This week, the Securities and Exchange Commission released new proposed rules that would permit but regulate the offer and sale of securities through crowdfunding. Sounds pretty awesome, except maybe for the “regulate” part.
Crowdfunding, for those of you whose artsy friends have not already solicited Kickstarter donations from you, is an internet-based fundraising method. It typically involves musicians, filmmakers, artists, or designers gathering small financial contributions from a large number of individuals. In exchange for a pledge to the project or startup, backers usually receive some token of appreciation related to the project they are funding — a CD, tickets to live recording session of an orchestral arrangement of music from the Pokemon video game franchise, a signed copy of a book, well wishes from a psychic goat, etc. Websites such as Kickstarter and Indiegogo serve as exchanges where interested investors link up with aspiring artists, entrepreneurs, and inventors.
Currently, crowdfunded projects are not selling ownership rights in the projects to their financial contributors. Those who pledge money for you to open your dreamed-of cheese bar are not buying stock in your cheese bar. Offering contributors a share of future financial returns, after all, usually triggers the application of federal securities regulations. However, thanks to these new rules proposed by the SEC, pushed forward by 2012’s Jumpstart Our Business Startups (JOBS) Act, this may now change. Subject, of course, to some oversight by the Feds. Let’s take a look at the rules and see if they are likely to Kickstart, er, jumpstart our nation’s business startups….
* A look at how one expert witness helped Mark Cuban win in the insider trading case. The government should have hired the Spurs — they figure out how to beat Mark Cuban constantly. [The Expert Institute]
* This guy forgot to book a wedding venue and rather than admit it, called in a bomb threat. How mean would his bride-to-be have to be for him to commit a crime rather than disappoint? So anyway, he’s going to jail now. [Associated Press]
* Man arrested for punching a police horse. I mean, Mr. Ed shouldn’t have mouthed off like that. [Slate]
* The chief of FERC will be joining a top law firm in Portland. Someone send Jon Wellinghoff a complete box set of Portlandia so he knows what he’s getting into. [Breaking Energy]
* “There are no magic bullets here.” Caught in a “trilemma,” President Obama is up against the wall and is running out of options. He soon might be forced to choose the least unconstitutional solution to the nation’s problems. [Bloomberg]
* During the government shutdown, it certainly wouldn’t be worth it for furloughed employees to hire lawyers to fight their “essential” versus “non-essential” determinations — please, like they’ll be able to afford legal representation right now. [National Law Journal]
* It seems some partners at both Dentons and McKenna Long & Aldridge aren’t fans of a possible tie-up, so they’re heading for the hills as fast as they can. Perhaps it simply wasn’t meant to be? [Am Law Daily]
* It’s time for our favorite show, As the Weil Turns! Partners from various offices are departing for other Biglaw firms, and we can now confirm that Steven Peck is a new face at Proskauer. [Law360 (sub. req.)]
* We told you last week that Matthew Martens of Fabulous Fab fame would be leaving the SEC, but now we know where he’s landing. Congrats on your new home at WilmerHale. [WSJ Law Blog (sub. req.)]
* Ohio is the latest state to offer “hazy” abortion restrictions that skirt the very edge of Supreme Court jurisprudence in order to make women feel guilty about their own right to choose. [New York Times]
* “Without makeup she looks like the Joker in Batman.” Joan Rivers is locked in a $15 million condo catfight with a Canadian socialite who isn’t afraid to pull punches. Meow! [New York Daily News]
* Do you want to be a partner? These 12 simple rules are a good start. (Not featured: Rule 13. Have incriminating pictures of the other partners.) [At Counsel Table]
* The University of Vermont and Vermont Law School are considering a joint “3-2″ degree program. So if you’re 18 years old and positive you want to grow up to be a lawyer, you may soon have a lower cost option. You’re also probably a tool. [AP via Boston.com]
* Can introverts be solo practitioners? It’s an interesting question, but since Growth is Dead (affiliate link) notes that even rainmakers are tragically lacking in sociability, it’s likely that most lawyers across firms are introverted. [Lawpolis]
* St. Louis University Law School has taken over and refurbished an old building in downtown St. Louis. See, it’s possible to run a law school without spending money on MOAR BUILDINGS! [Urban Review STL]
* A poem about CLE. Wait, are there people not doing their CLE online? [Poetic Justice]
* Matthew Martens, the senior SEC attorney who ran the “Fabulous Fab” trial, is leaving the agency. Possible landing spots for Martens include Kirkland & Ellis; Paul Weiss; WilmerHale; Latham & Watkins; and Cleary Gottlieb. [Wealth Management]
* If the government shuts down and then defaults on its debt, Wall Street worries that it would “shake the foundations of the global financial system.” Hooray for political asshattery! [DealBook / New York Times]
* At least six of the Supreme Court’s judicial precedents are up for reconsideration in the upcoming Term, and high court commentators think the resulting decisions could be a mixed bag. [National Law Journal]
* Apparently low-income New Yorkers’ legal problems are “not worthy of a ‘real lawyer,’” or at least that’s the message that will be given if non-lawyers are allowed to provide legal services. [New York Law Journal]
* Sorry, lady, not enough prestige. A Brazilian journalist was allegedly on the receiving end of some “extremely violent” police behavior at Yale Law School after attempting to interview Justice Joaquim Barbosa at a private event. [The Guardian]
* Mark Cuban’s insider trading case is heading to trial today, but we genuinely wonder how he’ll be able to convince a jury that he’s “humble and affable,” rather than the “master of the universe.” [Boston Herald]
Here’s some friendly advice: when you’re drunk, try to keep your mouth shut. Or at least keep your work-related thoughts to yourself. This is certainly true for junior lawyers, but it goes for partners as well.
