Financial News for Lawyers http://www.fulcruminquiry.com en-US fulcrumadmin@fulcruminquiry.com 2007 Fulcrum Financial Inquiry LLP Tue, 04 Sep 2007 13:16:02 -0700 http://www.fulcruminquiry.comhttp://www.fulcrum.com/fulcrumlogosmall.gif http://www.fulcrum.com/Americans-Wise.htm fulcrumadmin@fulcruminquiry.com Wed, 16 June 2009 13:16:02 -0700 http://www.fulcrum.com/FASB-proposes.htm fulcrumadmin@fulcruminquiry.com Wed, 16 June 2009 13:16:02 -0700 http://www.fulcrum.com/Residental-decline.htm fulcrumadmin@fulcruminquiry.com Wed, 3 June 2009 13:16:02 -0700 http://www.fulcrum.com/FASB-toughens.htm fulcrumadmin@fulcruminquiry.com Wed, 3 June 2009 13:16:02 -0700 http://www.fulcrum.com/toxic-drywall.htm fulcrumadmin@fulcruminquiry.com Wed, 20 May 2009 13:16:02 -0700 http://www.fulcrum.com/GAAP-reorganization.htm fulcrumadmin@fulcruminquiry.com Wed, 20 May 2009 13:16:02 -0700 http://www.fulcrum.com/paice-vs-toyota.htm fulcrumadmin@fulcruminquiry.com Wed, 6 May 2009 13:16:02 -0700 http://www.fulcrum.com/tax-proposal.htm fulcrumadmin@fulcruminquiry.com Wed, 6 May 2009 13:16:02 -0700 We describe the major efforts that should be occurring, and the timing of each. http://www.fulcrum.com/Up-John-Warning.htm fulcrumadmin@fulcruminquiry.com Wed, 22 Apr 2009 13:16:02 -0700 We describe the major efforts that should be occurring, and the timing of each. http://www.fulcrum.com/Revoked-MA-Accounting.htm fulcrumadmin@fulcruminquiry.com Wed, 22 Apr 2009 13:16:02 -0700 We describe the major efforts that should be occurring, and the timing of each. http://www.fulcrum.com/Disparate-Impact.htm fulcrumadmin@fulcruminquiry.com Wed, 8 Apr 2009 13:16:02 -0700 The most important feature of this program is what the press have called “porn mode”, or the ability to have internet usage be kept private. This causes legal and human resource issues that are best addressed by turning this feature off. http://www.fulcrum.com/Suggested-Litigation-Reforms.htm fulcrumadmin@fulcruminquiry.com Wed, 8 Apr 2009 13:16:02 -0700 When compared to the cost of litigation, testing before reaching a reduction in force (RIF) final conclusion is an inexpensive check. We review recent disparate impact cases, and provide best practices for avoiding litigation. http://www.fulcrum.com/Disparate-Impact.htm fulcrumadmin@fulcruminquiry.com Wed, 25 Mar 2009 13:16:02 -0700 The very specific recommendations largely affect discovery. These proposals would change the economics of litigation, both for the clients and the litigators serving those clients. http://www.fulcrum.com/Suggested-Litigation-Reforms.htm fulcrumadmin@fulcruminquiry.com Wed, 25 Mar 2009 13:16:02 -0700 Our interactive model calculates historical returns. We then provide the lessons to be learned for today’s market. http://www.fulcrum.com/history-lesson-for-stocks.htm fulcrumadmin@fulcruminquiry.com Wed, 4 Mar 2009 13:16:02 -0700 Several important changes are expected in estate and gift taxes. Creation of family-owned entities and then valuing the transferred interests at a discount will probably end. We describe expected changes in the estate and gift tax, and the likelihood of passage. http://www.fulcrum.com/Estate-and-gift-tax.htm fulcrumadmin@fulcruminquiry.com Wed, 4 Mar 2009 13:16:02 -0700 The GAO just issued a report that will likely to assist the Obama administration’s changes to the U.S. financial regulatory system. We summarize the GAO’s description of the regulatory problem, and their ideas of what to do about these problems. Although the report is correct on many fronts, the good ideas are lost in other Pollyannaish, obvious, and banal thoughts that are not worth the ink spilled. http://www.fulcrum.com/GAO-Regulatory-Framework.htm fulcrumadmin@fulcruminquiry.com Wed, 21 Jan 2009 13:16:02 -0700 This article addresses changes that we already know about. The Obama administration and its friendly Congress will certainly enact additional tax law changes. We focus on items affecting the affluent, and not the myriad of tax breaks that are eliminated when one’s income reaches various threshold levels. Last week, the SEC voted to allow important changes that will give the public much-needed information. http://www.fulcrum.com/Tax-Changes.htm fulcrumadmin@fulcruminquiry.com Wed, 21 Jan 2009 13:16:02 -0700 $50 billion was duped from wealthy and otherwise sophisticated investors who could have avoided their losses if they followed some easy rules. We summarize the Madoff scandal, and explain how ponzie schemes and other financial frauds can be avoided. http://www.fulcrum.com/Ponzie_Scheme.htm fulcrumadmin@fulcruminquiry.com Mon, 5 Jan 2009 13:16:02 -0700 Reserves are the most important asset for most energy companies. Surprisingly, this