North America

ITAR Material Change and Registration Renewal Guide And Checklist

Any U.S. company that manufactures, exports, or temporarily imports items or performs defense services that are controlled under the International Traffic in Arms Regulations (ITAR) is required to register with the U.S. Department of State Directorate of Defense Trade Controls (DDTC) and keep that registration current. Current in the context of the ITAR means not only the company information that is current at the time the registration is initially submitted, but the information in the registration must accurately reflect the registered company’s current information at any point in the company’s timeline. When certain changes occur within the registered company, such as a change of control, a merger or acquisition, or a change in executive leadership, those changes must be reported to DDTC and the company’s ITAR registration must be updated. At a minimum, ITAR registration must be renewed annually. Read more…

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USTR Enacts Then Suspends Tariffs in Response to Digital Services Taxes

On June 2, 2021, the U.S. Trade Representative (“USTR”) announced the imposition – and immediate 180-day suspension – of 25% tariffs on goods from six countries pursuant to findings in the Section 301 of the Trade Act of 1974 investigations (“Section 301 investigations”) into digital services tax (“DST”) regimes.[1] Read more…

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CFIUS Heightens Scrutiny of Non-Notified Transactions

For many years, the Committee on Foreign Investment in the United States (“CFIUS”) has had the authority to review non-notified transactions – deals which have not been submitted to CFIUS for review and approval – but until recently, resources for such efforts were limited. That changed in 2018, when the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”) significantly bolstered resources for CFIUS oversight and enforcement activities. Read more…

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The Wild West of name, image, and likeness: Be prepared when the dust settles – A series

Amateur (noun): a person who pursues a particular activity or field of study independently from their source of income.

Although fiercely competitive and incredibly popular (and lucrative) today, collegiate athletics comes from humble beginnings. Formalized participation in the first college athletic teams began with crew in the 1840s, baseball in the 1850s, football in the 1860s and track and field in the 1870s. For nearly two-centuries, athletes who competed in collegiate sport were amateurs. On July 1, 2021, that all changed. Read more…

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Virginia Implements New Overtime Laws

Effective July 1, 2021, Virginia employers must ensure that their pay practices comply with a new stand-alone overtime law called the Virginia Overtime Wage Act (“VOWA”). VOWA largely tracks the federal Fair Labor Standards Act (“FLSA”) in that it incorporates most FLSA exemptions and requires employers to pay 1.5 times a nonexempt employee’s regular rate of pay for all hours worked in excess of 40 hours each workweek. However, VOWA and the FLSA differ in several ways.

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IAM Patent 1000 2021 Again Ranks Connolly Gallagher for Delaware Patent Litigation

IAM Patent 1000 2021 Again Ranks Connolly Gallagher for Delaware Patent Litigation

Connolly Gallagher can be relied on for the right steer on all issues that come up in patent litigation,” the 2021 edition of IAM Patent 1000 ranks the firm’s intellectual property group for Delaware IP law firms.

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2021 Amendments to Delaware’s General Corporation Law and Alternative Entity Statutes

2021 Amendments to Delaware’s General Corporation Law and Alternative Entity Statutes

In its current session, the Delaware legislature passed a number of amendments to the Delaware General Corporation Law (the “DGCL”), the Delaware Limited Liability Company Act (the “DLLCA”), the Delaware Revised Uniform Limited Partnership Act (“DRULPA”) and the Delaware Revised Uniform Partnership Act (“DRUPA” and, together with the DLLCA and DRULPA, the “alternative entity statutes”). Delaware Governor John Carney signed these bills into law on June 30, 2021. The amendments become effective on August 1, 2021.

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Delaware Supreme Court Finds Fraud Insurable

In a recent decision, the Delaware Supreme Court ruled that insuring against fraud does not per se violate Delaware public policy and held that the insured’s D&O policy covered claims alleging securities fraud. RSUI Indemnity Company v. Murdock, No. 154, 2020, 2021 WL 803867 (Del. Mar. 3, 2021). In so doing, the Court diverged from other states with general public policy exceptions to fraud and reinforced the proposition that contracts should be enforced as written. In other words, if an insurer intends its policy to
exclude certain types of claims, the policy should expressly say so as opposed to after-the-fact appeals to “public policy” as grounds for denying coverage.

Brief Case Synopsis
The Murdock case involved a directors and officers (“D&O”) excess policy insuring Dole Food Company, Inc. (“Dole”), which was triggered, along with another eight layers of D&O insurance, when CEO and Director David Murdock took Dole private through a merger transaction.  That merger resulted in several lawsuits asserting claims for  securities fraud against him and COO and General Counsel C. Michael Carter. The allegations contained claims that Murdock and Carter “breached their duty of loyalty through a series of intentional, unfair, and fraudulent actions that, among other things, drove down Dole’s pre-merger stock price.” Read more…

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Video: Mandatory Vaccination, Tipped Worker Rule, and SCOTUS Rules Against Organized Labor – Employment Law This Week

As featured in #WorkforceWednesday:  This week, we look at the increase in mandatory vaccination policies, a new rule for tipped workers, and a Supreme Court decision against organized labor.

Employers Implement Mandatory Vaccination Policies

Mandatory vaccine policies are on the rise. A month after the Equal Employment Opportunity Commission released updated guidance on mandatory vaccination policies, an increasing number of employers have started introducing these mandates. Courts are also weighing in—a Texas District Court recently affirmed a hospital’s mandatory vaccination policy.

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Ohio launches $155 million in grants to Ohio businesses

The state of Ohio will begin accepting applications on Tuesday, June 29 for four grant programs that target businesses that have suffered significant losses during the COVID-19 pandemic.  The small grant programs will provide a total of $155 million to businesses that opened in 2020, food and beverage establishments, entertainment venues, and lodging venues.  Read more…

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