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Stradling

Publications & Interviews

  • May 2020

    Pharma Firm General Counsel on How Risk, Flexibility Delivered 'Home Run' With COVID-19 Drug

    Hayden Trubitt, a shareholder in Stradling’s Corporate practice group, was quoted in an article published by Law.com, “Pharma Firm General Counsel on How Risk, Flexibility Delivered 'Home Run' With COVID-19 Drug.”
  • May 2020

    Class Action Suits Attempt To Stretch Consumers’ Ability To Sue For CCPA Violations Ability Violations

    • The CCPA’s private right of action is limited. It covers consumers’ right to reasonable protection against certain types of data breaches, but not the new and expansive “Privacy Rights” the act is best known for.
    • Several private plaintiffs have filed putative class actions alleging CCPA violations. Some of their claims defy the act’s explicit limitations by seeking redress for alleged violations of Privacy Rights.
    • If courts permit these claims to move forward, it would represent a dramatic expansion of the CCPA, forcing businesses to re-assess the scope of their legal exposure.
  • May 2020

    COVID-19 Client Alert Series - CCPA Enforcement on Track to Begin July 1 Despite COVID-19 Concerns

    As the COVID-19 pandemic and related stay-at-home orders around the country continue to prohibit many business operations, influential advertising and media groups have joined forces with over 30 major trade groups and companies in an effort to delay the enforcement of the California Consumer Privacy Act (CCPA), which is scheduled to begin on July 1, 2020. Roughly 30 companies from the ad-tech industry have joined the coalition in a revised letter submitted on March 20 calling for California Attorney General Xavier Becerra to forbear from enforcement until January 2, 2021.
  • May 2020

    COVID-19 Creates New Risks Of Shareholder Litgation And Regulatory Actions

    The impact of COVID-19 continues to evolve, yet we already have seen securities class actions and regulatory activity regarding the pandemic. As with previous economic downturns, we are likely to see a continuing rise in the number of securities class actions, stockholder derivative suits, and regulatory activity over company representations concerning the outbreak on a business’s performance, the adequacy of risk disclosures of COVID-19 on the business, compliance with government required or recommended protocols, or the company’s own policies, or mitigation efforts concerning the virus. These actions may be filed even long after the pandemic subsides when stockholders “discover” the basis for suit. As companies grapple with challenging decisions for their businesses, this remains a crucial time to remain vigilant and committed to fulsome public reporting addressing the current impacts of COVID-19 and expected continuing risks of the pandemic to the business, all the while adhering to corporate governance best practices in company decision making. Reviewing company insurance policies, indemnification, and advancement obligations also may be a prudent step for a complete picture of the company’s risks.
  • April 2020

    COVID-19 Client Alert Series - The CARES Act’s Expansion of Relief for Small Business Debtors

    While it did not focus on bankruptcy relief, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act contained provisions relating to small bankruptcy debtors. 
        • The CARES Act increased the debt limit for debtors interested in taking advantage of the Small Business Reorganization Act of 2019 (the “SBRA”), which became effective in mid-February 2020. This makes it a viable option for a wider group of entities. 
        • As background, the SBRA added subchapter V to Title 11 of the Bankruptcy Code. This new law is designed to allow small business debtors “to file bankruptcy in a timely, cost-effective manner . . . [which] hopefully allows them to remain in business, [and] not only benefits the owners, but employees, suppliers, customers, and others who rely on that business.” H.R. REP. No. 116-171, at 2 (2019). 
        • Bankruptcy courts will likely see an increase in chapter 11 filings during the next twelve months, as the fallout from the coronavirus epidemic continues.
  • April 2020

    COVID-19 Alert #12 - Key Considerations for Return to Work Plans

    In this alert, shareholder Jeffrey Dinkin discusses the key considerations for future business resumption plans. Some companies that are classified as “essential businesses” have been operating with employees at the physical work location. While it appears premature at this point, companies that were not classified as “essential” need to plan for the day when business operations can begin to resume. Paramount in these assessments is how to conduct business while best protecting the health and safety of employees, as well as customers and vendors.

  • April 2020

    COVID-19 Alert #11 Main Street Lending Program - Decisions for Boards and Ownership

    In this alert we quickly summarize the parameters outlined by the Department of Treasury and Federal Reserve Board for banks making loans under the Main Street Lending Program, that portion of the CARES Act (the Coronavirus Economic Stabilization Act) for which businesses with up to 10,000 employees are eligible, and review the factors that boards of directors and owners, including private equity investors, need to weigh when deciding to obtain funding through this program.
  • April 2020

    COVID-19 Alert #10 - FFCRA Leave Management Spreadsheet Updated DOL Guidance on FFCRA and More

    The U.S. Department of Labor (DOL) released regulations and updated its FAQs on the Emergency Paid Sick Leave (EPSL) and Expanded provided under the Families First Coronavirus Response Act (FFCRA). This Alert provides information on some of the more important issues addressed by the regulations and FAQs, as well as links to both documents. There is a lot of information in this Alert but stick with it to get a better understanding of the scope and operation of ESPL and EFML.
  • April 2020

    COVID-19 Alert #9 – The Paycheck Protection Program: Considerations For Businesses

    This memo is designed to highlight some of the key components of the Paycheck Protection Program. In short, the Paycheck Protection Program temporarily permits the Small Business Administration (“SBA”) to guarantee 100% of small business loans to eligible borrowers and provides for forgiveness of up to the full principal amount of qualifying loans so guaranteed. The goal is to provide relief to America’s small businesses quickly in light of the devastating impact of the COVID-19 emergency, utilizing banks, credit unions and possibly other lenders to facilitate funding.
  • April 2020

    Client Alert - Federal Forum Provisions for ’33 Act Claims Declared Facially Valid

    On March 18, 2020, in Salzberg, et al. v. Sciabacucchi, a unanimous Delaware Supreme Court, upheld the facial validity of federal-forum provisions—provisions adopted by Delaware corporations in their certificates of incorporation requiring plaintiffs who file actions arising under the Securities Act of 1933 (the “’33 Act”) to do so exclusively in federal court.