Securities Law Commons^™

Circuit Split Analysis: Involuntary Arbitration Agreements, Tyler Blackington

Emory Business Law Review

No abstract provided.

The Big Ban(G) Theory, Max Chen, Liu Ming Xin

Emory Business Law Review

The term “Big Tech” is referred to: Amazon, Apple, Facebook (Meta), Google and Microsoft. These companies are the five largest multinational online service or computer hardware and software companies and have the top position in the stock market by market share. Data indicated that these five firms have made over 700 acquisitions from 1987 to 2019. (Google 32%, Microsoft 31%, Apple 15%, Amazon 11%, and Facebook 11%). After 2001, The DOJ and FTC began to use NAICS codes to report HSR (Hart-Scott-Rodino) transactions. The code name is NAICS 518 for data processing, hosting, and related services (mainly including Google, Amazon, …

Why Antitrust, Not Unionization, Is The Answer To Underpayment Of Student-Athletes, Evan Nelson

Emory Business Law Review

This Comment examines whether student-athletes should be allowed to unionize and collectively bargain for their rights and will present a legal argument against the unionization of student-athletes. The reasoning behind this argument is that student-athletes are not employees, and therefore, are not able to unionize. Even if student-athletes were categorized as employees, they would struggle to collectively bargain for their rights due to various states’ laws that prohibit public employees from unionizing. Rather, this Comment argues that the answer to solving college athlete underpayment is through the remedies that can be provided in antitrust law. The reasoning behind this argument …

The Need For Mediation In Internal Whistleblowing Mechanisms, Elad Michael

Cardozo Journal of Conflict Resolution

No abstract provided.

'Are We Doing The Right Thing?' Utilising Security Governance To Reform The Us Drone Program, Jane Minson

Theses

The use of unmanned aerial vehicles, or drones, for counterterrorism purposes by the United States within its targeted killing program has been deeply controversial. Used in each presidential administration since the terrorist attacks of September 11, 2001, drones have sparked debate, in part due to their contribution to civilian deaths; their killing of high-value terrorist targets including, on at least one occasion, a US citizen; and the heightened secrecy that has surrounded the program with little formal oversight and, as such, little accountability. This thesis uses this contextual framework – with a particular focus on the administration of President Barack …

Realizing Diversity, Sustainability, And Stakeholder Capitalism, Peter H. Huang

Publications

Stakeholder capitalism conceives of capitalism with companies maximizing their long-term value, while considering in addition to the interests of their shareholders, also the interests of all their other stakeholders. Examples of such additional stakeholders include customers, employees, communities, creditors, competitors, society at large, and our planet. America today does not have stakeholder capitalism. Instead, America presently has shareholder capitalism, in which publicly held corporations only maximize their stock value to shareholders.

This Essay analyzes proposals for the United States Securities Exchange Commission to require that all reporting companies make periodic mandatory Environmental, Social, and Governance (ESG) disclosures of comparable, standardized, …

Table Of Contents

Seattle University Law Review

Table of Contents

Asset Managers As Regulators, Dorothy S. Lund

Faculty Scholarship

The conventional view of regulation is that it exists to constrain corporate activity that harms the public. But amid perceptions of government failure, many now call on corporations to tackle social problems themselves. And in this moment of dissatisfaction with government, powerful asset managers have stepped in to serve as regulators of last resort, adopting rules that bind corporate America on issues of great social importance, including climate change and workplace diversity. This Article describes this dynamic — where shareholders have become regulators — which has been made possible by the rise of institutional shareholding (and index investing in particular) …

Universal Owners, Shareholder Primacy, And Stakeholderism, Daniel Irvin

Emory Business Law Review

The rise of massive asset owners like large pension funds and sovereign wealth funds has created interest in the phenomenon of Universal Owners. The climate crisis, environmental degradation, and worsening inequality have also led to challenges to the current models of corporate governance, with a particular interest on the idea of corporate purpose. This paper fills a gap by addressing the intersection of these two trends, proposing a framework by which Universal Owners should view corporate purpose. I argue that from a returns-maximizing perspective, Universal Owners should prefer a flavor of shareholder primacy that believes the corporation’s purpose is to …

Securitizing Notes Of Small Businesses And Needy Workers, Tamar Frankel

Faculty Scholarship

Businesses, whether large ones or small ones, such as restaurants and small shops, are presently closed and some of their employees have been laid off.¹ Currently, the government is lending money to these small businesses² and the now unemployed workers for their sustenance. It then collects the payments from some of the borrowers and the source of the rest of the money is taxes.³ Since not all, or perhaps only a few, small businesses own real estate, they might sign notes promising to repay the loans but can offer no asset backing. Presumably, the nation’s financial deficit …

Hidden Agendas In Shareholder Voting, Scott Hirst, Adriana Z. Robertson

Faculty Scholarship

Nothing in either corporate or securities law requires companies to notify investors what they will be voting on before the record date for a shareholder meeting. We show that, overwhelmingly, they do not. The result is “hidden agendas”: for 88% of shareholder votes, investors cannot find out what they will be voting on before the record date. This poses an especially serious problem for investors who engage in securities lending: they must decide whether the expected benefit of voting exceeds the expected benefit of continuing to lend their shares (or making them available for lending) without knowing what they will …

Taking Misappropriation Seriously: State Common Law Disgorgement Actions For Insider Trading, Jeanne L. Schroeder

Articles

In two recent cases, Kokesh v. SEC, and Liu v. SEC, the U.S. Supreme Court cut back substantially on one of the Securities and Exchange Commission’s most important enforcement powers. This is the ability to seek disgorgement from persons who violate the federal securities laws, depriving them of their ill-gotten gains.