publicly-reported data is based on 30-year old technologies and measurement approaches. Last week, the SEC voted to allow important changes that will give the public much-needed information. http://www.fulcrum.com/SEC-Updates.htm fulcrumadmin@fulcruminquiry.com Mon, 5 Jan 2009 13:16:02 -0700 This year is considerably more complicated yet important because of expected tax changes under the Obama administration and Democratic-controlled Congress. http://www.fulcrum.com/2008-Tax-Planning.htm fulcrumadmin@fulcruminquiry.com Mon, 24 Nov 2008 13:16:02 -0700 http://www.fulcrum.com/Licensing-Royalty-Audits.htm fulcrumadmin@fulcruminquiry.com Mon, 24 Nov 2008 13:16:02 -0700 http://www.fulcrum.com/IRS-toughens-position.htm fulcrumadmin@fulcruminquiry.com Wed, 12 Nov 2008 13:16:02 -0700 Internet-based contributions under $200 have grown too large to ignore. Here is our offer to make this information available online in a usable form. http://www.fulcrum.com/Obama-small-contributions.htm fulcrumadmin@fulcruminquiry.com Wed, 12 Nov 2008 13:16:02 -0700 Even without the recession and changing valuation landscape, previously acceptable goodwill appraisals might not pass the new fair value rules. http://www.fulcrum.com/Goodwill_Valuations.htm fulcrumadmin@fulcruminquiry.com Wed, 29 Oct 2008 13:16:02 -0700 http://www.fulcrum.com/SFAS5-Amendment.htm fulcrumadmin@fulcruminquiry.com Wed, 29 Oct 2008 13:16:02 -0700 http://www.fulcrum.com/AMT-relief.htm fulcrumadmin@fulcruminquiry.com Wed, 15 Oct 2008 13:16:02 -0700 http://www.fulcrum.com/Treasury-Audit.htm fulcrumadmin@fulcruminquiry.com Wed, 15 Oct 2008 13:16:02 -0700 http://www.fulcrum.com/Litigation-Settlement-Errors.htm fulcrumadmin@fulcruminquiry.com Wed, 1 Oct 2008 13:16:02 -0700 http://www.fulcrum.com/DOL-Ignores.htm fulcrumadmin@fulcruminquiry.com Wed, 1 Oct 2008 13:16:02 -0700 http://www.fulcrum.com/Business_Interruption.htm fulcrumadmin@fulcruminquiry.com Wed, 17 Sept 2008 13:16:02 -0700 http://www.fulcrum.com/DOL-Ignores.htm fulcrumadmin@fulcruminquiry.com Wed, 17 Sept 2008 13:16:02 -0700 http://www.fulcrum.com/Investment-Calculator.htm fulcrumadmin@fulcruminquiry.com Wed, 3 Sept 2008 13:16:02 -0700 http://www.fulcrum.com/California-loses.htm fulcrumadmin@fulcruminquiry.com Wed, 3 Sept 2008 13:16:02 -0700 Last February, enormous numbers of investors were caught with illiquid investments that were sold as cash equivalents. Over the last week, five major banks agreed to repurchase these investments and pay substantial civil fines. The remaining non-settling banks now face increased pressure to also settle. However, litigation will continue over substantial consequential damages that customers incurred. http://www.fulcrum.com/Banks-Settle.htm fulcrumadmin@fulcruminquiry.com Wed, 20 Aug 2008 13:16:02 -0700 Last week, the news repeated a Congressional report that the vast majority of corporations were making enormous profits, yet paying absolutely no taxes. The misleading commentary served as the starting point for proposing a corporate tax increase. Unfortunately, a complete and proper explanation of the facts was never offered. Examples like this support the saying “Figures lie and liars figure.” http://www.fulcrum.com/Shameful-Interpretation.htm fulcrumadmin@fulcruminquiry.com Wed, 20 Aug 2008 13:16:02 -0700 The rules (i) require additional disclosures regarding costs charged to participants, and (ii) make it easier for plan sponsors to qualify for protection from litigation. Given the shameful undisclosed marketing practices currently at many 401(k) plans, the additional disclosure will likely cause plan sponsors to finally pay much-needed attention to this area. http://www.fulcrum.com/401k-New-Requirements.htm fulcrumadmin@fulcruminquiry.com Wed, 6 Aug 2008 13:16:02 -0700 Wealthy Americans are tempted to avoid high U.S. income taxation by moving funds ashore. Recent investigations have (or soon will) uncover the names and details of thousands of wealthy Americans who have engaged in illegal tax evasion. http://www.fulcrum.com/IRS-crackdown.htm fulcrumadmin@fulcruminquiry.com Wed, 6 Aug 2008 13:16:02 -0700 Under pressure from proposed legislation that would mandate a policy change, the Department of Justice promised to retract controversial portions of current DOJ policy that allows USAAs to (i) force waiver of the attorney client privilege and (ii) prohibit payment of employees’ legal fees. http://www.fulcrum.com/DOJ-McNulty.htm fulcrumadmin@fulcruminquiry.com Wed, 23 Jul 2008 13:16:02 -0700 The expanded power and intensive use of mobile devices mean that they often contain evidence that may not be anywhere else. But mobile devices provide challenges that do not exist for traditional computers. http://www.fulcrum.com/Cell-phones.htm