Shake Shack Returning $10 million Paycheck Protection Program Loan to the US Government
Shake Shack Inc. is returning a $10 million loan that the company received through the Paycheck Protection Program established by the CARES Act. Shake Shack, a publicly traded company (NYSE: SHAK) with more than 8,000 employees, was able to qualify for the small business loan through an exception that was given to companies in the restaurant ...
Second Circuit Declines To Decertify Class And Rejects Invitation To Narrow Inflation-Maintenance Theory In Investors’ Suit Against Goldman Sachs
In a 2-1 decision on Tuesday, April 7, 2020, a Second Circuit panel upheld the district court's certification of a class of shareholders who alleged that Goldman Sachs Group, Inc. ("Goldman" or the "Bank") and certain of its executives violated, inter alia, Section 10(b) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange ...
I’M ESSENTIAL – HOW CAN MY EMPLOYER KEEP ME SAFE?
ESSENTIAL WORKERS = INCREASED RISKS More than 40 states have ordered nonessential businesses to close. However, grocery stores, retail pharmacies and drug stores, and other entities that sell essential supplies, are among the businesses that have been deemed essential and remain open. Workers in these types of businesses face constant exposure ...
NYSE Proposal Suspends Certain Shareholder Approvals and Listing Requirements as a Result of COVID-19
On April 3, 2020, the New York Stock Exchange submitted two proposals with the U.S. Securities and Exchange Commission that would temporarily suspend: (1) certain shareholder approval requirements for private placements; and (2) listing requirements regarding a company's market capitalization and share price. Citing the use of private placements ...
Accounting and Disclosure Complexities Due to COVID-19
On Friday, April 3, 2020, the United States Securities and Exchange Commission ("SEC") released a public statement titled Statement on the Importance of High-Quality Financial Reporting in Light of the Significant Impacts of COVID-19. The statement, written by Chief Accountant Sagar Teotia ("Teotia"), acknowledges the many challenges and difficulties ...
New York State Passes Permanent Paid Sick Leave Law
The United States, along with the rest of the global community, is currently facing one of history's greatest public health emergencies in the form of the COVID-19 pandemic. To address the impact COVID-19 has had on both individuals and businesses, federal and state legislators have responded largely through interim relief measures tailored ...
SEC Announces Third Whistleblower Award to Individual in Compliance-Related Role
On March 30, 2020, the SEC announced a rare award in the amount of $450,000 to a whistleblower having compliance-related functions. The SEC whistleblower program, which was established in 2011, allows the SEC to provide monetary awards to individuals who voluntarily report high-quality, original information to the SEC that leads to an enforcement ...
Coronavirus Disclosure Issues: SEC Issues New Disclosure Guidelines
On March 25, 2020, the U.S. Securities and Exchange Commission's ("SEC") Division of Corporation Finance issued unofficial disclosure guidelines for publicly traded companies to consider when making business and market disclosures related to the COVID-19 pandemic. The Division's guidance, CF Disclosure Guidance: Topic 9 ("Guidelines"), emphasized ...
Promising COVID-19 Treatment: Gilead Will Not Seek Orphan Drug Status
Gilead Sciences Inc. is investigating the potential of remdesivir, a medicine it has been studying for years as part of its research in antivirals, as a treatment for patients with Covid-19. On March 23rd, the Food and Drug Administration (FDA) granted Gilead orphan drug status for remdesivir, a designation that gives a manufacturer a seven-year ...
Bloomberg Campaign Reneges on Employment Promises to Staffers
Former campaign staffers recently filed multiple lawsuits against billionaire Michael Bloomberg's presidential campaign for owed wages. The staffers argue they were promised employment through the general election in November 2020 to challenge President Trump, independent of the success of Michael Bloomberg's campaign for the Democratic nomination. ...
Generic Price-Fixing Securities actions against Teva are consolidated
Over the objections of several shareholder plaintiffs, a Connecticut federal judge ruled that nearly two dozen securities lawsuits accusing Teva Pharmaceutical Industries Ltd. of hiding a generic drug price-fixing scheme from investors will be consolidated. The cases were filed in or transferred to the U.S. District Court for the District ...
Senators Allegedly Dump Stock After To Private COVID-19 Briefings: Will There Be Consequences?
Several members of the U.S. Senate have allegedly been caught selling their stock prior to COVID-19 taking hold of the country. Senators Richard Burr (R-N.C.), Kelly Loefler (R-G.A.), and Dianne Feinstein (D.-C.A.), among others, were purportedly privy to government meetings that discussed COVID-19's trajectory across the globe as well as ...
Coronavirus Highlights Lack of Corporate Contingency Plans
The spread of the Coronavirus has placed a spotlight on how public companies spend excess cash and the plan to weather a crisis such as this one. As recently reported by Bloomberg, S&P 500 companies used over 50% of free cash flow to repurchase company shares with certain industries, like U.S. airlines, spending an astounding 96% over the ...
New Survey Highlights the Importance of Data Privacy and Cybersecurity Legal Services
A recent survey of 250 in-house corporate executives conducted by BTI Consulting Group has highlighted the critical importance of data privacy and cybersecurity legal services. According to the survey, "corporate decision makers expect spending on outside privacy and cybersecurity counsel to grow in the double digits over the next three years, ...
COVID-19 Watch: NY State Statutes of Limitations Tolled Until April 19
On March 20, 2020, New York Governor Andrew Cuomo temporarily tolled (i.e., suspended) New York state statutes of limitations until April 19, 2020. Statutes of limitations are the time frames set by legislation where affected parties need to take action to enforce rights or seek redress after injury or damage. In effect, Cuomo's order will ...
US Securities Regulators Issue Warnings To Investors Regarding COVID-19 Fraud
As the negative financial effects of COVID-19 have spread across the nation, the Securities and Exchange Commission ("SEC"), the Commodity Futures Trading Commission ("CFTC"), and the Financial Industry Regulatory Authority ("FINRA") have issued alerts to warn about a range of fraudulent financial opportunities designed to extort investors' ...
Coronavirus May Cause Some Companies to Halt or Slash Dividend Payments
Not only has coronavirus impacted peoples' daily lives, it has also had a devastating effect on the global economy and the markets. According to an article published by The Wall Street Journal (the "WSJ") on March 19, 2020, before the coronavirus spread throughout the world, S&P Dow Jones Indices predicted that "dividend payouts for 2020 would ...
Delaware Supreme Court Declares Federal Forum Provisions In Company Bylaws Facially Valid Under Delaware Law
On March 18, 2020, the Delaware Supreme Court issued a decision in Salzberg v. Sciabacucchi, No. 346, 2019, 2020 WL 1280785 (Del. Mar. 18, 2020) declaring as facially valid federal forum provisions ("FFP") in Delaware corporation bylaws requiring claims under the Securities Act of 1933 ("Securities Act") to be brought in federal court. Under ...
The U.S. Securities and Exchange Commission Shares Observations For Combating Cybersecurity Threats
Recently, the U.S. Securities and Exchange Commission's ("SEC") Office of Compliance Inspections and Examinations ("OCIE") shared insights on cybersecurity risks that it gathered "[t]hrough thousands of examinations of broker-dealers, investment advisers, clearing agencies, national securities exchanges and other SEC registrants[.]" These ...
Cybercriminals Are Using COVID-19 to Spread Malware and Steal Information
Cybercriminals are using the COVID-19 pandemic to spread malware onto unsuspecting victims' PCs. This malware steals information and sometimes downloads additional malware onto the victim's PC. These attacks have been ongoing for months around the world with the United States now very much in the crosshairs of the cybercriminals. Cybercriminals ...