Business Organizations Law Commons^™

Tech Oligarchs And Corporate Vigilantism, Joao Marinotti, Asaf Lubin

Articles by Maurer Faculty

Big Tech’s unchecked power has evolved from a regulatory crisis into one concerning the rule of law itself. Shielded by the First Amendment, Section 230 of the 1996 Communications Decency Act, corporate law, and contract law, technology giants have circumvented traditional government oversight, amassing a level of power that eclipses even that of some sovereign states. No longer guided by cautious boards of directors, today’s tech empires are often ruled by impulsive billionaire CEOs, who, through a single policy change or algorithmic tweak, can upend individual rights, destabilize global markets, and erode democratic governance itself.

The scale of such dangers …

Different By Default: Nevada's Business Law Prioritizes Clarity & Efficiency, Krisanne S. Cunningham, Benjamin P. Edwards, Jeffrey P. Zucker

Scholarly Works

No abstract provided.

Validating Valuation: How Statistical Learning Can Cabin Expert Discretion In Valuation Disputes, Andrew C. Baker, Jonah B. Gelbach, Eric L. Talley

Faculty Scholarship

This article challenges conventional methods used in financial valuation across transactional and litigation domains. We show that conventional valuation methods allow for considerable discretion, making it possible for each side’s experts to submit dramatically varying valuations simply by choosing among facially reasonable values of parameters that must be selected to carry out conventional valuations. We use large-scale empirical simulations powered by real-world data to demonstrate the scope of such discretion. We next consider several alternatives based on data-driven machine learning approaches, and show that they offer both approximately unbiased estimates of valuation and substantially reduced variability in valuation results. Consequently, …

Socially-Minded Investors And Corporate Behavior, Merritt B. Fox, Menesh S. Patel

Faculty Scholarship

Many equity investors are concerned with the world’s worsening social and environmental problems and are losing faith in the capacity of political institutions to respond. Corporate behavior is often contributing to these problems. Some investors, at least if fully informed as to costs and benefits involved, would favor corrective changes to corporate behavior even where that would lessen their investment returns. Two important questions arise: (1) given existing law, are such willing-to-sacrifice equity investors currently affecting firm behavior; and (2) should there be legal reform that makes firms more sensitive to these willing-to-sacrifice investors’ preferences? This Article seeks to answer …

Active Limited Partners Flunk Functional Test, Karen Burke

UF Law Faculty Publications

In 1977, Congress enacted section 1402(a)(13), which exempts limited partners "as such" from self-employment tax on their share of partnership income. A half century later, active investment management professionals have claimed limited partner status to avoid self-employment tax on investment management fees, seemingly standing this anti-abuse rule on its head. While the Treasury twice issued proposed regulations to clarify and modernize the definition of a limited partner, these attempts encountered a firestorm of protest. The Tax Court's controversial Soroban decision rejected claims that state-law limited partners are automatically exempt from self-employment tax, holding that a functional analysis is required to …

The Coming Privatization Of Corporate Law, Dorothy S. Lund, Eric L. Talley

Faculty Scholarship

For more than a century, American corporate law has revolved around a simple competitive premise: State governments supply corporate law while companies choose their state of incorporation, and the market rewards the state offering the best corporate law product. Delaware’s longstanding market dominance (especially for public companies) is often explained through the confluence of its unusually attractive institutional package: expert judges, extensive precedent, a specialized bar, an enabling statute, and a legislature that — at least traditionally — treats corporate law as something to be calibrated technocratically rather than politicized.

Public, Private, Acquired, Alexander I. Platt, Matthew T. Wansley

Articles

For the last quarter-century, IPOs have been declining. SEC officials usually attribute the decline to startups’ choices to stay private. But that explanation is incomplete. As startups grow, they face a three-way choice between going public, staying private, and being acquired, and they have increasingly chosen the third option. In this Essay, we show how securities regulation pushes startups towards acquisitions by increasing the cost of raising capital and accessing liquidity in both public and private markets. We consider how the trend towards acquisitions could reduce competition, innovation, opportunities for diversification, and transparency. And we offer suggestions for how the …

The Corporate Restructuring Machine: Introducing An Open Platform Approach To Workouts, Horst Eidenmüller, Jared Mayer

Articles

Out-of-court corporate reorganizations, or “corporate workouts,” allow dispersed investors with differing interests to coalesce and strike deals to successfully reorganize distressed companies. Corporate workouts, however, suffer from a host of well-known problems, creating “process fragility.” Current bargaining dynamics limit the instances in which corporate workouts can be used, narrow the kinds of deals that can be made, and invite opportunistic and other socially costly behavior. Yet the Artificial Intelligence (AI) revolution is here; how can it help parties navigate corporate workouts?

