Corruption Risks and Corporate Social Responsibility Spending
Global companies have been embracing socially responsible spending projects to build stronger relationships with local communities, writes Michael Volkov in his firm’s Corruption, Crime & Compliance blog. He writes that the idea makes a lot of sense and real projects can result in real benefits.
“As with any significant source of money, there are risks. Major global companies have been caught in some embarrassing situations, some of which can have real legal and reputational consequences,” he explains.
In an attempt to promote the goodwill of the company in emerging markets, companies sometimes spend large amounts of money, only to find out later that foreign leaders have lined their pockets with the funds to the detriment of the locally intended beneficiaries, he adds.
Read the article.
Smart Contracts: A Tool for Bank Lawyers, Not a Replacement
Banks’ interest in smart contracts could lead them to beef up their legal departments in the near term, as the financial industry and regulators alike continue to wrestle with the implications of blockchain technology, writes Brian Patrick Eha of American Banker.
In his article Eha explains that “a smart contract is a piece of software that executes its terms automatically and encodes rules agreed upon by all parties. Smart contracts are decentralized — living on a blockchain — and transparent, viewable by all parties. They can be used to transfer value, and that transfer is triggered in response to certain events.”
“What if smart contracts were to catch on? Ideally, the code would be reusable in the form of templates, cutting down on legal busywork. Just not all legal work,” according to the article.
Read the article.
5 Key Terms to Know for Vendor Contracts
CIOs, CISOs, CTOs, and other risk and security professionals should familiarize themselves — or refresh their recollections — around Price and Payment, Proprietary & Confidential Info, Changes in Scope and Deliverables, Termination and Remedies, Disclaimers and Indemnifications, advises David Adler in CIO.
“Several obstacles affect and often limit successful negotiations in this area,” he writes. “The risk itself can be a moving target. For example, in the acquisition of an IT services subscriber base (regardless of industry), how will customer attrition, revenue projection revisions, and loss of key personnel affect the price paid (value)?”
“One way to prepare for and better engage in such negotiations is to develop a contract negotiation playbook,” he adds. “While each set of tactics and strategies will necessarily reflect the internal business rules of the individual company, the five areas discussed here should form a part of any playbook.”
Read the article.
Greensfelder Chicago signs John L. Senica, Moves to Larger Office Space
The law firm Greensfelder, Hemker & Gale, P.C. announced that John L. Senica has joined the firm’s Chicago office as an attorney in the Business Services Practice Group.
The also announced expanding its Chicago office space on the 33rd floor of its current building at 200 West Madison St.
Senica has more than 30 years of experience in corporate law, working in finance, secured lending, private equity and venture capital. He represents clients in business, commercial lending and commercial real estate transactions. He works with closely held companies and commercial lenders and handles matters related to business planning, commercial finance and mergers and acquisitions, the firm said in a release.
Prior to joining Greensfelder, Senica was the founding member and Resident Director of the Chicago Office of Miller Canfield, where he also served as a Senior Principal. Previously, he practiced in business transactional law for more than a decade as an equity partner at an Am Law 50 national law firm.
“John is a great addition to our firm as he brings decades of experience in corporate law and helps to further broaden Greensfelder’s transactional practice in Chicago,” said David B. Goodman, Managing Officer of Greensfelder’s Chicago office. “John’s insights and experience from opening and growing Miller Canfield’s office in Chicago also will be invaluable as we continue to expand and build Greensfelder’s presence in the Chicago market.” Senica said, “As a Chicago native, I have a strong affinity for Midwest people, values and culture, and I was particularly drawn to Greensfelder’s culture and rate structures that I believe are highly appealing to middle market businesses and banks in Chicago and across the nation. I also am impressed by the firm’s deep commitment to Illinois expansion, as well as the depth of talent at the firm across a wide range of practice areas including real estate, franchising, health care and energy.”
Senica joins Greensfelder as the firm moves its Chicago office to expanded space with about 52 percent more square footage than the space it previously occupied since the office first opened in November 2008.
Senica is a Fellow of the American Bar Foundation and formerly served on the Board of Directors of the LaSalle Street Council. He earned his J.D. from Northwestern University School of Law and holds a B.A. from the University of Notre Dame.
