Monthly Archives: April 2020

The Inherent Ambiguity of Out-of-Pocket Damages in Securities Fraud Class Actions

By | April 29, 2020

Courtesy of Richard A. Booth Most securities fraud class actions under SEC Rule 10b-5 involve revelation of negative information about the defendant company that should have been disclosed earlier – bad news that (allegedly) has been covered up by company agents. The standard remedy in such cases is out-of-pocket damages (OOPs). But this measure of… Read More »

Caremark Compliance for the Next Twenty-Five Years

By | April 27, 2020

Courtesy of Robert Bird One of the most influential cases in corporate governance isIn re Caremark Inc. Derivative Litigation (Caremark).[1] In 1996, Caremark imposed a novel duty on boards of directors to make a good faith attempt to implement and exercise oversight over obligations leading to liability. In my manuscript titled, “Caremark Compliance for the Next Twenty-Five… Read More »

Can Ex-Investors Bring a Claim Under a BIT? : The Scope of Investor and Investment-Centric Treaties

By | April 24, 2020

Courtesy of Ayushi Goel and Aarvi Singh A foreign investor sells their rights in an investment. Subsequently, the host state passes a retrospective measure fixing their liability to pay a newly introduced administrative fees in relation to their former investment. Now, the erstwhile investor will have to pay out of their own pocket. In such… Read More »

COVID-19 Should Not Jeopardize the Implementation of Basel IV

By | April 23, 2020

Courtesy of Mete Feridun While it is important to consider which regulatory measures may alleviate the impact of the COVID-19 pandemic, it is equally important not to allow the pandemic to derail the planned implementation of future regulations. The complex final phase of the Basel III reforms—referred to as “Basel IV” by the industry—are especially… Read More »

Credit Card Offers Target Less-Educated Consumers With More Shrouded and Back-Loaded Fees

By | April 22, 2020

Courtesy of Hong Ru and Antoinette Schoar Eye-catching credit card mailers that fill every household’s mailbox have become as American as baseball and apple pie. In 2016, credit card companies mailed out 4.6 billion pieces of credit card advertisement that came with colorful envelopes and intriguing features. The wide variety of offers provides consumers with… Read More »

The COVID-19 Pandemic and the Global Debt Epidemic

By | April 20, 2020

Courtesy of Chris Smith and Sangita Gazi  A decade after Lehman Brothers collapsed, the Federal Reserve Bank of St. Louis reviewed the economics literature and concluded that “one of the main reasons why the subsequent recession was ‘great’ was due to high levels of leverage and debt.” On the eve of the 2008 financial crisis,… Read More »

Employee Advisory Panels: A new paradigm for shareholder-based governance in the US in light of COVID-19?

By | April 17, 2020

Courtesy of Konstantinos Sergakis and Andreas Kokkinis Employee participation in corporate governance refers to a range of institutions, voluntary or legally mandated, that engage employees in corporate decision-making. Examples include works councils with co-decision powers on labor matters, advisory panels, information and consultation committees, employee share ownership schemes, and board representation. In the US, Senator… Read More »

New Kids on the Block: The Effect of Generation X Directors on Corporate Performance

By | April 16, 2020

Courtesy of Zhaozhao He, Mihail Miletkov, and Viktoriya Staneva Generational identity can influence many aspects of our life, from family and work to political views and consumer behavior. Countless books and articles have been written on the subject. For example, a simple Google Scholar search for the term “Generation X,” which is the focus of… Read More »

Defining Appraisal Fair Value

By | April 14, 2020

Courtesy of Ben Lucy Appraisal is a statutory mechanism that allows dissenting shareholders of Delaware merger targets to petition the Court of Chancery for a judicial determination of the “fair value” of their shares. In the 2010s, appraisal rose from relative obscurity to the front lines of high-stakes commercial litigation and the front pages of… Read More »

The Economic Implications of National Quarantines

By | April 13, 2020

Courtesy of Christos A. Makridis and Jonathan Hartley Although academic research on the COVID-19 pandemic began with a slow start, policymakers were grappling with challenges about the economic effects of the national containment strategy. Since real-time macroeconomic indicators will take some time to come in, we published a policy brief on April 6thbased on research… Read More »