And we have a decision... As I suspected, and informally predicted, the Supreme Court has ruled in favor of the defendants, Scientific-Atlanta and Motorola, in the Stoneridge case. You can read the slip opinion here.
Business defendants in securities class action lawsuits have long felt that plaintiffs attorneys cast a wide net in naming defendants, hoping to find the deepest pockets in cases that seek joint and several liability. But wait - you say - surely a court won't hold businesses liable who didn't have anything to do with the securities fraud. Ah, but securities class action litigation is very expensive to defend, so most companies would prefer to settle rather than face those ridiculous costs. And if they're not named as defendants in the first place, then they can avoid paying large settlements when they did nothing wrong.
Makes sense, right? Except that the question of when one company can be held liable for securities fraud committed by another company does not have a simple answer. The Stoneridge case sought to clarify the category of liability for "aiders and abetters." But I better stop here, because I really just wanted to whet your appetite for the article I've been working on...
To read more about the decision, check out this article.
Wednesday, January 16, 2008
Monday, January 14, 2008
Tax time! (Almost)
Okay, I know we've got a ways to go until April 15th, as the -25 windchill reminded me this morning. But this is tax time because you are probably getting your records together for your accountant. In my experience, small business owners run the gamut in the complexity and totality of their record-keeping. From my perspective as a lawyer and tax preparer, the more the better. Write it all down and keep it for at least seven years. Better yet, write it all down, scan it, and keep it electronically forever. (And as a tax preparer, I ask that you put it in a spreadsheet. The shoebox full of receipts is so 1980s.) If you're not sure whether something would be deductible, keep the receipt and talk to your tax preparer. You never know what extra deductions your preparer can find, but I can't do much to help you if you didn't document it!
BW Online has their advice for small businesses, with Five Tax-Trimming Tips. The first is an important one - save your records. (See my note above about saving your data electronically.) If you're not sure what to save or for how long, be sure to ask your tax preparer. Second, make sure that you're using the best business entity for tax savings. Your attorney can discuss potential tax savings with you. Third, manipulate your income and expenses to cut your tax liability for 2007. Fourth, get your capital gains now - just in case the Democrats take the election. Finally, put more money in your retirement accounts to avoid paying tax on it now.
BW Online has their advice for small businesses, with Five Tax-Trimming Tips. The first is an important one - save your records. (See my note above about saving your data electronically.) If you're not sure what to save or for how long, be sure to ask your tax preparer. Second, make sure that you're using the best business entity for tax savings. Your attorney can discuss potential tax savings with you. Third, manipulate your income and expenses to cut your tax liability for 2007. Fourth, get your capital gains now - just in case the Democrats take the election. Finally, put more money in your retirement accounts to avoid paying tax on it now.
Venture Capital in 2008
The Wall Street Journal has run a few articles about how VC firms and other financiers may be clamping down a bit in 2008 (sub-prime crisis, fears of recession, etc.). If your company was counting on financing in 2008, you may want to check out this article by BusinessWeek online. BW interviewed a California VC firm, and they provide insight into the tech market, VC firms, and - most importantly - how you can catch the eyes of venture capitalists.
Thursday, January 3, 2008
Time to Re-Write Your Company's Vision
BW Online has a great article called "The Napkin Test". The author believes that companies put too much effort into a wordy and quickly-forgotten mission statement. Instead, he suggests that companies focus on writing a powerful vision. The vision is different from the mission statement because it is concise and easy to remember. It should be 10 words or less, essentially short enough to write on the back of a napkin. (A little cocktail napkin, that is. If you can fit it on one of those huge linen napkins, then you're missing the point.)
When you're ready to sit down and write your vision, read this article first. Then you'll be ready to inspire your employees and customers!
When you're ready to sit down and write your vision, read this article first. Then you'll be ready to inspire your employees and customers!
Happy New Year!
Merry Christmas, Happy New Year! Yes, I took a break for the holidays, but now I'm back. Stay tuned for some new posts. I hope everyone has a wonderful 2008!
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