Digital Commons Network^™

Valuing Esg, Aneil Kovvali, Yair Listokin

BYU Law Review

Corporate environmental, social, and governance (ESG) commitments promise to make capitalism better. Unfortunately, ESG has become a hotbed of hype and controversy. The core problem is that ESG mixes vague environmental and social goals with a profit maximization goal and does not provide a framework for resolving the conflicts that exist between them. The result is confusion that invites deception and cynicism. This Article proposes a mechanism for resolving conflicts between goals by translating them into the common language of money. Once nonpecuniary environmental or social goals are translated into dollar values, they can provide clear and actionable guidance for …

Fraud And Abuse Law: Missed Opportunities To Enhance Health Equity, Joan H. Krause

Annals of Health Law and Life Sciences

No abstract provided.

It Takes A Thief…. And A Bank: Protecting Consumers From Fraud And Scams On P2p Payment Platforms, Cathy Lesser Mansfield

University of Michigan Journal of Law Reform

This Article proposes statutory and regulatory changes to the Electronic Fund Transfer Act; Regulation E; and the Bank Secrecy Act/Anti-Money Laundering regulations to protect consumers who use instant payment platforms in the United States (such as Zelle and Venmo) from scam artists and fraudsters. After discussing current fraud scams on these payment platforms, the Article discusses the history and context of the 1978 Electronic Fund Transfer Act and Regulation E, and the definition of unauthorized payments and payments made in error therein. The second part of this Article explores changes to the Bank Secrecy Act/Anti-Money Laundering regulations that might make …

A New Era Of Accountability? The Holding Foreign Companies Accountable Act’S Pursuit Of Regulatory Equality, Robert Ruelas

Northwestern Journal of International Law & Business

This paper discusses the Holding Foreign Companies Accountable Act (HFCAA) as a response to the long-standing regulatory disparities between U.S. and foreign firms listed on U.S. stock exchanges, with particular regard to foreign firms from China. The HFCAA requires that any firms listed on U.S. stock exchanges be subject to inspections by the Public Company Accounting Oversight Board (PCAOB) or face delisting, aiming to eliminate historic regulatory disparities. The paper begins by highlighting the historic regulatory gap in oversight resulting from China’s lack of cooperation with U.S. regulators and continues by discussing the investor harm from various scandals that could …

An Analytical Examination Of The Inefficacy Of China’S Independent Director System: A Comparative Perspective, Nanzhu Wang

Northwestern Journal of International Law & Business

This paper analyzes the effectiveness of China’s independent director (ID) system in listed companies following the 2023 regulatory reforms enacted by the China Securities Regulatory Commission (CSRC). These reforms raised the independence standards for IDs by broadening disqualification criteria and modifying the appointment mechanisms. Despite the establishment of an ID system this century and the recent enhanced standards, empirical evidence indicates persistent shortcomings in China’s ID mechanism. Many of the positive outcomes initially attributed to IDs—such as improved internal control or better firm performance—cannot conclusively isolate IDs’ independence or expertise as the true cause. In contrast, negative evidence, which specifically …

Conducting Research With Highly Portable Mri In Community Settings: A Practical Guide To Navigating Ethical Issues And Elsi Checklist, Francis X. Shen, Susan Wolf, Frances Lawrenz, Donnella S. Comeau, Barbara J. Evans, Damien Fair, Martha J. Farah, Michael Garwood, S. Duke Han, July Illes, Jonathan D. Jackson, Eran Klein, Matthew S. Rosen, Efraín Torres, Paul Tuite, J. Thomas Vaughan

Articles

Highly portable and accessible MRI technology will allow researchers to conduct field-based MRI research in community settings. Previous guidance for researchers working with fixed MRI does not address the novel ethical, legal, and societal issues (ELSI) of portable MRI (pMRI). Our interdisciplinary Working Group (WG) previously identified 15 core ELSI challenges associated with pMRI research and recommended solutions. In this article, we distill those detailed recommendations into a Portable MRI Research ELSI Checklist that offers practical operational guidance for researchers contemplating using this technology.

