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 other breaking news that no one will care about now that bonus season is upon us, Justice Ruth Bader Ginsburg swapped out her neck doily for a blingy necklace from Glamour. [Josh Blackman's Blog]
* You know what the ancient Romans would’ve hated more than watching the fall of the Roman empire? The Citizens United decision. Cato, Cicero, and Julius Caesar wouldn’t have been impressed with this. [Slate]
* Why go to law school if you’re already doing well financially? Perhaps you’re just another prestige hunter. If you are, then all the better for you, because that seems to be what all of the law schools are selling these days. [Inside the Law School Scam]
* Don’t cry for Argentina: they may be in the middle of a billion-dollar bond dispute, but the uber-prestigious lawyers on either side of the case (Boies; Olson) are enough to make you forget about their troubles. [Reuters]
* A Biglaw attorney from Alston & Bird with a rare sleep disorder confronts Big Pharma and… doesn’t win. At least not yet. But on the bright side, she’s not sleeping for 18 hours anymore. [The Last Word on Nothing]
* We’re honored to announce that Above the Law was named as one of the ten law blogs in the ABA Journal’s inaugural Blawg 100 Hall of Fame. Please click here if you’d like to help us win again this year. [ABA Journal]
* After the jump, Bloomberg Law’s Lee Pacchia speaks with Bill Lawlor, a Dechert partner, who claims “hope springs eternal for M&A attorneys.” Will the mergers and acquisitions market begin to boom once again?
On any list of “scum of the Earth,” people who profiteer off of disaster victims have to make the list. Jesus, it’d be worth Hell existing just so there would be a place for people who take advantage of disasters to loot electronics or valuables (food, if you’re hungry and nobody is home, is fair game I guess). I think there are reasonable people on both sides of the New York City marathon debate, but the thought of any police not stopping a looter to deal with the marathon makes me think they should cancel this year’s event.
Of course, looters aren’t the only kinds of criminals trying to take advantage of the hurricane. The Department of Justice is warning people to be on the lookout for Sandy scams…
Nothing pisses off a lawyer more than uncertainty. Uncertainty gives rise to the risk of undermining the facade of perfect knowledge that attorneys prefer to convey to their clients. Given this character trait, it’s no surprise that the collective white-collar and corporate counsel community is freaking the hell out about every scrap of information it can glean from the Justice Department about its new Foreign Corrupt Practices Act (FCPA) enforcement policy.
So what exactly has these observant lawyers in a tizzy?
Ed. note: This new column is about sports and the law. You can read the introductory installment here.
Last night, I was having trouble coming up with something to say in this space that begins the post. I think it’s called an introduction. I called up the only woman who doesn’t screen my calls and asked for her help.
Mama Juggs: Are you in trouble? Juggs: No, mom. Christ, why would you ask me that? No, I’m finding it difficult to think up a story only tenuously related to sports that I can open my column with. MJ: I don’t understand a word of what you just said. J: My column, mom. On Above The Law. You said you’ve been reading it? MJ: *silence* J: Whatever. Mom, can you think of a sports-related story that’s mildly funny and has little-to-no point? MJ: Do you remember how your father used to shoot free throws? God, you’d stand out there for hours rebounding for him. How many did he make in a row? J: Something over 100. I don’t remember. Mom, that’s not a ripping yarn, you’d have to agree. MJ: You were too young to remember this, but the way his teams ran defense at Lucky High. Oh God, it was poetry. Every motion had an order, but it was so fluid and graceful. It was intuitive, y’know? Your father was so proud of those boys. J: This isn’t going anywhere, is it? MJ: The team that took second at state was great, but it was actually the team after that that your father always claimed was the best he coached. I can still see him walking out onto the court with the boutonnière and he looked so impressive. Just striding onto that court with all the confidence in the world. I’ll have to see if I can find a picture. I know I have one around here. He looked so handsome, your dad did. J: Didn’t he get kicked out of a lot of games for arguing with refs?
It is commonplace for settlements to include no binding admission of liability. A settlement is by definition a compromise. We know of no precedent that supports the proposition that a settlement will not be found to be fair, adequate, reasonable, or in the public interest unless liability has been conceded or proved and is embodied in the judgment. We doubt whether it lies within a court’s proper discretion to reject a settlement on the basis that liability has not been conclusively determined.
Having considered the various explanations given by the district court for its refusal to permit the settlement, we conclude that the S.E.C. and Citigroup have a strong likelihood of success in their joint effort to overturn the district court’s ruling.
* Rick Perry’s motion for a temporary restraining order over the printing of Virginia’s primary ballots without his name on them has been denied. Damn all of those unelected, activist judges! [Bloomberg]
* Jed Rakoff isn’t the only one with cojones big enough to challenge the SEC. Wisconsin Judge Rudolph Randa fell right in line, and cited the controversial Citigroup case as precedent. [New York Times]
* Looking for ways to lower your law firm’s operating expenses in 2012? Here are some suggestions for Biglaw firms. At least they deal with technology, not layoffs. [Law.com]
* Long, hard litigation: a Los Angeles city attorney would like to pull out of a ballot measure that requires porn stars to wear condoms while filming before people start suing. [Los Angeles Times]
* Do you want to think about babies when you’re being served at a strip club? Didn’t think so. This pregnant waitress is suing over being demoted, and then fired by the Hustler Club. [Gothamist]
* Grumpiest old man: at almost 100, an Italian man is set to become the world’s oldest divorcé. Hope he had a prenup (even though they probably didn’t exist back then). [Herald Sun]
* Pizza, beer, and hot chicks: what’s the problem? A lawsuit over the “hot chicks.” A former bartender says he was replaced in favor of hotties, and now he wants justice (and money). [11 Alive News]
* Like a virgin, detained for the very first time: thanks to this court order, Egypt will be forced to come out of the dark ages and ban virginity tests for female detainees and military prisoners. [CNN]
* Oh, hell no. Judge Jed Rakoff issued an order 78 seconds after the Second Circuit decided to delay the SEC’s Citigroup case. His pimp hand is strong (which is impressive!). [WSJ Law Blog]
* As an attorney, you should know that the law stops for no one, not even Santa Claus. Major deals in Asian markets kept many Biglawyers working hard this holiday season. [Am Law Daily]
* Social media subpoena fail: “Haha. Boston PD submitted to Twitter for my information. Lololol? For what? Posting info pulled from public domains? #comeatmebro” [Boston Herald]
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 six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
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:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.