3 Ways Proactive Legal Ops Teams Can Increase Organizational Efficiency
Negotiating Supplier and Distributor Agreements (Reports from the IFA Legal)
The first step in creating or renegotiating a supply chain is understanding its component parts, and the roles each part plays: Producers, Manufacturers, Distributors, Retailers, and Consumers. These roles are not exclusive. For instance, the producer of a raw good, such as milk or software code, may also be the manufacturer of the finished good or service (in either case or collectively, a “supplier”), and manufacturers often handle distribution themselves, especially if the franchisor is…
Recent GAO Decision Permits One-sided Discussions as Agency Corrective Action
In a prior alert, we highlighted the unusual remedy ordered in Caddell Construction Co. v. U.S., in which the Court of Federal Claims nullified the award of a construction contract and ordered the agency to reopen discussions with only one firm. The court explained that the unusual remedy was appropriate because misleading discussions had impacted only that firm, and “a broad reopening of discussions is unnecessary to cure the procurement error and would cause more…
No-Poach and Antitrust, Part Deux (Or, is the risk worth it?)
In a recent post, I expressed the view that no-poach clauses in franchise agreements are unlikely to violate the antitrust laws. Recent activity, however, has given me a “maybe yes, maybe no” on my prediction.
First, two recent rulings offer differing views on the issue of the appropriate standard to apply to the antitrust analysis. The possible standards of review, from the most lenient to the most demanding, include per se (automatically illegal), quick look,…
FinCEN Director Blanco Addresses AML Compliance and Casinos
FinCEN Director Kenneth A. Blanco delivered prepared remarks on August 13 at the 12th Annual Las Vegas Anti-Money Laundering Conference. We previously have blogged repeatedly on the anti-money laundering (“AML”) and Bank Secrecy Act (“BSA”) challenges facing the gaming industry. This post will discuss Director Blanco’s comments at a high level only, consistent with the generality of his prepared speech.…
Unreviewed Preservation Requests Likely to Continue
The Ninth Circuit recently heard an appeal that challenges a common tool of law enforcement: “f” letters.
Under section 2703(f) of the Stored Communications Act, law enforcement may compel providers of “electronic communications services” (think Google) to preserve “records and other evidence” (think email) for a period of time. These preservation demands do not require any degree of suspicion, let alone probable cause, and are sent without judicial approval. Here’s a sample, provided by the…
Delaware Supreme Court Clarifies Confidentiality Order Requirement in Books and Records Action
In the recent decision of Tiger v. Boast Apparel, Inc., No. 23, 2019 (Del. Aug. 7, 2019), the Delaware Supreme Court held that conditioning the inspection of documents pursuant to a demand under 8 Del. C. § 220 on the demanding party entering into a confidentiality agreement should be viewed as the exception, not the rule, and that the corporation must provide justification for confidentiality in order for such a condition to be upheld by the…
D.C. Circuit Rules in Favor of Broad Reach of Patriot Act Subpoenas
Opinion Allows DOJ Broad Access to Foreign Banks’ Correspondent Account Records Relating to Alleged Front Company Operating for North Korea
On August 6, the U.S. Court of Appeals for the District of Columbia kept in place $50,000-per-day fines on three Chinese banks—whose identities are redacted—for refusing to comply with subpoenas issued by the Department of Justice (“DOJ”) for records of a Hong Kong company (“Company”) that allegedly facilitated hundreds of millions of dollars of…
Meet Team Hanzo: Dan Spaide, Hanzo Partner Manager, The Practical Guy who Focuses on Solutions
Federal Reserve and FinCEN Raise Alarms Regarding Technology-Assisted Financial Fraud
The Federal Reserve and the Financial Crimes Enforcement Network, or FinCEN, both recently issued reports addressing worrisome trends in technology-assisted financial fraud. The reports seek to engage the financial services industry in partnering more closely to reduce associated losses.
Specifically, the Federal Reserve issued a report entitled Synthetic Identity Fraud in the U.S. Payment System. FinCEN issued a report entitled Manufacturing and Construction Top Targets for Business Email Compromise. Collectively, the reports reflect…