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The collection of all scholarly commentary on law, economics, and more

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More backdating detritus

I’ve written (e.g.) about the misguided criminal prosecutions spawned by the backdating so-called scandal.  WSJ’s Holman Jenkins, who has been on the story from the beginning, echoes these sentiments, emphasizing the real scandal of the prosecutorial misconduct spawned by backdating: it’s . . . hard not to see the self-interested ethics of the plaintiff’s bar ... More backdating detritus

Close corporation remedies and the evolution of the closely held firm

As previously discussed,  I attended and presented a paper at an interesting symposium on the famous close corporation case, Wilkes v. Springside.  Now the paper is available.  Here’s the abstract: Close Corporation Remedies and the Evolution of the Closely Held Firm This paper examines the law of closely held firms from an evolutionary perspective. The ... Close corporation remedies and the evolution of the closely held firm

Arbitration and preemption

Ok, so here’s the deal.  AT&T sells two cellular phones for nothing with a two-year contract term, and then charges $30.22 in sales tax.  Customers complain about the sales tax. The contract provides for individual arbitration where the customer resides. AT & T will pay double attorneys fees and $7,500 if the arbitrator awards the ... Arbitration and preemption

When Cartels Unravel, Judicial Clerkship Market Edition

The National Law Journal reports (HT: Rick Hills): Are the Wild West days of federal clerk hiring back? That’s what some law school administrators and judges fear. They worry that the voluntary system whereby federal judges wait until September of the 3L year to hire clerks is teetering. Judges are choosing clerks earlier in the ... When Cartels Unravel, Judicial Clerkship Market Edition

An epitaph for backdating

Peter Lattman reports on the Karatz case as an epitaph for the whole backdating so-called scandal:  “These prosecutions went out with a whimper rather than a bang,” said Christopher J. Clark, a criminal defense lawyer at Dewey LeBoeuf who has done work on backdating cases. “With few convictions and no substantial sentences, juries and the ... An epitaph for backdating

Antitrust and the Midterm Elections

What do the midterm election results mean for antitrust, if anything?  According to the American Antitrust Institute, not much: Despite predictions that the new Congress will result in a dramatically changed climate for business, the American Antitrust Institute (AAI) predicts that the election will have relatively little impact on the enforcement of the nation’s antitrust ... Antitrust and the Midterm Elections

When governments attack–and delusional law professors find the problem to be corporations

I find it interesting that many on the left, so intent on maintaining their anti-market narratives, distort reality so badly that black is white and up is down–and “government” is “corporations.” I’ve highlighted this before when discussing the misdirected criticisms (and solutions) of self-described privacy advocates who point the finger at Google when really they ... When governments attack–and delusional law professors find the problem to be corporations

Justice for a backdater

Two days ago I discussed the sentencing of KB Home’s Bruce Karatz, where the court was weighing the Probation Office’s recommendation of home detention against the U.S. Attorney’s 6.5 year jail sentence recommendation.  I noted the argument that was being made that “swindlers shouldn’t be treated better than dope dealers,” and responded “Injustice to drug dealers doesn’t justify ... Justice for a backdater

CPI Symposium featuring Ginsburg and Wright on Antitrust Sanctions

Competition Policy International’s newest issue has been released.  The issue is focused on cartel sanctions and features a colloquium on a piece co-authored by Judge Douglas Ginsburg and me on Antitrust Sanctions, with comments from a fantastic lineup of antitrust economists and lawyers: Joseph Harrington (Johns Hopkins), Pieter Kalbfleisch (Netherlands Competition Authority), Mariana Tavares de ... CPI Symposium featuring Ginsburg and Wright on Antitrust Sanctions

Jail time for backdaters

I’ve blogged fairly extensively about backdating, including serious questions about whether and when it was wrong at all, and even more serious questions about whether it should be criminalized.  Among the specific issues are whether any misrepresentations were material to investors.  And then there’s the epidemic of prosecutorial misconduct that has occurred in these cases. ... Jail time for backdaters

Meet the new doctor’s office: the hospital

The WSJ reports that doctors increasingly working for hospitals, which are becoming “consolidated health-care providers,” rather than for themselves.  Doctors don’t want to have the burdens of ownership, and hospitals want to lock in customers for their expensive facilities.  While doctors are reconfiguring into medical technology intermediaries, lawyers are clinging to their age-old model of ... Meet the new doctor’s office: the hospital

Creditor derivative suits in Delaware LLCs

The ever-helpful Francis Pileggi thoroughly discusses an interesting and important recent Delaware opinion by VC Laster, CML V, LLC v. Bax, C.A. No. 5373-VCL (Del.Ch. Nov. 3, 2010) which holds a creditor lacks standing under the Delaware LLC act to sue an insolvent LLC derivatively.  The following builds on Mr. Pileggi’s excellent analysis. The court interpreted ... Creditor derivative suits in Delaware LLCs