fulcrumadmin@fulcruminquiry.com Wed, 23 Jul 2008 13:16:02 -0700 http://www.fulcrum.com/Exxon-Punitive-Damages.htm fulcrumadmin@fulcruminquiry.com Tue, 1 Jul 2008 13:16:02 -0700 After plaintiffs are able to “isolate and identify the specific employment practices that are allegedly responsible for the statistical disparities”, the employer has the burden of proof. In this area, statistics are a helpful tool for both plaintiffs and employers. http://www.fulcrum.com/Disparate-Impact.htm fulcrumadmin@fulcruminquiry.com Tue, 1 Jul 2008 13:16:02 -0700 http://www.fulcrum.com/New-Litigation-Disclosures-Proposed.htm fulcrumadmin@fulcruminquiry.com Wed, 18 Jun 2008 13:16:02 -0700 http://www.fulcrum.com/Computer-Evidence-in-Investigations.htm fulcrumadmin@fulcruminquiry.com Wed, 18 Jun 2008 13:16:02 -0700 http://www.fulcrum.com/Liar-loans-dischargeable-in-bankruptcy.htm fulcrumadmin@fulcruminquiry.com Wed, 4 Jun 2008 13:16:02 -0700 http://www.fulcrum.com/SEC-XBRL.htm fulcrumadmin@fulcruminquiry.com Wed, 4 Jun 2008 13:16:02 -0700 http://www.fulcrum.com/IRS_loses_another_case.htm fulcrumadmin@fulcruminquiry.com Wed, 21 May 2008 13:16:02 -0700 http://www.fulcrum.com/Importance_of_Managing_Electronic_Records.htm fulcrumadmin@fulcruminquiry.com Wed, 21 May 2008 13:16:02 -0700 http://www.fulcrum.com/Special_Masters.htm fulcrumadmin@fulcruminquiry.com Wed, 7 May 2008 13:16:02 -0700 http://www.fulcrum.com/Whistleblower_causes_trouble.htm fulcrumadmin@fulcruminquiry.com Wed, 7 May 2008 13:16:02 -0700 http://www.fulcrum.com/Reduce_electronic_discovery_costs.htm fulcrumadmin@fulcruminquiry.com Wed, 23 Apr 2008 13:16:02 -0700 http://www.fulcrum.com/New_Merger_Accounting.htm fulcrumadmin@fulcruminquiry.com Wed, 23 Apr 2008 13:16:02 -0700 http://www.fulcrum.com/Major_financial_regulation.htm fulcrumadmin@fulcruminquiry.com Wed, 9 Apr 2008 13:16:02 -0700 http://www.fulcrum.com/US_Trading.htm fulcrumadmin@fulcruminquiry.com Wed, 9 Apr 2008 13:16:02 -0700 http://www.fulcrum.com/Bear_Stearns.htm fulcrumadmin@fulcruminquiry.com Wed, 26 Mar 2008 13:16:02 -0700 http://www.fulcrum.com/Economic_Expert_Testimony.htm fulcrumadmin@fulcruminquiry.com Wed, 26 Mar 2008 13:16:02 -0700 http://www.fulcrum.com/Somber_yet_clear.htm fulcrumadmin@fulcruminquiry.com Wed, 12 Mar 2008 13:16:02 -0700 http://www.fulcrum.com/Fannie_Mae.htm fulcrumadmin@fulcruminquiry.com Wed, 12 Mar 2008 13:16:02 -0700 The fact that these provisions are standard does not mean they are well understood. http://www.fulcrum.com/Weak_Credit.htm fulcrumadmin@fulcruminquiry.com Wed, 27 Feb 2008 13:16:02 -0700 Here are some statistics (warnings) if you are reporting income greater then $1 million. We review the long-term trends and changes in audit rates, and the reasons for these changes. http://www.fulcrum.com/Tax_Audits.htm fulcrumadmin@fulcruminquiry.com Wed, 27 Feb 2008 13:16:02 -0700 Businesses also received some tax goodies under the recent rebate legislation. Here are the details. http://www.fulcrum.com/Equipment_gets.htm fulcrumadmin@fulcruminquiry.com Wed, 13 Feb 2008 13:16:02 -0700 In uncertain markets, it’s even more important to stick to the basics. We provide two online interactive calculators, and related implementation advice. http://www.fulcrum.com/Investing_Made_Easy.htm fulcrumadmin@fulcruminquiry.com Wed, 13 Feb 2008 13:16:02 -0700 Statistical sampling saves considerable money. These online interactive calculators show how sample size changes as other variables are altered. http://www.fulcrum.com/calculating_sample_size.htm fulcrumadmin@fulcruminquiry.com Wed, 30 Jan 2008 13:16:02 -0700 A loophole allows corporate raiders to avoid disclosure by decoupling economic interests and share voting. http://www.fulcrum.com/Big_Lenders_Want.htm fulcrumadmin@fulcruminquiry.com Wed, 30 Jan 2008 13:16:02 -0700 The biggest joke (except they are not kidding) in the subprime lending mess is that sophisticated lenders cannot calculate or document the economics of their loan modifications. The pertinent accounting pronouncement is 15 years old, and can be addressed with hand calculators and/or Excel spreadsheets. However, the mortgage lenders contend they cannot comply with the rules because they do not have needed systems in place. It won’t surprise anyone that the alternative being proposed by the lenders will recognize fewer losses. http://www.fulcrum.com/Big_Lenders_Want.htm fulcrumadmin@fulcruminquiry.com Tue, 15 Jan 2008 13:16:02 -0700 The U.S. Government Accountability Office issued a new report on the state of accounting competition. In the large firm segment, everyone acknowledges that insufficient competitive alternatives exist. Although improvements are challenging, the GAO again