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Series

2009

Business Organizations Law

Institution
Keyword
Publication

Articles 151 - 155 of 155

Full-Text Articles in Law

Public Ownership. Firm Governance, And Litigation Risk, Eric L. Talley Jan 2009

Public Ownership. Firm Governance, And Litigation Risk, Eric L. Talley

Faculty Scholarship

Many going-private transactions are motivated – at least ostensibly – by the desire to escape the burdens and costs of public ownership. Although these burdens have many purported manifestations, one commonly cited is the risk of litigation, which may be borne both directly by the firm and/or its fiduciaries or reflected in director and officer insurance premia funded at company expense. An important issue for the "litigation risk" justification of privatization is whether alternative (and less expensive) steps falling short of going private – such as governance reforms – may augur sufficiently against litigation exposure. In this Article, I consider …


The Empagran Exception: Between Illinois Brick And A Hard Place, Victor P. Goldberg Jan 2009

The Empagran Exception: Between Illinois Brick And A Hard Place, Victor P. Goldberg

Faculty Scholarship

Before it was uncovered and prosecuted, the international vitamin cartel, known as "Vitamins, Inc." by its perpetrators, was extraordinarily successful. Estimates of cartel profits run as high as $18 billion (in 2003 dollars). In addition to substantial criminal sanctions, cartel members paid over $2 billion to American plaintiffs. When foreign plaintiffs tried to sue the foreign defendants in American courts, however, they encountered resistance. A trial court read the Foreign Trade Antitrust Improvements Act ("FTAIA") to restrict the reach of the Sherman Act and preclude foreign purchasers from suing the foreign defendants. The D.C. Circuit reversed, holding that the facts …


Introduction: Unsettling Questions, Disquieting Stories, Mae Kuykendall, David A. Westbrook Jan 2009

Introduction: Unsettling Questions, Disquieting Stories, Mae Kuykendall, David A. Westbrook

Journal Articles

The Business Law and Narrative Symposium, held at Michigan State University on September 10-11, 2009, brought together nationally known legal scholars, and scholars from other disciplines, to discuss whether and how the institution of the corporation was embedded in social narratives, public stories. This introductory essay reviews the responses of these scholars to the thesis of Kuykendall's article, No Imagination: The Marginal Role of Narrative in Corporate Law. The authors conclude with a hope that corporate law might offer a more literary sensibility by which to make our lives in global capitalism more comprehensible.


A Fair Price And A Fair Deal: On The Future Of 'Entire Fairness' In Freezeouts, Faith Stevelman Jan 2009

A Fair Price And A Fair Deal: On The Future Of 'Entire Fairness' In Freezeouts, Faith Stevelman

Articles & Chapters

Controlling shareholders can compel the sale of minorities’ shares in freezeouts, potentially to their financial detriment. To limit controllers’ opportunism and support the value of minorities’ investments, the Delaware supreme court has endorsed strong minority shareholder protections under the rubric of 'Entire Fairness' – the governing standard for cash-out mergers. However, the court of chancery has refused to apply Entire Fairness to tender offer freezeouts, and is advocating unifying freezeout doctrine around a looser, deferential standard of review. The influence of popular and Congressional concern over excess plaintiff lawyers’ fees and discovery costs is likely making itself felt, although the …


Civil Liability And Mandatory Disclosure, Merritt B. Fox Jan 2009

Civil Liability And Mandatory Disclosure, Merritt B. Fox

Faculty Scholarship

This Article explores the efficient design of civil liability for mandatory securities disclosure violations by established issuers. An issuer not publicly offering securities at the time of a violation should have no liability. Its annual filings should be signed by an external certifier – an investment bank or other well-capitalized entity with financial expertise. If the filing contains a material misstatement and the certifier fails to do due diligence, the certifier should face measured liability. Officers and directors should face similar liability, capped relative to their compensation but with no indemnification or insurance allowed. Damages should be payable to the …