Featured Articles:

Episode 217: The Growing Risk of Corporate Board Member Liability

The Delaware Chancery Court is continuing its trend of permitting Caremark claims against corporate board members who fail to exercise proper oversight and monitoring of compliance programs. Over the past few years, the Delaware Chancery Court has consistently raised the stakes and expectation for Board member performance on corporate boards. In this Episode, Michael Volkov reviews the current board member liability cases and the Court’s recent...

OFAC Implements New Ethiopia Sanctions Program

On November 12, 2021, the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”), pursuant to Executive Order 14046, Imposing Sanctions on Certain Persons With Respect to the Humanitarian and Human Rights Crisis in Ethiopia, issued sanctions against four entities and two individuals as part of a new sanctions program in Ethiopia. OFAC issued the  sanctions is in response to humanitarian and human rights...

Export Control Reform Focuses on Chinese Trade and Security Issues (Part II of II)

Alex Cotoia, Regulatory Manager and Compliance Consultant at The Volkov Law Group, rejoins us for the second part of his blog posting on Chinese trade and security issues. Alex can be reached at [email protected] On November 17, 2021, a bipartisan congressional commission—the U.S.-China Economic and Security Review Commission—released a series of recommendations that called upon the Congress itself to assume a more proactive role in...

Emerging Developments in U.S.-China Trade Relations (Part I of II)

Alex Cotoia, Regulatory Manager and Compliance Consultant at The Volkov Law Group, rejoins us for a two-part posting on emerging developments in U.S.-China trade issues. Alex can be contacted at [email protected] As diplomatic tensions between Washington and Beijing continue to escalate, U.S. owned businesses dependent on the sale and export of more sensitive advanced technologies to the People’s Republic of China (“PRC”) should take heed...

Boeing Settles Shareholder Litigation and Agrees to Reforms (Part IV of IV)

The crushing aftermath of the tragic 737 MAX scandal is disturbing at the least.  Innocent lives were lost because of Boeing’s culture misfires, poor leadership at the management and board level, and an arrogant disregard for the impact of safety concerns. Boeing’s 737 MAX fleet was grounded for twenty months, until November 18, 2020.  Boeing was ordered by the FAA to cure the defects in...

Episode 216 — Tom Fox Releases the Second Edition of The Compliance Handbook

Tom Fox is a leader in the ethics and compliance field. He is regularly referred to as the “Compliance Evangelist.” Tom has just released the Second Edition of The Compliance Handbook, a comprehensive review and guide to the elements of an effective ethics and compliance program. Tom is known for his practical and efficient approach to difficult ethics and compliance issues. His new Handbook is...

Boeing’s Board Governance Failures and the 737 MAX Safety Scandal (Part III of IV)

In its decision, the Chancery Court methodically analyzed the weaknesses in Boeing’s board processes and its fundamental failure to meet basic Caremark standards in tackling airplane safety issues, particularly after the Lion Air crash in 2018. First, the Board did not implement or prioritize safety oversight at the “highest level of the corporate pyramid.”  None of Boeing’s Board committees were specifically assigned responsibility for overseeing...

The Delaware Court’s Decision Highlights Boeing’s Defective Corporate Culture and Board Governance Failures (Part II of IV)

When considered in light of the Chancery Court’s decision, DOJ’s essential findings in its Boeing investigation are problematic at best.  The Chancery Court’s decision outlines how Boeing’s culture of safety deteriorated into a culture of cost-cutting and profits, while under supervision of a board with star-studded credentials.  The Delaware Court’s decision provides a perfect example of how weak corporate governance can have a direct and...

A Tale of Two Boeing Boards — The Disparate Conclusions of the Justice Department and the Delaware Chancery Court (Part I of IV)

“Reality is merely an illusion, albeit a very persistent one.”― Albert Einstein “Reality leaves a lot to the imagination.”― John Lennon We often hear about how perspective can influence conclusions. It is rare, however, when it comes to investigations, legal proceedings, and litigation for two separate but important fact finders to reach polar opposite conclusions. When I reviewed again the US Department of Justice’s conclusions reached as...

Dubai Bank Pays $100 Million to Resolve Sanctions Violations with DFS, OFAC and Federal Reserve

Mashreqbank, based in Dubai, agreed to pay $100 million to the New York Department of Financial Services, the Federal Reserve, and the Office of Foreign Asset Control for violation of the now-repealed Sudan Sanctions Regulations.  The Sudan Sanctions Regulations were repealed on June 29, 2018. OFAC issued only a Finding of Violation, rather than impose a civil penalty, in light of Mashreqbank’s willingness to agree...