Several years back, the Washington Post uncovered multiple instances of federal judges committing basic ethical breaches related to ruling on cases despite holding significant financial stakes in one party. It was an embarrassing black eye for the federal judiciary and the legal system altogether. It forced the bench to develop a comprehensive financial reporting system and an automated computer check to avoid any further ethical lapses. Sounded reasonable at the time.
Well, it turns out the computer system doesn’t work.
Or at least it doesn’t work as well as anyone would have hoped. The Center for Public Integrity (CPI) just released a report this morning reflecting their efforts to manually review a sampling of federal court decisions and cross-check those with financial disclosure forms. The report found multiple lapses. The most egregious involved a judge with as much as $100,000 in Johnson & Johnson when he ruled in their favor on an appeal regarding a malfunctioning implant.
But by and large the legal world’s responses to these findings vary from tone-deaf to downright hypocritical….
The world is diverse enough that it is conceivable that a mogul who needed to address an urgent debt situation at one of his coolest companies (say a sports team or entertainment or fashion business), would sell a smaller, less sexy, but fully solvent and healthy company in a finger snap (say two months) at 75% of what could be achieved if the company sought out a wider variety of possible buyers, gave them time to digest non-public information, and put together financing.
In that circumstance, the controller’s personal need for immediate cash to salvage control over the financial tool that allows him to hang with stud athletes, supermodels, hip hop gods, and other pop culture icons, would have been allowed to drive corporate policy at the healthy, boring company and to have it be sold at a price less than fair market value, subjecting the minority to unfairness.
– Delaware Court of Chancery Chancellor Leo E. Strine Jr., rejecting lawsuits claiming that Hansjoerg Wyss, the chairman of Synthes, shortchanged shareholders when he sold the company to Johnson & Johnson.
* Johnson & Johnson will have to fix several factories after an agreement with the FDA prompted by massive product recalls. This still doesn’t explain why my bottle of Tylenol may contain tree nuts. [Bloomberg]
* Charlie Sheen hammered out a custody agreement With Brooke Mueller. That’s nice. [People Magazine]
* Texas may consider a law that would make losers pay attorneys’ fees. Easy, New York Mets. Not all losers. Just those who lose lawsuits. [New York Times]
* A discussion of the legal complaints lodged against the Wisconsin Legislature for Wednesday night’s votes. You know who’s not complaining? This guy. [Wisconsin State Journal]
* A former assistant attorney general from Maine was sentenced yesterday in a child porn case. This is definitely the year of the assistant AG. [ABA Journal]
Happy Birthday Nino
* Not all people living in Idaho are racists, duh. Some are gangsters from Boston. [New York Times]
* Law firm profits and productivity were up in 2010, while demand was flat and revenue was modestly up. Someone named Dan DiPietro and someone named Gretta Rusanow tag-teamed a report all about it. [Am Law Daily]
* A former McGuireWoods partner pleaded guilty to falsifying a tax document. [ABA Journal]
As part of a nationwide tour, Above the Law is coming to the great city of Chicago.
Join preeminent law firm management consultant Bruce MacEwen, Katten Muchin Chicago managing partner Gil Sofer, and JPMorgan Chase & Co. assistant general counsel Jason Shaffer for a panel discussion (sponsored by Pangea3) on the evolutionary and market forces bearing down on the law firm business model. Come on by Thursday, November 20, at 6 p.m., for thought-provoking discussion, food, drink, and networking.
Space is limited and there will be no on-site registration, so please RSVP
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.