The CLS Blue Sky Blog

On February 4, Senator Amy Klobuchar introduced the Competition and Antitrust Law Enforcement Reform Act (CALERA), which provides for wide-ranging changes to the U.S. antitrust laws.[1] CALERA follows the release of a report last year by the staff of the House Judiciary Committee Democrats, led by Representative David Cicilline.[2] Senator Klobuchar’s legislation proposes significant changes to the antitrust laws but is less radical than some of the recommendations in the House Judiciary Committee…

The CLS Blue Sky Blog

The Government Tools for Responding to Market Distress

By Anthony J. Casey

March 1, 2021

In the spring of 2020, as the Covid-19 pandemic shut down economies around the world, pressure arose for governments to respond to the growing threat of pandemic-related market distress. In the United States, the initial proposals for government action varied in nature and focus. Some proposals targeted the financial system while a few targeted small businesses and individuals. Others were intended to bail out large businesses and specific industries. Still other proposals took a more…

The CLS Blue Sky Blog

Gibson Dunn Offers 2020 Year-End Securities Litigation Update

By Robert F. Serio, Brian M. Lutz, Monica K. Loseman, Jefferson E. Bell & Mark H. Mixon Jr.

February 23, 2021

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Notwithstanding the ongoing spread of COVID-19 and unprecedented changes in daily life and the economy, the second half of 2020 marched on to the steady drumbeat of securities-related lawsuits we have observed in recent years, including securities class and stockholder derivative actions, insider trading lawsuits, and government enforcement actions. In this 2020 year-end edition of our semi-annual publication, we discuss developments in the securities laws that have occurred against this backdrop. The year-end update highlights…

The CLS Blue Sky Blog

Skadden Discusses FTC Moratorium on Early Terminations of HSR Waiting Periods

By Matthew P. Hendrickson, Steven Albertson & Rita Sinkfield-Belin

February 21, 2021

On Thursday, February 4, 2021, the Federal Trade Commission (FTC), with the concurrence of the Department of Justice’s Antitrust Division (DOJ), announced that it had suspended the process by which requests for early termination of Hart-Scott-Rodino Act (HSR Act) waiting periods are granted, potentially signaling a more aggressive approach to merger review. Key Takeaways For the foreseeable future, filing parties must in all cases wait for the full 30-day waiting period to expire before closing.…

The CLS Blue Sky Blog

Why Some Covid-19 Mitigation Strategies Fail

By Jan-Philip Elm & Roee Sarel

February 19, 2021

As the Covid-19 pandemic continues to disrupt the global economy, regulators are struggling to find cost-effective mitigation strategies. The goal of such strategies should be simple: Reduce the spread of the virus, while causing the least amount of damage to people’s everyday lives, including economic activity. Yet, the diverse measures taken by governments only seem to have limited success in achieving that goal. Given that current estimates of the economic damage are tens of trillions…

The CLS Blue Sky Blog

King & Spalding Discusses Takeaways from GameStop

By John M. Anderson, Robert J. Leclerc, Aaron W. Lipson, Brett R. Schroeder & Michael J. Oberlies

February 19, 2021

The recent meteoric rise (and subsequent fall) of GameStop, AMC Theaters and a host of other “meme stocks” has prompted hedge funds, investment bankers, regulators and public company executives to critically re-examine their preparedness for extraordinary market volatility. The meme stock phenomenon is unique in numerous respects that have been well documented. What has drawn less attention, however, is the fact that the phenomenon highlights how other “mid-cap” companies could become the next meme stock…

The CLS Blue Sky Blog

Acting FTC Chair Slaughter Speaks on Protecting Privacy and Data Security

By Rebecca Kelly Slaughter

February 16, 2021

Thank you for inviting me to speak with you all today. The President named me as Acting Chair just a few weeks ago, and I’m incredibly excited about the opportunity to lead the FTC in these challenging times. It is fitting that one of my first speeches in this new capacity will be about privacy and data security, because these issues are so important to consumers, to the FTC, and to today’s information economy. I…

The CLS Blue Sky Blog

King & Spalding Discusses SEC’s Potential Focus During Biden Administration

By Alec Koch, Carmen Lawrence, Andrew Michaelson & Matthew B. Hanson

February 12, 2021

For the next several weeks and months, intense focus will be trained on determining the priorities of the Biden administration. We believe that at the Securities and Exchange Commission (“SEC”), the new administration will ramp up examinations and investigations of investment advisers, and specifically advisers to private funds. The industry has certainly been in growth mode. By the SEC’s own calculations, the number of private funds increased by nearly one third during the past four…

The CLS Blue Sky Blog

Wachtell Lipton Discusses White-Collar and Regulatory Enforcement: What Mattered in 2020 and What to Expect in 2021

By John F. Savarese, Ralph M. Levene, Wayne M. Carlin, David B. Anders & Sarah K. Eddy

February 10, 2021

As we write this memorandum, a new administration is forming in Washington, with new leadership teams being nominated at DOJ, SEC, CFTC and other regulatory and law-enforcement agencies — thus prompting the question of what these changes may portend for white-collar and regulatory enforcement priorities, trends and policies. Having watched many administrations come and go over the years, our sense is that, in this area at least, continuity tends to prevail over disruption. That said,…

The CLS Blue Sky Blog

Cahill Gordon Discusses SEC Action Against Cheesecake Factory for Misleading COVID-19 Disclosures

By Bradley J. Bondi, Peter J. Linken & Connor Shea

February 9, 2021

On December 4, 2020, the Securities and Exchange Commission announced that it had settled charges against The Cheesecake Factory for making material misstatements concerning the impact of COVID-19 on its business operations and financial condition.[1] The settlement resolved charges pursuant to Section 13(a) of the Securities Exchange Act of 1934 and Rules 13a-11 and 12b-20 thereunder concerning statements that The Cheesecake Factory had made in press releases attached to Current Reports on Form 8-K…