The Biden Administration has recently stressed the importance of cybersecurity through certain requirements on companies that are critical to national interests. (Alan Suderman and Eric Tucker, Associated Press). For example, on March 15, 2022, President Biden signed into law the Cyber Incident Reporting for Critical Infrastructure Act, which aims to combat against a recent breach on U.S. fuel pipeline and to alleviate the concern that Russia’s invasion into Ukraine may increase risk to U.S. infrastructure. (Gibson Dunn). However, this Administration is not alone in its focus on cybersecurity issues. Given the security risks that have arisen from a heavy shift to working from home, these concerns have become more widespread. (Perkins Coie). These feelings likely stem from the evolving technology that allow “cyberpunks” and hackers to breach company infrastructure. Id Following the trend toward more security, the Securities and Exchange Commission (“SEC”) has proposed new cybersecurity rules on a number of different types of investment companies (“Funds”) and investment advisers in an attempt to address and the fight against these types of cyber threats. (Id.; Rachael Schwartz, JD Supra; Federal Registrar)….
Read MoreThe Delaware Supreme Court recently held that a poison pill put in place by The Williams Companies, Inc. (“WCI”) was unreasonable, adopting an eighty-nine page decision issued by the Delaware Court of Chancery on February 26, 2021. (Sierra Jackson, Thomas Reuters). The Court of Chancery ultimately did not believe that a 5% threshold, which acted as the trigger for the poison pill, was reasonable relative to the threat that the pandemic presented to WCI. Id. This will likely discourage other companies from implementing such extreme poison pills in the future, even if the market is volatile as it was during the pandemic. . .
Read MoreAfter media, Wall Street, and government scrutiny over its involvement in the “meme stock” frenzy in early 2021, Reddit, Inc. (“Reddit”) finds itself in the spotlight again. (Taylor Tepper & Benjamin Curry, Forbes). This time, Reddit attracted attention from the Securities and Exchange Commission (“SEC”) by filing a confidential initial public offering (“IPO”) on December 15, 2021. (Id.; Reddit Announcements). Reddit’s valuation stands at approximately $10 billion after its most recent funding round garnered $700 million. (Taylor Tepper & Benjamin Curry, Forbes). However, the confidential nature of Reddit’s filing means that it is not required to publicly disclose financial data until far later than usual in the IPO process. (Sergei Klebnikov, Forbes). . .
Read MoreAs 2022 began, many startup companies held their breath, awaiting the verdict of the Elizabeth Holmes trial and what the verdict meant for the future of venture capital. . .
Read MoreThe tumultuous events of 2020 and 2021, most notably the COVID-19 pandemic and the global outcry for racial justice, have created new challenges and opportunities for diversity and inclusion. (Kenji Yoshino and Fenimore Fisher, Bloomberg Law). Many companies are grappling with the concept of privilege for the first time. These companies are also rethinking the financial rationale behind engaging in the work of educating about privilege and diverse experiences and are struggling to transform good ideas into practical outcomes. Id. While kind words and acknowledgment of privilege serve as a discussion launch point, the question becomes: what can corporations do in practice to advance social justice and diversity in order to add value to the investor? . . .
Read MoreEven though Nasdaq’s new board diversity rules were approved by the Securities and Exchange Commission (“SEC”) in August 2021, most public companies will not be required to comply with the rules’ standards until 2023, assuming the rules are not overturned based on the legal challenges they are currently facing. (Nasdaq, Rule 5605(f); Bre Bradham and Patrica Hurtado, Bloomberg Law). However, other corporate diversity advocates, including shareholders and institutional investors, are currently pushing for greater diversity on boards of directors and company disclosures stating the racial and gender make-up of the board of directors (“board”). . .
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