On October 5, 2016, the Supreme Court heard its first insider trading case in over 20 years. The case is Salman v. United States, and involves the insider trading conviction of Bassam Salman in 2013. Salman was convicted of placing profitable stock trades after receiving confidential information from his future brother-in-law, who was a part of Citigroup’s health care investment banking group.
Uber Competitor Offers Equity Ownership to Drivers
Could a Viacom-CBS Reunification Be Imminent?
In 1967, Sumner Redstone took over National Amusements, Inc., a family movie theater chain headquartered in Dedham, Massachusetts. Today, the company owns an 80 percent stake in CBS and Viacom, two of America’s leading media and entertainment conglomerates. Mr. Redstone, who is now 93 years old and rumored to be in failing health, has relinquished most of the control of the company to his daughter, Shari Redstone. In May of 2016, Ms. Redstone removed Phillipe Dauman and George Abrams, two long-time Redstone confidants, from Mr. Redstone’s trust in what some characterized as a “shameful” power play by Ms. Redstone. This marked the beginning of an unpleasant legal battle in which members of the Redstone family, along with longtime friends and advisors, challenged the patriarch’s mental capacity.
Legal Battle Between Trader Joe’s and Pirate Joe’s Continues
Trader Joe’s, a California-based grocery chain, is famous for its eclectic healthy products and its cult following. Pirate Joe’s, a proud knockoff, is notorious for its reselling of Trader Joe’s products in Canada at high prices. Court documents stated that $350,000 worth of Trader Joe’s goods were bought and resold in Pirate Joe’s stores. This was done largely via Pirate Joe’s founder, Michael Hallatt, purchasing or paying others to purchase Trader Joe’s products in Washington and drive them across the border.
Morgan Stanley Accused of Facilitating Unethical Sales Contests
On October 3, 2016, Morgan Stanley was charged with “dishonest and unethical conduct” by a top Massachusetts securities regulator.
Morgan Stanley is accused of facilitating high-pressured sales contests in Massachusetts and Rhode Island, where brokers had the opportunity to earn thousands of dollars for selling high volumes of securities based loans. Securities based loans allow clients to borrow money against the value of their investment accounts, but are known to involve a non-negligible risk including the bank’s ability to sell securities to repay the loan.
Recap: “Innovating for Social Impact”
On October 3, the Berkeley Center for Law, Business and the Economy (BCLBE) held a speaker series entitled “Innovating for Social Impact.” The center welcomed three leading attorneys in social entrepreneurship and nonprofit legal strategy: Joel Beck-Coon, Nancy McGlamery and Will Fitzpatrick.
Trump Uses Tax Code as a Shelter for Nearly 20 Years
Tech Companies Challenge Subpoenas and Gag Orders
Tech companies are increasingly resisting what they believe to be government overreach in an effort to protect the privacy of their consumers’ communications and personal information. Recently, lawyers for these companies have argued that the increase in gag orders accompanying court-ordered subpoenas, as allowed by the Electronic Communications Privacy Act of 1986, is unconstitutional. Specifically, they cite that such practices violate the First and Fourth Amendment rights of their consumers. The ACLU has also indicted this practice as well. It charged that the government is keeping its investigations secret in circumstances where transparency not only is required but would also serve the public good.
Rumors of Disney’s Next Big Acquisition
The Walt Disney Company is known for its prodigious business acumen and high-profile acquisitions. Last year, Disney’s annual profit came in at $8.4 billion, an incredible climb from $3.4 billion in 2006. Since Robert A. Iger began his role as chief executive in 2005, the company acquired Pixar, Marvel Entertainment, and Lucasfilm. In the last year, Disney released four movies, which generated $1 billion in global ticket sales, and this past June, Disney opened the $5.5 billion Shanghai Disneyland. These projects led to an increased share price of $31 in 2006 to $122 in August 2015.
Recap: “Law Firm Hot Topic: Andrew Thorpe and Karen Dempsey, Orrick”
On October 5, 2016, the Berkeley Center for Law, Business and the Economy (BCLBE) hosted Orrick, Herrington & Sutcliffe LLP (Orrick) attorneys Andrew Thorpe, Karen Dempsey, and John Palmer, for a conversation on how to best serve as a trusted advisor to clients.
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