Jan 31
When used with financial instruments, options are a contract between two parties in which one party has the right, but not the obligation, to do something. Usually, the option involves buying or selling an underlying asset. Having rights without obligations has financial value, so option holders must purchase these rights at a price, called a …
Permanent link to this article: https://betweenthenumbers.net/2012/01/a-primer-on-valuing-options/
Jan 24
The Supplemental Nutrition Assistance Program (“SNAP”) is being closely watched with high-tech audit tools. The SNAP program is commonly referred to as the food stamp program. The program began in 1939 in order to assist low income Americans during the Great Depression. The program was overhauled in 1964, 1977 and more currently in 1990s. In …
Permanent link to this article: https://betweenthenumbers.net/2012/01/government-entity-uses-high-tech-audit-tools/
Jan 19
A creditor-friendly, minority view comes from a First Circuit District Court. If this rationale catches on, this could have a significant impact on bankruptcy preference litigation. Generally speaking, a “preference” under Section 547 of the Bankruptcy Code is a payment of an old (or “antecedent”) debt. The Bankruptcy Code allows a bankrupt company to recover …
Permanent link to this article: https://betweenthenumbers.net/2012/01/possible-double-counting-%e2%80%9cnew-value%e2%80%9d-in-bankruptcy-preference-actions/
Jan 17
In a recent report issued by Munich Re, a reinsurance group in Germany, 2011 was the costliest year in history for natural disasters with $380 billion in economic losses. Although some believe that global warming will continue to increase both the number and the extent of natural disasters, this report shows that 2011 was more about the geographic location, and less about the cause …
Permanent link to this article: https://betweenthenumbers.net/2012/01/natural-disasters-economic-losses-hit-record-high-in-2011/
Jan 16
The Securities and Exchange Commission (“SEC”) has made a nuanced policy shift toward its fraud investigation settlements. Previously the SEC allowed companies to settle fraud charges by paying a fine without admitting wrongdoing. This practice has received widespread criticism despite SEC claims that it encouraged settlement and avoided expensive litigation. Going forward, the SEC will no longer allow defendants to say …
Permanent link to this article: https://betweenthenumbers.net/2012/01/sec-changes-it-policy-on-fraud-settlement-language-somewhat/
Jan 09
The Dodd-Frank Wall Street Reform and Consumer Protection Act added requirements for the SEC to maintain a whistleblower reporting capability, and to annually report on the results each fiscal year. Section 922 of Dodd-Frank added Section 21F to the Securities Exchange Act, requiring the SEC to make monetary awards to those who voluntarily provide original …
Permanent link to this article: https://betweenthenumbers.net/2012/01/sec-whistleblower-program-collects-a-surprising-number-of-complaints/
Jan 06
Ernst & Young (E&Y) recently released a study of the annual recurring costs of going public. Most studies on this topic focus on sales commissions and discounts paid to investment bankers. The other costs of going public are often not available, and are minimized by some commentators. E&Y sheds light on this important subject, generally …
Permanent link to this article: https://betweenthenumbers.net/2012/01/new-study-shows-high-annual-costs-of-being-a-public-company/
Jan 05
I remember when gasoline prices eclipsed the $1.00 mark in the 1980s. This inevitable event had a deep psychological impact on my parents, who bemoaned the constantly rising cost of gas (and other necessities) and determined our family had to tighten our belts to make ends meet. The remnants of America’s pre-$1.00 per gallon days …
Permanent link to this article: https://betweenthenumbers.net/2012/01/910-the-most-common-yet-inconsequential-fraction/
Jan 04
Last week, USA Today/Gallup published the results of its December 15 – 18, 2011 public opinion poll. At the end of every year since 1948, with the exception of 1967 and 1976, Gallup has asked the following (among other) questions: What man that you have heard or read about, living today in any part of the world, do …
Permanent link to this article: https://betweenthenumbers.net/2012/01/misleading-survey-results-from-one-of-the-top-notch-polling-agencies/
Jan 02
In Spine Solutions vs. Medtronic Sofamor Danek, Case No. 2:07-02175-JPM-dkv (W.D. Tenn. Nov. 23, 2011), a District Court ordered a new trial on damages based on the Federal Circuit’s ruling in Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292 (Fed. Cir. 2011). In the Uniloc case, the widely-used 25% royalty rule was rejected as …
Permanent link to this article: https://betweenthenumbers.net/2012/01/25-reasonable-royalty-rule-is-rejected-even-with-no-objection/
