Publications

Private Industry Notification
Federal Bureau of Investigation, Cyber Division

Summary
A financially motivated cyber crime insider trading scheme targets international law firm information used to facilitate business ventures. The scheme involves a hacker compromising the law firm’s computer networks and monitoring them for material, non-public information (MNPI)1. This information, gained prior to a public announcement, is then used by a criminal with international stock market expertise to strategically place bids and generate a monetary profit.

Our national security relies on our ability to share the right information, with the right people, at the right time.

Over the last several years, there has been an increasing trend in outsourcing by manufacturers. Besides the traditional outsourcings of information processing (e.g., IT infrastructure) and business processes (e.g., finance and accounting, human resources/benefits and facilities management), manufacturers have significantly increased outsourcing of industry unique functions such as assembly, energy supply management, fabrication, and transportation. For instance, manufacturers of drilling rigs and facilities for oil exploration companies might engage other companies with expertise in die casting, grinding, forging and other technical specialties to fabricate key parts and components.

Non-compete agreements continue to face a steady attack from a variety of circles in the business, legal, political and academic communities.  Those attacks are often coupled with calls on state legislatures to ban or drastically limit enforcement of restrictive covenant agreements.  Indeed, recently proposed legislation in both Michigan (House Bill 4198) and Washington (House Bill 1926) seeks to ban outright non-compete clauses in employment agreements.

In 1887 Alabama became the first state bar in the country to adopt an official code of legal ethics that, among other concerns, attempted to regulate a lawyer’s relationship with the media. While the essence of that original rule—recognizing the need to curtail dissemination of certain information about a party prior to trial in order to preserve the right to a fair trial—has not changed, the notion of who or what comprises the “media” has. The media of 1887, or indeed the media of 1987, do not define the media landscape of 2015. This paper provides some insight for the practitioner on two levels: first, a dive into defining the myriad contributors to and sources for what we know as the media today; and second, an examination of how courts and bar associations are responding to the ethical implications of the lawyer’s relationship with this dynamic media environment.

On July 15, 2014, the Michigan Supreme Court unanimously held in Madugula v Taub that shareholder claims for wrongful oppression brought under MCL 450.1489 are purely equitable in nature, triable only to the court without a jury, even when the relief sought is money damages. It further held that breach of a stockholders' agreement may be evi¬dence of wrongful oppression, although it will not automatically establish a claim under the statute.

The automotive industry is no stranger to Foreign Corrupt Practices Act ("FCPA") enforcement activity. Indeed, the most significant prosecution in the automotive industry generated a great deal of attention and massive fines. Overall, though, the government's pursuit of automotive-related companies for FCPA violations has been occasional and moderately disorganized, unlike the large-scale antitrust investigation of automotive supply chain companies over the past several years. We believe this will soon change. Companies in this industry would be well-advised to examine their internal ethics and compliance functions, implement recommended changes now, and immediately address potential issues that come to light from compliance efforts.

Government contractors who come under investigation for any reason need to know about suspension and debarment. Investigations that result in criminal prosecution or civil enforcement proceedings, or that otherwise unearth adverse information about a company's business ethics, can lead to the company being excluded from government contracting. This article discusses the types of matters that can lead to suspension and debarment, the potential consequences, and administrative agreements that can help avoid or terminate a suspension or debarment.