With enactment of the CARES Act on March 27, Congress appropriated $2.2 trillion, the largest economic stimulus package in history, to combat COVID-19 and the serious economic damage it has wrought to all facets of the economy. Along with this mammoth government subsidy, however, comes the prospect of unprecedented fraud and abuse in sectors of
Corporate Compliance
The SEC Weighs In on Reporting Related to COVID-19
As previously reported, the SEC is actively responding to the new wave of issues presented by the coronavirus (COVID-19). However, as early as January 30, 2020, SEC Chairman Jay Clayton issued a statement identifying coronavirus as a potential concern.
Chairman Clayton’s statement advised that he had instructed the staff to monitor and provide guidance…
The SEC Reacts to COVID-19
Over the last few weeks, the SEC identified key initiatives it is implementing to address the effects of the coronavirus (COVID-19) on the nation and its financial markets. https://www.sec.gov/sec-coronavirus-covid-19-response The Commission stressed that it has remained fully operational and continues to process normal daily activities while undertaking additional initiatives to combat the impact of COVID-19. …
One Size Does Not Fit All: The Need for a Tailored Code of Conduct
Codes of Conduct are designed to set forth an organization’s values and principles, while detailing expectations for employees. In many ways, it is one of the most important documents an organization can develop. At times, when an employer decides it needs to develop a Code, it often asks counsel whether there is a sample Code…
A Look Back at Key Corporate Governance and Internal Investigations Issues in 2018
2018 was a transformative year for corporate governance. Record whistleblower awards, an increasing number internal investigations partly arising out of the #MeToo movement, an expansion of the role of companies’ boards, and corporate social responsibility all shaped 2018. This is our retrospective review of these trends.
Record Whistleblower Tips and Awards and Possible Changes
Companies…
California Law Pushes Virtue of Diversity Requiring Females on Boards of Directors
California Governor Jerry Brown recently signed Senate Bill 826 into law which requires publicly-held corporations with principal executive offices in California to have a certain number of females on their boards of directors.
The new law sets forth phased requirements for these corporations. By the end of 2019, each covered company must have at least…
Effective Compliance Programs Require a Commitment from the Top
We follow the leader wherever we go, and that applies to compliance, as well. While federal and state laws require organizations to adopt compliance programs, a low level of commitment to these compliance efforts from the highest levels of management can pose a serious threat to the implementation and sustainability of such programs. It is…
Record High Awards and Supreme Court Decision Further Incent Potential Whistleblowers to Report Conduct to the SEC
On March 19, 2018, the Securities and Exchange Commission (“SEC”) announced its highest ever Dodd-Frank Act (“DFA”) bounty awards to three whistleblowers. These SEC awards represent a new milestone in the SEC’s ongoing efforts to incentivize would-be whistleblowers to report unlawful conduct directly to the Commission. Two whistleblowers will divide a nearly $50 million award…
Walk the Compliance Walk in 2018
The New Year is prime time to take a look at your Code of Conduct and compliance policies both to consider whether you are up to date on all applicable requirements, but also so that you are fluent in your own processes and prepared to take prompt and compliant action when issues arise. Those policies…
Self-Disclosure Analysis of FCPA violations and the New Administration
On April 5, 2016, the Department of Justice had set forth a Foreign Corrupt Practices Act (“FCPA”) Enforcement Plan and Guidance on enforcement, announcing an FCPA enforcement pilot program to promote greater accountability for individuals and companies that engage in corporate crime by motivating companies to voluntarily self-disclose FCPA-related misconduct, fully cooperate with the DOJ,…