“Contact Tracing” is a term used by the Centers for Disease Control (“CDC”) that means tracking the spread of COVID-19 in order to interrupt the virus’s transmission. (CDC, Contact Tracing – CDC’s Role and Approach). The upside of allowing big tech firms; Apple, Google, Microsoft, and Facebook, to track our location data is clear: when a person tests positive for COVID-19, those who have been in recent proximity to that person can be notified that they, too, should get tested. Such tracking would thus allow for swifter tracking of COVID-19 as it spreads person-to-person and disrupt its transmission. But it may also be important for consumers to wonder whether they can trust big tech to handle their location data with care.
Read MoreTraditional law firms are synonymous with mountains of paperwork. TV shows and movies regularly depict lawyers behind their paper-filled desk in a room that is full of file cabinets. And what can viewers assume is in the cabinets? That’s right, more paper. This is one of the few aspects of law that Hollywood accurately represents: the legal community uses a lot of paper. However, advances in blockchain technology are permeating legal atmospheres and reducing the high demand for paper. This emerging technology is continually increasing the efficiency in legal proceedings. (Frost, Bloomberg)
Read MoreMany believe 2018 was a record year for shareholder activism. Since 2017, the number of activist campaigns increased by 5.5%, with about 268 campaigns announced in total (Melissa Sawyer, Lauren S. Boehmke, and Nathanial R. Ludewig, Harvard Law Review). In 2018, a record amount of capital was deployed in new activist campaigns and an unprecedented number of investors engaged in activism, with the number of first-time activists roughly doubling the 2017 numbers. However, these statistics do not tell the whole story (Melissa Sawyer, Lauren S. Boehmke, and Nathanial R. Ludewig, Sullivan & Cromwell LLP).
Read MoreElon Musk, the eccentric billionaire and aspirant Tony Stark, could find himself back in court after Tesla shareholders have asked the Ninth Circuit Court of Appeals to reinstate their claims against him. (Peter Hayes, Bloomberg Law). The shareholders allege that Mr. Musk personally profited off of a short-swing trade involving Tesla’s acquisition of SolarCity. Id. In July, a federal trial court had dismissed the shareholder’s lawsuit on the grounds that Musk could not be sued under federal securities laws for his actions. Id. The shareholders subsequently filed an appeal the following month. Id. This post will examine Tesla’s acquisition of SolarCity, the role that Elon Musk holds in each company and what the shareholder lawsuit is challenging.
Read MoreFive hundred eighty-one companies worldwide faced activist proposals in the first two quarters of 2019 (“H1”), also known as the “proxy season,” in which 80 percent of all public company annual meetings occur. (Activist Insight, Activist Insight Monthly June 2019). While shareholder activism in 2019 decreased relative to 2018, in general shareholder activism has been on the rise over the last decade. As the three largest asset managers in the United States, BlackRock, State Street, and Vanguard (the “Big Three”), are not to blame for this increase, this post explores who the most active shareholders are and the extent to which their goals were realized in the 2019 proxy season.
Read MoreEighty percent of all public company annual meetings are held during the first half of the year, from January 1 through June 30 (“H1”). (ProxyPulse, Broadridge). These first two quarters of the year are often referred to as the “proxy season” or “campaign season.” During this “season,” the majority of activist shareholder resolutions are proposed to management and, if resilient enough, are brought to a shareholder vote. Activist shareholders are individuals and institutional investors who initiate public campaigns as attempts to influence the management of companies in which they invest, typically in the realm of corporate governance, environmental, and social issues. Part I of this post will briefly summarize the activity by these shareholders in the 2019 season in relation to the record-breaking shareholder activism observed in 2018 and comment on the influence of the three largest asset managers in the United States. Part II will compare who the most active shareholders are, and what trends can be observed in the 2019 proxy season.
Read More