Last week, Netflix announced that it received a Wells notice from the SEC. Apparently, while the SEC was cruising Facebook (what else is there to do while neglecting to investigate Wall Street?), someone noticed Netflix CEO Reed Hastings posting that Netflix had surpassed one billion hours of streaming old episodes of Facts of Life to shut ins.
The SEC staff thinks Hastings disclosed material information in this Facebook post, possibly violating Reg FD, the 2000 regulation that put a stop to companies giving an advantage to small subsets of investors by disclosing material information between blowing rails of coke off strippers.
But Facebook isn’t a seedy strip club full of free drugs and prostitutes (read: Christian Mingle). Reed Hastings has over 200,000 “fans,” many of whom are analysts and reporters. In pursuing enforcement without exercising a little discretion, the SEC ignores these facts.
Netflix is arguing that the disclosure was not material and that most investors knew that the CEO’s Facebook page is recognized as an avenue for public disclosure.
Regardless of the specific resolution of this matter, this is one more reminder that the SEC is woefully behind when it comes to adapting to technological developments. Like, oh I don’t know, HFT perhaps?
* In the 7th grade, we abided by the “one best friend” law, so we could totally pledge our loyalty to just one dog who also definitely wouldn’t steal our boyfriend. [New York Times]
* German Chancellor Angela Merkel admits to an incident of youthful “corruption,” but would you have rather she bartered sexual favors for her driver’s license? We’re letting this slide too. [The Times]
* We hear freshmen housed in state school dorms are joining the lawsuit. [Los Angeles Times]
* Since all of my disposable income after rent, I-Pod upgrades and therapy goes to clothes, I for one can say that status is one of the more noble causes a person can embrace. I mean, honestly, without fashion, 90% of third world kids would be unemployed. [University of Chicago Law School Faculty Blog]
* Honor among greedy bastards: Corporate greedy bastards deserve their obscene paychecks, says greedy bastard M&A lawyer Martin Lipton. [Reuters]
[Ed. note: Please note that this post is signed by Stella Q. Some of us were very happy to receive obscene paychecks courtesy of Mr. Lipton. (And if Wachtell Lipton's midyear bonuses are any indication, year-end bonuses at the firm will be especially obscene this year.)]
* “Surfing champion Sunny Garcia… looked gloomy as the sentence was handed down.” Nice. [CNN]
* Justice O’Connor sat by designation on the Ninth Circuit this week. She must have had so much fun the last time she flipped a coin in California , she’s back for more. [San Jose Mercury-News]
* Another swing justice in NoCal. Justice Kennedy: “[T]he verdict on democracy is still out.” Didn’t he give this speech somewhere before? [San Francisco Chronicle]
* “The only thing missing from [Wednesday's] three-judge Third Circuit oral argument panel was any judge from the the U.S. Court of Appeals for the Third Circuit.” [How Appealing]
* Busy bees at the SEC: Civil securities-fraud suits against former execs of Delphi Corp. are expected soon. [Wall Street Journal via WSJ Law Blog]
* Poor Dick Grasso. The former New York Stock Exchange chairman must return about $100 million of his $139.5 million payout. [New York Times]
* A federal judge has ordered that Vice President Dick Cheney’s visitor logs be opened. There’s at least one name that won’t be on there. [Associated Press]
* Justice Department lawyers have lost their Federal Circuit appeal in their long-running class action suit for overtime pay. Mama, don’t let your babies grow up to be DOJ attorneys. [Washington Post]
* The Ninth Circuit has ruled against a freelance journalist and blogger who refused to testify to a grand jury or turn over video footage he took of a violent protest at last summer’s G8 summit. The journalist, Josh Wolf, will seek an en banc rehearing. [New York Times]
* The latest news in Spitzer v. Grasso: Dick Grasso’s looking for a new judge, baby, a new judge. Eliot Spitzer is looking for a way to make his eyes look less beady. [Wall Street Journal via WSJ Law Blog]
* The fellow we mentioned yesterday, who had sex with his 14-year-old sister, has lost his suit to keep his identity off Virginia’s online sex offender registry. [Washington Post via How Appealing]
* Not directly related to the law, but interesting: Harvard University is ending its early admissions program next year. (And it has an indirect connection to the law, insofar as it might affect the educational paths of future lawyers.) [Wall Street Journal]
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: firstname.lastname@example.org.
Please note that Evan Jowers and Robert Kinney are still in Hong Kong and will stay FOR THE REMAINDER OF THIS WEEK. We still have a handful of available slots for meetings with our Asia Chronicles fans. If we have not been in touch lately, reach out and let us know when we could meet! There is no need for an agenda at all. Most of our in-person meetings on these trips are with folks who understand that improving a legal practice through lateral hiring is an information-driven process that takes time to handle correctly.
Regarding trends in lateral US associate hiring in Hong Kong, we of course keep much of what we know off of this blog. Based on placement revenue, though, Kinney is having one of our most successful years ever in Asia. We are helping a number of our law firm clients with M&A, fund formation, cap markets, project finance, FCPA and disputes openings. These are very specific needs in many cases, so a conversation with us before jumping in may be helpful. As always, we like to be sure to get the maximum number of interviews per submission, using a well-informed, highly targeted, and selective approach, taking into account short, medium and long-term career aims.
Making a well informed decision during a job search is easier said than done – the information we provide comes from 10 years of being the market leader in US attorney placements at the top tier firms in Asia. There is no substitute for having known a hiring partner since he/she was an associate or for having helped a partner grow his or her practice from zip to zooming, and this is happily where we stand today – with years of background information on just about every relevant person in all the markets we serve, and most especially in Hong Kong/China/Greater Asia. So get in touch and get a download from us this week if we can fit it in, or soon in any case!
The legal industry is being disrupted at every level by technological advances. While legal tech entrepreneurs and innovators are racing to create a more efficient and productive future, there is widespread indifference on the part of attorneys toward these emerging technologies.
When the LexisNexis Cloud Technology Survey results were reported earlier this year, it showed that attorneys were starting to peer less skeptically into the future, and slowly but surely leaning more toward all the benefits the law cloud has to offer.
Because let’s face it, plenty of attorneys are perhaps a bit too comfortable with their “system” of practice management, which may or may not include neon highlighters, sticky notes, dog-eared file folders, and a word processing program that was last updated when the term “raise the roof” was still de rigueur.