As the COVID-19 pandemic continues to affect industries worldwide, companies are working to stay abreast of—and to proactively react to—the effects and the unique risks of this pandemic. The inherent uncertainty concerning timeframe and magnitude of market disruptions has caused many companies, and even industries, to reevaluate status quo operations…
Pretty much from the introduction of Satoshi’s cleverly constructed currency, industry players and observers alike have waited to see how exactly the increasing population of digital assets would be categorized and regulated. Slotting “disruptive” technologies into existing regulatory regimes is hardly a swift process, but there has been some recent…
On the heels of a January 2019 announcement that it was charging nine persons with participation in a scheme that allowed them to hack into the SEC’s confidential database of public filings, commonly known as EDGAR. On February 28, the SEC named Gabriel Benincasa as its first-ever Chief Risk Officer…
In a time when information is increasingly shared through social media, companies—particularly publicly traded ones—must recognize and consider the potential legal ramifications that could arise from statements made by executives, board members, and/or other employees about the company on social media. Though the actions of a certain well-known technology entrepreneur…
Last Tuesday afternoon, Elon Musk tweeted from his personal handle, “Am considering taking Tesla private at $420. Funding secured.” These words drove Tesla’s share prices up by 10% on Tuesday before Nasdaq halted trading, increasing Musk’s estimated net worth by $1.4 billion dollars. Since then, there has been a lot…
A recent order by the SEC relating to an initial coin offering (ICO) by Munchee Inc. dealt a blow to the common practice of making a distinction between “utility tokens” and “security tokens.” In doing so, the SEC seems to also reject what our colleagues Daniel N. Budofsky and Robert…
Social media is quickly becoming the way that companies present and market themselves to the world. Companies are also realizing the value social media provides in an easy conduit to communicate with customers. But the same qualities that make social media valuable can also lead to negative consequences. While information…
In their recent Client Alert, colleagues David S. Baxter, Robert B. Robbins, Jonathan J. Russo, and Matthew J. Kane examine the SEC’s adoption of “Regulation Crowdfunding,” the long-awaited final rules regulating what has become the investment vehicle of choice for many creators, entrepreneurs and consumers alike in the Internet Age. Regulation Crowdfunding…
As social media companies and businesses rely more heavily on their social media platforms to make important company announcements, state law claims asserting negligent misrepresentation or failure to adequately disclose information relating to announcements made on these outlets are bound to arise. For instance, Pope Trading LLC recently filed a…
The evolution of social media in business from “occasional accessory” to “integral component” has in turn forced the law itself to evolve in an attempt to address social media’s increasing relevance. Recent developments in two different areas of law show a newly evidenced recognition of social media’s importance in business.…