Legal Symposium: Issues Facing U.S. Subsidiaries of Japanese Multinationals Masuda Funai will host a legal symposium titled “Issues Facing U.S. Subsidiaries of Japanese Multinationals” on Thursday, June 9, 2016, in Glenview, Ill., at the Glen Club, 2901 W. Lake Avenue. Glenview is a suburb of Chicago.
The event will begin at 8 a.m. with registration, networking and breakfast.
The program beings with a session called “Compliance Concerns; Business Ethics,” starting at 8:30 a.m. Next will be “Governance and Parent-Subsidiary Matters” at 9:30 a.m. The morning program will include “Protection of Intellectual Property” at 10:45 a.m.
“Update on Professional Responsibility Issues” will be presented at 12:30 p.m., after lunch.
Anyone wanting more information may contact Carrie Buell, Senior Marketing Coordinator, at [email protected] or 312.245.7444.
Register for the symposium.
Webinar: Solar Solutions for Business
Greentech Media and NRG Energy Inc. will conduct a webinar to help companies just beginning to consider solar as part of their overall energy strategy, as well as those already further down the path to a solar solution.
The event will be Tuesday, June 7, at 2 p.m. Eastern time.
“In this webinar, two experts from NRG’s renewables team will discuss how businesses can navigate through the possibilities and logistics of a solar solution – from choosing relevant technologies to implementing effective delivery approaches,” Greentech says on its website. “Both are vital in turning the promise of solar power into the reality of a functioning system.”
Register for the webinar.
Ernest Aliseda Joins Dykema’s McAllen Office Ernest Aliseda has joined Dykema in its Commercial Litigation Practice Group as a member in the firm’s McAllen, Texas office.
Prior to joining Dykema, Aliseda served as General Counsel/Chief Legal Officer for the Loya Insurance Group companies, where he handled general legal matters and managed and oversaw diverse litigation throughout the country. Aliseda is also a former State District Judge for both the 398th and 139th State District Courts in Hidalgo County.
In a release, the firm said Aliseda will advise and represent clients in commercial and general litigation matters, along with serving as a mediator and arbitrator in personal injury, commercial, employment, international and personal injury law cases.
“We are very pleased and fortunate to add an attorney of Ernie’s stature to our roster,” said Diann Bartek, Office Managing Member of Dykema’s McAllen office. “His reputation precedes him. There is no doubt that his strong background in commercial litigation and his experience as a judge will be extremely valuable to the firm and its clients.”
Aliseda is a governor-appointed Regent of the University of Texas System Board of Regents and a State Bar of Texas President-appointed member of the Board of the Texas Bar College. He received his law degree from the University of Houston Law Center and his undergraduate degree from Texas A&M University.
He is board certified by the Texas Board of Legal Specialization in personal injury trial law, along with being trained as a mediator, arbitrator, and litigation management professional. He is also a lieutenant colonel in the U.S. Army Reserves, where he serves as a military judge.
Wal-Mart Wins Dismissal of Mexico Bribery Lawsuit
A Delaware judge has dismissed a lawsuit by Wal-Mart Stores Inc. shareholders who accused the board of the world’s largest retailer of trying to cover up bribes paid by company executives in Mexico, according to a report by Reuters.
The Delaware judge ruled that an earlier dismissal by an Arkansas judge of a nearly identical lawsuit by another group of shareholders precluded the Delaware case from going forward.
“He said that while the Arkansas plaintiffs may have chosen to rush their case rather than fully investigate alleged wrongdoing, their haste did not disqualify them from representing Wal-Mart shareholders,” Reuters reported.
In 2012, The New York Times reported that found Wal-Mart had engaged in a multi-year bribery campaign to build its Wal-Mart de Mexico business.
Read the article.
$100M Uber Settlement Attacked By Drivers Saying Lawyer Sold Out
The lawyer who struck a $100 million deal with Uber Technologies Inc. is being accused of greed by some of the drivers covered by the accord who want her bumped, reports Bloomberg News.
“She has single-handedly stuck a knife in the back of every Uber driver in the country,” Hunter Shkolnik, a New York lawyer who’s pursuing his own cases against the ride-share service, said Friday in a phone interview with Bloomberg. “The entire class was thrown under the bus and backed over.”
Shkolnik asked the San Francisco federal judge who presides over the class-action settlement to remove Shannon Liss- Riordan as lead attorney. He says she sold out her clients by accepting a payout for California and Massachusetts drivers that’s less than 10 percent of the value of their claims “while she walks away with $25 million.”
