As the economy progresses into an age marked by the rise of streaming services and the collapse of brick-and-mortar empires like Blockbuster Video, consumers have swiftly adapted and embraced new technology. GameStop, a once thriving video game retailer with storefronts at many local malls, is suffering a similar fate. In December 2020, the video game chain announced that it would close up to 1,000 stores by the end of its fiscal year in March 2021. (Lauren Gray, Yahoo!). Even so, in January 2021, many investors woke to news headlines declaring a GameStop stock (“GME”) buying craze. Within six days, GME’s price soared from $43.03 on January 21st to $347.51 on January 27th, a 708% increase. (Google Finance). What happened?
Read MoreThe long-time debate between stakeholderism and shareholderism is becoming far more in favor of stakeholderism due to the increasing importance of Environmental, Social and Governance (“ESG”) initiatives. Shareholderism is the traditional school of thought that the responsibility of a corporation is to the shareholders only. Stakeholderism has been challenging this view with the idea that the responsibility of a corporation is to benefit all of its stakeholders – customers, employees, suppliers, communities and shareholders. The Chairman and CEO of Blackrock, one of the largest asset management companies in the world, recently wrote a letter to CEO’s emphasizing the importance of ESG to investors and the public. (Larry Fink, Blackrock).
Read MoreOver the last few years high-profile age discrimination lawsuits have rocked the tech industry – perhaps not surprising as the average tech-worker is 5 years younger than the average non-tech worker. (State of Startups). Big names like IBM, Google, and HP have been on the defensive end of many of these claims, ultimately paying out millions in settlements (Gurchieck, SHRM; Riggio, DiversityInc). Most notably, IBM was the subject of a rare multi-year Equal Employment Opportunity Commission (“EEOC”) investigation that found more than 85 percent of redundancy and rolling layoffs impacted older employees, age 40 or older, between 2013-2018 (Dorrian, Bloomberg Law; Callaham, Forbes). The investigation confirmed a pattern of systemic age discrimination, where IBM pre-selected older employees for layoffs and had managers alter their performance evaluations to justify their firing, giving adversely impacted former employees a strong basis to file age discrimination claims (Dorrian, Bloomberg Law).
Read MoreThe road to completing LVMH Moët Hennessy Louis Vuitton SE’s (“Louis Vuitton”) acquisition of Tiffany & Co. (“Tiffany”) was a bumpy one. Louis Vuitton and Tiffany announced they agreed on a revised merger agreement (the “Merger Agreement”), and closed the transaction on January 7, 2021 (LVMH). Over the past year, the two companies have had a rocky relationship. Louis Vuitton, the buyer, originally walked away from the initial agreement, and Tiffany sued to keep the deal moving forward. (Angelina Rascouet & Kim Bhasin, Bloomberg). The revised deal is now worth almost $16 billion. Id.
Read MoreThe 2020 presidential election between President Donald Trump and former Vice-President Joe Biden marked a highly contentious race with a record-setting $14 billion in election spending between the two candidates. (Brian Schwartz, CNBC). After days of ballot-counting, former Vice-President Joe Biden was declared the president-elect of the United States (“U.S.”). (Scott Detrow and Asma Khalid, NPR). This article will address how a Biden Presidency may change financial regulations and the resulting impact these changes will have on the securities market.
Read MoreVenture capital hubs are historically based in cities such as San Francisco and New York and have a predilection for supporting Democratic candidates. (Thorne, Pitchbook). The most recent election proved to be no exception, venture capital contributions to the democratic party were even higher than they were in the 2016 election. (Center for Responsive Politics). The industry’s support for the democratic party grew in the most recent election due to Biden’s favorable policy proposals and industry grievances with the Trump administration. (Thorne, Pitchbook).
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