Regulatory Enforcement

The Public Company Accounting Oversight Board has proposed a series of new standards and rule changes that would steer auditors in a new direction for the controversial audit of internal control over financial reporting. At a Dec. 19 meeting, the board voted unanimously to propose a new standard to replace existing Auditing Standard No. 2. […]

Mixed reviews greeted the Department of Justice’s publication of new marching orders for federal prosecutors probing allegations of corporate wrongdoing. Under the “McNulty Memo,” issued last week, U.S. attorneys are supposed to seek the approval of Deputy Attorney General Paul McNulty before asking corporations to waive the attorney-client privilege or turn over sensitive documents that […]

The new federal rules on e-discovery certainly have a hold on compliance executives’ minds these days—both figuratively and literally. In effect since last week, the rules don’t specifically address the proper procedures needed to ensure that a company’s electronic data is “held” in the event of a lawsuit. But the dramatic change in how opposing […]

Any fears that the Delaware Supreme Court might be backing off its traditional protection of corporate directors were categorically put to rest earlier this month by a decision reinforcing the high standard that must be met to sue directors for failing to exercise sufficient oversight. According to experts, the ruling in the case—Stone v. Ritter—is […]

Wanted: one C-level executive to act as trusted confidant on legal matters and chief enforcer when things go awry; must be versed in ethical behavior and a law school graduate; knowledge of corporate litigation and regulatory risks is essential; expected to lead battles against meddlesome regulators. Long hours, good pay. Welcome to the world of […]

What is electronic discovery? Discovery is the aspect of litigation in which opposing parties exchange information that may be relevant to any claims or defenses that have been asserted. This exchange of information typically occurs long before any trial. Historically, discovery was limited to paper documents. But, with the advent of computers and other electronic […]

Thanks to the growing use of unified messaging systems and upcoming changing to federal electric discovery rules, companies should brace themselves not only for new burdens of email and electronic records retention, but for heightened obligations to manage and retrieve voicemail messages and other audio files as well. Hicks “I expect that very few companies […]

Federal prosecutors recently settled two cases involving violations of the Foreign Corrupt Practices Act, underscoring the government’s growing interest in prosecuting such cases, as well as the evolving nature of the charges themselves and how they are resolved. Most notably, Norwegian oil giant Statoil, which trades on the New York Stock Exchange, confessed to bribing […]

A recent settlement forestalling criminal prosecution over allegations of market timing by a subsidiary of Prudential Financial has introduced a new twist to enforcement actions: placing responsibility for monitoring compliance with the settlement directly on the shoulders of the company’s general counsel. Typically, the Department of Justice insists that in return for entering into a […]