Corporate compliance has become an increasingly prominent area of law. The regulatory state has grown to unprecedented heights creating more regulations, which in turn has led to more violations, and higher corporate costs. For example, in 2013, J.P. Morgan agreed to a settlement with the Justice Department for a staggering $13 billion for various regulatory…
Author: Nicholas Loukides
The SEC – Catching up to the Clawback
In response to the major accounting frauds in the early 2000s, the Sarbanes-Oxley Act required chief executives and chief financial officers to affirm the accuracy of their books.1 In practice, this relevant portion of the Act sought to eliminate the temptation among executives to misstate their companies’ financial positions, which made the company look better…
Unsustainable Burn Rates
“No one’s fearful, everyone’s greedy, and it will eventually end.”1 Startup companies are burning through cash at unsustainable levels. Almost all failed startups cease to exist because cash runs out, and nearly all startups get close to running out of cash at some point, regardless of outcome.2 Every startup company is fueled by cash investments.3…