In this Article, we argue that AI is well situated to help increase the efficiency of corporate workouts. Based …

Sticky Charters? The Surprisingly Tepid Embrace Of Officer-Protecting Waivers In Delaware, Jens Frankenreiter, Eric L. Talley

Faculty Scholarship

This article examines the response to Delaware’s much-heralded 2022 legal reform that permitted corporations, for the first time, to adopt charter provisions exculpating corporate officers from liability for breaching their fiduciary duty of care. Contrary to widespread predictions that corporate actors would swiftly adopt officer exculpation provisions, our analysis — using both traditional and generative artificial intelligence (AI) methods — reveals a surprisingly low rate of uptake, over three years after the reform’s enactment.

Our study makes both methodological and substantive contributions. Methodologically, we present a novel application of large language models (LLMs) to identify and interpret technical clauses in …

Poor Esg: Regressive Effects Of Climate Stewardship, Zohar Goshen, Assaf Hamdani, Alex Raskolnikov

Faculty Scholarship

The rise of inequality and global warming are the two ultimate challenges of our time. After decades of congressional failure to address climate change, the private sector has stepped in and adopted a set of environmental, social, and governance (ESG) policies as a market-based solution to a public policy failure. ESG advocates hope that corporate executives would save our planet. Where Congress failed, ESG will succeed.

This Article argues that if ESG-driven climate stewardship ever achieves the scale necessary to have a real impact on global warming, it will hurt the poor. Legislative interventions to combat climate change are nearly …

U.S. Shareholder Activism: Convergence With Japan, Nobuhisa Ishizuka

Faculty Scholarship

To many observers long accustomed to slow, incremental change, the current boom in shareholder activism in Japan comes as a surprise. The opening for U.S.-style activists was created by market conditions that eventually resulted in policy changes that attracted significant numbers of foreign investors. However, even the current market would not have emerged without a parallel evolution in U.S. hedge-fund tactics, which gradually shifted over a number of years to a sophisticated and more nuanced approach, one based on partnership and dialogue with target companies, in contrast to adversarial relationships and public campaigns. This article attempts to place current trends …

Adjudicating Fake News, Filippo Lancieri, Caio Mario Da Silva Pereira Neto, Rodrigo Moura Karolczak, Barbara Marchiori De Assis

Georgetown Law Faculty Publications and Other Works

On July 30, 2025, U.S. President Donald Trump imposed 50% tariffs on imports from Brazil and sanctioned a sitting Brazilian Supreme Court Justice, both partially because of Brazil’s online content moderation decisions. This is an extreme, but not an isolated event: worldwide, legislators and regulators struggle to craft public policies that address problems of disinformation and online harassment while protecting the freedom of expression—leading to increasing international confrontations. One key question in content moderation is content adjudication—or who is responsible for deciding what type of speech violates the law and should be taken down (or not). This article contributes to …

Living To Die: Life Imprisonment Without Remission Or Parole In India, Preeti Pratishruti Dash, Rushil Batra

Articles

This article critically examines the Supreme Court of India’s use of life imprisonment without the possibility of remission or parole (LWORP) as a sentencing alternative to the death penalty. While the Constitution Bench in V Sriharan vs Union of India (2015) upheld the constitutionality of such sentences, it did not articulate principled standards governing their imposition. This article argues that the absence of such standards has produced a vacuum in LWORP sentencing. To substantiate this claim, we analyse fifty-three Supreme Court judgments delivered between 2016 and 2024 in which death sentences were commuted to LWORP. The analysis reveals widespread inconsistency …

Corporate Jurisdiction Competition In The United States: Delaware’S Dominance And The Rise Of Segmented State Competition, Leonardo Lupiano

Student Scholarship

Delaware has long dominated the American market for corporate charters, supported by its flexible corporate statute, specialized Court of Chancery, deep body of precedent, and strong network effects. Recent developments, however, suggest that Delaware’s dominance is facing more serious pressure than it has in decades. High-profile reincorporations, growing concern over Delaware litigation, and new statutory and judicial developments in other states have created a more active market for corporate law.

This Article examines that shift through five representative jurisdictions: Delaware, Nevada, Texas, Utah, and Wyoming. Delaware remains the baseline, but Nevada, Texas, Utah, and Wyoming now of er distinct models …

Beyond The Shield: The Business Judgment Rule As A Tool For Esg Initiatives, Samuel Hawkinson

Colorado Law Student Scholars

No abstract provided.

