Moving the Merc?
I’ve been writing (here and here) about Illinois’s troubles, in a mobile, multi-jurisdictional world, raising taxes on corporations to pay for its past profligacy. And now a symbol of Chicago might be in play: The line of businesses looking for tax relief in Illinois keeps growing, with the latest plea coming from the owner of ... Moving the Merc?
Bootleggers and Baptists, 2011 version
Back in college, I didn’t think it would happen this way: Scotts Miracle-Gro Co. has long sold weed killer. Now, it’s hoping to help people grow killer weed. In an unlikely move for the head of a major company, Scotts Chief Executive Jim Hagedorn said he is exploring targeting medical marijuana as well as other ... Bootleggers and Baptists, 2011 version
Making a statement under 10b-5
Janus Investment Fund’s (JIF) prospectus included a misstatement about market timing. Its investment adviser and administrator is Janus Capital Management (JCM). Plaintiff shareholders in the parent company, Janus Capital Group (JCG) argue in the Supreme Court that JCM should be liable as JIF’s manager for “mak[ing] an[] untrue statement of a material fact” in violation ... Making a statement under 10b-5
The taste for insider trading law
Steve Bainbridge responds to my post about insider trading as compensation with a suggestion that rules against insider trading are an example of a case “where mandatory rules are appropriate.” I was about to sputter about laws against insider trading are really about property rights, and surely property should be alienable — right? And about ... The taste for insider trading law
AALS Financial Institutions Section Call for Papers
Rubber Hits Road: Implementing Dodd-Frank amid Reform Fatigue This program will take place one and a half years after the Dodd-Frank Act was signed into law. The law left many of the details of financial reform to be filled in by regulators, raising the risk of capture. Some of the most important rule makings have ... AALS Financial Institutions Section Call for Papers
Where have all the lawyers gone: working for hedge funds every one
Dan Fisher discusses how Ecuadorean villagers financed a pollution lawsuit against Chevron with money from a hedge fund, Burford Group. This is yet another example of how lawyers are capitalizing and packaging their skills rather than just selling it by the hour to clients. Fisher discusses how the plaintiffs’ lawyer had gone through $6 million in financing ... Where have all the lawyers gone: working for hedge funds every one
Note to (a few) commenters
Seems I need to write a post like this every once in a while. I really appreciate comments, particularly including when they disagree with the posts. These comments are what distinguishes an interactive blog from a passive website. I’m glad people are willing to take the time and effort to engage in the discussion. The ... Note to (a few) commenters
Taxing, spending and jurisdictional competition
Back in January Illinois raised corporate taxes to, as I said then, “try to bail Illinois out of the results of their fiscal profligacy.” But I added that raising taxes wouldn’t necessarily work “because of jurisdictional competition– there are many other places the would-be taxpayers can go.” And that “the tax ‘solution’ will drive out ... Taxing, spending and jurisdictional competition
Manne on insider trading as compensation
Henry Manne has a new version of the arguments he’s been making for years for insider trading as an efficient compensation mechanism. It’s Entrepreneurship, Compensation, and the Corporation. Here’s the abstract: This paper revisits the concept of entrepreneurship, which is frequently neglected in mainstream economics, and discusses the importance of defining and isolating this concept ... Manne on insider trading as compensation
Levin and Goldman
Pandering and scapegoating are not new activities for politicians, but Carl Levin has perfected these dark arts. Most recently the Senator’s game has been to demonize Goldman, culminating in accusations that its ceo, Lloyd Blankfein, engaged in criminal behavior. Per WaPo last April, Levin said federal prosecutors should review whether to bring perjury charges against ... Levin and Goldman
Securities class actions in state court
I’ve previously written about the increasingly unruly market for corporate law, in which many cases involving the governance Delaware corporations are being brought outside of Delaware. Now Jennifer Johnson writes about Securities Class Actions in State Court. Here’s the abstract: Over the past two decades, Congress has gradually usurped the power of state regulators to ... Securities class actions in state court
The Supreme Court teaches a securities lesson
In Erica P. John Fund vs. Halliburton the Court held that the Fifth Circuit erred when it required loss causation for class certification. The Court taught the lower courts the distinction among various elements of securities cases. In order to get Basic’s presumption of reliance you have to prove, e.g., that the alleged misrepresentations were ... The Supreme Court teaches a securities lesson