missed an opportunity to address mandatory auditor rotation as a needed reform to our capital markets. http://www.fulcrum.com/GAO_Admits.htm fulcrumadmin@fulcruminquiry.com Tue, 15 Jan 2008 13:16:02 -0700 A recent case found a waiver of the attorney-client privilege in circumstances that regularly occur when a Special Committee of the Board of Directors shares its findings with the entire Board. The case provides practical problems for Boards that attempt to exercise their normal fiduciary responsibilities whenever plaintiffs name individual Board members as defendants. http://www.fulcrum.com/Delaware_Case.htm fulcrumadmin@fulcruminquiry.com Wed, 02 Jan 2008 13:16:02 -0700 Fallout from subprime mortgages was 2007’s biggest financial story. In 2008, these losses will be a source of enormous legal fees. We summarize the types of claims that will be pursued. Damages and damages causation will be a common challenge with these cases. http://www.fulcrum.com/2008_Legal_Opportunities.htm fulcrumadmin@fulcruminquiry.com Wed, 02 Jan 2008 13:16:02 -0700 Creative accountants and investment bankers created a variety of hybrid instruments in an effort to record equity and lower debt. Combating this creativity created a complex patchwork of over 60 accounting pronouncements. Last week’s FASB proposal will change this. Among other changes, all preferred stock and derivative instruments will now be reclassified as debt. This will create problems for many companies with loan agreements containing debt to equity requirements. http://www.fulcrum.com/More_liabilities_will_be_recorded.htm fulcrumadmin@fulcruminquiry.com Tue, 11 Dec 2007 13:16:02 -0700 Small company capital formation just got easier and less expensive. The SEC loosened Rule 144 holding periods and related disclosures. In addition, approximately 1500 additional public companies (those with less than $75 million of public equity float) now qualify for the SEC’s eased small company disclosures. http://www.fulcrum.com/SEC_reduces_restricted.htm fulcrumadmin@fulcruminquiry.com Tue, 11 Dec 2007 13:16:02 -0700 Last week, the SEC approved the use of foreign accounting standards without the need to reconcile or explain differences with U.S. generally accepted accounting principles. This is likely the first step in an inevitable change of allowing all U.S. companies to elect which reporting rules they wish to follow, and then allowing only the international rules. We provide the details, including a table that shows what the most important differences are. http://www.fulcrum.com/SEC_Allows_Foreign_Reporting.htm fulcrumadmin@fulcruminquiry.com Tue, 27 Nov 2007 13:16:02 -0700 The non-partisan Tax Foundation released a study comparing each of the fifty states in terms of their tax friendliness. California was bad in earlier studies, and is now getting worse. We provide a summary, make comparisons to other states, and explain the impact that this has on California. http://www.fulcrum.com/Could_FASB_Be_Out_of_Job.htm fulcrumadmin@fulcruminquiry.com Tue, 13 Nov 2007 13:16:02 -0700 tag:www.tristana.org,2007:4E997AC8-A3BE-47ED-B5E1-6A742DCA32FB.39329.5519520255 The SEC indicated its intention to approve a long-standing proposal to disclose rampant conflicts of interest that exist with fairness opinions. We describe the problem, the new rule, and best practices that should be followed by Boards of Directors. http://www.fulcrum.com/Fairness_Opinion_Expert.htm fulcrumadmin@fulcruminquiry.com Tue, 27 Nov 2007 13:16:02 -0700 America’s accounting rule maker declined to delay implementation of a new rule that affects those investment banks that invested enormous amounts in subprime loans. We summarize the changes, and why we suspect more write-offs will be required. http://www.fulcrum.com/New_Accounting_Pronouncement.htm fulcrumadmin@fulcruminquiry.com Tue, 13 Nov 2007 13:16:02 -0700 Patent reform has been discussed since 2001. The House of Representatives has now passed the most sweeping changes to patent law in over 50 years, and is waiting for the Senate’s companion bill. We discuss the impact this legislation will have on patent lawsuit damages. Most commentators say the new law favors defendants, but we are not so sure. We explain the changes, and why various technology companies disagree on whether this law is a good idea. http://www.fulcrum.com/Patent_Damage_Changes.htm fulcrumadmin@fulcruminquiry.com Tue, 30 Oct 2007 13:16:02 -0700 The PCAOB just issued its last inspection report on the Big Four audit firms. This finishes the third year of such tests. We provide a summary by year for each of the firms. Dramatic improvement occurred, but this is more a commentary on the dreadful performance that these large firms