Crowdfunding

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  • Finance

    Lender-to-thy-Neighbor: P2P Lending in Perspective

    Closely related to the crowdfunding phenomenon has been the evolution of the peer-to-peer (P2P) lending model.1 As the early standard-bearers of P2P prepare to enter the public markets, the model itself is poised for greater industry and regulatory visibility. So what has the undoubtedly impressive growth of P2P revealed thus far and what might it portend for a rapidly shifting and decentralized financial sector?
  • Finance

    SEC Scrutiny of Crowdinvesting Sites Not Registered as Broker-Dealers

    On November 10, 2014, the SEC announced a settlement with Eureeca Capital SPC, which is a crowdinvesting portal incorporated in the Cayman Islands. Eureeca’s website seeks to match foreign-based issuers with investors interested in making equity investments. The website provides information about various issuers and their offerings. This information was accessible to U.S. residents, despite the fact that the securities offered through the site were not registered with the SEC. In alleging that Eureeca violated Section 5 of the Securities Act by offering unregistered securities for sale, the SEC noted that Eureeca took no steps to comply with the exemption from registration found in Rule 506(c). Specifically, the SEC alleged that Eureeca took insufficient steps to confirm that the U.S. investors were accredited investors. The SEC also alleged that Eureeca was acting as an unregistered broker-dealer by, among other things, (i) encouraging investments in the offerings on its site, (ii) completing the final legal requirements for the transaction (i.e. accommodating the swap of funds for equity), and (iii) receiving a percentage of the funds from all fully funded offerings as a fee.
  • Biglaw, Eric Holder, Football, Law Professors, Law Schools, Morning Docket, Murder, Police

    Morning Docket: 08.20.14

    * Full, fair, and independent: In a St. Louis Post-Dispatch op-ed, Attorney General Eric Holder promised “robust action” in Ferguson, Mo., in light of Michael Brown’s killing. [National Law Journal]

    * Biglaw firms have taken notice of the crowdfunding scene, and some have started up their own practice groups dedicated to the cause. Goodwin Procter just got in on the ground floor. [Crowdfund Insider]

    * Who will be honored with induction to the American Lawyer’s Legal Hall of Fame in 2014? Take a look at a list of past winners of the title to see if you can guess which legal luminaries will be next. [Am Law Daily]

    * “We are actively investigating. We will not rest until we bring this case to a close.” Police still have no leads or suspects in the tragic murder of FSU Law Professor Dan Markel. Sad. [Tallahassee Democrat]

    * Is your fantasy football league legal? Like the answer to all questions of law, it depends. Not for nothing, but we’re willing to bet that you won’t really care if it’s legal if it’s going to impede on your fun. [Forbes]

  • 1st Circuit, Antonin Scalia, Copyright, Elena Kagan, Music, Non-Sequiturs, Privacy, SCOTUS, Supreme Court, Technology

    Non-Sequiturs: 05.19.14

    * Justice Kagan received a Supreme Court fact check when she confused the site of the nation’s oldest standing synagogue with the home of the nation’s first Jewish community. At least she didn’t make a mistake about the actual law that she actually wrote. [WSJ Law Blog] * Justice Scalia may not understand how cell phones work, but even he gets net neutrality — because it’s a lot like pizza. [The Atlantic] * Marc Randazza describes the need for a right to be forgotten online. Getting forgotten online? Hey, we found a new job for Jill Abramson. [CNN] * A woman threatened to shoot up a South Carolina Burger King over a stale roll. Don’t tell her what “pink slime” is. [New York Daily News] * Cops arrest upwards of 40 people while trying to catch a bank robber. When you read the whole history, it’s actually surprising they weren’t limiting their search to people in stripes carrying bags with dollar signs on them. [Slate] * Corporate lawyer fits right into the rising phenomenon of “Bulls**t Jobs.” [Strike! Magazine] * Earlier today we wrote about a possible crowdfunded lawsuit. Here’s a discussion of legal issues involved in crowdfunding generally. [IT-Lex] * Sen. Rand Paul has a stupid idea, so he’ll probably convince a bunch of liberals to go along with it. And that would be bad news for Professor David Barron’s nomination to the First Circuit. [New Republic] * Led Zeppelin is getting sued over allegedly stealing the opening riff from Stairway to Heaven. It turns out there’s some band out there who’s sure that all that glitters is gold and they want some of it. A clip of the alleged original below…. [The Guardian]