For startups seeking to join the ranks of “unicorns”- private companies with billion-dollar valuations- the venture capital climate has never been more favorable. The number of private companies receiving billion-dollar valuations has ballooned in recent years1 and as of 2015, a record 41 companies have received exactly such a valuation.2. However, these sought-after valuations are…
Category: Blog Articles
Pharmaceutical Pricing: The Free Market and Government Regulation on Drug Companies
Since Martin Shkreli announced that he would lower the price of Daraprim by an unnamed amount at some point in the future; as of this writing, he has not done so.1 Critics of Shkreli claim that the announcement to lower the price was merely a tactic to placate critics.2 Shkreli has responded by stating that such…
The Ongoing Debate Over Federal Preemption in Breach Notification Requirements for Financial Institutions
Considering the European Union’s status as a bastion of privacy in the digital age, it may come as a surprise that currently, the EU prescribes no breach notification requirements (BNR) for financial institutions. The explanation for this conspicuous lacuna derives partly from an accident of history and partly from the same political forces that have…
EMV Credit Card Chips and the Shift in Fraud Liability
Take a look in your wallet and find your credit card. Chances are that you are one of the millions of Americans that received a “new” EMV-chip-enabled credit card.1 EMV, which stands for “Europay, MasterCard, and Visa” after the original three developers of the technology, is not a new feature, however.2 European consumers and retailers…
The SEC’s clarification to the unbundling rule and what it means for corporate inversions
Rule 14a-4(a)(3) of the Exchange Act of 1934 requires that the form of proxy “identify clearly and impartially each separate matter intended to be acted upon.”1 Rule 14a-4(b)(1) further requires that the form of proxy provide separate boxes for shareholders to choose between approval, disapproval or abstention “with respect to each separate matter referred to…
Financial Impact of Daily Fantasy Sports: Part Two
The first part of this two-part blog series discussed the legal distinction currently in place that allows daily fantasy sports sites such as DraftKings and FanDuel to operate. Although sports’ gambling is illegal in most states, the Unlawful Internet Gambling Enforcement Act legalizes fantasy sports gambling when the winnings “reflect the relative knowledge and skill…
The Square IPO and Unease over Tech Bubble 2.0
Last week, mobile payment company Square launched its IPO at $9 per share, closing the day at a 45% gain of $13.07.1 However, in spite of ending the day at a gain, Square’s IPO opening share price was lower than expected.2 As of early last week, it was speculated that the company would open at…
Exchange-Traded Funds (ETFs): Creation, Operation, and Organization under the Investment Company Act of 1940
An exchange-traded fund (“ETF”) provides securities that offer institutional investment strategies, such as those offered by a mutual fund, but makes them available on security exchanges, just like stocks.1 Consequently, this unique and dynamic investment vehicle has grown rapidly since the first ETF began operation in 1993.2 $1.4 trillion of net new ETF shares have…
Is there an Under-Criminalization of White-Collar Crimes in the United States?
The number of federal white-collar criminal prosecutions in fiscal year 2015 will be approximately 37 percent lower than the number of prosecutions in 1995.1 In a paper published in November 2015, Rena I. Steinzor, a law professor and Center for Progressive Reform scholar, contends that “we have an under-criminalization [of white-collar crimes] problem” in the United…
The Legal and Economic Pains of a Transforming Energy Portfolio
As the call for renewable energy becomes more urgent, both federal and state governments have begun implementing new apparatuses to encourage the production of renewable energy. One mechanism being utilized by many states is called a Renewable Portfolio Standard (RPS) or a Renewable Electricity Standard. These are “regulations requiring or encouraging electricity producers within a…