Securities Law

The Limitations of Privacy Reform Rooted in Interest Convergence

By Margaret Foster

A year and a half ago, Governor Jerry Brown signed into law the California Consumer Protection Act, which went into effect on January 1, 2020. Though the bill was simultaneously hailed as a “groundbreaking,” “extremely powerful,” “landmark law,” and criticized as a “punitive . . . mistake,” there’s no dispute that it is currently the strongest privacy law in America, garnering comparisons to the European Union’s sweeping General Data Protection Regulation (GDPR). Kari Paul, California’s Groundbreaking Privacy Law Takes Effect in January. What Does It Do?, The Guardian (Dec. 30, 2019); Zack Whittaker, Silicon Valley Is Terrified of California’s Privacy Law. Good., TechCrunch (Sept. 19, 2019); Natasha Singer, Group Behind California Privacy Law Aims to Strengthen It, The New York Times (Sept. 24, 2019) . . .

Data Privacy & Corporate Governance

By Nimesha Perera

It is 2020 and the new California Consumer Privacy Act has gone into effect. John Stephens, California Consumer Privacy Act, American Bar Association (Fe. 14, 2019), https://www.americanbar.org/groups/business_law/publications/committee_newsletters/bcl/2019/201902/fa_9/. Facebook is publicly dealing with its groundbreaking $5 billion fine from the Federal Trade Commission (“FTC”) over data privacy concerns. See Brian Fung, Facebook will pay an unprecedented $5 billion penalty over privacy breaches, CNN (July 25, 2019); Michael Nunez, FTC Slaps Facebook With $5 Billion Fine, Forces New Privacy Controls, Forbes (July 24, 2019). Amazon is fiercely promoting its creatively titled facial recognition program “Amazon Rekognition” in the face of criticisms . . .

Twitter Fingers Turn To Eight Figures: SEC v. Elon Musk, Tesla

By Elena J. Despotopulos

On September 27, 2018, the Securities and Exchange Commission (SEC) filed charges against Tesla Chairman and CEO Elon Musk for violating federal securities laws. See Complaint, SEC v. Musk, No. 1:18-cv-8865 (S.D.N.Y. Sept. 27, 2018). Two days later, after filing charges against Tesla itself, the SEC announced it had reached a settlement with both Musk and Tesla. Press Release, U.S. Sec. & Exch. Comm’n, Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge (Sept. 29, 2018). Pending judicial approval, the settlement will remove Musk as chairman for three years, force Tesla to appoint two new independent directors to Tesla’s board and cost both Musk, and Tesla $20 million in penalties. Id. . . .