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Special Committees Must Be Fully Independent And Demonstrate A "Vigorous" Commitment To Protecting The Interests Of The Corporation

A recent ruling by the Appellate Division in New York's First Department reversed the dismissal of a derivative action in the high-profile Comverse Technology, Inc. ("Comverse") options backdating matter. The court ruled that the derivative action should be allowed to proceed after finding that...

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U.S. Treasury Department's Temporary Guarantee Program For Money Market Funds

Recent events in the commercial paper market, beginning with Lehman Brothers Holdings, Inc.'s declaration of bankruptcy on September 15, 2008, have led some money market funds to "break the buck." These funds were unable to maintain a stable net asset value or share price (a "...

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SEC Provides Guidance On The Use Of Company Websites To Provide Information To Investors

On August 1, 2008, the Securities and Exchange Commission ("SEC") issued an interpretive release (the "Release") that provides guidance regarding the use of company websites to provide information to investors. Recognizing the widespread use of the Internet and that company websites "can serve as...

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Trend Spotting: Recognizing The Growing Risk Of IP Litigation Facing OSS Developers And Implementers

The pending, well-publicized patent dispute between Trend Micro, Inc. and Barracuda Networks, Inc. is a good recent example of the fact that open source software ("OSS"), and "free" software generally, is not free of legal risks, including risks of litigation. Rather, litigation is a commonplace...

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U.S. Supreme Court Unanimously Reverses Federal Circuit In LG Electronics Case And Limits A Patent Holder's Ability To Demand Downstream Royalties On The Use Of A Product

On June 9, 2008, the United States Supreme Court reversed a decision by the U.S. Court of Appeals for the Federal Circuit in the closely watched battle between LG Electronics, Inc. ("LGE") and Quanta Computer, Inc. The decision restricts LGE's ability to demand royalties from Quanta, which had...

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Proposed Regulations Clarify And Expand U.S. Government Foreign Direct Investment Reviews

On April 23, 2008, the Treasury Department, the agency chairing the Committee on Foreign Investment in the United States ("CFIUS"), proposed regulations to implement the Foreign Investment and National Security Act of 2007 ("FINSA"). FINSA amended the U.S. law that authorizes the President to...

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FTC Requires Patentee To Fulfill Licensing Commitments To A Standard-Setting Organization To Prevent Consumer Harm

On January 23, 2008, the Federal Trade Commission (the "FTC" or the "Commission") announced a complaint and a proposed consent order with a patent licensing company, Negotiated Data Solutions LLC ("N-Data"), regarding patents related to the ubiquitous Ethernet computer networking standard.1With...

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