July 12, 2016

Kenneth Pasquale quoted in “Bus Driver Wage Case Tossed Against Holding Company Shareholders”

REUTERS LEGAL | Kenneth Pasquale, a partner in Stroock's Financial Restructuring Practice Group, was quoted in a Reuters Legal article that discusses how a union lawsuit against holding company shareholders for several school bus companies was dismissed.


Stroock Special Counsel Irene Oria to Speak at HNBA’s Annual Convention

Stroock Special Counsel Irene Oria will be speaking at HNBA’s Annual Convention. The event will take place September 7-10, 2016 in Chicago, IL.

Ms. Oria will participate in the panel discussion "Beware of Spoliation: Civil and Criminal Penalties for Destroying Stale Information."

  • September 7-10, 2016 - HNBA 2016 Annual Convention
    Read More
  • September 13-15, 2016 - PREX16: 5th Annual Conference on Preservation Excellence: Tomorrow's E-Discovery
    Read More
  • December 19-20, 2016 - PLI's Nuts and Bolts of Corporate Bankruptcy 2016
    Read More

    "CFIUS Reviews are a Reality for More and More Cross-Border Transactions"

    Recent news reports indicate that in-bound foreign investment in the United States is "soaring to new heights" in 2016, with more than 280 cross-border deals by early March, well ahead of the pace in 2014 and 2015. Most of these foreign acquisitions will not implicate national security. Nevertheless, cross-border transactions will increasingly fall under the scrutiny of the multi-agency Committee on Foreign Investment in the United States ("CFIUS" or the "Committee"), which is charged with assessing the impact of foreign investment on U.S. national security. Following CFIUS review, the President can block a transaction that the President finds a threat to U.S. national security. CFIUS reports 147 filings for FY2014, continuing a generally upward trend since the financial crisis of 2007-2009. Although none of these transactions was blocked by the President (only two have been blocked in history), twelve were withdrawn after filing. Transactions may be withdrawn for many reasons (one of the twelve was refiled in 2015), but it is fair to say that the majority of these transactions were likely withdrawn because they either could not pass CFIUS scrutiny, or because the parties refused to accede to the terms that CFIUS would require to clear the deal.

    Ostensibly voluntary, filing for CFIUS review is effectively mandatory for transactions involving U.S. companies that hold security clearances, as well as for transactions that implicate national security, whether the target performs classified work or not. This is because CFIUS has the right to review a transaction whether or not filed, and can do so in perpetuity if the transaction has not been reviewed and cleared – even after closing. Transactions not only can be blocked by the President, they can be unwound, and the divestment of sensitive assets may be the price of clearing a deal. Accordingly, it is not at all uncommon for lenders to insist that a transaction be filed for CFIUS review to remove the prospect of CFIUS upending it after closing.


    "Patent Office Announces New Post-Prosecution Pilot Program For Responding to Final Rejections"

    On July 11, 2016, the Patent and Trademark Office launched the Post Prosecution Pilot (P3) Program, which affords patent applicants an attractive alternative to the procedures currently available for responding to "finally" rejected patent applications.

    This Stroock Special Bulletin provides an overview of the P3 program, which should enable applicants to avoid some of the costs and delays associated with existing options, such as filing an appeal or a request for continued examination.


    "July 6th – 'Not So Independent' Day?"

    Following a July 6, 2016 hearing of the House Subcommittee on Economic Development, Public Buildings, and Emergency Management (the “Subcommittee”), the General Services Administration (“GSA”) may become more involved in leases for buildings leased to federal agencies with independent leasing authority. This Stroock Special Bulletin provides an overview of the July 6, 2016 hearing, in

    which the Subcommittee informally concluded that Federal government agency tenants that have their own independent leasing authority (such as the Commodity Futures Trading Commission, Federal Aviation Administration, Transportation Security Administration and at least 49 others) would benefit from using the expertise of the GSA and by including more purchase options into their leases.


    "Testing the Market in Occupied Residential Rental Buildings"

    In January of this year, the New York Attorney General issued Cooperative Policy Statement #11 ("CPS #11"), which permits market testing in occupied residential rental buildings – a practice prohibited for years by the office on policy grounds in market-rate conversions.

    This Stroock Special Bulletin provides an overview of CPS #11, and some of the ways in which it might be beneficial to developers and tenants alike.