Category Archives: Workplace Misconduct and Harassment

The Supreme Court’s Business Docket: October Term 2023 in Review

by John F. Savarese, Kevin S. Schwartz, Noah B. Yavitz, Adam L. Goodman, and Akua Abu

Photos of the authors

Left to right: John F. Savarese, Kevin S. Schwartz, Noah B. Yavitz, Adam L. Goodman, and Akua F. Abu. (Photos courtesy of the authors)

In early July, the Supreme Court concluded its most consequential Term in years, with a flood of decisions on contentious issues ranging from abortion access to the regulation of social media companies and gun possession to presidential immunity. The Court’s business docket was no less active. While the Consumer Financial Protection Bureau narrowly survived a constitutional challenge to its funding mechanism, the Court’s conservative majority elsewhere struck body blows to the administrative state—including the long-anticipated reversal of the Chevron doctrine of judicial deference to agency interpretation of ambiguous statutes. Beyond this headline-grabbing showstopper, the Court issued a string of commercially significant decisions, affecting bankruptcy, arbitration, securities, and employment law. We summarize below the key business decisions from this Term and flag a few key cases to watch in the coming Term.

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Seven Steps to Mitigate Hazing Risks

by Helen V. Cantwell, Mary Beth Hogan, Arian June, Daniel Alford, Omid Golmohammadi, and Michael Compton McGregor

Top left to right: Helen V. Cantwell, Mary Beth Hogan, and Arian June. Bottom right to left: Daniel Alford, Omid Golmohammadi, and Michael Compton McGregor. (Photos courtesy of Debevoise & Plimpton LLP)

Hazing and abuse in athletics at academic institutions have reached a boiling point recently, with high-profile allegations levied at top universities. These incidents are not only painful for those students personally affected, but they can also result in intense media coverage, reputational harm, and legal actions.

As recent events have shown, it is imperative for academic institutions to have a plan for both preventing and addressing hazing. The best approach is to be proactive, as no institution is above scrutiny and most, if not all, institutions have room for improvement. In order to help mitigate potential legal, financial and reputational risks, administrators and board trustees at these institutions should consider taking the following steps:

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SEC Signals Workplace Misconduct is a Disclosure Issue with Activision Blizzard’s $35 Million Settlement

by Alejandra Montenegro Almonte, Sandra M. Hanna, Ann Sultan, and Maame Esi Austin

Photos of the authors

From left to right: Alejandra Montenegro Almonte, Sandra M. Hanna, Ann Sultan, and Maame Esi Austin (photos courtesy of Miller & Chevalier Chartered)

The SEC is taking a hardline against workplace misconduct and signaling to public companies that they ought to handle those issues with the same care and consideration as they have for other potential securities violations, such as those with financial statement implications. The SEC’s latest action in this regard – a settled administrative proceeding against Activision Blizzard Inc. (Activision Blizzard or the Company) – faults Activision Blizzard for alleged “disclosure control” deficiencies related to employee complaints of workplace misconduct.

On February 3, 2023, Activision Blizzard, a California-based video game development and publishing company, consented to the entry of an SEC Order and agreed to pay a $35 million civil penalty for allegedly inadequate disclosure controls and procedures that failed to ensure that management could assess and, where necessary, disclose employee complaints of workplace misconduct. The Order also settles allegations that the Company violated SEC whistleblower protection rules by including language in settlement agreements with separated employees requiring those employees to notify Activision Blizzard if they receive requests from the agency. As is typical, the Company settled the matter on a neither-admit-nor-deny basis. 

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