initially earned. http://www.fulcrum.com/PCAOB_Reports_on_Big_4.htm fulcrumadmin@fulcruminquiry.com Tue, 30 Oct 2007 13:16:02 -0700 In-house and outside counsel should be taking leadership and ownership of this area because (i) many of the underlying issues are legal and regulatory, and (ii) lawyers are responsible for most of the hidden costs when this area is handled poorly. We explain why most companies are doing a poor job in this area, and provide practical advice regarding how to address this area properly. http://www.fulcrum.com/Reducing_Discovery_Costs.htm fulcrumadmin@fulcruminquiry.com Tue, 16 Oct 2007 13:16:02 -0700 Since practically all business records are now computerized, it makes sense to learn about your opponent’s systems BEFORE you start to make requests. A corporate-representative deposition on electronic-discovery issues should be the very first discovery action you take. When done at the beginning of a case, senseless argument over what information exists and does not exist is avoided, because you then have the benefit of a party admission. We provide a list of records that you should be requesting in this initial deposition. http://www.fulcrum.com/How_to_get_the_Discovery.htm fulcrumadmin@fulcruminquiry.com Tue, 16 Oct 2007 13:16:02 -0700 The Court in a substantial patent case found electronic discovery abuse. The client lost the case and will have to pay defendant’s legal fees and costs. In addition, the lawyers involved will likely be punished personally, including possible (i) monetary sanctions, (ii) referral to the California State Bar for appropriate investigation and possible sanctions, and (iii) counsel’s formal disclosure of this Court’s findings to all current clients and any courts in which counsel is admitted or has litigation currently pending. We provide advice to lawyers who are attempting to meet the new standard of care in this area. http://www.fulcrum.com/Lawyers_In_Hot_Water.htm fulcrumadmin@fulcruminquiry.com Tue, 02 Oct 2007 13:16:02 -0700 Hash totals are the tool used to authenticate electronic evidence. As electronic evidence becomes more prevalent, litigators need to stop wasteful procedures that treat electronic evidence like paper. We provide a primer in this important area, and include an interactive tool that will help evaluate the replacement of manual production numbers. http://www.fulcrum.com/Using_Computer_Hash.htm fulcrumadmin@fulcruminquiry.com Tue, 02 Oct 2007 13:16:02 -0700 Earlier this month, the Court established a new “discount attribution” rule when dealing with bundled sales transactions. The case is important because bundled transactions occur almost everywhere, and the ruling establishes a circuit split. Under the rule, which is more friendly to defendants than prior case law, competitors need to perform a cost-based analysis that assumes all discounts associated with the bundle are attributed to products that are offered by the plaintiff. http://www.fulcrum.com/Ninth_Circuit_Provides.htm fulcrumadmin@fulcruminquiry.com Tue, 18 Sep 2007 13:16:02 -0700 Companies must assess their judgmental tax positions when preparing their financial statements. A new accounting rule (FIN 48) changes the rules for assessing and disclosing these contingencies. The IRS has long maintained that it has the right to these analyses. The IRS lost an important case that held this information (i) is subject to the work-product privilege, but (ii) is not subject to other protections if outside auditors are shown the documents. http://www.fulcrum.com/Tax_Accrual_Workpapers.htm fulcrumadmin@fulcruminquiry.com Tue, 18 Sep 2007 13:16:02 -0700 Overturning a 24-year old precedent, the CAFC creates a new standard for when enhanced patent infringement damages apply. Under the new standard, legal opinions are less important, but will probably be obtained by most clients anyhow. http://www.fulcrum.com/Punitive_Damages_are_now.htm fulcrumadmin@fulcruminquiry.com Tue, 04 Sep 2007 13:16:02 -0700 The subprime credit crunch will get even more attention as soon as Congress gets back from its summer recess. Billion-plus proposals for a government bailout are getting serious attention. In the midst of this, one senator’s suggestion to get auditors involved is particularly poor. We review the current major proposals and make a few of our own. http://www.fulcrum.com/Proposals_for_the_subprime.htm fulcrumadmin@fulcruminquiry.com Tue, 04 Sep 2007 13:13:58 -0700 Unless quickly reversed, last week’s punitive damage verdict against the seventh largest accounting firm will doom that firm to major reduction or even failure. The underlying facts are not that unusual, which emphasizes how fragile professional service firms (including