Learning In Action: Cardozo Students Provide Legal Support To Central Valley Entrepreneurs, Benjamin N. Cardozo School Of Law

Cardozo Law News Archive

Students from Cardozo Law's Entrepreneurship and Community Business Clinic traveled to California's Central Valley to provide legal education and support to local entrepreneurs. Through workshops, client counseling, and community outreach, students assisted rural businesses and nonprofits while gaining hands-on experience in transactional and community-based legal practice.

The Lost Origins Of Antitrust, William Magnuson

Faculty Scholarship

Over the last decade, the once-sleepy field of antitrust has suddenly sprung to the forefront of public attention. The digitalization of the economy, the expansion of Big Tech, and the rise of platform monopolies have all raised deep questions about the nature of corporate power and law’s capacity to constrain it. Some scholars have argued that antitrust enforcement must be reinvigorated in substance and broadened in scope in order to combat rapidly rising economic inequality. Others have argued that antitrust law is ill-equipped to address these broad moral issues and instead must be re-focused on its traditional principles of consumer …

The National Security Internet, Anupam Chander

Georgetown Law Faculty Publications and Other Works

In response to widespread foreign surveillance and growing geopolitical distrust, governments are erecting a national security internet. Pioneered by China, national firewalls have gone global. But where firewalls sought to keep information out, they now seek to keep data in. Governments keen to avoid their citizens’ data from falling into foreign hands demand not only that personal data be stored on local servers, but also require that it be stored on local servers by local companies—what this Article calls “data localization squared.” Enforcing this demand requires a new mechanism of transnational control: immunity from foreign jurisdiction. Artificial Intelligence (AI) systems, …

Coming Disruptions In Corporate Law, Douglas Sarro, Edward J. Waitzer

All Papers

Corporate law’s dynamism precludes bold predictions about its future. Instead, we set out to highlight principles relevant to its trajectory and frame looming, unresolved issues. In that vein, artificial intelligence and other digital technologies raise considerable new opportunities for directors to enhance their oversight and for shareholders to be better informed and make more meaningful use of their governance rights. At the same time, the potential for wide-scale automation of corporate activities via these technologies amplifies corporate power and resulting risks of harm, adding new urgency to past prescriptions for rethinking the relationship between corporate and other areas of law …

Interpreting Anti-Boycott Laws In The Shadow Of The First Amendment, Joseph A. Tomain

Articles by Maurer Faculty

Thirty-eight states have enacted “anti-BDS” laws. These laws require people or entities doing business with the state to certify that they do not participate in the Boycott Divestment Sanction movement against Israel. Typically, these laws define boycott as a “refusal to deal, terminating business, or other actions” that limit commercial relations with Israel or Israeli entities. It is highly contested in the courts and commentary whether these anti-boycott laws violate the First Amendment. Assuming arguendo that the “refusal to deal” and “terminating business” clauses do not implicate the First Amendment, that leaves the residual clause. At least one court and …

The Fiduciary Game, Lauren R. Roth

Elisabeth Haub School of Law Faculty Publications

Fiduciary duties are supposed to bridge the gap between public and private law. Private actors who engage in “public or quasi-public” functions (e.g., corporate directors and pension administrators) are often subject to fiduciary constraints to protect vulnerable parties who lack power in relationships with these actors. Recently, scholars have argued that both courts and legislatures have inappropriately expanded the use of fiduciary duties to purely private relationships. But what if the problem is not the expansion of fiduciary duties to private relationships, but the increasing delegation of public powers to private actors whose behavior cannot be adequately constrained by fiduciary …

Havens For Corporate Lawbreaking, William J. Moon

Faculty Scholarship

Whether corporations are obligated to maximize profits or if they ought to consider societal interests more broadly remains one of the most highly contested debates in corporate law. Yet even the fiercest defenders of the firm’s profit motive concede that the corporation’s profit-seeking function cannot justify breaking the law. As a matter of American corporate law, directors and officers are in breach of their fiduciary duties if they facilitate or engage in profit-maximizing illegal activities. Or so we thought.

This Essay reveals a troubling trend of jurisdictions undercutting the legal compliance obligations of directors and officers. The current legal architecture …

The Boundaries Of Corporate Politicking, Ashlee A. Paxton-Turner

Law Faculty Publications

As corporations become red brands and blue brands (whether purposely or accidentally), they are participating in the American political landscape in ways distinct from lobbying and political spending. Specifically, corporations are increasingly making statements or launching ad campaigns that appear to support one side (or the other) of a political or social debate. This Article refers to that activity as “corporate politicking.” Unlike political spending or lobbying, corporate politicking lacks a legal definition and is far less regulated—whether internally or externally.

