John Michels

The US #Bankruptcy Court for the Southern District of #NewYork recently issued a ruling in In re #MerconCoffee Corporation invalidating insider releases in a proposed chapter 11 plan on the basis that the releases were improper retention-related transfers. Our alert discusses the primary focus of the confirmation hearing and provides key takeaways. https://lnkd.in/dE4_9jsu

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The total fines imposed by the SEC and CFTC for violations associated with firms’ failure to monitor and capture communications by employees on unapproved devices and systems (off-channel communications) are approaching $3 billion. The SEC recently resolved enforcement proceedings involving off-channel communications against 12 broker-dealers and four affiliated investment advisers. The resolutions require the 16 respondents to pay more than $81 million aggregate in civil penalties and retain compliance consultants to review their electronic communications practices. As in prior resolutions of off-channel communications matters, the respondents all admitted the facts alleged by the SEC and acknowledged that they violated the federal securities laws. This article analyzes the latest round of settlements. #HFLR #offchannelcommunications #recordkeeping https://lnkd.in/efmf8JjY

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⭕ A U.S. district court dismissed all the SEC’s securities fraud and false filings claims against SolarWinds and its Chief Information Security Officer (CISO) Timothy Brown regarding the adequacy of cyberattack disclosures, finding that the SEC had impermissibly relied on “hindsight and speculation” to find those disclosures fraudulent. ⭕ The court also dismissed the SEC’s claims that SolarWinds’ cybersecurity deficiencies amounted to deficient internal accounting controls, finding that the SEC had stretched the definition of “accounting” past its limit. ⭕ But the decision wasn’t a wholesale win for SolarWinds or Brown. The court upheld the SEC’s scienter-based fraud claims against both parties related to the security statement posted on SolarWinds’ website prior to the attack, finding the statement actionable under the securities laws, and that Brown could also be held potentially liable under Section 10(b) of the Exchange Act and Section 17(a) of the Securities Act for its false and misleading content. ⭕ Public companies’ statements related to their cybersecurity practices are still a major risk area for the companies, their CISOs, and potentially other executives as well. Read more in this #GTAlert written by Tracy Schloss Combs, Steven Malina, Jena Valdetero, and Nair Marie Banks III: https://buff.ly/3WDp830. #SEC #Cybersecurity

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Today marks the anniversary of the landmark Zubulake v. UBS Warburg decision, which established foundational principles for handling ESI in eDiscovery and addressed the critical issue of cost allocation for ESI production. These principles continues to shape legal strategies today. Carrying forward the Zubulake legacy, Questa Discovery streamlines data ingestion and processing, reducing processing time and minimizing storage costs. Advanced analytics further enhance efficiency, allowing eDiscovery professionals to identify relevant ESI quickly and avoid production burdens. Our robust security features ensure the protection of sensitive data, while our user-friendly interface simplifies the eDiscovery workflow for legal teams. #TellYourStory with Questa! Download our brochure: https://lnkd.in/eDknzN67 Learn more about Questa's AI powered solutions: 📧 info@questadiscovery.com 🌐 www.questadiscovery.info #LegalTech #AI #eDiscovery 

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The USPTO issued guidance on the use of AI-based tools. MBHB Partner Manav Das shares 10 key takeaways. Read more here.

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What are the responsibilities of CFTC and SEC registrants, as well as non-registrants, when it comes to supervising vendors and other third parties? What proactive measures should your firm be taking to mitigate third-party risk and bolster resilience, beyond just adhering to the rules? Partner Raymond Ramirez will delve into these topics during the panel discussion, “Third-party supervision: Obligations and best practices”, at the FIA, Inc. Law & Compliance Division Conference on Friday, April 26. Stay tuned for insights on #CFTC and #SEC regulations. For more information, visit the conference website. https://lnkd.in/eUuvsMwX

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📅 On May 9, senior counsel David Aaron will speak on the "US Cybersecurity Regulatory Developments and Individual Cybersecurity Liability" panel during the Spring Privacy + Security Academy in Washington, D.C. Learn more: https://bit.ly/3VTY6EQ. #Cybersecurity #CybersecurityRegulation #Privacy #PrivacyLaw

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Don’t miss this program, coordinated by Rita Garry, JD, CFP, CIPP/US and presented by the Illinois State Bar Association, that is designed to help demystify the Data Protection Addendum (DPA) and show you how to approach third party/vendor contracts involving personal data! Business advice/financial planning attorneys, corporate law counsel, privacy and security law lawyers, and legal technology practitioners with basic practice experience who attend this online program will better understand: - When a DPA is required; - What is involved in a DPA, including key terms and requirements (from both a data controller and data processor perspective); - The policies and procedures required to supplement DPA promises; - The new technologies that impact DPAs and require special considerations; - The legal landscape governing contracts involving “personal” data, including U.S. and international differences; - When to escalate issues to privacy professionals; and - Much more. Register for the webcast below: https://bit.ly/3UjepcU

