Client Alert - Gibson Dunn

Client Alert

Financial Markets in Crisis: The Administration Unveils Regulatory Reform Framework as Well as Systemic Risk Plan and Draft Resolution Bill

The Gibson, Dunn & Crutcher Financial Markets Crisis Group is closely tracking government responses to the turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets.

April 2, 2009

SEC Grants No-Action Relief to Activist Shareholders Seeking to “Round Out” Short Slates With Each Other’s Nominees

SummaryOn March 30, 2009, the SEC staff issued two no-action letters regarding the solicitation of proxies to vote in the election of directors in a situation where two dissident shareholders had submitted separate "short slates" of director nominees for election at the same annual meeting.  The no-action letters permit a soliciting shareholder to "round out" its short slate of directors with the nominees of other dissident shareholders, under an expansive reading of the proviso to the "bona fide nominee" rule in Exchange Act Rule 14a-4(d).  Such proviso had historically been interpreted only to permit a soliciting shareholder to "round out" its short slate with nominees of the registrant.The effect of the no-action letters is to facilit

April 2, 2009

Supreme Court Upholds Arbitration Requirement in Collective Bargaining Agreement

In a significant decision, the Supreme Court today held that a collective bargaining agreement (CBA) that clearly and unmistakably requires union members to arbitrate federal age discrimination claims is legally enforceable.  See 14 Penn Plaza LLC et al., v. Pyett et al., No.

April 1, 2009

Acquisitions from Financially Distressed Entities Under the HSR Act

Washington, D.C. of counsel Malcom Pfunder is the author of "Acquisitions from Financially Distressed Entities Under the HSR Act" [PDF] published in the April 1, 2009 issue of ABA's Antitrust.

April 1, 2009

Law Enforcement Response to the Financial Crisis

New York partner Mark K. Schonfeld is the author of "Law Enforcement Response to the Financial Crisis" [PDF] published in the April 1, 2009 issue of Law Journal Newsletter: Business Crimes Bulletin.Reprinted with Permissions from the April 2009 edition of Law Journal Newsletters 2009, an incisivemedia publication.

April 1, 2009

Navigating the FCPA’s Complex Scienter Requirements

Washington, D.C. partner David P. Burns and associate Erin K. Sullivan are the authors of "Navigating the FCPA's Complex Scienter Requirements" [PDF] published in the April 1, 2009 issue of Bloomberg Finance L.P.

April 1, 2009

Must the Health Problems of a Key Executive be Publicly Disclosed?

Orange County partner Mark W. Shurtleff  and associate David Lee are the authors of "Must the Health Problems of a Key Executive be Publicly Disclosed?" [PDF] published in the April 2009 issue of Orange County Business Journal.

April 1, 2009

Tenth Circuit Rules on Loss Causation

Los Angeles partner Theodore J. Boutrous Jr.  and Julian W. Poon are the authors of "Tenth Circuit Rules on Loss Causation" [PDF] published in the March 2009 issue of Insights.

March 31, 2009

Financial Markets in Crisis: Public-Private Investment Funds for Distressed Bank Assets — Open Questions and Opportunity to Comment

Last week, the Department of the Treasury and the FDIC announced their Public-Private Investment Fund (PPIF) concept, intended to remove troubled assets from banks.  Significant details of the proposal remain undefined, and public comment is sought.As announced, private investors and the Treasury will invest side-by-side in PPIFs, and will share in both profits and losses.  Treasury financing also will be available.  Additionally, PPIFs may issue FDIC-guaranteed debt.  Details of the capitalization of PPIFs, the terms of the potential investments and financing, the accounting and regulatory implications for banks that sell assets to PPIFs and related matters have not been finalized.  Similarly, while officials have stated that compensation limits will not apply to

March 30, 2009

Takeover Preparedness and the New Hostile M&A Environment

By Eduardo Gallardo and Matthew Walsh (Gibson, Dunn & Crutcher LLP)*The recent financial turmoil has left many public companies' market capitalizations at 10-year lows.  Such depressed stock prices and the inability to access traditional sources of financing, coupled with the gradual erosion of antitakeover defenses under the pressure of corporate governance groups, have left many public companies vulnerable to a hostile overture or an activist investor campaign.  At the same time, other companies – particularly in the technology and pharmaceutical sectors – are flush with cash and searching for bargain acquisition candidates.