According to a complaint just filed by the Securities and Exchange Commission, an IP partner at a leading law firm had a few too many drinks, then got a little “TMII” — “too much (inside) information” — with his investment adviser. That adviser then traded on the material, nonpublic information, the SEC alleges….
* The hits keep on coming for Curt Schilling. Now the SEC has woken up and decided to probe the $75 million he secured from the state of Rhode Island (already the subject of another suit). Maybe he can fake another bloody sock to generate some sympathy. [Bloomberg]
* Apple sold a “Season Pass” to Breaking Bad Season 5 and then refused to honor the second half of the season to its subscribers, prompting an Ohio doctor to file suit for $20, with hopes of building a class action. Look, Apple needed that money; Tim Cook is desperate these days. [Deadline: Hollywood]
* Speaking of Apple, the Federal Circuit looks like it’s going to give Apple another crack at its claim that Google ripped off the iPhone patents, citing “significant” errors on the part of the last judge to rule on the dispute: Richard Posner. You come at the king, you best not miss. [Wall Street Journal]
* And last, but definitely not least, Apple’s new fingerprint ID will be the death of the Fifth Amendment. Discuss. [Wired]
* A film chock-full of unsanctioned footage and insulting knocks on Disney has been picked up for distribution. This is your official warning that it’s time to prepare the beauty pageant pitch for the Disney execs. [Grantland]
* If you’re still hankering to read up on the legality of the impending intervention is Syria, here’s a thorough bibliography. This should keep you busy for a while. [Lawfare]
* The re-sentencing of the teacher who got 30 days for raping a 14-year-old girl was blocked today by the Montana Supreme Court as outside the authority of the trial judge. We’ll see how this resolves itself. Remember, if you outlaw taking advantage of troubled 14-year-old girls, only outlaws will take advantage of troubled 14-year-old girls. [NBC News]
* Attorney and New York public official Christine Quinn charged in prescription drug scandal. Oh. Wait. Not thatChristine Quinn. [Times Union]
* An SEC attorney files a serious lawsuit about the investment managers who collapsed the economy. Unfortunately, the suit is against the SEC itself for allegedly retaliating against the attorney when she recklessly suggested the SEC do its “job.” [Courthouse News Service]
* What’s the most dangerous state to live in? Check out this interactive graphic. Fun fact: you’re most likely to get the Clap, Chlamydia, and then get murdered in Washington, D.C. Ah, Washington. [Top Masters in Health Care]
* Today in Bizarro Land, “feminists” are now arguing against birth control. They also really enjoy “Blurred Lines” now. [The Guardian]
* Rhode Island’s proposed marriage equality bill might include a provision allowing for-profit vendors to opt out of serving gay couples based on homophobia personal beliefs. Imagine how well letting businesses opt out of anti-discrimination laws would have worked in taking down segregation. [Huffington Post]
* PepsiCo can no longer label its Naked juices as “natural” because the only place you can find more unnatural substances in something naked is in a Vivid Video production. [New York Daily News]
* The New Yorker shines a light on the world of civil asset forfeiture. In honor of Shark Week, the article should have spent a lot more time on the United States v. Approximately 64,695 Pounds of Shark Fins case. [The New Yorker]
* Thomas J. Kim, the Chief Counsel and Associate Director of the Securities and Exchange Commission’s Division of Corporation Finance since 2007, is going to be a partner at Sidley Austin. Don’t let the revolving door hit you on the way out! [Bloomberg Businessweek]
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.
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: email@example.com.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.