In The News Today - May 19, 2014

May 19, 2014

"Losing a shareholder lawsuit to a company could soon become more expensive,” writes Liz Hoffman of The Wall Street Journal. Hoffman reports on the Delaware Supreme Court’s recent decision to uphold, “a corporate bylaw that requires the losing party in litigation against the company to pay the winner's legal fees.” Some lawyers, write Hoffman, are saying the ruling could open the door for Delaware companies to adopt, “‘loser pays’ bylaws of their own” to deter shareholder lawsuits. (Wall Street Journal)

A three-judge panel of the U.S. Court of Appeals for the 11th Circuit on Friday, "affirmed a lower court’s decision to hand down the longest-ever sentence for violating the Foreign Corrupt Practices Act.” Joel Esquenazi, the former president of Terra Telecommunications Corp., received the sentence for his role in an alleged scheme, "to bribe officials at the Haiti state-owned telecoms company." The Wall Street Journal reports that the opinion, for the first time, defined, “instrumentality and how it relates to who counts as a foreign official under the law.” The, “opinion laid out a list of factors for courts and juries to consider, including: the foreign government’s formal designation of the entity, whether the government has a majority interest in the entity, the government’s ability to hire and fire its principals, and how the government handles profits and losses at the entity.” (Wall Street Journal)