Liss-Jordan labeled the claims as “uninformed,” “untrue and malicious.”
Read the article.
Recent Ruling Creates Potential Liability For Use of Common Contractual Terms
Contracts containing uniform terms and conditions are a common feature of modern commercial life, write James F. Bogan III and William D. Meyer of Kilpatrick Townsend & Stockton LLP.
“Consumers are oftentimes required to agree to such contracts in order to buy a good or service, and the contracts typically contain provisions that benefit the business/seller and limit the legal remedies available to the consumer/buyer. While the law generally favors freedom of contract and supports the enforceability of uniform terms and conditions, a recent case applying New Jersey law shows that a business could be exposed to liability – including as a class action defendant – for simply including certain types of limiting clauses in consumer contracts,” they explain.
In their article, they discuss the case of Johnson v. Wynn’s Extended Care, Inc., in which the 3rd Circuit Court of Appeals ruled that a consumer has a valid cause of action against a business where its service contract simply contains a provision waiving attorneys’ fees and splitting costs.
Read the article.
Apple Invests $1 Billion in Chinese Ride-Hailing Service Didi, Rival to Uber
Apple Inc. said on Thursday it has invested $1 billion in Chinese ride-hailing service Didi Chuxing, a move that Apple Chief Executive Tim Cook said would help the company better understand the critical Chinese market, reports Reuters.
The investment gives Apple a stake in two burgeoning waves of technology – the sharing economy and car technology – as the iPhone business that propelled it to record profitability shows signs of maturing.
“Though Didi Chuxing is valued at upwards of $20 billion, according to a person familiar with its ongoing funding round, the company has been losing billions in a costly battle with Uber for market share in China,” the report says.
Read the article.
Obama Signs Trade Secrets Bill, Allowing Companies to Sue
President Obama has signed a bill allowing companies to sue to defend their trade secrets, reports USA Today. Those thefts cost the American economy more than $300 billion a year, according to the Commission on the Theft of American Intellectual Property.
“The Defend Trade Secrets Act of 2016, sponsored by Sen. Orrin Hatch, R-Utah, adds a civil component to the federal law making it a crime to steal intellectual property,” the newspaper report says. “Lawmakers said criminal penalties remain an important deterrent, but that the FBI’s resources to investigate and prosecute trade secret theft are limited.”
“Unfortunately, all too often, some of our competitors, instead of competing with us fairly, are trying to steal these trade secrets from American companies, and that means a loss of American jobs, a loss of American markets, a loss of American leadership,” Obama said.
Read the article.
9th Circuit Removes Judge Who Slashed Attorney Fees From BarBri Antitrust Class Action
Lawyers who won a $9.5 million settlement in a conspiracy case involving bar exam review courses will get a second chance to seek $2 million in attorneys’ fees, the 9th Circuit has ruled, according to a report by Courthouse News Service.
Plaintiffs sued West Publishing, which offers BarBri prep courses, and Kaplan in 2008, claiming the two colluded to block competition in the market for bar review courses.
The opinion also noted that the appellate court has reversed the trial judge’s denials and reductions of attorneys’ fees three times in a related case. Because of that pattern, the panel ordered that the case be assigned to a different judge on remand.
“In light of the history of this case and related litigation, it is clear to us that the district judge would have ‘substantial difficulty in putting out of his … mind’ his previously expressed erroneous findings and conclusions and that ‘reassignment is advisable to preserve the appearance of justice,'” according to the opinion.
Read the article.
Dykema Launches Cannabis Law Practice
National law firm Dykema has announced the launch of its Cannabis Law practice, creating an integrated and specialized offering for clients navigating the myriad issues that arise from operating in the cannabis industry, according to a release from the firm.
The practice group spans the political, licensing, regulatory compliance, and business services space, and includes senior lawyers and lobbyists in states across the country. The practice will be led by Lance Boldrey, a member in the firm’s Lansing office, who focuses his practice on regulated industries.
“Dykema has a long history of representing businesses in heavily regulated industries,” the release says. “While the firm has been engaged in the development of the emerging cannabis sector for nearly a decade, serving as counsel to Michigan’s 2008 medical marijuana initiative, the formal group is now launching in response to increasingly sophisticated and complex client needs. While the rapid industry growth provides unparalleled business opportunities, the uncertain political environment imposes extraordinary legal complexity and uncertainty.”
