In Stoddard v. S&N Logging, Inc., No. 35038-0-III (Wash. Ct. App. Jan. 25, 2018), S&N Logging, Inc. (“S&N”) and Newman Logging, Inc. (collectively “Defendants”) moved for summary judgment against Roy B. Stoddard (“Plaintiff”) for failure to claim a remedy from the dissolution of a corporation within the time allowed by the statute of limitations. The Washington State Court of Appeals affirmed the trial court’s grant of summary judgment.
Read MoreBy Megan Herr & Thomas Dyer
Innovators have a tendency of identifying problems and subsequently creating a solution instead of the inverse. Great ideas do not make historic innovations; creative solutions to problems do. Cryptocurrency arose out of the identified problems contained in “traditional” fiat currencies. Transactions involving fiat currencies are often traceable by parties who should not otherwise have access to that information. Cryptocurrencies effectively address both of these problems, along with a handful of others through innovations including blind algorithms and the related blockchain technology.
Read MoreInitial coin offerings (ICOs), also sometimes called token sales, have exploded as the fastest growing segment of the world-wide capital markets. ICOs gained prominence in 2016 following a $160 million raise by an entity called “The DAO.” (Connie Loizos, TechCrunch) ICO fundraises grew from an estimated $263 million in 2016 to north of $5 billion in 2017. (Oscar Williams-Grut, Business Insider) The trend has continued in 2018, with an estimated $9.5 billion raised through the first five months of the year. (Coinschedule; see also Katie Rooney, CNBC) Despite this growth, there is still considerable legal uncertainty as to the status of ICOs and whether they are subject to regulation as securities in the United States.
Read MoreIn Cohen v. Kitov Pharmaceutical Holdings, Ltd., No. 17 Civ. 0917 (LGS), 2018 BL 94656 (S.D.N.Y. Mar. 20, 2018), the United States District Court for the Southern District of New York denied in part and granted in part a motion to dismiss a putative class-action suit against Kitov Pharmaceutical Holdings, Ltd. (“Kitov”), CEO Isaac Israel, and CFO Simcha Rock (collectively “Defendants”) brought by lead plaintiffs Rotem Cohen and Jason Bruening (collectively “Plaintiffs”). The complaint alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Act”). The court denied the motion to dismiss with regard to defendants Kitov and Israel but granted the motion to dismiss concerning defendant Rock.
Read MoreSmart contracts are self-executing transactions that are written in computer code often utilized to “facilitate, execute, and enforce agreements between two or more parties.” While the term might sound new to some, the phrase was actually coined in 1994. The concept behind a smart contract is rooted in basic contract law; offer, acceptance, and consideration are all necessary, but smart contracts are enforced by different means. A key advantage of using smart contracts is efficiency. Once uploaded to the blockchain, smart contracts do not rely on a third party for recordkeeping or enforcement. Because they are self-executing and stored on a shared platform, smart contracts could potentially eliminate the manual effort currently necessary to execute domestic and international financial transactions.
Read MoreAn initial coin offering (ICO) is the term used to describe the method that a crypto firm or company utilizes to raise capital to fund a particular venture or project through the sale of its tokens. While an ICO is similar to the concept of raising capital by selling shares of stock, it is also different because the crypto firm is selling a digital asset (i.e. a token). The tokens can be utility tokens meaning the investor can use the tokens to access a product or a service or the tokens can be security tokens meaning the investor has some type of an investment stake. Another significant difference is that investors in ICOs do not generally have an ownership interest in the crypto firm, like a purchaser of common stock. Though this difference in investment may change with the advent of equity tokens. Yet, similar to owning stock, investors earn a return as a result of an increase in the value of their tokens, whether as utility or security token holders.
Read More