By Cary Zimmerman On December 18, 2019, the SEC, in a 3-2 vote, issued a release proposing amendments to the Rule 501(a) definition of “accredited investor,” which hasn’t been meaningfully updated since 1982[1]. The definition is an important piece of the securities...
Corporate & Securities
The Esports Craze: Exploring the Legal Protections of a Growing Industry
With global esports revenues topping $1 billion in 2019, investors and players alike are seeing the benefit of joining the industry. Esports growth, in both viewership and revenue, drives the industry’s presence in mainstream entertainment, including tournament...
Are the Late Fee Provisions in Your Form Contracts Enforceable in Court?
Late fees are common in business contracts. As a business owner, you want to make sure that the party you are contracting with performs in the manner you had bargained. If the party fails to deliver by a certain date, at a certain place or in a specific manner, you...
Earnouts – More of a Gamble Than You May Think
When the parties to the sale of a business are unable to agree on price, the buyer may attempt to bridge the valuation gap by offering to pay the seller an amount in addition to the purchase price – if the business is able to achieve certain earnings or other...
2019 Unicorn Review: Girlbosses on the Rise
By Cary Zimmerman So far, 2019 has been a banner year for female-founded “unicorns,” a term coined by famous venture capitalist Aileen Lee to describe startups valued at $1 billion or more. In the context of the total number of startups, the unicorn club is small. But...
Is It Worth Doing Business in California? Managing the Minefield of Prop 65 Liability
Boasting the fifth-largest economy in the world, California offers a lucrative market for businesses. One would think manufacturers and retailers would target California due to its sheer size and opportunity. However, one retail giant – BJ’s Wholesale Club –...
The Opportunity Zone Program: An Odd Fit for Venture Capital
By Cary Zimmerman Recently, substantial attention has been paid to how the Opportunity Zone (“OZ”) program applies to direct investments in real estate assets, with many early adopters hustling to use the program to make such brick-and-mortar investments. But a common...
Even Church Can’t Save You From Wire Fraud
Just last month, two churches made national news when they became victims of a crime that is rapidly on the rise: wire fraud. The churches were both duped under similar circumstances that are becoming more and more common. Saint John XXIII in Milwaukee, Wisconsin lost...
“The Baker Effect:” Exploring the Economic Impact of a Successful Browns 2019 Season
When KJK Partner Jim Sammon’s cell phone rang one afternoon in early May, 2018, he expected it to be a client calling with a challenging new legal question. Much to his surprise, legendary Sports Illustrated writer Peter King was on the line, looking to get Sammon’s...
New SEC Cyber Unit Files First Charges, and Cryptocurrency Company is the Target
Earlier this week, the Securities and Exchange Commission’s new Cyber Unit filed charges in its very first cyber fraud case, and its target was PlexCoin, a cryptocurrency startup based on the app platform Ethereum, and the company's founder, Dominic Lacroix. PlexCoin...