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Business Law Update – March 2024

Business Law Update

Read Business Law Update to stay up to date on legal issues that impact public and private companies on a local, national and global basis. Articles in this issue include:

Business Perspectives

Higher for Longer

In this edition of our newsletter, Frank Chaiken, practice group leader of the Corporate Transactions & Securities practice, reflects on the effects of higher interest rates on corporate transactional and financing strategies. Continue reading.

Corporate Transparency Act

CTA Requirements and Deadlines Remain Despite Recent Constitutional Challenge

Despite a recent decision out of the Northern District of Alabama holding that the Corporate Transparency Act is unconstitutional, we anticipate that litigation will continue and that this ruling does not represent the end of the CTA. Read more.

CTA, ERA, SEC – Oh My! Balancing Disconnected Regulatory Schemas in Venture Capital

Venture capital fund advisers (and their funds) that are registered with the SEC are exempt from CTA reporting. However, recent SEC communications indicate that funds with less than $25 million in assets under management cannot register as exempt reporting advisers (ERA), leaving a situation in which the small and emerging funds that can least afford the additional costs of CTA reporting may be the only venture capital funds required to do so, while the large funds have no such burden. Continue reading.

CTA Compliance for ESOPs

In this article we highlight a few issues for ESOP-owned corporations to consider regarding CTA compliance, including how the ESOP holding company structure could make an ESOP-owned corporation ineligible for the CTA’s large operating company exemption and who should be part of an ESOP-owned corporation’s “beneficial owner” analysis. Read more.

New Ventures

Entering the World of Business Certification

Obtaining business certification can be a vital part of a company’s success in competing for government contracts set aside for small businesses and businesses owned by people from historically underrepresented groups. In this article we provide an overview of various federal, state/municipal and private sector certification programs and their eligibility requirements. Continue reading.

Antitrust

Trouble in the Huddle – Uncertainty and Opportunity with the NCAA’s NIL Rules

With its decision in NCAA v. Alston, the Supreme Court kicked off a new era of uncertainty regarding collegiate athlete compensation in connection with an athlete’s name, image and likeness (NIL). We provide an update on recent legislative and litigation developments in this evolving NIL contest. Read more.

Business Litigation

Cutting No “Slack”: Ephemeral Messaging Creates Significant Enforcement Risk

While regulators and courts crack down on companies whose employees use ephemeral messaging apps to conduct business activities, we offer some strategies to help organizations mitigate the risks of ephemeral messaging. Continue reading.

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