of 1933 has increased exponentially. Unfortunately, Section 11 packs quite a punch. Unlike fraud claims under the securities laws which require proof of reckless or intentional misconduct, Section 11 imposes strict liability against the […]

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Purpose With Meaning: A Practical Way Forward

When leading money managers embrace the need for corporations to be socially responsible and the Business Roundtable (BRT) declares that the purpose of a corporation is “to create value for all stakeholders,” it is safe to say that purpose has gone mainstream in the corporate narrative. A consensus is emerging that society and diversified investors […]

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Remarks by SEC Chairman Clayton to the Financial Stability Oversight Council

From a systemic risk point of view, the SEC’s primary responsibilities in this period of stress are three-fold: Market function. Using our authority, expertise and experience to help ensure the continuing, orderly and fair function of the securities markets—including equities, fixed income securities, funds and other products. Market monitoring. Monitoring market prices and price movements, […]

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Remaining Attuned to Internal Whistleblower Reports

The SEC’s whistleblower program has long been a centerpiece of its enforcement efforts. Over the past seven weeks alone, the Commission has announced eight whistleblower awards totaling more than $56 million, including a single award on April 16 of $27 million, the largest of the year and the sixth largest award overall since the inception […]

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COVID-19’s Potential Impact on Venture Capital Investment Terms

We live in ever-changing times with the presence of COVID-19 affecting every aspect of our business and personal lives. The world of venture capital is not exempt. The outbreak has effectively curtailed, in record time, what had been a steadily growing market opportunity for venture-backed companies and investors. Over just a few weeks, venture-backed companies […]

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Open Up the PIPEs: Current Market Considerations

Private investments in public equity are likely to become more popular as investors and public companies utilize PIPEs to navigate market turbulence. In periods of market stress and volatility, a company may find itself with an acute need for additional sources of financing and liquidity. Whether to finance existing operations or acquisitions, to refinance existing […]

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Weekly Roundup: May 8–14, 2020

Rulemaking Petition to Allow Use of E-Signatures Posted by Cydney Posner, Cooley LLP, on Friday, May 8, 2020 Tags: COVID-19, Cybersecurity, Disclosure, Filings, Regulation S-T, SEC, SEC rulemaking, Securities regulation Director Oversight Duties Amidst COVID-19 Posted by Jane Goldstein, Daniel Lim, and Kenneth Monroe, Ropes & Gray LLP, on Friday, May 8, 2020 Tags: Boards of Directors, COVID-19, Delaware cases, Delaware law, Director liability, Fiduciary duties, Liability standards, Management, Risk, Securities litigation Stewardship and Shareholder […]

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Human Capital, Front and Center

A familiar refrain has emerged as the COVID-19 pandemic continues: companies will be judged for years based on the actions they take today. Perhaps no other issue will generate such long-lasting implications—to a company’s reputation, brand, and resiliency—as how a company treats its people during these trying weeks and months. It would be naïve to […]

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Operating in a Pandemic: Securities Litigation Risk and Navigating Disclosure Concerns

The COVID-19 pandemic has introduced new corporate disclosure issues and increased the attendant risk of securities fraud actions, as evidenced by plaintiffs’ initial filings across the country in the past few weeks. This article discusses the significance of those initial suits to public reporting companies and how companies can tailor and update their disclosures to […]

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Posted in Accounting & Disclosure, Bankruptcy & Financial Distress, Practitioner Publications, Securities Litigation & Enforcement, Securities Regulation | Tagged , , , , , , , , , | Comments Off on Operating in a Pandemic: Securities Litigation Risk and Navigating Disclosure Concerns