A board of directors’ vision and leadership becomes particularly vital during times of distress.
The U.S. Department of Justice (DOJ) has a track record of aggressively pursuing those suspected of fraudulently exploiting federal relief programs meant to combat crises,1 and early signs indicate that DOJ will continue this practice with the current COVID-19 pandemic.
Scrutiny into Paycheck Protection Program Loans Intensifies — Attracts SEC Attention
On May 4, 2020, the Federal Reserve Bank of New York (“the Fed”) released Frequently Asked Questions (“FAQ”) regarding the previously announced Primary Market Corporate Credit Facility (“PMCCF”) and the Secondary Market Corporate Credit Facility (“SMCCF”). The PMCCF is intended to allow eligible companies access to credit so they are better able to maintain business operations and capacity during the period of dislocation related to the pandemic.
As COVID-19 continues to claim lives and disrupt the global economy, the U.S. Securities and Exchange Commission (the “SEC”) has begun taking a number of actions to protect investors from COVID-19-related frauds.
As the first quarter earnings season kicks off over the next few weeks, public companies need to figure out how best to describe the effects of the novel coronavirus (COVID-19) crisis on their business, both in their historical results for the first quarter of 2020 and on their prospects going forward.
In January 2020, which now seems like a very long time ago, I was speaking to a group of directors on board oversight of risk management, and at one point during my talk I uttered a phrase I’ve been known to say, “risk management is crisis management, and crisis management is risk management.”
“Will Institutional Shareholder Services (“ISS”) and Glass Lewis recommend against us if we adopt a poison pill?” This is among the most common questions directors ask outside advisors as boards across corporate America ponder whether a shareholder rights plan (a/k/a “poison pill”) is a prudent measure for their companies to adopt during extreme market volatility amidst the COVID-19 pandemic.
The Division of Corporation Finance of the Securities and Exchange Commission issued guidance on March 25, 2020, about disclosure considerations and other securities laws matters relating to COVID-19…
Enterprising plaintiffs’ attorneys have already begun seeking to take advantage of the stock market declines that have accompanied the COVID-19 outbreak by filing class action lawsuits alleging that these declines were caused, not by an unforeseeable public health crisis, but by the revelation that prior statements made by the company’s directors and officers were fraudulent…