Progressive Constitutionalism And Its Libertarian Discontents: The Case Of Lgbtq Rights, Carlos A. Ball

Saint Louis University Law Journal

This Article, based on the 2023 Childress Memorial Lecture given at the Saint Louis University School of Law, argues that libertarian political morality and constitutionalism constitute double-edged swords for progressives. On the one hand, libertarian principles have helped advance some progressive objectives inside and outside of the courts, including several related to LGBTQ rights. On the other hand, libertarian understandings of the Constitution have undermined a wide array of other progressive distributive and egalitarian objectives. In promoting a generalized skepticism of state action, a progressive constitutionalism that embraces (or fails to question) the libertarian ethos of limited government and exclusively …

Conducting Research With Highly Portable Mri In Community Settings: A Practical Guide To Navigating Ethical Issues And Elsi Checklist, Francis X. Shen, Susan M. Wolf, Frances P. Lawrenz, Donnella S. Comeau, Barbara J. Evans, Damien A. Fair, Martha J. Farah, Michael Garwood, Duke Han, Judy Illes, Jonathan D. Jackson, Eran Klein, Matthew S. Rosen, Efraín Torres, Paul Tuite, J. Thomas Vaughan

UF Law Faculty Publications

Highly portable and accessible MRI technology will allow researchers to conduct field-based MRI research in community settings. Previous guidance for researchers working with fixed MRI does not address the novel ethical, legal, and societal issues (ELSI) of portable MRI (pMRI). Our interdisciplinary Working Group (WG) previously identified 15 core ELSI challenges associated with pMRI research and recommended solutions. In this article, we distill those detailed recommendations into a Portable MRI Research ELSI Checklist that offers practical operational guidance for researchers contemplating using this technology.

Specialist Directors, Yaron Nili, Roy Shapira

Faculty Scholarship

What determines the effectiveness of corporate boards? Corporate legal scholars usually approach this question by focusing on directors’ incentives, such as counting how many directors are independent or whether the roles of the CEO and Chair are separated. Yet on the ground, the focus has been shifting to directors’ skill sets and experience. Investors, regulators, and courts are now pressuring companies to appoint directors with specific types of expertise. In response, more and more companies are adding what we term “specialist directors”: a DEI director, a climate director, a cyber director, and so on. These changes in board composition could …

The Limits Of Individual Prosecutions In Deterring Corporate Fraud, Samuel W. Buell

Faculty Scholarship

Fifteen years after the largest financial scandal and economic crisis in a century, discussion of the problem of corporate crime too often borders on cliché. Endless calls from Congress, the media, the public, many scholars, and even the Justice Department itself, to recommit, over and over, to locking up more managers and executives to deter corporate wrongdoing portray the problem as relatively straightforward and blame legislative and executive failure of will. Through examination of the litigation record from over 100 prosecutions spanning the period from the 2008 financial crisis to the present, this Article presents evidence that relying on individual …

A Bona Fide Dispute: Can Bankrupt Debtors Sell Assets Free And Clear Of Federal Civil Forfeiture Claims?, Joseph Peter Gomez

Fordham Journal of Corporate & Financial Law

Auctions are wheeling-dealing extravaganzas in which frenzies of bidders fight over shiny objects. What would happen if the government busted down the doors of the auction house, took the shiny objects, and sold them online? An asset sale through section 363(b) of the Bankruptcy Code provides a court-supervised opportunity to maximize economic value for the bankruptcy estate. To sell estate assets, the debtor must either (1) pay off each creditor holding an interest in the assets or (2) strip the creditor’s interest and attach it to the proceeds of the sale. When the government asserts a civil forfeiture claim against …

After Smith Falls: Corporate Free Exercise Lochnerism, Daniel J. H. Greenwood, Nicholas E. Tramposch

South Carolina Law Review

No abstract provided.

Corporate Human Trafficking, Carliss Chatman

Faculty Journal Articles and Book Chapters

The utilization of the internet for human trafficking and sexual exploitation is not an issue that can be tackled one corporation, one country, or one market sector at a time. It is an international problem that requires broader solutions that can protect and provide remedy to victims without chilling the freedom of speech and freedom of contract of consensual parties engaged in sex work. Recent changes to laws related to human trafficking have strengthened the power of litigation, authorizing civil lawsuits against perpetrators of human trafficking that may include third-parties who knowingly benefit from trafficking conduct—such as internet providers, business …

Ethics Of Innovation: A Framework For Responsible Innovation Governance, Nicole Morris

SMU Science and Technology Law Review

Over the past several years, startups that once seemed destined for greatness have failed or collapsed because of fraud committed by the founders. Most notable are the Theranos and FTX business collapses, which culminated in the convictions of two infamous entrepreneurs, Elizabeth Holmes and Sam Bankman-Fired, respectively. Startup innovators are not alone when it comes to morally dubious behavior. According to Retraction Watch, nearly 5000 papers published in science & engineering journals were retracted in 2022. Research misconduct allegations eventually led to the resignation of Stanford University President Marc Tessier-Lavigne in July 2023. The research scandal at Stanford received lots …

