With nearly 3,000 deals announced, 2021 proved to be a fruitful year for the health-care mergers and acquisitions (“M&A”) market. (Brown, Bloomberg Law). In the final quarter (“Q4”) of 2021, health-care M&A activity reached its peak with the closing of 762 deals. (Herschman, Bloomberg Law). While Q4 recorded the strongest quarter of 2021, each quarter of 2021 closed north of 700 deals. Id. Three sectors in particular saw massive increases in M&A transactions. Those sectors included life science and pharmaceuticals, health-care IT and software, and cannabis. Id. This article will analyze the factors that contributed to the successful 2021 fiscal year in these sectors and predict whether the success from these sectors will continue throughout the 2022 fiscal year…
Read MoreIn January 2021, GameStop’s stock dropped 16 percent after the company’s holiday sales were 27 percent below expectations. (Matt Perez, Forbes). Demonstrating further evidence of declining business performance, GameStop was scheduled to close 1,000 retail store fronts and lay off 14% of its staff by March 2021 due to the coronavirus pandemic and the trend toward online shopping. (Matt Perez, Forbes; Lauren Gray, Yahoo). Institutional investors capitalized on the company’s poor performance by short selling GameStop’s stock, expecting it to continue to fall. (Juliet Chung, Wall Street Journal). Short sellers are investors who borrow shares of stock from a financial institution to sell on the market with the hope of buying them back later at a lower price. (Adam Hayes, Investopedia). Investors profit from the difference between the price of the shares borrowed and sold and the price of the shares purchased and returned. Id…
Read MoreThe Securities and Exchange Commission’s (“SEC”) enforcement agenda for the 2022 fiscal year addresses an expansive range of financial industries and products. (Thomas Zaccaro, et al.; Bloomberg Law). Amid the rapid growth of digital assets, the SEC’s enforcement agenda includes increased focus on the scrutiny and regulation of crypto-lending, the process where an investor will deposit cryptocurrencies into a crypto-lending account and earn interest on that deposit in the form of cryptocurrencies. (Id.; Brian Breheny, et al.; Skadden; Joe Light, The Washington Post). However, it was not until a recent SEC enforcement action against BlockFi Lending LLC (“BlockFi”) that the SEC applied the Investment Company Act of 1940 (the “Act”) to a crypto-lending company, which gave the SEC the opportunity to establish its approach for regulating crypto-lending. (Robert Kim, Bloomberg Law)…
Read MoreRussia’s ongoing invasion in Ukraine has not only led to harsh sanctions from nations, such as the U.S., but has also caused many companies to reevaluate their relationship with Russia. (BBC News; The NY Times). As of March 8, 2022, McDonald’s—whose opening in Moscow two months after the fall of the Berlin Wall symbolized a new era in business relations with Russia—closed all 850 Russian locations. (Radio Free Europe; PBS News). Powerful Russian individuals are also not immune from these reactions since the U.S. imposed sanctions on several “oligarchs” who have close personal ties to Putin. (Steve Holland, Matt Spetalnick, & Daphne Psaledakis, Reuters)…
Read MoreCryptocurrencies (“Crypto”) are meant to exist in a neutral haven: Satoshi Nakamoto expressly designed Bitcoin to allow peer-to-peer interactions outside of existing regulatory and political frameworks. (Satoshi Nakamoto, Bitcoin.org). Though Bitcoin and other Cryptos remain apolitical tools, the intersection of theory with harsh reality has led to Crypto’s increasing politicization. For example, consider the statement of Vitalik Buterin, Ethereum’s co-founder: “Ethereum is neutral, but I am not.” (Lionel Laurent, Bloomberg). Buterin’s statement was made in the context of Russia’s invasion of Ukraine, and illustrates a new, fundamental truth: Crypto cannot remain neutral and apolitical in the future…
Read MoreAs blockchain technology use continues to grow, President Biden’s administration is prepared to launch a multifaceted digital assets regulatory regime. In March 2022, President Biden signed an executive order titled “Ensuring Responsible Development of Digital Assets” (“Executive Order”), which directs research efforts across numerous agencies for the implementation of regulations on cryptocurrency and blockchain-recorded exchanges. (Executive Order). Rather than proposing a specific regulation or policy, the Executive Order reflects a “whole-of-government” approach requiring the executive branch and its administrative agencies to develop a comprehensive regulatory framework. Id….
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