Previously, the Supreme Court had developed a largely property-based theory of insider trading. Why is insider trading evil? Because material nonpublic information is property that the trader has fraudulently obtained and must not use for his own purposes

In this article I bring these thoughts together. I …

Disclosure's Limits, Usha Rodrigues, Mike Stegemoller

Scholarly Works

Special purpose acquisition companies (SPACs) have exploded in popularity, luring both adventurous retail investors and sophisticated institutional investors. In a SPAC, a publicly traded shell corporation acquires a private target, thereby taking it public in a manner that circumvents the rigors of a traditional initial public offering (IPO). Proponents vaunt SPACs’ ability to simplify the process of accessing the public markets and democratize capitalism, but in their current form they pose risks to retail investors and to the market as a whole. Using a hand-collected dataset, this Article fills a gap in the literature by providing new empirical data regarding …

Regulating Dynamic Risk In Changing Market Conditions, Susan Navarro Smelcer, Anne M. Tucker, Yusen Xia

Scholarly Works

How successful are the SEC's attempts to regulate dynamic risk in financial markets? Using mutual fund disclosure data from two financial shocks-the Puerto Rican debt crisis and COVID- 19-this Article finds evidence that SEC open-ended regulations, like the obligation to disclose changing market conditions, are largely successful in capturing dynamic, future risk. Funds engage in wide- spread and, often, detailed disclosures for new risks-although these disclosures vary widely in specificity. But not all funds dis- close new risks. This creates perverse incentives for funds to opt out of disclosure or downplay threats with boilerplate language when new risks are emerging. …

The Rise And Fall Of Cryptocurrency: The Three Paths Forward, Joel Seligman

Scholarship@WashULaw

In a crash reminiscent of the 1929-1933 Stock Market crash in which prices on the New York Stock Exchange fell 83 percent between September 1929 and July 1932 or the 2007-2009 Financial Debacle in which the Dow Jones Industrial Average declined 54 percent between October 9, 2007 and March 9, 2009, crypto market capitalization fell 61 percent between November 2021 and May 2022, collapsing from an aggregate value of $2.9 trillion to $1.24 trillion. Bitcoin, the leading cryptocurrency which in late 2021 traded near $68,000 in November 2021 traded as low as $25,402 on May 10, 2022 (a decline of …

Comments On Proposed Rules For Special Purpose Acquisition Companies, Shell Companies, And Projections, Andrew F. Tuch

Scholarship@WashULaw

In March 2022, the Securities and Exchange Commission released proposed rules for special purpose acquisition companies (SPACs), shell companies, and projections. In this comment letter, filed with the SEC, I provide a critical assessment of this proposal.

The SEC proposed far-reaching changes intended to enhance investor protections and align disclosure and liability rules in de-SPACs more closely with those in traditional IPOs. An under-appreciated feature of the proposed reforms is that they would subject de-SPACs to provisions closely modeled on Rule 13e-3 of the Exchange Act, which applies to going-private transactions, including management buyouts. Intended to tackle potential conflicts of …

The Further Erosion Of Investor Protection: Expanded Exemptions, Spac Mergers, And Direct Listings, Andrew F. Tuch, Joel Seligman

Scholarship@WashULaw

This Article examines the decades-long decline of investor protections enshrined in the Securities Act of 1933, most notably Section 11, which imposes near strict liability on corporate insiders and certain secondary actors, primarily underwriters. The provision, the most potent in the federal securities regulatory arsenal, popularized the concept of outside gatekeepers and transformed practices in securities offerings, making due diligence a byword for careful investigation of facts whether required by legal process or otherwise. The measures required by Section 11 restored confidence in US capital markets in the wake of the Great Depression and have been instrumental in these markets’ …

Barbarians Inside The Gates: Raiders, Activists, And The Risk Of Mistargeting, Zohar Goshen, Reilly S. Steel

Faculty Scholarship

This Article argues that the conventional wisdom about corporate raiders and activist hedge funds — raiders break things and activists fix them — is wrong. Because activists have a higher risk of mistargeting — mistakenly shaking things up at firms that only appear to be underperforming — they are much more likely than raiders to destroy value and, ultimately, social wealth.

As corporate outsiders who challenge the incompetence or disloyalty of incumbent management, raiders and activists play similar roles in reducing “agency costs” at target firms. The difference between them comes down to a simple observation about their business models: …

Rogue Brokers And The Limits Of Agency Law, Deborah A. Demott

Faculty Scholarship

No abstract provided.

State Securities Enforcement, Andrew K. Jennings

BYU Law Review

Each year, state securities regulators bring over twice the enforcement actions brought by the Securities and Exchange Commission, yet their work is largely missing from the literature. This Article provides an institutional account of state securities enforcement and identifies two key advantages — detection granularity and institutional decentralization — that states enjoy over their federal counterparts in policing localized frauds involving individual, often small-dollar, victims. Although states share enforcement jurisdiction with the SEC and DOJ, their enforcement activity reflects their institutional advantages and constraints and thus largely does not overlap with that of federal authorities. Instead, states serve as the …