“Dykema understands the complex nature and volatility of the laws and regulations in this area. Further, we have the experience and a proven track record of success advising those involved in the cannabis industry,” said Boldrey. “This booming industry has a host of brand-new legal minefields to navigate, and our team is providing counsel to support our clients’ business objectives.” Among other cannabis-related matters, Dykema lawyers and lobbyists have:
• Served as counsel to the Coalition for Compassionate Care, the committee that drafted and won passage of the 2008 ballot initiative that created the Michigan Medical Marihuana Act • Helped draft Michigan Public Act 512 and Public Act 514 of 2011, amendments to the Michigan Medical Marihuana Act • Represent the National Patients Rights Association advocating on behalf of medical marijuana patients • Provided advice with regard to labeling regulations for edible cannabis products • Counseled cannabis-related clients with regard to intellectual property laws, including trademarking names and logos for cannabis-related businesses • Advocated on behalf of an entity seeking a medical marijuana dispensary license in Illinois • Oversaw zoning and real estate matters for an Illinois-based dispensary company • Represented a company with cannabinoid medications in pharmaceutical litigation • Counseled various business clients with regard to employment matters and policies related to employee cannabis use • Assisted various cannabis-related organizations with nonprofit and campaign finance compliance • Advised investors in dispensaries and CBD oil companies • Handled SEC-related issues for a California cannabusiness executive
“At the state level, more than half of the country allows some form of medical cannabis use, and four states have legalized recreational usage, with several more, including California, having recreational use initiatives on their ballot this November,” added Dykema attorney Doug Mains, who came to Dykema after serving the Michigan Legislature in a lead staff role on marijuana issues. “The Dykema team has been central to the development and passage of many key pro-cannabis regulations. We know the industry inside and out and can quickly advise clients on complex issues to ensure that legal challenges do not stand in the way of growth.”
“Dykema lawyers and lobbyists have represented our organization on a number of state and local issues,” said Robin Schneider, Legislative Liaison for the National Patients Rights Association, a medical cannabis advocacy organization. “Not only are they extremely knowledgeable about the legislative and political processes, but they have also worked closely with us to learn more about the cannabis industry and all of the issues that cannabis-related businesses face. Dykema’s lawyers and lobbyists have always been professional, passionate about their work, and proactive in keeping us informed.”
The members of Dykema’s group come from administrative law & regulation, business and financial services, food & beverage, government policy & practice, intellectual property, land use & zoning, labor & employment, leasing & property management, political compliance, elections & campaign finance, product safety, real estate, and taxation. Dykema lawyers in the CannabisLaw practice serve as members of the National Cannabis Industry Association, the National Cannabis Bar Association, and the State Bar of Michigan Marijuana Law Section.
Dykema publishes a Cannabis Law Blog.
Litigator Sean Whyte Joins Gardere Wynne Sewell
Litigator Sean M. Whyte has joined Gardere Wynne Sewell LLP as a partner in the firm’s Dallas office. He joins the firm from Alston & Bird, where he has practiced since 2011.
In a release, the firm said Whyte’s litigation practice includes complex commercial litigation, consumer class actions and products liability. He has practiced before state and federal courts, with class-action experience that includes defending clients in cases involving Internet sales practices, consumer fraud and other federal statutes. He has also represented clients in regulatory and government investigative matters involving federal agencies, including the U.S. Department of Energy and the Federal Trade Commission.
“Sean’s versatile expertise will further allow our litigation group to offer the best solutions for our clients,” says Gardere Chair Holland N. O’Neil. “Our litigation partners are among the most respected in their field, and we are honored to have Sean join our team.”
While at Alston & Bird, Whyte worked on litigation that resulted in a victory in the U.S. 5th Circuit Court of Appeals in the first case to consider Texas’ Anti-SLAPP statute. He also helped win the first dismissal of a federal action under the Texas Health and Safety Code statute granting limited immunity to telecommunication providers related to 911 calls. He began his legal career at Jones Day in 2004 where he assisted on litigation resulting from Hurricane Katrina and the Deepwater Horizon oil spill.