law firms) really are. A Los Angeles lawyer was in charge of the massacre. http://www.fulcrum.com/Kiss_BDO_Goodbye.htm fulcrumadmin@fulcruminquiry.com Tue, 21 Aug 2007 11:32:25 -0700 Private companies are not necessarily small. New stock trading opportunities will make staying private even easier. We review these new alternatives, their legal requirements, and why they will likely be successful. http://www.fulcrum.com/Private_Company_Stock_Markets.htm fulcrumadmin@fulcruminquiry.com Tue, 21 Aug 2007 11:17:53 -0700 This short article will likely describe at least one area that deserves attention in your life. We also link to a number of free financial calculators. http://www.fulcrum.com/Seven_Financial_Sins.htm fulcrumadmin@fulcruminquiry.com Tue, 07 Aug 2007 15:21:57 -0700 Two recent cases potentially change the rights of some of the well-know licensing icons. In addition to describing the changes and related proposed California legislation, we provide a primer regarding publicity rights, privacy rights, and how to value each of these. http://www.fulcrum.com/CA_Postmortem_Publicity_Rights.htm fulcrumadmin@fulcruminquiry.com Tue, 07 Aug 2007 15:21:08 -0700 The original strategy included the notion that Iraq’s massive oil resources would pay for the reconstruction and restructuring effort. A recent report by the General Accountability Office describes what is actually happening. Recommendations for improvement ultimately depend upon the Iraqis managing their own affairs intelligently and cooperatively. http://www.fulcrum.com/Iraq_Oil_GAO_Report.htm fulcrumadmin@fulcruminquiry.com Mon, 23 Jul 2007 11:41:45 -0700 By allowing consideration of product benefits received by the potential customer - infringer, the CAFC upheld a royalty that exceeds the gross sales price of the patented product. Under this ruling, plaintiffs will have much more evidence to argue about, and damages will likely increase. http://www.fulcrum.com/Monsanto_reasonable_royalty_case.htm fulcrumadmin@fulcruminquiry.com Mon, 23 Jul 2007 11:40:04 -0700 tag:www.tristana.org,2007:5E6F5BAB-878F-4A4A-ABEF-07BE5BE38065.39286.4853004051 10b5-1 plans allow insiders to sell stock without incurring allegations of unlawfully using insider information. http://www.fulcrum.com/105b1_Plan_abuse.htm fulcrumadmin@fulcruminquiry.com Mon, 09 Jul 2007 12:09:23 -0700 In a case of first impression, a Central District of California Court ruled that Random Access Memory (RAM) information must be preserved and produced. http://www.fulcrum.com/New_Limits_for_Electronic_Discovery.htm fulcrumadmin@fulcruminquiry.com Mon, 09 Jul 2007 12:08:45 -0700 Of nearly a thousand complaints handled by the DOL, not a single employee has obtained relief. The only employee who had won his case just got overturned. The most recent employer-friendly ruling occurred because the DOL’s Administrative Review Board failed to read (or perhaps understand) the accounting provisions contained in SOX. Unless overturned by further judicial process, the precedent will crush most future employee efforts to obtain protection under this law. http://www.fulcrum.com/DOL_SOX_Provision.htm fulcrumadmin@fulcruminquiry.com Tue, 19 Jun 2007 11:54:19 -0700 tag:www.tristana.org,2007:83521EEF-F6EE-41BC-83AC-5EB0E1EC4734.39252.4873328472 Short selling is the practice of borrowing stock from a broker, then selling it in anticipation that the price will go down. Last week, the SEC changed rules affecting short selling, some of which had been in existence since the 1930s. With thinly traded securities, short selling will become both easier to do, and more dangerous. http://www.fulcrum.com/SEC_Short_Sell.htm fulcrumadmin@fulcruminquiry.com Tue, 19 Jun 2007 11:44:37 -0700 Congress was threatening to amend the expensive and unpopular accounting internal control law. Regulators instead modified their rules, starting with calendar 2007 reporting. Changes include limiting the controls that have to be documented and tested, and eliminating one of the outside auditors’ opinions. With the scaled-back requirements, smaller public companies will have to comply with Section 404, starting with calendar 2008 reporting. http://www.fulcrum.com/Section_404_Requirements.htm fulcrumadmin@fulcruminquiry.com Fri, 08 Jun 2007 10:52:26 -0700 A recent case confirms that backup data was never automatically exempt from production.; Parties need to justify why electronic data is not being produced. The defendant in this case could have avoided some adverse consequences if they followed the simple advice we provide. We also describe some misused labels in electronic discovery. http://www.fulcrum.com/Electronic_Data_Not_Reasonably_Accessible.htm fulcrumadmin@fulcruminquiry.com Fri, 