Today we continue our bi-weekly installment shining a light on the best of the corporate and securities blogosphere. Highlights include a pro-business SCOTUS opinion, more revolving door drama, Lululemon exposed and more. If there are any corporate or securities blogs you think should be highlighted by our Top 5, please comment on this post and we’ll check them out!
1) SCOTUS Blog: Opinion Analysis: Precertification Stipulations to Limit Class Damages are Not Binding - In another victory for class action defendants, this week’s Standard Fire Insurance Co. v. Knowles decision unanimously concluded that class counsel cannot avoid removal to federal court through a precertification stipulation purporting to limit damages to less than $5 million. In this post, Professor Debra Lyn Bassett discusses the opinion and the questions it left unanswered.
2) DealBook: Windfalls for Wall Street Executives Taking Jobs in Government - An interesting fact came to light recently during the confirmation hearing for Jacob Lew as Treasury secretary. His previous employer, Citigroup, had guaranteed him preferential financial treatment if he were to leave to take a job in the government. Turns out this is not at all uncommon and only adds more fuel to the revolving door debate. This post delves into the financial rewards that await Wall Street execs when they start working for Uncle Sam.
3) Footnoted: Lululemon’s Timing Not So Sheer Here - Whether you are a devoted yogi or not, it was hard to miss this week’s see-through pants controversy at Lululemon. The company announced that they expect the pants shortage will have a “significant impact” on financials, potentially losing as much as $20 million. Considering the news, Footnoted found it peculiar that the company would choose this week to disclose that they are giving top execs a sharp increase in their bonuses.
4) CLS Blue Sky Blog: Re-examining Board Priorities in an Era of Activism - With the recent increase in activism, some on Wall Street are blaming shareholders for the short-term mentality of corporate boards. In this thoughtful piece, Ira Millstein says activist investors represent a small subset of investors in publicly held companies. As a result, corporate boards around the country should re-examine their priorities and figure out to whom they owe their fiduciary duties.
5) SEC Actions: High Stakes For the SEC: The Cuban Insider Trading Case Heads to Trial - Dallas Maverick’s owner Mark Cuban lost his bid to end the SEC insider trading case against him when his summary judgment motion was rejected earlier this month. Now the nearly five year old case is heading for trial where it will present the court and jurors with critical questions regarding deception, duty and confidentiality for insider trading cases. The high profile action also presents critical issues for SEC Enforcement in wake of the Division’s two recent courtroom losses. In this post, Tom Gorman breaks down the case against Cuban.