Tag Archives: Tali Leinwand

Do Your ESG Disclosures Need Leveling Up? Leading Video Game Company Faces SEC Investigation into Its Harassment and Discrimination Disclosures as It Reaches $18 Million Settlement with EEOC

by Anne Cortina Perry, Anthony S. Barkow, Charles D. Riely, Lori B. Day, Tali R. Leinwand, and Anna Windemuth

Recent activity by two federal regulators underscores an increasingly obvious reality: when a company is confronted with harassment and discrimination complaints, government agencies will scrutinize its response and may bring enforcement actions. For months, video game maker Activision Blizzard (“Activision”) has been dealing with negative publicity and litigation relating to allegations that it allowed pervasive sexual harassment and discrimination to occur and failed to appropriately respond. Just three weeks ago, Activision confirmed that the US Securities and Exchange Commission (“SEC”) was investigating the sufficiency of its disclosures.[1] In the latest news concerning the company, Activision publicly disclosed two weeks ago that it was resolving a case with the US Equal Employment Opportunity Commission (“EEOC”) by making an $18 million payment to establish a victim fund.[2] This client alert analyzes these developments, the other civil and regulatory issues faced by Activision, and discusses steps companies can take when confronted with harassment or other work conduct allegations.

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Biden Administration Expands Cybersecurity Requirements for Government Contractors that Are Likely to Have a Broad Impact on the Private Sector

by David Bitkower, David Robbins, Shoba Pillay, Aaron Cooper, and Tali Leinwand

An Executive Order released by the Biden administration last month (the Cybersecurity EO) seeks to bolster the federal government’s cybersecurity defenses and resilience by imposing a variety of requirements on federal agencies and government contractors that are likely to have spillover effects in the private sector.[1] While many federal agencies and contractors already abide by existing agency-specific cybersecurity measures, the Cybersecurity EO establishes additional criteria to ensure that all information systems used or operated by federal agencies “meet or exceed” the cybersecurity requirements set forth in the Cybersecurity EO.[2] In particular, the Cybersecurity EO will directly affect companies that provide information technology (IT) and operational technology (OT) services, cloud computing software, and other technology to the federal government. In turn, the private sector, even when not servicing the federal government, is expected to see a renewed emphasis on security requirements and assessment standards.  

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Three Key Takeaways from the DOJ Fraud Section’s 2020 Annual Report

by Andrew Weissmann and Tali R. Leinwand

Last week, the Fraud Section, part of the U.S. Department of Justice’s (DOJ’s) Criminal Division, released its annual year-in-review report.[1] In this post, we highlight three key takeaways from the 2020 report.

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Congress Passes Anti-Money Laundering Legislation Banning Anonymous Shell Companies

by Andrew Weissmann, David Bitkower, Tali R. Leinwand, Sarah F. Weiss, E.K. McWilliams, and Wade A. Thomson

Last week, a law designed to thwart the use of US shell companies by drug traffickers, terrorists, foreign adversaries, and others seeking to shield the provenance of their funds cleared Congress with bipartisan support. The Senate joined the House in overriding President Donald Trump’s veto of the National Defense Authorization Act for Fiscal Year 2021 (NDAA), which includes a variety of reforms to anti-money laundering (AML) laws.

The key reform requires certain companies to disclose their ultimate owners to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), making it harder for certain criminals to manipulate shell companies to launder money or evade taxes.[1] Although the law has various loopholes, it enhances the government’s ability to detect and deter the use of shell companies to commit crime.

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