Companies may want to tighten up their electronic communications policies in light of a recent court ruling. Affirming an appellate decision, the New Jersey Supreme Court ruled unanimously in Stengart v. Loving Care Agency Inc. that attorney-client privilege applied to e-mails sent by an employee using a company-issued laptop to her lawyer through a personal […]
Melissa Klein Aguilar
Posted inEthics & Culture
Sentencing Commission Approves Changes to Chapter 8
Memo to corporate compliance executives and board members: Prepare to recheck your compliance program in light of changes to the Federal Sentencing Guidelines expected to take effect later this year. The U.S. Sentencing Commission voted to adopt changes to the guidelines that apply for the sentencing of organizations contained in Chapter 8 of the Guidelines […]
Posted inUncategorized
Climate Change Disclosures Still Up in the Air
Disclosure of climate change risks finally came to annual reports this year. So far, the picture is slightly cloudy. The Securities and Exchange Commission approved its interpretive guidance for climate change disclosure on Feb. 8, when most year-end companies were already nearly finished with their Form 10-K filings for 2009—so dramatic changes in what companies […]
Posted inRegulatory Enforcement
Healthcare Reform Expands False Claims Liability
The healthcare reform law passed by Congress last month has yet another surprise for corporate legal and compliance departments: It allows yet more whistleblower lawsuits to be filed against corporations under the False Claims Act. Formally known as the Patient Protection and Affordable Care Act, the healthcare law sharply narrows the definition of “publicly disclosed […]
Posted inFrom the Archive
Whistleblower Ruling on SOX 806, De Novo Review
A Massachusetts district court has addressed two thorny issues confronting employers defending against whistleblower claims brought under Sarbanes-Oxley: Who’s protected under the statute and whether whistleblowers are entitled to a so-called second bite at the apple. A March 31 combined ruling by U.S. District Judge Douglas Woodlock addressed motions to dismiss in two separate cases […]
Posted inFrom the Archive
XBRL U.S. Shows Common Errors, Checks Consistency
Information that might be of interest for those public companies preparing to comply with the Securities and Exchange Commission’s XRBL mandate for the first time: A new white paper detailing some of the most common errors companies make related to XBRL U.S. GAAP Taxonomy rules. Since the SEC’s mandate for companies to submit financial data […]
Posted inFrom the Archive
PwC Study Shows Lull in Securities Class-Action Filings
Companies faced fewer federal securities class action lawsuits in 2009, but they shouldn’t necessarily expect that trend to continue in the year ahead. That’s one of the takeaways from a report by PricewaterhouseCoopers detailing securities class-action lawsuit filings and settlements for 2009. Overall, the total number of federal securities class-action lawsuits filed fell to 155 […]
Posted inFrom the Archive
Pressure Prods Some Cos. to Revise Incentive Plans
Corporations are starting to go back to the drawing board to shape incentive plans and performance goals for executive compensation in 2010, thanks to economic uncertainty and populist pressure making it more difficult to get those tasks done. A look at more than 200 early proxy filings reveals some changes to incentive plan practices, with […]
Posted inRegulatory Enforcement
Innospec Settlement Shows Latest FCPA Thinking
Ethics and compliance officers might want to pay special attention to the Justice Department’s recent settlement of Foreign Corrupt Practices Act charges against chemical company Innospec, which is emerging as the latest cautionary tale about overseas bribery, self-disclosure, and global anti-corruption enforcement. Innospec, a $600 million chemical company based in Newark, Del., pleaded guilty March […]
Posted inInternal Controls
OIG Issues Recs to Overhaul SEC Bounty Program
The Securities and Exchange Commission’s bounty program for rewarding whistleblowers is sorely in need of an overhaul, according to the agency’s Inspector General, which issued nine recommendations for improving the program. An OIG review of the program, which stemmed from an issue identified during its investigation of the SEC Madoff examination and investigations, concluded that […]