Using State And Local Governments’ Purchasing Power To Combat Wage Theft, Courtlyn G. Roser-Jones

Washington and Lee Law Review

Regulatory efforts to curb wage theft are failing. And for good reason: these laws generally empower individual workers to pursue their rights when employers neglect to pay them what they are owed and deter employers with substantial penalties. But the vast majority of workers do not take formal action against their employers. So, when the penalties for committing wage theft are almost entirely triggered by claims workers do not bring, they do not deter employer behavior. Instead, because the likelihood of being penalized at all is so low, some employers make profit-maximizing decisions to commit wage theft on a large …

The Small Business Killer: How Fincen Enforcement Of The Cta Could Destroy The Last Bastion Of The American Dream, Samantha M. Alecozay

Faculty Articles

The Corporate Transparency Act (CTA), passed into law in 2021 and made effective January 1, 2024, mandates the creation of a nationwide database that collects owner information of certain legal entities to help combat money laundering and other illicit financial activities. The CTA requires that the legal entity owners provide necessary information directly to the federal government, rather than relying on state and/or federal government officials to collect the information on their behalf. Further, failure to comply may result in the legal entity and owners incurring significant civil penalties of up to $591 per day of violation and even criminal …

Founder Worship, Effective Altruism, And Corporate Governance, Jennifer S. Fan, Xuan-Thao Nguyen

Articles

Founders are the heart of any startup. Oftentimes, they are given considerable latitude in managing a company, particularly if they are hailed as a visionary founder in a pathbreaking new industry. Additionally, it is assumed that underpinning their actions is the desire to do good. Unfortunately, sometimes this leads to what we term founder worship where the promise of the founder and the innovation may lead to perverse outcomes because too much control is ceded to the founder and there is a lack (or sometimes complete absence of) corporate governance. When unlimited control is coupled with "do gooderism," which in …

Valuing Esg, Aneil Kovvali, Yair Listokin

Articles by Maurer Faculty

Corporate environmental, social, and governance (ESG) commitments promise to make capitalism better. Unfortunately, ESG has become a hotbed of hype and controversy. The core problem is that ESG mixes vague environmental and social goals with a profit maximization goal and does not provide a framework for resolving the conflicts that exist between them. The result is confusion that invites deception and cynicism. This Article proposes a mechanism for resolving conflicts between goals by translating them into the common language of money. Once nonpecuniary environmental or social goals are translated into dollar values, they can provide clear and actionable guidance for …

After Smith Falls: Corporate Free Exercise Lochnerism, Daniel J.H. Greenwood, Nicholas E. Tramposch

Hofstra Law Faculty Scholarship

While the Supreme Court has extended many constitutional privileges to business corporations, it has not held that they have a full constitutionally protected right to practice religion comparable to that of citizens. Employment Division v. Smith long served as a barrier to Free Exercise claims for special exceptions to neutral and generally applicable laws. But as the Court moves away from Smith, the issue of corporate Free Exercise rights must be confronted. The freedom of religion is a critically important individual right in a free country. But individual rights often conflict with collective religious practice; religious freedom is the opposite …

The Present And Future Of Ai Usage In The Banking And Financial Decision-Making Processes Within The Developing Indian Economy, Dr. Shouvik Kumar Guha, Bash Savage-Mansary, Dr. Navyajyoti Samanta

Indian Journal of Law and Technology

In course of this paper, the authors have soght to examine the extent to which technology based on artificial intelligence (AI) have made inroads into the banking and financial sectors of a developing economy like India. The paper begins with providing a contextual background to the adoption of such technology in the global financial arena. It then proceeds to identify and categorise the forms of AI currently being used in the Indian financial sector and also considers the different channels of operation where such technology is in vogue. The advantages of using such technology and the future goals for integrating …

The War On Gangs: El Salvador’S Playground For International Human Rights Violations, Sanobar Valiani

University of Miami Inter-American Law Review

International human rights law was developed with the underlying philosophy that all human beings are born free and equal in dignity and rights. However, since its development, we have seen a vast number of human rights violations persist with no recourse. The War on Gangs in El Salvador is just one example of this. This Note examines the history of the War on Gangs in El Salvador, the tumultuous political landscape that has spurred as a result, and how political efforts to address gang violence have been used as a tactic to strip Salvadorans of their fundamental rights and dignity. …

Legal Ethics, Patrick Emery Longan

Mercer Law Review

This Survey covers the period from June 1, 2022 to May 31, 2023 and discusses developments with respect to attorney discipline, bar admission and readmission, malpractice and other civil claims against lawyers, ineffective assistance of counsel, prosecutorial misconduct, attorney’s liens, judicial conduct, disqualification and withdrawal of counsel, contempt, proposed formal advisory opinions of the State Bar of Georgia Formal Advisory Opinion Board, and proposed amendments to the Georgia Rules of Professional Conduct.

