Capital Markets

Expert Analysis

• Opinion

  Don't Cancel Your Summer Associate Programs

  

  While pulling off an effective summer associate program this year will be no easy feat, law firms' investments in their future attorneys should be considered necessary even during this difficult time, says Summer Eberhard at Major Lindsey.

• Retail Investors Hit By Oil Price Drop May Turn To The Courts

  

  The recent large drop in oil prices — and in the prices of futures contracts tied to oil — resulting from the COVID-19 pandemic has generated substantial losses for many retail investors, and precedent suggests this may lead to a wave of litigation against fund managers, say economists at Bates White.

• Early Securities Litigation Trends Stemming From Recent IPOs

  

  Attorneys at WilmerHale analyze Securities Act complaints against companies that went public immediately prior to and during the COVID-19-induced market volatility, providing preliminary insights into whether, when and on what basis recent issuers are facing securities litigation.

• 5 Ways To Reduce Post-Pandemic Legal Malpractice Exposure

  

  History suggests that legal malpractice claims will rise following the current economic downturn, and while a certain percentage of the claims will be unavoidable, there are prophylactic steps that law firms can take, says John Johnson at Cozen O'Connor.

• Leaving The Tort System Behind Via Corporate Risk Transfer

  

  With an increasingly litigious tort environment for corporate defendants, companies holding legacy liabilities would do well to investigate a capital markets solution for transferring their risks, say Mark Hemmann at FARA LLC and Peter Kelso at Roux Associates.

• Justices' SEC Disgorgement Ruling May Shape FCPA Matters

  

  The U.S. Supreme Court’s upcoming opinion in Liu v. U.S. Securities and Exchange Commission may call into question when Foreign Corrupt Practices Act settlements should be subject to disgorgement, say Matthew Rutter and Neal Hochberg at Charles River Associates.

• Opinion

  Credibility Concerns About Virtual Arbitration Are Unfounded

  

  Concerns that videoconferenced arbitration hearings compromise an arbitrator's ability to reliably resolve credibility contests are based on mistaken perceptions of how many cases actually turn on credibility, what credibility means in the legal world, and how arbitrators make credibility determinations, says Wayne Brazil at JAMS.

• 2 New Accounting Fraud Cases Offer Lessons For Boards

  

  Luckin Coffee and TAL Education Group — two high-profile Chinese companies listed in the U.S. — recently announced suspected cases of colossal revenue fraud, and these case studies may help companies recognize the germinating seeds of accounting fraud, say Fabian Roday at Fangda Partners and William Fotherby at Meredith Connell.

• A Tax Primer For PE Investment In Distressed Real Estate Debt

  

  Investors interested in discount purchases of distressed real estate debt in the wake of the pandemic must consider potential tax obligations, many of which may be triggered without concurrent receipt of cash proceeds to pay the tax, says Peter Elias at Pillsbury.

• How CFTC's Agricultural Enforcement May Evolve Amid Crisis

  

  The U.S. Commodity Futures Trading Commission recently singled out agricultural commodities market manipulation as an area of focus, potentially representing a return to the agency’s core mission that could shape enforcement during the current crisis, say attorneys at Latham.

• A Lawyer's Guide To Client Service Continuity Planning

  

  Ensuring uninterrupted client service and compliance with ethical obligations in a time when attorneys are more likely to fall ill means taking six basic — yet often ignored — steps to build some redundancy and internal communication into legal practice, say attorneys at Axinn.

• Virtual Meetings Could Be Fertile Ground For Legal Discovery

  

  Many remote meeting technologies include recording features as default settings, raising three primary concerns from a legal discovery and data retention perspective, and possibly bringing unintended consequences for companies in future litigation, says Courtney Murphy at Clark Hill.

• Funding Considerations Amid COVID-19 Liquidity Crunch

  Excerpt from Lexis Practice Advisor

  

  Companies and creditors in search of funding during the pandemic should analyze available options under existing bond and term loan covenants, and explore creative ways to establish priority status where necessary in the critical search for liquidity, say attorneys at Shearman.

• The Role Of Remote Mediation After The Crisis Is Over

  

  When the dark cloud of COVID-19 has passed and resolution centers are once again peopled with warring parties and aspiring peacemakers, remote mediations will likely still be common, but they are not going to be a panacea for all that ails the dispute resolution industry, says Mitch Orpett at Tribler Orpett.

• What COVID-19 Means For The M&A Insurance Market

  

  Alvin Reynolds and Richard French at Atlantic Global Risk address the impact of COVID-19 on M&A insurance market dynamics, policy terms and claims, and explain new applications to support distressed transactions.