On August 26, 2020, the Securities and Exchange Commission (“SEC”) officially updated the definition of “accredited investors” under the Securities Act of 1933 (“Securities Act”). (Press Release, SEC Modernizes the Accredited Investor Definition). The amendments greatly expand the threshold of determining whether an investor is accredited in Rule 215 and Rule 501(a) of the Securities Act, signaling a significant overhaul of the growing market for exempt offerings.
Read MoreWith the 2020 Presidential Election just around the corner, voting paraphernalia, media campaigns, and the like are hard to avoid. Now, Corporate America is jumping on the voting bandwagon. Some companies, like designer fashion brand Tory Burch, are donating proceeds from limited-edition “VOTE” branded merchandise to get-out-the-vote programs. (Kate Kelly and Sapna Maheshwari, New York Times). Restaurant chain Shake Shack is giving away free French fries to all customers that vote early.
Read MorePresident Trump continues to escalate the United States (“U.S.”) and China Trade war. President Trump has expanded his campaign against China’s government by going after Chinese tech companies, jeopardizing the future of technology and innovation as investors must navigate cross-border tech investments amidst trade tensions. (Kevin Cirilli, Bloomberg L.P.) The Trump administration’s campaign to slow money flowing from investment funds into Chinese companies is not easing anytime soon, as U.S. politicians continue to claim venture capital funds and endowments have directed growing potions of their investments into Chinese companies linked to human rights abuses and national security threats.
Read MoreThe ongoing pandemic has negatively impacted the global market in nearly every sector and has led many companies to file for bankruptcy. For example, Hertz Global Holdings Inc. thrived as a car-rental company before the pandemic broke out but now is on the verge of bankruptcy. (Brickley, Wall Street Journal). Despite filing for Chapter 11 bankruptcy in May, Hertz intends to hand out $14.6 million in bonuses to executives after having already paid out $16.2 million in a similar fashion. Id. This type of “retention” bonus was rare before the economy recently turned downward, but a spike in these bonuses could lead to an influx of novel bankruptcy claims from creditors. Id.
Read MoreThe clock is ticking for ByteDance, Inc. (“ByteDance”), parent company of TikTok, the popular Chinese video app, as it continues to pursue a meaningful asset sale of its subsidiary in the midst of a global tug of war between the United States (“U.S.”) and China. (Lin, Wall Street Journal). With President Trump’s recent Executive Order requiring the potential Tik Tok deal to close by November 12th and China’s new export law restricting sales of artificial intelligence, ByteDance is facing an uphill battle to negotiate a cross-border, multi-billion dollar transaction.
Read MoreIt is impossible to ignore the protests and social justice initiatives surrounding the Black Lives Matter movement spanning the country, recently surpassing 100 consecutive days of protests. (Patience Womack & Tosca Ruotolo, The Daily Barometer). In light of national demands for racial justice, the California state legislature introduced Assembly Bill 979 (“Diversity Bill”) aimed at increasing corporate diversity. In short, the Diversity Bill requires corporations that have nine or more Board of Directors to include at least three minority members by the end of 2022. (Saijel Kishan, Bloomberg). Additionally, California’s Secretary of State will be required to publish annual board diversity reports evaluating corporate progress and compliance. Id. In 2018, California enacted a similar gender equity law, S.B. 826, 2017-18 Gen. Assemb., Reg. Sess. (Ca. 2018), requiring publicly held companies with a board of four or less to have at least one female director. (Women on Boards, California Secretary of State). Though the 2018 bill is widely criticized, its results are undeniable, increasing representation and corporate accountability. (See generally California Secretary of State, March 2020 Women on Boards Report).
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