08 Jun 2007 10:52:03 -0700 In a surprising and important ruling affecting the majority of business litigation, State California punitive damages were severely limited. This occurred despite underlying case facts of a fiduciary’s theft that would ordinarily deserve greater punishment. The case makes it even more important to address compensatory damages properly. http://www.fulcrum.com/Punitive_Damages_Limits.htm fulcrumadmin@fulcruminquiry.com Tue, 15 May 2007 12:22:59 -0700 Driven by technology changes, disputes over the requirements to retain and produce expert reports are becoming more common. A recent case describes facts commonly seen, and provides guidance as to what is required. The Court scolded legal counsel, but the wrongful conduct could have been easily avoided. http://www.fulcrum.com/Draft_Expert_Report_Retention.htm fulcrumadmin@fulcruminquiry.com Mon, 14 May 2007 11:30:49 -0700 tag:www.tristana.org,2007:FF32075D-D059-4569-976C-5B7BC13A0164.39216.479377338 One does not often hear a government regulator say that too much effort is being spent following its requirements. But, that continues to be the message from the SEC and PCAOB regarding Sarbanes-Oxley Section 404. The lack of competition among the large firms has stalled management efforts to better control this cost. http://www.fulcrum.com/PCAOB_AS2.htm fulcrumadmin@fulcruminquiry.com Mon, 30 Apr 2007 15:33:24 -0700 Voice mails have received little attention in electronic discovery. New unified message systems will remove some of the limitations that have caused this. We review the past limitations, and what is creating change. Smart litigators will incorporate these changes into their discovery plans. http://www.fulcrum.com/Audio_Discovery.htm fulcrumadmin@fulcruminquiry.com Mon, 30 Apr 2007 15:32:47 -0700 Despite the government’s opposition to the limitation, the U.S. Supreme Court said successful whistleblowers in False Claims Act litigation should sometimes not share in the recovery.This additional risk will certainly reduce the cases brought by such plaintiffs. http://www.fulcrum.com/Whistleblower_Supreme_Court.htm fulcrumadmin@fulcruminquiry.com Tue, 17 Apr 2007 10:52:56 -0700 The temptation to get just a little bit more was apparently too much to resist. Consequently, a sophisticated plaintiff fails to put on required damages testimony, and entirely loses his eminently collectible $1.6 billion award. The mistakes were basic, yet serve as important reminders. In short, get a proper damages witness, and let the person do his work. http://www.fulcrum.com/Coleman_Damages_Reversal.htm fulcrumadmin@fulcruminquiry.com Mon, 16 Apr 2007 10:46:19 -0700 Many of the large accounting frauds in the last decade involve phony transactions with third parties. The third parties actively assist in documenting the fraudulent transaction and fooling the outside auditors. Under a 1994 precedent, the Third and Eighth Circuits ruled that these outside parties are immune from class action securities lawsuits, while the Ninth Circuit concluded the opposite. In late March, the Third Circuit derailed Enron’s $40 billion class-action suit, prompting the U.S. Supreme Court to immediately accept an Eighth Circuit case with identical issues. If it allows penalties to the aiders and abettors of fraudulent transactions, the Supreme Court will remove an important means used to defraud the investing public. http://www.fulcrum.com/Scheme_Liability.htm fulcrumadmin@fulcruminquiry.com Wed, 04 Apr 2007 11:05:54 -0700 A recent study looked at how companies spend their R&amp;D. The findings conflict with some incorrect conventional ideas. Spending more does not ensure success, unless backed by an end-to-end process of focused selection and exploitation. In a dismal forecast regarding America’s dominance of highly educated research positions, the study also indicates that a majority of future research positions are going overseas to lower-cost regions like China and India. http://www.fulcrum.com/Booz_Allen_IP_Study.htm fulcrumadmin@fulcruminquiry.com Wed, 04 Apr 2007 09:57:37 -0700 The SEC recently surprised international companies by indicating it might accept financial statements prepared under international accounting standards, without having such statements reconciled to what would occur under U.S. accounting principles. Significant change has already occurred to converge the international and U.S. standards. We review the more important differences that remain. http://www.fulcrum.com/Could_FASB_Be_Out_of_Job.htm fulcrumadmin@fulcruminquiry.com Wed, 21 Mar 2007 10:00:49 -0700 Our investigators found a treasure trove of information “hidden” on purchased computer disks. We identified multiple law violations