In reliance on the IRS's view as expressed in private letter rulings in 1999 and 2006, many public companies have taken the position that amounts can qualify as “performance-based compensation” under section 162(m) of the Internal Revenue Code if the amounts are payable in connection with an executive’s termination of employment without “cause” or for “good reason” regardless of whether the performance goals have been satisfied. However, in a controversial private letter ruling issued in late January, the IRS reversed its longstanding position that such provisions are permissible in performance-based arrangements, thereby calling into question deductions that many companies have taken in prior years and the attendant financial reporting, as well as the deductibility of
February 22, 2008
On February 20, the Supreme Court of the United States issued an 8-1 decision in Riegel v. Medtronic, Inc., which held that federal law preempts state-law products liability claims challenging the design and labeling of medical devices that the federal Food and Drug Administration ("FDA") has found to be safe and effective.
February 22, 2008
At its open meeting on February 13, 2007, the SEC voted to propose several amendments to its disclosure and reporting requirements for foreign private issuers.
February 20, 2008
In a previous client update ("UK House of Lords confirms the limitations of the economic torts of intentionally causing economic loss"), we discussed the landmark judgment handed down on 2 May 2007 by the UK Judicial Committee of the House of Lords in three separate appeals involving claims for economic torts (OBG v Allan)1 "Economic torts" or "intentional torts" are perpetrated by a party (D) if D causes economic loss to another (P) in situations where D is in neither a contractual nor other legal relationship with P. In their May 2007 judgment, whilst their Lordships specifically considered, and clarified, the economic torts of (i) procuring or inducing a breach of contract between P and a third party (T); and (ii) unlawful interference with P's trade
February 19, 2008
New York partners Jonathan C. Dickey and Aric Wu and associate Ross Wallin are authors of "2008 Securities Litigation Reform Forecast: Cloudy, Chance of Rain" [PDF] published in the February 2008 issues of Securities Litigation Report.
February 15, 2008
New York partner Jonathan C. Dickey, Washington, D.C. partner Mark A. Perry, and Los Angeles partner Julian W. Poon are authors of "Stoneridge Investment Partners v. Scientific-Atlanta, Inc.: The Supreme Court Rejects 'Scheme' Liability" [PDF] published in the January 2008 issue of Insights.
February 10, 2008
Brussels Associate Vassili Moussis is the author of "Parallel competences - Patchwork or framework?" [PDF] in the February 2008 issue of Global Competition Review.--------------------------------------------------------------------------------Reprinted with permission. www.GlobalCompetitionReview.com
February 5, 2008
Partner James J. Moloney and associate David C. Lee are authors of "Inside the SEC - Highlights from the 35th Annual Securities Regulation Institute" [PDF] published in the February 2008 issue of Insights. Reprinted with the permission of Aspen Publishers www.aspenpublishers.com.
February 1, 2008
London partner James Barabas and associate Sarah Trapani are the authors of "Changes to English Company Law: Directors' Duties" [PDF] which appeared in the February 2008 issue of Insights.
February 1, 2008
Washington, D.C. partner Mark Perry is the author of "Stoneridge and the Continued Reconceptualization of Implied Private Rights of Action" [PDF] published in the February 2008 issue of Wall Street Lawyer.
February 1, 2008
Welcome to the latest Quarterly Executive Summary, in which we highlight key developments in UK Employment and Labour Law over the last quarter of 2007 and look forward to key developments in 2008. A headline summary of cases and developments is provided below.
January 31, 2008
Victims of state-sponsored terrorism will more readily be able to recover damages from terrorist states as a result of a provision of the National Defense Authorization Act for Fiscal Year 2008, which was signed into law today.
January 28, 2008
Orange County partner Craig H. Millet is the author of "The Impact of Financial Stress on the Exercise of a Director's Fiduciary Duties" [PDF] published in the January 19, 2008 issue of the Orange County Business Journal.
January 19, 2008
On December 12, 2007, the French Supreme Court upheld the Paris Court of Appeals' ruling of March 28, 2007, which found a French lawyer criminally liable for violating the 1980 Blocking Statute that prohibits, inter alia, the gathering in France of business-related information to be used in foreign litigation (the "Decision"). Factual BackgroundThe Decision is one aspect of the lengthy Executive Life case.In 1998, the California Insurance Commissioner launched an investigation against a French consortium for an alleged fraudulent take-over of the U.S.
January 17, 2008
On January 15, 2008, the Supreme Court issued an important decision clarifying the contours of private actions under the key anti-fraud provision of the securities laws.
January 15, 2008
Washington, D.C. partner Stephen I. Glover and associates Jennifer Boatwright and Anthony Shoemaker are authors of "To Let Expire or Not to Let Expire?
January 15, 2008
New York Partner Andrew H. Levy is co-author of "How Easy Is Your Exit? Opportunities and pitfalls of buy-sell mechanisms" [PDF] published in the New York Law Journal.
January 14, 2008
The US Securities and Exchange Commission (the "SEC") recently announced its adoption of rules under which it will accept filings from foreign private issuers containing financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (the "IASB") without requiring reconciliation to US generally accepted accounting principles ("US GAAP").
January 11, 2008
Washington, D.C. Partner Michael Collins co-authored "Internal Revenue Code Section 409A: Ten Traps for the Unwary", [PDF] which has been published in several BNA publications, including the January 8, 2008 Pension & Benefits Reporter.
January 8, 2008
2007 -- A "Landmark Year" in FCPA Enforcement "2007 is by any measure a landmark year in the fight against foreign bribery." When Mark F. Mendelsohn, Deputy Chief of the Fraud Section in the Department of Justice's Criminal Division ("DOJ") and the government's top criminal Foreign Corrupt Practices Act ("FCPA") enforcer, opened the 2007 ACI FCPA Conference with this bold statement, not a single eyebrow rose across the ballroom filled with members of the ever-growing FCPA Bar.
January 4, 2008