CSUN Grad At Center of KPMG Insider Trading Scandal

According to the Wall Street Journal, former KPMG audit partner, Scott London, received "on a couple of occasions" cash of $1,000-$2,000, some meals, and a discount on a watch from a unnamed golfing buddy. For this relatively modest consideration, Mr. London shared confidential and proprietary information of his audit clients, Herbalife and Sketchers USA, Inc. that was used by said golfing buddy to make some stock trades. Apparently a lot of stock trades. In so doing, London breached his fiduciary duties as the company auditor, violated virtually every material canon of professional ethics and committed criminal violations of the Securities Act, including breaches of insider trading laws. I suspect there is a lot more to the story, including, I suspect, a lot more in the way of additional payments or other consideration to London. It pains me every time I read of these major breakdowns of trust. The fact that he is an alumnus of CSUN's otherwise very excellent accounting program (and where I also teach) makes it all the more disappointing.

http://www.zerohedge.com/news/2013-04-09/meet-kpmg-partner-who-leaked-secret-client-data-highest-bidder

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SEC Rules on Social Media

The Securities and Exchange Commission on Tuesday saidcompanies may use social media to disseminate key information, so long as investors have been alerted about where to look for it.

http://blogs.wsj.com/law/2013/04/02/size-of-social-media-following-doesnt-matter-to-sec/

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K&L Gates Posts Detailed Reporting of Financial Performance

In a highly detailed public disclosure, K&L Gates reports 2012 financial performance. Zero debt, but year over year top-line and bottom-line look very flat.

http://www.klgates.com/files/Upload/2012_Firm_Financials.pdf

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2nd Circuit Breathes Life Into Non-Attorney Ownership in Law Firms

http://blogs.wsj.com/law/2012/11/21/not-dead-yet-2nd-circuit-resurrects-jacoby-meyers-suit/

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8th Circuit Reinstates $220,000 Statutory Damages Verdict

The 8th Circuit reinstated a $ 222,000 damages verdict assessed against Jammie Thomas-Rasset, who after three different trials was found guilty of copyright infringement for having illegally shared songs on the now-defunct file-sharing service KaZaA.  When the Recording Industry originally alleged she had infringed upon its parties’ copyrights, Thomas became “infamous” when she, decided to not settle the claim but instead defend herself in court.   The only other person who opted to defend themselves in court against such copyright infringement claims was Joel Tenenbaum, whose own case was also characterized by courts attempting to lessen the jury-awarded damages.

http://www.ipbrief.net/2012/09/18/8th-circuit-reinstates-222000-verdict-against-thomas-says-public-policy-justifies-high-award-for-copyright-infringement/

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FTC Publishes New Guidelines for Mobile Apps

Mostly a recapitulation of previous FTC guidelines on the issue, but important reinforcements nonetheless regarding the need to be truthful in advertising and to have core privacy protections that would be required, for example, of any dynamic website.

http://business.ftc.gov/documents/bus81-marketing-your-mobile-app

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DC Circuit Court of Appeals Strikes Down Graphic Warnings on Cigarette Packs

A Federal Appeals Court struck down today the FDA's proposed requirements to have cigarette manufacturers place graphic labels on all their packaging (think photos of charred lungs, emaciated people on respirators and so on). Lovely images no doubt that may scare off some, but the Court was not persuaded. They said in part:

“FDA failed to present any data—much less the substantial evidence…showing that enacting their proposed graphic warnings will accomplish the agency’s stated objective of reducing smoking rates” the majority on the three-judge panel wrote.”

This one almost certainly will go to the US Supremes for final deliberation.


http://blogs.wsj.com/law/2012/08/24/appeals-court-says-no-graphic-warnings-for-cigarette-packs/

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