2019 INSIGHTS – CORPORATE
Deal activity remained resilient in 2018 and is expected to continue to be significant this year. Market volatility at the end of the year is being closely watched and brings with it questions about how factors such as domestic and geopolitical events, trade, interest rates and the decelerated pace of global economic growth will affect the markets.
2019 INSIGHTS – LITIGATION
A number of cases that could carry significant implications for corporations include those on issues that have been percolating in the mass tort and class action litigation arena for several years. Meanwhile, the number of securities litigation cases remains high, and public companies are encountering a rise in shareholder suits following allegations of sexual misconduct in the corporate context.
2019 INSIGHTS – REGULATORY
Businesses in all regulated industries will be watching for shifts in policy and efforts, such as an approach to international trade that could severely constrain Chinese growth and executive actions that, in the absence of bipartisan legislation, could impact the health care industry. In addition, the success of several new features of the U.S. international tax system remains to be determined, as potential global changes in corporate taxation could affect companies' decisions on how to structure cross-border M&A.
2019 INSIGHTS – EUROPE
In Europe, companies are responding to new and developing rules that affect the way they conduct business, including what information they make available early in the IPO process, what foreign investment control mechanisms are being considered and how data protection laws are being enforced under the GDPR.
2019 INSIGHTS – ASIA
All eyes are on the trade tensions between the U.S. and China. Should the countries reach a deal in the ongoing negotiations, it would potentially remove a significant overhang for the capital markets and boost activity.
On the enforcement front, U.S. companies with operations in China should ensure they have a robust compliance infrastructure in place as they navigate different U.S. and Chinese legal requirements.Compliance Investigations in China Take On New Urgency
2019 INSIGHTS – LATIN AMERICA
As with other novel legal and financial risk allocation structures and solutions that have been introduced in the region, representations and warranties insurance made its way into Latin America after first taking root elsewhere. The use of such policies is expected to continue to rise in the coming year, especially in Latin America's most complex, cutting-edge transactions.
Significant Rulings Expected for Ongoing Mass Tort, Consumer Class Action Issues
Significant developments are expected in 2019 on issues that have been percolating in the mass tort and class action litigation arena for several years, including arbitration, cy pres, preemption and personal jurisdiction. Litigation reform efforts, however, may stall out in the newly elected Congress.
Drafting International Dispute Resolution Clauses
On December 5, 2018, Skadden hosted the webinar “Drafting International Dispute Resolution Clauses.” Topics included the importance of dispute resolution clauses, choosing between litigation and arbitration, drafting arbitration clauses, multiple-party and multiple-agreement transactions, and the intersection between arbitration and courts.
Securities Class Action Filings Show No Signs of Abating
In addition to a significant number of securities litigation cases brought by those objecting to mergers, filings in 2018 included a large number of more traditional stock-drop cases. We expect this trend to continue, particularly if the volatility in the markets extends into 2019.