Daily Archives: June 3, 2014, 9:32 am

Delaware Corporate Bylaws: Even if the Company Can’t Fee Shift, it Can Still Forum Select | The D&O Diary

In light of the recent legislative initiative to restrict Delaware stock corporations’ use of fee-shifting bylaws, companies incorporated in Delaware have, as described in a recent Law 360 article, a “smaller more defined toolbox” to reduce the burdens involved with shareholder suits.  As it stands, the article notes, the “sharpest tool in the arsenal is boards’ ability to define where…

Read More

Co-Defendant Sentenced in KPMG Insider-Trading Scheme | National Law Journal

The golfing buddy of a former KPMG LLP senior partner in Los Angeles was sentenced to five months in prison for making about $1.6 million in stock trades from insider tips. Scott London, former chief of KPMG’s audit practice for the Pacific Southwest, was sentenced earlier this year to 14 months in federal prison for disclosing confidential information about public companies,…

Read More

SEC Official Stresses Value of Protecting Whistleblowers – Compliance Week

Stephen Cohen, associate director of the SEC’s Division of Enforcement, cautioned that the agency is watching for employment agreements put in place by companies that, either expressly or through implication, discourage whistleblowers from reporting possible securities law violations to the SEC. “Something that prohibits employees from reporting wrongdoing or intimidates them is very problematic and really does look an awful…

Read More