North America

EMPLOYER OPTIONS DURING COVID-19: WORK-SHARING PROGRAM

Many employers wish to avoid layoffs during this unprecedented economic
climate. An option for employers is to work with their employees to create
alternative employment arrangements. Work-Sharing is one program available
to employers and employees that can accommodate a temporary reduction in
business activity due to events beyond the control of the employer, such as
COVID-19. Read more…

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NAVIGATING TROUBLED WATERS: THE CHALLENGES FACED BY LENDERS AND BORROWERS DURING THE COVID-19 CRISIS

The COVID-19 pandemic has and will continue to disrupt “business as usual” for most businesses in the United States and around the world. Even the most well-capitalized companies are likely to see constrained liquidity, and for those which lack significant cash reserves, lease and loan defaults are of primary concern. Additionally, these obligations often include personal guarantees for the businesses’ principals and compound an already difficult situation. In the current environment, all industries are feeling the heat, particularly in the retail, restaurant, travel, hospitality, entertainment and manufacturing sectors. Simply put, with large numbers of consumers, customers and employees “sheltering in place,” cash flow shortages are everywhere and have both lenders and borrowers wondering what to do to protect themselves and scrambling to review financial covenants and other loan document provisions regarding rights and remedies. Read more…

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Coronavirus ‘Civil Authority’ Coverage May Hinge On Science

Law360 (March 18, 2020, 9:04 PM EDT) — A New Orleans restaurant recently filed the first of a potential wave of lawsuits seeking insurance to cover losses from government-mandated closures due to the novel coronavirus outbreak, and disputes over this “civil authority” coverage may center on the unsettled science on how long the virus can linger in properties. Read more…

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Recovering Coronavirus Related Lost Profits through Insurance

Business interruption insurance (also known as business disruption insurance) is part of many property damage policies and intended to compensate for lost revenue and related lost profits when a business has to unexpectedly halt or reduce operations.  To the extent suppliers or customers are affected, contingent business interruption or leader property insurance may apply (leader property insurance provides coverage when a business is negatively impacted by the closure of an unowned property that would otherwise generate customer traffic to the insured).  Many policies also include coverage for interruption to property access by civil or military authority.  In the current environment, many businesses have been mandated by government authorities (i.e. civil authority) to close or significantly curtail operations in hopes of minimizing the spread of the coronavirus (COVID-19). Read more…

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COVID-19 AND SHAREHOLDERS MEETINGS: NOW WHAT?

We have received several inquiries from clients asking for guidance regarding their shareholders meetings in light of the rapidly evolving novel coronavirus (“COVID-19”) pandemic and the need to socially distance ourselves. With the annual general shareholder meeting (“AGM”) season upon us, this article seeks to provide information relating to (i) the options available for holding AGMs in light of the COVID-19 concerns and (ii) the procedures to be followed in the event that an issuer decides to change the date, time or location of its inperson AGM due to COVID-19. Read more…

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COVID-19 Questions And Issues

Below is a summary of questions and issues that our clients have been dealing with in response to COVID-19. This Alert cannot address all COVID-19 issues as the circumstances of each company vary and the situation continues to evolve. Stradling has a multi-disciplinary group of attorneys ready to respond to your needs and we encourage you to reach out if you have any questions or are looking for guidance on these developing issues. Read more…

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Federal Paid Sick Leave Passed By The Senate California Suspends Warn Act Orange County Reigns In Shelter-In-Place Order

Developments around the COVID-19 pandemic continue to move fast and significant changes in the relevant laws continue to evolve. This Client Alert covers three recent developments, including the passage by the United States Senate of the Families First Coronavirus Response Act, California’s temporary suspension of the California WARN Act, and significant softening of the Orange County Public Health shelter-in-place regulations. As always, we encourage you to reach out to any member of team listed at the end of this Alert with any questions you may have on these fast moving topics. Read more…

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Client Alert #3 – California’s Statewide Stay At Home Order and Other Updates

Stradling continues to monitor developments related to the COVID-19 pandemic and provide guidance to clients during these challenging times. The most important issue discussed in this Alert is the statewide “stay at home” Executive Order issued by Governor Newsom last night. Read more…

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U.S. Federal Government Proposes Various Changes to SBA Loan Programs to Assist Small Businesses Affected by Coronavirus

In light of the economic impact of the COVID-19 pandemic, the federal government has taken steps to expand the availability of, and streamline the process for, obtaining loans administered by the U.S. Small Business Administration (SBA). In addition, further changes are expected as part of a sweeping stimulus package, which is currently under negotiation in Congress. Read more…

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FDA Eases Device Modification Rules to Expand Availability of Ventilators During COVID-19 Pandemic

On March 22, 2020, the U.S. Food and Drug Administration (“FDA”) issued guidance, for immediate implementation, that aims to increase the availability of ventilators and other respiratory devices needed to address the COVID-19 pandemic.  While FDA urges health care facilities to use, wherever possible, FDA-cleared standard full-featured ventilators to treat COVID-19 patients (as well as other patients requiring ventilatory support), FDA will allow a more flexible approach to modifications to these devices to help boost manufacturing capacity and supply.  FDA also took the opportunity to lay out guidelines that encourage submission of Emergency Use Authorization (“EUA”) applications for devices not marketed in the United States, continuing an unprecedented Agency response to the pandemic.

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