This Article’s central contribution is an administrable framework to demarcate corporate politicking from other corporate activities and decisions. It …

Global Supply Chain Resilience In Emerging Technologies: A Case Study Of Bitcoin Mining, Kishanthi Parella, Carla L. Reyes

Scholarly Articles

The United States has put into motion bold plans in critical and emerging technologies to bolster its national and economic security.  For example, the federal government created a national bitcoin strategic reserve and a stockpile of other cryptocurrency; while several states have committed to or are considering similar goals.  However, the security of these reserves is dependent on two types of supply chains within the Bitcoin mining industry: analogue supply chains, relating to the physical components needed for Bitcoin mining, and data supply chains, relating to the complex and layered logistical network of actors that create input into …

Are Private Equity Funds Liable For Anticompetitive Acquisitions?, Aslihan Asil, Paulo Henrique Alcantara Ramos, Amanda Starc, Thomas Wollmann

Faculty Scholarship

Private equity acquisitions grew tenfold over the past two decades. Over the same period, their focus shifted from financial engineering to industry consolidation, raising antitrust concerns. Heightening these concerns, privately backed acquisitions of competitors historically escaped detection by federal antitrust authorities in their incipiency because they fell below the reporting thresholds of the Premerger Notification Program. However, academic studies and agency investigations are now unearthing these transactions. Most salient is a recent complaint filed by the Federal Trade Commission challenging a series of acquisitions stretching back ten years.

In the wave of litigation that is likely to follow this “groundbreaking” …

Purpose-Driven Compliance, Veronica Root Martinez

Faculty Scholarship

Whether it is a small brokerage firm in Ann Arbor, Michigan, a private university in Cambridge, Massachusetts, or a multinational conglomerate head-quartered in New York City, organizations understand that they are required to fulfill a range of compliance obligations. Compliance programs today tend to have two important characteristics in common. First, the notion that perfect compliance is an impossible goal is a key component of the understandings and expectations of many firms’ compliance programs. Second, organizations have almost uniformly adopted compliance programs in areas where enforcement activity has been significant—like in the areas of antibribery and anticorruption, anti-money laundering, antitrust, …

Under Pressure: Delaware, Corporate America, And Certified Questions, Derek S. Hubbard

Law Student Publications

With an advanced corporate code and a highly respected Court of Chancery, Delaware has long been America’s home for big business. But its status may be in jeopardy. Within the past year, the Court of Chancery has shattered two market practices and reminded stakeholders of the uncertain nature of fiduciary duties. Corporations have responded. Termed “DExit,” corporations are leaving Delaware for competing jurisdictions, namely Texas and Nevada. As corporations leave Delaware, so do their tax dollars. Delaware’s fiscal stability is directly tied to the continued presence of corporate charters in Delaware. Delaware residents enjoy a low tax burden, with the …

Flows, Financing Decisions, And Institutional Ownership Of The U.S. Equity Market, Alon Brav, Dorothy S. Lund, Lin Zhao

Faculty Scholarship

This Article analyzes the relationship between flows to institutional investment managers, corporate financing decisions, and institutional ownership of U.S. public equity. In so doing, it provides new evidence about the drivers of institutional investor growth in equity ownership over the past two decades. Contrary to conventional narrative, we find that equity capital flows into the “Big Three” investment managers have slowed in recent years, with substantial differences between each institution. We also present a framework to understand how fund characteristics and corporate actions such as stock buybacks and equity issuances combine to shape the evolution of institutional ownership, including that …

"Activist" Versus "Passive" Investors: A Closer Look At Proxy Contests And The Contemporary Balance Of Advantage, John C. Coffee Jr.

Faculty Scholarship

The era of the hostile takeover has clearly given way to the era of the proxy contest led by an activist hedge fund. Today, a record number of such contests are underway, and they have changed the board composition at many U.S. companies and caused a record number of CEO resignations. But there is a mystery here: when activist funds negotiate for changes with target managements, they often obtain meaningful changes in the board of directors and corporate policies. However, when activists attempt a proxy contest, they have generally been unsuccessful, winning only a small number of seats in a …

“Spinning Wheel Got To Go Round”: Developments In The Law Affecting Electronic Payments And Financial Services, Sarah Jane Hughes, Tom Kierner, Stephen T. Middlebrook

Articles by Maurer Faculty

The past year reminds us of the rock lyrics from “Spinning Wheel” on Blood, Sweat & Tears’s 1968 self-titled record—“What goes up, must come down/Spinning Wheel got to go round”—because there have been many changes in strategy and reversal of policy since President Trump’s inauguration in January 2025. Our Survey documents these changes and reversals as they affect electronic payments and financial services. This year’s Survey also reports on warnings from state and federal regulators aimed at bank and non-bank providers of consumer financial services. Part II examines an FTC enforcement action related to the unfair and deceptive marketing of …