March 30, 2009

Environmental News: Climate Change – March 2009

March 2009The inaugural issue of Gibson, Dunn & Crutcher's Environmental News: Climate Change newsletter is now available.  We hope you will find this periodic briefing on recent legal developments concerning climate change and greenhouse gas emissions informative.

March 27, 2009

President Obama Directs Additional Restrictions on Spending of Recovery Act Funds and Lobbying Communications Concerning the Expenditure of Such Funds and Related Policies

On March 20, 2009, President Obama issued an executive memorandum "Ensuring Responsible Spending of Recovery Act Funds" requiring executive departments and agencies to develop certain selection criteria when committing, obligating or expending funds under the Recovery Act for grants and other forms of federal financial assistance, to monitor compliance with the Recovery Act's prohibition on funding "imprudent" projects and to limit and document communications with registered lobbyists regarding the expenditure of such funds and Recovery Act policy issues.

March 26, 2009

NYSE Corrects Guidance on Calculating Stockholder Approval Requirement in Convertible Debt Exchange Offers

The staff of the New York Stock Exchange (NYSE) has corrected its advice that was the basis for our earlier client alert on this subject, so we are reissuing this alert to reflect the NYSE's corrected advice.

March 26, 2009

Germany Exempts Acquisitions with Little Effect on German Markets from Its Merger Control Regime

As of today, March 25, 2009, an important amendment to the German merger control regime has entered into force. This amendment will significantly decrease the number of de minimis and extra-territorial mergers that will need to be notified to the German Federal Cartel Office ("FCO", the Bundeskartellamt) in the future.

March 25, 2009

Purchase Agreement for Unsubdivided Property Void Unless Agreement Includes Subdivision Map Act Compliance as an Unwaivable Condition Precedent to Close

A recent California appellate court decision serves as a reminder that care must be taken when drafting or entering contracts for unsubdivided parcels of land.

March 24, 2009

Appellate Advocacy in Antitrust Cases: Lessons from the Supreme Court

Washington, D.C. partner Thomas G. Hungar is the author of "Appellate Advocacy in Antitrust Cases: Lessons from the Supreme Court" [PDF] published in the Spring 2009 issue of ABA's Antitrust.

March 23, 2009

Federal Circuit Upholds USPTO’s Limits On Patent Claims (At Least For Now)

Over the last decade, the United States Patent and Trademark Office's patent allowance rate has decreased from over 70% in 1999 and 2000 to roughly 42% in the first quarter of 2009, notwithstanding a steady increase in the number of applications during this period.  Perhaps consistent with this trend, the USPTO has made efforts to place new limitations on the prosecution of patents, including four new rules that the agency recently attempted to implement to restrict the number of claims that may be included in each patent application, as well as the number of continuation applications that may be filed.  On Friday, March 20, 2009, in a closely watched decision, the Federal Circuit in Tafas v. Dudas upheld the USPTO's authority to make these rules and disallowed only one of the fo

March 23, 2009

Details of Public-Private Investment Fund Released; Executive Compensation Restrictions Will Not Apply to Private Participants

The Gibson, Dunn & Crutcher Financial Markets Crisis Group is closely tracking government responses to the turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets.

March 23, 2009

Mandatory Electronic Filing and Other Changes to Form D

On March 16, 2009, the amendments to Form D requiring electronic filing and annual updates became effective.  These requirements were included in the amendments to Regulation D adopted by the Securities and Exchange Commission (the "SEC") in February 2008.

March 17, 2009