Issue 6 - December 2011
Sue Or Be Sued - continued
Contracts Continue to spark disputes
In the Fulbright & Jaworski survey, more than 40% of U.S. companies and more than half of those in the United Kingdom faced pending legal action related to contracts in 2011. In the United Kingdom, contracts sparked the highest number of suits, whereas labor and employment posed a larger problem in the United States.
In Japan, Securities Suits Are Also on the Rise
Various types of claims have been increasing steadily since 2004, when Japan revised its Securities and Exchange Law. One notable crossborder case involved Toyota Motor Corporation’s U.S. shareholders, who filed a class action suit alleging that the company’s insufficient disclosure of risk related to widespread vehicle recalls was a “misstatement” — a kind of claim more likely to lead to damages under the revised securities statute.
Regulators Increase Scrutiny
More companies are finding themselves the targets of regulatory investigations by a wide range of government agencies in both the United States and the United Kingdom. Some 40% of respondents had attracted government attention, up from 37% in 2010. Approximately 50% of the insurance, energy, healthcare and manufacturing sectors have had at least one regulatory proceeding commenced against them.