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When it’s risky that a PTAB proceeding might catch up to wrangling over damages in district court, collaboration between litigators and PTAB counsel is key Access IAM's latest analysis on PTAB strategy and damages litigation by Kevin McNish of McNish PLLC here: https://lnkd.in/gJvsn3jf #patents #litigation #IPstrategy

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Following up on our recent webinar regarding the NVIDIA securities class action case, here's an update from yesterday's Supreme Court announcement. Clearly there's more to come with this case. #securitiesclassactions, #Supremecourt, ISS Securities Class Action Services

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Jacko Law Group Regulatory Tip of the Week by Michelle L. Jacko FINRA Reminds Member Firms that Regulatory Rules Apply to Use of Generative AI In June 2024, FINRA reminded firms that laws regulating the use of technology and tools used in the trade must be applied to Generative AI. No new regulations have been introduced, and member firms that utilize Generative AI must adapt and apply existing laws to meet compliance requirements. Those regulations include: - Oversight: Continuous human supervision and monitoring if using AI systems. - Employee Training: Ongoing training for employees and key company personnel to ensure they are well-versed in the ethical and compliant use of AI. - Data Protection: Privacy and security protocols in place to protect customer data. - Compliance with Communication Laws: AI-generated communications must comply with FINRA’s standards to ensure that all information presented is fair and accurate. For assistance in determining if your business meets FINRA’s regulations for Generative AI use, please call 619.298.2880 or email info@jackolg.com. #FINRA #AI #jackolg

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The SEC has published a final rule adopting amendments to Regulation S-P that require certain covered institutions to adopt written policies and procedures for incident response programs that address unauthorized access to or use of customer information. In our latest client alert, partners Peter Bogdasarian, Cory Hippler and Kristin Ives and associates Grace Wydeven and Katie G. provide an overview of changes from the previous standard and key takeaways: https://bit.ly/3x7LZd6

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🚨 Effective July 1, 2024, the Oregon Consumer Privacy Act (OCPA) created meaningful privacy protections for Oregon consumers and new data protection obligations for companies operating in Oregon. 🔎 Learn more about the OCPA, its data handling requirements, and how to comply below👇

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On December 6, 2024, Pryor Cashman Partner Jeffrey Alberts, co-chair of the firm’s White-Collar Defense and Investigations Practice, is participating in a panel discussion, “The Role of Regulators in Asset Recovery,” at the 2nd Annual Asset Recovery Conference hosted by the International Bar Association in Madrid, Spain. The panel will explore the complexities of asset recovery strategies, comparing civil and criminal approaches, the role of regulatory regimes, and the rights of victims in seeking redress and restitution. Click here to learn more: https://lnkd.in/euZsw5Rz #PryorCashman #AssetRecovery #InternationalLaw #LegalInsights #assetforfeiture

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Download our Cybersecurity Compliance Handbook to learn about the amended Federal Trade Commission's Safeguards Rule, as well as a guide to National Credit Union Administration breach reporting and Housing and Urban Development breach reporting requirements. https://lnkd.in/gvr297eZ #WilsonElser #cybersecurity #cybercompliance #financialinstitutions #dataprivacy #cyberlaw

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H/T to Ivan Quinn (and plagiarizing his original post w/ permission). The state Attorney General’s proposed regulations for the Colorado Privacy Act (CPA), released on September 13, would mark a huge change in the CPA, which currently does not apply to employers or employees. Employers in the state will soon need to comply with stricter rules for collecting biometric information from employees and applicants. This includes data like fingerprints, facial scans, and voice recordings. Key points to remember: 1. New regulations: These will take effect on July 1, 2025. 2. Purpose limits: Employers can only collect biometric data for specific reasons: access control, timekeeping, or workplace safety. 3. Consent required: Clear and informed consent must be obtained from individuals before collecting their biometric data. 4. Additional protections: The regulations also include stronger safeguards for children's data. https://lnkd.in/eQxbUwfq #biometrics #privacy #fingerprints #facialrecognition #speakerrecognition

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FinCen BOI reporting requirements are back with a January 13th deadline for LLCs, corporations, etc. The injunction was lifted, so the requirement stands for now; business owners should proceed with BOI filings accordingly. Big fines and even criminal penalties will apply for rule violations. Merry Christmas!🎁 #boi #fincen #business #smallbusiness

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On May 21, the SEC's Division of Corporation Finance Director issued a statement on disclosing material cybersecurity incidents. Director Gerding highlighted the requirement for public companies to report significant cybersecurity incidents under Item 1.05 of Form 8-K and expressed concern over some companies’ “confusing” use of Item 1.05 to disclose immaterial or not-yet-material information. Read more below. Privacy alert prepared by Loeb & Loeb partners Giovanni Caruso and Harry Valetk #privacy #security #data #corportate

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