Securities

Expert Analysis

• Judges Who Use Social Media Must Know Their Ethical Limits

  

  While the judiciary is permitted to use electronic social media, judges and judicial candidates should protect themselves from accusations of ethics violations by studying the growing body of ethics opinions and disciplinary cases centering on who judges connect with and how they behave online, says Justice Daniel Crothers at the North Dakota Supreme Court.

• Rebuttal

  ABA Is Defending Profession's Values From Monied Influences

  

  A recent Law360 guest article suggested that the American Bar Association ignored new opportunities for the legal industry by opposing nonlawyer ownership of law practices, but any advantages would be outweighed by the constraints nonlawyer owners could place on the independence that lawyers require to act in the best interest of their clients, says Stephen Younger at Foley Hoag.

• Making Sense Of SEC's Crypto Enforcement Summer

  

  The U.S. Securities and Exchange Commission's recent flurry of cryptocurrency enforcement actions fulfill Chair Gary Gensler's promises to clamp down in this area, and offer common themes that may serve as a guide for digital asset market participants, say Arina Shulga and Jeffrey Kelly at Nelson Mullins.

• How In-House Counsel Can Better Manage Litigation Exposure

  

  In anticipation of economic downturn and increased litigation volume, the true struggle for an in-house team is allocating their very limited and valuable attentional resources, but the solution is building systems that focus attention where it can be most effective in delivering better outcomes, say Jaron Luttich and Sean Kennedy at Element Standard.

• Retail Investors Need More Info About Complex Products

  

  Recent enforcement actions from the U.S. Securities and Exchange Commission and statements from individual commissioners illustrate growing concern that retail investors are purchasing complex investment products with incomplete information, and that the SEC must do more to ensure that information is available to buyers, says Thomas Gorman at Dorsey & Whitney.

• Practical E-Discovery Lessons From The Alex Jones Case

  

  The accidental disclosure of mobile phone data during the Alex Jones defamation damages trial underlines the importance of having in place a repeatable e-discovery process that includes specific steps to prevent production of data that may be privileged, sensitive or damaging to the case, say Mike Gaudet and Richard Chung at J.S. Held.

• What The Inflation Reduction Act Has To Do With Crypto

  

  The recently enacted Inflation Reduction Act’s $80 billion supplemental funding allotment for the IRS could have unexpectedly significant implications for the cryptocurrency market, which may find itself the target of ramped-up tax audits and enforcement, says cybersecurity consultant John Reed Stark.

• 4 Takeaways From NY DFS' First Crypto Enforcement Action

  

  The New York Department of Financial Services' $30 million consent order against Robinhood Crypto — its first enforcement action against a crypto company — shows that there is no one-size-fits-all model for compliance programs but there are several considerations to keep in mind, say attorneys at Paul Weiss.

• Celebrity NFTs May Raise Deceptive Advertising Issues

  

  The watchdog organization Truth in Advertising sent warning letters to more than a dozen celebrities last month over allegedly deceptive advertising practices in NFT endorsements, as the Federal Trade Commission focuses on educating — rather than reprimanding — brands and influencers, say Amy Mudge and Lauren Bass at BakerHostetler.

• The Ethical Risks For Lawyers Accepting Payments In Crypto

  

  Ohio recently became the fifth jurisdiction to provide attorneys guidance on accepting cryptocurrency as payment or holding cryptocurrency in escrow, but lawyers should beware the ethics rules such payments may implicate, and consider three practical steps to minimize the risks, say Hilary Gerzhoy and Jared Marx at HWG.

• Tornado Cash Sanctions May Signal Enforcement Shift

  

  The Office of Foreign Assets Control’s recent sanctions against Tornado Cash, a cryptocurrency mixer with alleged ties to North Korean hackers, could mark a shift in U.S. authorities' tactics to crack down on mixers believed to launder money — or it could simply mean that regulators will use all tools at their disposal, say attorneys at Greenberg Traurig.

• 4 Key Takeaways From Del. Corporation Law Changes

  

  Public companies should consider the potential long-term impacts and practical requirements of the new Delaware General Corporation Law amendments, which provide for officer exculpation, expand boards’ ability to delegate authority for certain stock issuances, and change beneficial owners’ and shareholders’ appraisal rights, say attorneys at Milbank.

• Envisioning Metaverse-Based Litigation In The Real World

  

  Attorneys should entertain the possibility of the metaverse becoming a matter of interest in real-world courts by considering what could cause actions outside the virtual world and digital forensics hurdles to be cleared in demonstrating the offense, identifying the culpable parties and collecting damages, say consultants at Keystone Strategy.

• What Del. Justices' Insolvency Ruling Means For Corps.

  

  The Delaware Supreme Court’s recent decision in Stream TV v. SeeCubic — that there is no common law insolvency exception to a section of the state’s corporation laws — lacks a clear provision, which means corporations should consider how much power to confer to their boards without a shareholder vote, says Deborah Reperowitz at Stradley Ronon.

• Expect Fundraising Market To Grow More Competitive

  

  Though the fundraising market's momentum was slowed by inflation and geopolitical unrest earlier this year, rapid deployment of capital is now driving a strong resurgence that will push smaller and middle-market firms to square off against more established managers, say attorneys at Debevoise.