July 9, 2010

EU Parliament Adopts Amendments to Its Prospectus Directive

Recently, the European Union Parliament passed a resolution adopting a EU Commission proposal to amend the Prospectus Directive (2003/71/EC) with certain modifications. The EU Commission had started a public comment period (called a “consultation”) over a year ago and issued its proposal in September. The new Prospectus Directive attempts to simplify the disclosure requirements, provide clearer exemptions and ensure that adequate information is provided to retail investors. We have posted memos regarding this development in our “European Law” Practice Area.

True Story: Former SEC Lawyer Claims He’s LeBron’s Dad, Sues

I had to work LeBron somehow into this blog after last night’s ridiculous TV special to announce where he would play next year (long-suffering Wizards fans like me have come to dislike LeBron for his unprofessional theatrics during playoff games; I didn’t watch the “made-for-TV” event). As noted in this AmLaw article, a former SEC attorney has sued LeBron and his mother because he claims he’s LeBron James’ father. The plaintiff accuses James’s mother of engaging in a scheme with her son and their attorneys to cover up the identity of James’s real father – as a 2007 paternity test came back negative with a “0 percent probability of paternity,” as noted in this BusinessWeek article.

This is not the typical paternity suit, where a deadbeat dad is sued for child support; this is the opposite when an alleged deadbeat dad sues for recognition as the father of a celebrity. Two things to note about the plaintiff: he was 29 and LeBron’s mom was 15 when they allegedly had the tryst; and he agreed to resign from the SEC in ’02 when he was paid $230,000 to drop a second EEO complaint against the agency after working there for 19 years.

And in answer to the question I have been emailed a dozen times: no, I don’t know the plaintiff. He worked in the Division of Investment Management and although I knew folks in IM, I never heard of this guy before.

SEC Adopts “Pay-to-Play” Rules

Last week, the SEC adopted new pay-to-play rules in an effort to curtail the corrupting influence of this type of practice by investment advisers; here’s the adopting release. In his new blog covering California law developments, Keith Bishop covers some California specific issues related to the new rules.

– Broc Romanek