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Eighth Circuit Amends Standard For Review Of Mutual Fund Advisory Fees
On April 8, 2009, the U.S. Court of Appeals for the Eighth Circuit decided Gallus v. Ameriprise Financial, Inc. ,1the latest significant case involving Section 36(b) of the Investment Company Act of 1940 (the "1940 Act"). In Gallus , the Eighth Circuit reversed the District Court'...
Read MoreFederal Insurance Regulatory Initiatives
The insurance business is regulated primarily by the states.1Legislative proposals currently under consideration by the Administration and Congress, however, may effect changes to the landscape of insurance regulation. Current federal insurance-related initiatives generally fall into three...
Read MoreDelaware Chancery Court Refuses To Hold Citigroup's Directors Personally Liable For Failing To Monitor Risks Associated With Citigroup's Subprime Exposure
On February 24, 2009, Chancellor William B. Chandler III of the Delaware Chancery Court issued a noteworthy ruling dismissing breach of fiduciary duty claims asserted against the board of directors of Citigroup Inc. See In re Citigroup Inc. Shareholder Derivative Litigation, 964 A.2d 106 (Del....
Read MoreDemand Futility In NewYork State Court Derivative Actions Arising From Stock Options Backdating
In January 2009, the Appellate Division in New York's First Department affirmed the dismissal of a derivative action relating to the backdating of stock options by Bed Bath & Beyond, Inc. The Appellate Division held that the trial court properly dismissed the derivative action, finding that the...
Read MoreJack And The Beanstalk: Taking The Ax To Executive Compensation
After 25 years of largely counterproductive efforts to restrain executive compensation by imposing excise taxes on golden parachutes, limiting deductions for incentive compensation that did not meet rudimentary performance standards, and confining deferred compensation to a regulatory...
Read MoreCredit Default Swaps In The Headlines: What Senior Management Needs To Know About How CDSs Work, And Recent Efforts To Regulate CDSs
All Eyes On Credit Default Swaps In recent months, credit default swaps ("CDSs") have been the subject of growing public scrutiny. As defaults by sellers of these instruments have risen, there has been a call for governmental regulation, increased disclosure and transparency, and...
Read MoreFederal Circuit Raises The Bar For Business Method Patents
The United States Court of Appeals for the Federal Circuit issued a decision on October 30, 2008 in a closely watched case on the patentability of processes under Section 101 of the Patent Act.1Chief Judge Michel's en banc majority opinion in the Bilski case adopted a more stringent test for the...
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