A dual-class structure is a feature of corporate governance that allows for the creation of two categories of shareholders—each class with different voting rights. The increasing number of corporations adopting this type of structure before going public has recently made headlines in regulatory, professional, and scholarly circles. In spite of the critiques, there are reasons […]
Government Secures its First Win under Dodd-Frank Anti-spoofing Provisions
The Department of Justice (“DOJ”) has secured a criminal conviction in its first case concerning the manipulation of high-frequency markets by “spoofing” orders purposefully designed to influence movement within those markets. Michael Coscia was convicted of six counts of commodity fraud under 18 U.S.C. § 1348 and six counts of “spoofing” under 7 U.S.C. § […]
Airbnb Raises $100 million in Latest Round of Funding
Airbnb, the San Francisco-based tech company that allows homeowners to rent their residences to visitors, recently completed a new round of funding that raised more than $100 million. This round of financing comes on the tail of a similar round this summer that raised more than $1.5 billion for the late-stage startup. The company’s valuation […]
Pfizer and Allergan to Merge in $160 Billion Deal
On November 23, 2015, pharmaceutical giant Pfizer, Inc. announced a $160 billion merger deal with Allergan Plc that will create the world’s largest drug maker by sales, keeping pace with the unprecedented surge in healthcare mergers and acquisitions in 2015. The combined entity will be renamed Pfizer Plc and its headquarters will be in Ireland, […]
Tax Bill Threatens the Dell-EMC Merger
Last October, Dell offered to buy EMC for $67 billion, making it the largest tech merger ever. This merger will create a new technology giant that will sell both consumer and IT products, ranging from personal computers to data storage gear for corporate data centers. To finance this acquisition, Dell will use a combination of […]
Emergency Hearing Set for FanDuel and DraftKings
On Wednesday, November 25th, while many households prepare for the Thanksgiving holiday, New York-based users of fantasy sports companies, FanDuel and DraftKings, will also be awaiting the outcome of an emergency hearing before the New York Supreme Court. The hearing could decide whether the companies receive a preliminary injunction to operate while the illegal gambling […]
Federal Circuit Rules that ITC Lacks Regulatory Power Over Digital Imports
On November 10, 2015, the Federal Circuit ruled in ClearCorrect Operating, LLC v. ITC (“ClearCorrect”) that the U.S. International Trade Commission (“ITC”) does not have jurisdiction to regulate digital data imports. The court held that the ITC’s regulatory power is limited to “material things,” and electronically transmitted digital data is not a “tangible good.” The […]
New Stock Exchange Could Use “Speed Bump” to Combat High-Frequency Trading
Recently, an investment company known as Investor Exchange, or IEX, proposed a new solution to the problems created by increasingly complex and high-speed stock markets. The firm plans to create a new American stock exchange that use a 350 microsecond “speed bump” as a limit for traders to place and cancel orders. IEX has proposed […]
Mutual Fund’s Devaluation of Snapchat Raises Concerns for Tech Startups
The number of unicorns, companies valued at over $1 billion, has greatly increased, growing from 43 companies at the beginning of 2014 to around 128 companies in November. However, these companies are often difficult to value because the shares are privately held and there is no readily available market price. This is a serious problem […]
Treasury Releases New Guidance on Inversions
On Thursday, November 19, 2015, the Treasury Department issued a second notice designed to limit the tax benefits of overseas tax-inversion deals. This notice is a continuation of the US government’s recent anti-inversion actions, including the notice that the Treasury Department issued on September 22, 2014. “Last year, Treasury took targeted action to address inversions,” […]