From Misinformation to Hidden Economic Agendas: The Coronavirus Lawsuit Against China

By | May 7, 2020

Courtesy of Robert Gatter & Ana Santos Rutschman On April 21st, the State of Missouri became the first state to sue China, Chinese government-run entities, including the Wuhan Institute of Virology, and the Chinese Communist Party for damages related to Covid-19. The complaint claims that Chinese authorities caused “enormous economic disruption” to governments, corporations, and… Read More »

Social and Economic Distancing

By | May 6, 2020

Courtesy of Selman Erol and Guillermo Ordonez The COVID-19 pandemic has reminded us of the effectiveness of social distancing practices, voluntary and mandated, to reduce disease transmission in the presence of highly contagious infections. Even though COVID-19 has a relatively low fatality rate, slowing down the rate of transmission is critical to avoid overwhelming the… Read More »

Private Information Acquisition via Freedom of Information Act Requests

By | May 4, 2020

Courtesy of Stephen Glaeser, Bryce Schonberger, Charles E. Wasley, and Jason Xiao Theoretical models explore when and why individuals incur costs to acquire information about a firm that is not publicly available (often referred to as private information acquisition). Empirical evidence of these theories’ implications is virtually non-existent due to the difficulty of observing private… Read More »

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 »

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 »