On January 13, 2017, the United States Supreme Court agreed to consider whether, under American Pipe & Construction Co. v. Utah , 414 U.S. 538 (1974) (“ American Pipe ”), the filing of a securities class action lawsuit tolls the statute of repose found in Section 13 of the Securities Act of 1933 (the “Act”). In American Pipe , the Court held that “the commencement of a class action suspends the applicable statute of limitations as to all asserted members of the class who wou

What is a forum selection clause? Corporations and other business entities are all too familiar with them. In its simplest form, a forum selection clause is a provision in a contract that designates a specific location (or a particular court within a specific location) for litigation in the event of a dispute. Forum selection clauses are common in commercial contracts because they “provide certainty and predictability in the resolution of disputes.” Boss v. American Express

A breach of contract comes in two primary varieties: a material breach and a minor breach. The former is substantial, goes to the very heart of the agreement and prevents the contract from being performed. When a material breach occurs, the non-breaching party can cease performing under the agreement and sue to collect the damages caused by the breach. The latter, also known as a partial breach, occurs when a party fails to complete a less important part of a contract. Impo

On January 6, 2017, the SEC announced that it awarded $5.5 million to a whistleblower who came forward with information that led to a successful SEC enforcement action. The whistleblower is the 38 th relator to receive an award under the SEC whistleblower program. In total, since 2011, the SEC has paid approximately $142 million to whistleblowers who provided information resulting in the collection of monetary sanctions against violators of the securities laws. To date, th

What is the fate of the fiduciary rule under the Trump Administration? In May of last year, this Blog wrote about the Department of Labor's fiduciary rule, which requires financial advisors to put their clients' interests first when making investment recommendations for retirement accounts, such as 401(k)s and IRAs. The rule, designed to prevent conflicts of interest, has strong support from the Obama administration and investor advocates who argue that inappropriate recomme

Business owners hate litigation. In fact, there are few things they hate more. Litigation damages relationships, tarnishes reputations, and interferes with business operations. Even small claims divert time, money and talent. So, how can corporations and small businesses avoid these costs and expenses? The answer: alternative dispute resolution, such as arbitration and mediation. Over the past few decades, it has become commonplace for corporations and small businesses to i

Your client comes to you with a complaint that was recently served on him. Among other claims, the plaintiff contends that your client breached his agreement to sell widgets. After discussing the claims with your client, you decide to file an answer. Your analysis of the contract claim leads you to conclude that the contract is void because performance would require your client to violate certain labor laws. In addition to general denials, you assert several affirmative defe

From time to time, this Blog has written about lawsuits involving corporations, including those brought as shareholder derivative actions ( here ). As this Blog explained, a derivative action is a lawsuit brought by a shareholder of a company, on behalf, and for the benefit, of the company to enforce or defend a legal right or claim. Derivative actions seek the recovery of damages and/or equitable relief arising from unlawful or improper conduct engaged in by officers, direct

On December 22, 2016, the Department of Justice (“DOJ”) announced that Teva Pharmaceutical Industries Ltd. (“Teva”), the world’s largest manufacturer of generic pharmaceutical products, and its wholly-owned Russian subsidiary, Teva LLC (“Teva Russia”), agreed to resolve criminal charges and to pay a criminal penalty of more than $283 million for violating the Foreign Corrupt Practices Act (“FCPA”). The charges relate to various schemes involving the bribery of government off

What could this legislation mean for New York businesses? New York Attorney General Eric T. Schneiderman recently introduced legislation intended to reduce the use of non-compete agreements in the workplace. The bill is designed to protect the rights of workers to find better employment opportunities, particularly for low-wage earners who have been hindered in their ability to move to new jobs because of non-compete agreements. Schneiderman’s bill includes: A ban on all non

Can I receive a financial award for blowing the whistle on my company? A Texas federal jury has found the entities formerly known as Allied Home Mortgage Capital Corporation ("Allied Capital") and Allied Home Mortgage Corporation ("Allied Corporation" and together with Allied Capital, "Allied") and CEO Jim Hodge liable for violating the False Claims Act ("FCA") and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA") in connection with more than

We live in a technologically advanced world. Our phones are smart, our tablets are mini-computers, and our laptops/notebooks are more powerful than ever. We can interact with each other through email, text messaging and other forms of electronic communications. Gone, for the most part, are the more formal, traditional ways of communicating with each other, e.g. , letters and faxes. As the modern ways of communicating have become the norm, many business executives and owner

What anti-money laundering compliance programs should financial firms have in place? The Financial Industry Regulatory Authority ("FINRA") recently announced that it had fined Credit Suisse Securities (USA) LLC, a former unit of Credit Suisse AG, $16.5 million for anti-money laundering ("AML"), supervision, and other violations. The self-regulatory watchdog found that the firm's monitoring program for detecting suspicious activity was deficient in two material ways. First,

On December 14, 2016, the Department of Justice (“DOJ”) announced that it “obtained more than $4.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government” in the fiscal year ended September 30, 2016. This amount represents “the third highest annual recovery in False Claims Act history, bringing the fiscal year average to nearly $4 billion since fiscal year 2009, and the total recovery during that period to $31.3 billion.

The Securities and Exchange Commission (“SEC” or “Commission”) has put a lump of coal in the Christmas stockings of two companies this week for using separation agreements that impede the ability of whistleblowers to report violations of the securities laws to the Commission. The announcements by the SEC ( here and here ) came within a day of each other and evidence a continued resolve by the Commission to crackdown on companies that use severance agreements and other types

New York, NY ( Law Firm Newswire ) December 22, 2016 - The Law Office of Jeffrey M. Haber is pleased to announce that Mr. Haber has once again been named by Super Lawyers magazine to be among the top lawyers in the New York metropolitan area. The Law Office of Jeffrey M. Haber was recognized in the 2016 Super Lawyers, Business Edition (an annual guide to the nation’s top business law firms and attorneys) for his business litigation work. As part of his history of profession

Perpetrating a fraud on the government is a serious problem. It has economic and life threatening consequences ( e.g. , increasing costs to taxpayers, and providing defective bullet proof vests to the military). Congress and the states have passed many laws to end fraud on the government. Chief among these is the False Claims Act (“FCA”) and the state analogues. The FCA imposes liability on persons and companies who defraud the government and protects and rewards whistleblow

On December 6, 2016, the United States Supreme Court ruled that a violation of the seal provisions of the False Claims Act (“FCA”) does not mandate dismissal of a relators’ complaint. In doing so, the Court affirmed the judgment of the Fifth Circuit, which, in turn, affirmed the judgment of the district court. In State Farm Fire & Casualty Co. v. United States Ex Rel. Rigsby (which this Blog wrote about here and here ), whistleblowers, Cori and Kerri Rigsby, filed a qui ta