Consumer Harms Arising From The Competition Dynamic Of E-Commerce Platforms In Malaysia, Tze Chin Ong Dr, Mei Fei Lee Ms., Norhoneydayati Abdul Manap, Zalina Abdul Halim Dr., Sridevi Thambapillay

International Journal on Consumer Law and Practice

The structure of the digital market of e-commerce platforms is dynamic, with a combination of characteristics such as strong network effects, concentrated multi-sided platforms, extreme economies of scale and scope, low marginal costs, and high data returns. These strong network externalities within the multisided e-commerce market make the competitive environment in e-commerce significantly different from the conventional monogamous market as they create gatekeeper positions favouring a few incumbent e-commerce platforms. In these circumstances, gatekeeper incumbent e-commerce platforms often set commercial conditions that have the effect of undermining other players and potential rivals within the ecosystem. In this regard, there has …

Enterprise, Liability, And Insolvency: An Essay In Honor Of Aaron Twerski, Edward Janger

Faculty Scholarship

No abstract provided.

Indonesian Capital Market Investor Protection In Cases Of Embezzlement, Arman Nefi, Adiwarman Adiwarman

Indonesia Law Review

Law Number 8 of 1995 on Capital Market, in Articles 90 to 98, regulates fraud, market manipulation and insider trading. There is no regulation of embezzlement in the Indonesian Capital Market. Have the legislators forgotten, or have anticipated that there will never be embezzlement in the legal realm of the Indonesian Capital Market? The paper deals with the absent of criminalization of embezzlement in capital market act and produce the recommendation to cope with the issue. This study uses a normative legal analysis method with a conceptual, an analytical, and a case study approach. Several legal cases that are strongly …

Toward A Multilevel Sociology Of Fraud, Brooke Harrington, Camilo Arturo Leslie

Northwestern University Law Review

This Essay applies a distinctively sociological multilevel analysis to fraud to provide novel insights and recommendations on an old problem. Rather than treating fraud as a problem of “criminogenic environments” or of individual psychologies and motivations, this multilevel analysis investigates the ways in which individuals (the micro level) interact with organizations (the meso level) and institutional systems (the macro level) to produce fraud. We illustrate these interactions and the insight that an interactive analysis can provide by using ethnographic data from an in-depth case study of the R. Allen Stanford offshore financial fraud. The case, which occurred in the Caribbean …

The Persistent Limits Of Fraud Prevention In Historical Perspective, Emily Kadens

Northwestern University Law Review

Fraud has been ubiquitous throughout history, and so have the methods of fraud prevention. History demonstrates that no anti-fraud measures have fully succeeded in eliminating deceptive market behavior. Instead, this Essay uses evidence from premodern England to argue that societies and individual contracting parties balance tolerating a certain amount of fraud against the costs of fraud prevention.

Auditing Overseas: How The United States Can Learn From Recent Financial Audit Reform In The United Kingdom, Daniel Damitio

Northwestern University Law Review

Financial auditing is one of the cornerstones of an effective capital market structure. When performed correctly, an independent financial audit provides investors with the security they need to effectively transact based on company disclosures. When this system fails, however, the results for investors and the economy as a whole can be devastating. In recognition of this danger, the market for financial auditing in the United States is regulated by a number of governmental and nongovernmental bodies charged with maintaining its health and effectiveness. But stakeholders within the U.S. market and government have criticized these regulators for failing to adequately respond …

Place-Based Versus Practice-Based Norms For American Lawyers: "It's The End Of The World As We Know It (And I Feel Fine)", James E. Moliterno

South Carolina Law Review

No abstract provided.

Spacs, Forward-Looking Statements, And Rule 419: Is Sec Rulemaking Needed?, Nicholas Vota

St. John's Law Review

(Excerpt)

On October 8, 2020, FirstMark Horizon Acquisition Corp. (“FirstMark” or “Company”) closed an initial public offering (“IPO”) of 41,400,000 units. Each unit was priced at $10.00 and “consist[ed] of one share of Class A common stock of the Company . . . and one-third of one redeemable warrant of the Company.” Each whole warrant provided its holder with the right to purchase “one share of Class A [c]ommon [s]tock for $11.50 per share.” FirstMark generated $414,000,000 in connection with the IPO. These funds were then placed in a trust account and maintained by a trustee.

In a filing submitted …