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

Securities Class Action Filings: 2015 Year in Review

Number and Size of Filings Plaintiffs filed 189 new federal class action securities cases (filings) in 2015—the most since 2008, and an 11 percent increase compared with 2014. The number of filings in 2015 was in line with the average number of filings observed annually between 1997 and 2014. The total Disclosure Dollar Loss (DDL) of cases filed […]

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The Real Effects of Share Repurchases

Companies face intense pressure from activist shareholders, institutional investors, the government, and the media to put their cash to good use. Existing evidence suggests that share repurchases are a good way for companies to return cash to investors, since cash-rich companies tend to generate large abnormal returns when announcing new repurchase programs. However, some observers […]

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FinCEN: Know Your Customer Requirements

In recent years, authorities in the US and abroad have increased their focus on modernizing and enforcing anti-money laundering and terrorism financing (AML) regulations. As part of these efforts, the US’s Financial Crimes Enforcement Network (FinCEN) proposed Know Your Customer (KYC) requirements in 2014, which we expect to be finalized this year. [1] FinCEN’s KYC […]

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Posted in Accounting & Disclosure, Banking & Financial Institutions, Financial Regulation, International Corporate Governance & Regulation, Legislative & Regulatory Developments, Practitioner Publications | Tagged , , , , , , , , , , | Comments Off on FinCEN: Know Your Customer Requirements

Fed Rules on CFO Attestation Requirements

On January 21, 2016, the Federal Reserve published in the Federal Register a final rule (the “Final Rule”) [1] modifying Forms FR Y-14A, FR Y-14Q and FR Y-14M (collectively, the “FR Y-14 Forms”). Most notably, the Final Rule requires the chief financial officer (“CFO”) of each bank holding company (“BHC”) that is overseen by the […]

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2015 Year-End Activism Update

This post provides an update on shareholder activism activity involving domestically traded public companies with market capitalizations above $1 billion during the second half of 2015, together with a look back at shareholder activism throughout 2015. While many pundits have suggested shareholder activism peaked in 2015, shareholder activism continues to be a major factor in […]

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Posted in Boards of Directors, Corporate Elections & Voting, Empirical Research, Mergers & Acquisitions, Practitioner Publications | Tagged , , , , , , , , , , , | Comments Off on 2015 Year-End Activism Update

Weekly Roundup: January 29–February 4

M&A at a Glance: 2015 Year-End Roundup Posted by Ariel J. Deckelbaum, Paul, Weiss, Rifkind, Wharton & Garrison LLP, on Friday, January 29, 2016 Tags: Acquisitions, Break fees, Canada, Cross-border transactions, Go-shop, Hostile takeover, International governance,Mergers & acquisitions, Public firms, Strategic buyers, Takeovers, Tender offer, UK Alternatives to Equity Shares in a Low Stock Price […]

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2016 Proxy Season: Engagement, Transparency, Proxy Access

While shareholders have a wide spectrum of views on corporate objectives, the time horizon for realizing these objectives and environmental, social and governance (ESG) issues, there is an emerging consensus that—regardless of size, industry or profitability—public companies must achieve greater accountability to their shareholders, through engagement and transparency, than ever before. Corporate engagement and transparency […]

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In re Lions Gate: Corporate Disclosure of Securities Enforcement

On January 22, 2016, the United States District Court for the Southern District of New York (Judge John Koeltl) dismissed In re Lions Gate Entertainment Corp. Securities Litigation, a putative securities fraud class action lawsuit, brought under Section 10(b) of the Securities Exchange Act of 1934. The complaint alleged that the company should have disclosed […]

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The New Paradigm for Corporate Governance

Since I first identified a nascent new paradigm for corporate governance with leading major institutional investors supporting long-term investment and value creation and reducing or eliminating outsourcing to ISS and activist hedge funds, there has been a steady stream of statements by major investors outlining the new paradigm. In addition, a number of these investors […]

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Posted in Comparative Corporate Governance & Regulation, Corporate Elections & Voting, Corporate Social Responsibility, Institutional Investors, Practitioner Publications | Tagged , , , , , , , , , , , , , , | Comments Off on The New Paradigm for Corporate Governance

2015 Year-End Securities Litigation Update

The year was yet another eventful one in securities litigation, from the Supreme Court’s game-changing opinion in Omnicare regarding liability for opinion statements, to several significant opinions out of the Delaware courts regarding, among other things, financial advisor liability and the apparent end to disclosure-only settlements. This post highlights what you most need to know in […]

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