Whyte received a juris doctor degree from The University of Texas School of Law in 2004, where he was an articles editor for the Texas Law Review. He completed course work for a doctorate degree in applied philosophy at Bowling Green State University and obtained a master’s degree from the same school in applied philosophy in 1996. He also earned his bachelor’s degree in philosophy in 1994 at West Virginia University. Prior to law school, Whyte served as a senior lecturer and adjunct philosophy instructor at universities in Ohio and Michigan.
In addition to his legal practice, Whyte serves as the co-vice chair of the Law Day Committee for the Dallas Bar Association. In 2014, he was named to the Texas Rising Stars list for his work in business litigation, and he was awardedPro Bono Lawyer of the Year by the Dallas Volunteer Attorney Program in 2010.
“It is an honor to join Gardere’s well-known and respected litigation practice,” Whyte said. “I am proud to be joining this exceptional group of professionals.”
Eric Schmidt Plays Good Defense at the Oracle-Google Trial
Eric Schmidt took the witness stand Tuesday in Oracle’s copyright infringement lawsuit against Google, and he gave little ground during some tense exchanges with Oracle’s attorney, reports PCWorld. In the suit, Oracle accuses Google of infringing its Java copyrights in the Android operating system. Schmidt is chairman of Alphabet, Google’s parent company.
Schmidt, the first witness to testify, was initially questioned by Google’s own attorneys, and testified that Google did not believe it needed a license to use 37 Java application programming interfaces for which Oracle owns the copyright. But on cross-examination, Oracle’s attorney asked him if Google’s APIs are treated as proprietary.
“Are you telling me that you don’t treat your APIs as proprietary?” Oracle attorney Peter Bicks asked Schmidt.
Read the article.
Are Changes Afoot in the Cablevision Legal Department?
Cablevision’s top 10 executives may find themselves without a job after the company’s new owner, Netherlands-based Altice NV, completes the purchase of the Long Island-based company, possibly later this month, reports The New York Post.
The 10 Cablevision executives include General Counsel David Ellen and CEO James Dolan.
“Altice founder Patrick Drahi told Cablevision staff when the deal was first announced last year that he would seek to cut executives earning more than $300,000,” The Post reports. Read the article.
What is a Smart Contract and What’s It Good For?
Blockchain technology is gaining attention for its promise to enable value and asset transfer across a wide range of industries and use cases — and its potential to disintermediate financial institutions, remittance companies and lots of other transactional middleman businesses, according to a report written by Sue Troy, an editorial director at TechTarget. Smart contracts, meanwhile, work hand- in-hand with blockchain technology and have the potential to automate — and also disrupt — processes in many industries.
“Whereas a traditional legal contract defines the rules around an agreement between multiple people or parties, smart contracts go a step further and actually enforce those rules by controlling the transfer of currency or assets under specific conditions,” she explains.
She discusses sample use cases for the insurance industry, real estate, and supply chain.
Read the article.
When Customer Supply Contracts Lead to Trouble
The Federal Trade Commission (FTC) continues to aggressively enforce the antitrust laws, reports Melanie A. Hallas of McDermott Will & Emery.
“On April 27, 2016, the FTC took action against Victrex, plc and its wholly owned subsidiaries, Invibio, Inc. and Invibio Limited (collectively, Invibio) because of exclusivity terms in its supply contracts. The consent order requires Invibio to cease and desist from enforcing most of the exclusivity terms in its current supply contracts and generally prohibits Invibio from requiring exclusivity in future contracts. Invibio is also prohibited from using other pricing strategies, such as market-share discounts, that would effectively result in exclusivity,” she writes.
In her post, she explains that exclusivity terms that arguably have the effect of harming competition may raise antitrust concerns.
Read the article.
Liberty Reserve Head Sentenced to 20 Years in Prison
A federal judge sentenced the leader of digital currency company Liberty Reserve to 20 years in prison for running a global money-laundering scheme that prosecutors said was unprecedented in size and scope, reportsReuters .
Arthur Budovsky, 42, had earlier pleaded guilty to one count of conspiracy to launder money related to his role in Liberty Reserve, which allowed cybercriminals to conceal and move their illegal proceeds anonymously through a digital currency. Authorities shut down the company in 2013.
“Liberty Reserve operated a widely used digital currency, processing more than $8 billion in financial transactions and earning Budovsky over $25 million, prosecutors said,” according to the report. “Much of its business came from criminals seeking to launder proceeds from Ponzi schemes, credit card trafficking, identity thefts and computer hacking, prosecutors said.”
Read the article.