Thursday, October 30, 2014

BNA INSIGHTS: The ‘Conflict Minerals’ Law Will Impose New Supply Chain Challenges for Companies: Who, What, and When

Even as global supply chains become ever more byzantine, a new US law and proposed implementing rule of the US SEC will add another wrinkle…

If You Smell Smoke, When Do You Report the Fire? The Impact of the Matrixx Case on Disclosure of Adverse Event Reports

Under the recently decided case of Matrixx Initiatives Inc. v. Siracusano, the U.S. Supreme Court held that reports of “adverse events” that were experienced by a small number of users of a Matrixx product could constitute a material fact which should be disclosed, even if the reports were not “statistically significant” evidence that the adverse event was caused by the product. In coming to this conclusion, the court found that other, “contextual” factors lent support to the reports and that therefore (as stated in Basic Inc. v. Levinson 3 ) there was arguably “a substantial likelihood that the disclosure of the omitted fact [i.e., the potential existence of a causal relationship] would have been viewed by the reasonable investor as having significantly altered the ‘total mix’ of information made available.”

BNA INSIGHTS: Social Media and the Federal Securities Laws

Social media has become a key component of corporate communications strategies. These internet sites allow for the creation and exchange of user generated content, and encompass a vast array of social networks, blogs, microblogs, photo and video sharing sites, news aggregation sites and reference sites…

BNA INSIGHTS: U.S. and EU Laws Set to Clash– Again: New Tax Law Requires Foreign Banks to Share Unprecedented Details About Customers Overseas

For years, multi-national companies have grappled with the legal concerns Sarbanes-Oxley Act whistleblower hotlines raised across Europe. More recently, the European Parliament has criticized the collection and sharing of passenger name records with the United States. Now, new…

BNA INSIGHTS: The SEC’s New Take on Funding, Liquidity and Short-Term Borrowings: Time to Revisit MD&A Disclosure

On September 17, 2010, the Securities and Exchange Commission (the “SEC”) issued interpretive guidance about disclosure of liquidity and funding risks in Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and proposed…

Countrywide’s Mozilo Agrees to Pay Record $22.5 Million Fine to Settle SEC Charges

Angelo Mozilo, the former chief executive officer of Countrywide Financial Corp., agreed Oct. 15 in the U.S. District Court for the Central District of California to pay a record $22.5 million civil penalty and to…

SEC Proposes Rules to Mitigate Conflicts for Swap Participants; Adopts Interim Rule

The Securities and Exchange Commission Oct. 13 took its first step towards establishing a regulatory framework for the…

Disclosures by Hedge Fund Advisers Not Reviewed Properly, SEC Inspector General Concludes

No division or office at the agency regularly reviews the periodic reports submitted on a quarterly…

Congress Moves Quickly to Approve Repeal of Dodd-Frank’s SEC Confidentiality Provision

Under suspension of the rules and by voice vote, the House late Sept. 23 passed the Senate’s proposal—S. 3717—to repeal certain exemptions to the Freedom of Information Act provided to…

Bill to Repeal Dodd-Frank Reform Law’s SEC Confidentiality Provision Clears Senate on Unanimous Vote

The Senate Sept. 21 unanimously passed a bill (S. 3717) that would repeal certain exemptions to the Freedom of Information Act provided to the…

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