and severe embarrassments. Lawyers need to understand this to appropriately counsel clients, as well as to understand why computer forensics should be part of their litigation arsenal. Our study was sufficiently eye opening that Computer World and Information Week both accepted our results for publication. http://www.fulcrum.com/Selling_More_Than_You_Bargained_For.htm fulcrumadmin@fulcruminquiry.com Wed, 21 Mar 2007 09:59:51 -0700 A recent Delaware Chancellery Court case addresses important valuation issues. On a more general note, the case also provides guidance regarding the proper care and feeding of expert witnesses, and what can go wrong if this guidance is ignored. http://www.fulcrum.com/Valuation_and_Expert_Witnesses.htm fulcrumadmin@fulcruminquiry.com Wed, 07 Mar 2007 10:02:41 -0700 In the largest wrongful death damages award ever assessed against Philip Morris, the U.S. Supreme Court overturned the punitive damage award because the jury heard argument that the punishment should include victims who were not part of the current case. We summarize what happened. Surprisingly, the Court declined to address the existing guidance involving punitive damages not exceeding a single digit multiple of compensative damages. http://www.fulcrum.com/Court_Address_Punitive_Damages.htm fulcrumadmin@fulcruminquiry.com Wed, 07 Mar 2007 10:01:44 -0700 A study released last week covered the largest 230 public company frauds between 1996 and 2004. Like every similar study before it, the report concludes that whistleblowers are the best and most common means of learning the truth. But, the study also shows the painful process that non-anonymous whistleblowers have endured. The obvious conclusion for attorneys and boards of directors is that whistleblower systems are cost effective, but need to be handled independently and anonymously. http://www.fulcrum.com/Whistleblower_Fraud_Study.htm fulcrumadmin@fulcruminquiry.com Wed, 21 Feb 2007 10:05:08 -0700 More prevalent computerized evidence means greater chances that data has been mishandled. We review key considerations in determining whether you should attempt to exclude such evidence and, similarly, how to avoid this happening to you. http://www.fulcrum.com/Challenge_Computerized_Evidence.htm fulcrumadmin@fulcruminquiry.com Wed, 21 Feb 2007 10:03:34 -0700 Here are the pros and cons of the four major choices that you face, ranging from paper to native electronic discovery. No answer is right in all situations, so we tell you how you should make this important decision. http://www.fulcrum.com/Electronic_Discovery_Data_Types.htm fulcrumadmin@fulcruminquiry.com Tue, 13 Feb 2007 10:07:26 -0700 Congress and the IRS are realizing that big money can be collected by using informants. Litigants in partnership/shareholder disputes and in family law matters continue to ignore the risks when attempting to use restated financial information that is inconsistent with prior tax reporting. We describe the new law change and the IRS whistleblower program. http://www.fulcrum.com/IRS_Informant.htm fulcrumadmin@fulcruminquiry.com Tue, 13 Feb 2007 10:06:25 -0700 Computer forensics can uncover huge amounts of otherwise hidden data. But, one must also know how to interpret what is found. We provide examples of how data can be properly considered, and why false leads may occur. http://www.fulcrum.com/Evaluating_Electronic_Evidence.htm fulcrumadmin@fulcruminquiry.com Wed, 31 Jan 2007 10:09:22 -0700 Recognizing that there is more than one way to accomplish its objectives, the SEC took its hedge fund loss in the Goldstein case in stride, and proposed other new rules. In addition to expanding the anti-fraud provisions to unregistered investment advisors, the SEC will restrict which investors qualify under Regulation D offerings. In hindsight, the hedge funds would prefer the additional guidance that the <I>Goldstein</I> case overturned. http://www.fulcrum.com/SEC_Proposes_Limitations.htm fulcrumadmin@fulcruminquiry.com Wed, 31 Jan 2007 10:08:33 -0700 The primary regulator for public company audits just released the last report on its inspections of the largest accounting firms. This third inspection report shows improvement, but the results still leave much to be desired. We compiled comparative statistics from each of the reports. http://www.fulcrum.com/PCAOB_Reports_on_Big_4.htm fulcrumadmin@fulcruminquiry.com Wed, 17 Jan 2007 10:10:50 -0700 2006 was a record-setting year for private equity firms and the companies that they acquired. We review what happened and explain the economic factors that are causing this to occur. http://www.fulcrum.com/Private_Equity_Firms.htm fulcrumadmin@fulcruminquiry.com Wed, 17 Jan 2007 10:10:11 -0700