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Uber CEO Travis Kalanick responded to an onslaught of criticism to his joining President Trump’s economic advisory council by resigning from the council on Thursday, reports The New York Times.

The criticism came both from people outside the company and from Uber employees, explains reporter Mike Issac.

First, the company took heat from the public after the company appeared to be profiting from business generated during New York protests of Trump’s immigration order. Then Kalanick had to face direct criticism from his employees, who wondered why he was willing to advise the president.

“Outside of the internal pressure, Uber faced other fallout from Mr. Kalanick’s stance. More than 200,000 customers had deleted their accounts,” Issac writes.

Read the Times article.

Bloomberg Big Law Business, in partnership with Catalyst, will convene corporate counsel to discuss the need to control rising legal costs particularly related to litigation at the complimentary event, Controlling Litigation Costs – Managing Your Legal Department for Success.

The event will be Thursday, Feb. 23, 2017, 3-5:30 p.m. Central time, at University Club of Chicago, Northwestern Room, 76 E Monroe St., Chicago, IL 60603.

Technology provides important solutions, but only if implemented effectively and as part of an overall strategy to manage litigation, Bloomberg says on its website. Top general counsel will talk about the ways they are managing litigation and the expectations they set with law firms and technology vendors.

Corporate counsel speakers include:

• Susan Lees, Executive Vice President & General Counsel, Allstate Insurance
• Leslie McKnew, VP, Litigation, CISCO
• Matt Miller, VP, Deputy General Counsel – EMEA, APAC and Global Litigation, Groupon
• Sharyn Procaccio, Vice President and Assistant General Counsel, Hunt Companies

Register for the event.

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By Patty P. Tehrani
Lawyer and Founder of Policy Patty Toolkit

So much focus right now on the new administration in place. Not to mention the rampant speculation about what they will do about various financial regulations and how dramatically this landscape is expected to change. As if this were not enough, your company has a new Chief Executive Officer (CEO). She has requested a meeting with you, the General Counsel, to meet to discuss your ethics, risk and compliance programs to learn more about them. She also wants to get your insights on what she and management should do to avoid the common pitfalls highlighted in recent corporate scandals.

As an experienced lawyer, this is welcome news. You know that a company’s governance, risk and compliance programs (“core programs”) should be promoted by management to truly be effective. You are all too familiar with recent headlines regarding the lack of management focus on a company’s core programs resulting in poor company culture and irreparable systemic failures. Often these scandals involve management that has delegated ownership for their company programs and most definitely ignorant to the risks and issues involving them. Most end up with dire consequences – share price plummets, employees lose morale and leave, customers leave, and overall the brand and reputation diminish. And while your company’s prior management did a good job to promote your core programs more can still be done.

This article provides key considerations to help you prepare for your meeting with your CEO.

Note: You can define management however you deem fit for your company. This can include boards of directors where appropriate and your business leaders such as the chief executive officer, president, chief financial officer, the heads of product/business lines as well regional divisions for global companies.

Preparing for Your Meeting

You decide that the focus of your meeting will be on management ownership of your core programs. To prepare for your meeting, you want to make an outline of discussion points. As a starting point, you want to note what ownership does not mean, which can be delegated to the subject matter experts. That is – the development, implementation, and maintenance of a core program which can be delegated to the subject matter experts – Legal, Risk or Compliance departments (as well as others). Next and most importantly, you list how management can own these programs. In doing so, you want to make sure that you underscore the benefits. To help your discussion consider the following points:

• Tone at the Top – Management should set an effective “Tone-at-the-top” to communicate their commitment to core programs and to promote the need for them.

• Formal and documented adoption of a program (e.g., notice from management to all employees that they have approved a core program).
• Regular communication from management on a program (e.g., management messages on your programs via training, company websites, inclusion in town halls, or periodic reminders on program requirements to name a few).

• Embed in the Business and Culture – Management should lead efforts to incorporate program requirements and risks into the company’s overall business strategy, processes, and operations. Taking an integrated approach will lead to better overall performance and ultimately your bottom line by avoiding different and possibly conflicting business and control requirements.

• Unintegrated program risks and vulnerabilities may affect the ability of a company to fulfill its business strategies and objectives.
• Failed or deficient programs may result in costly disruptions to core business activities leading to harmful breakdowns in business operations and ultimately the company’s viability.
• Jeopardizing the company’s continuity and integrity increases the potential for reputational damage — in the market, among shareholders, and with business partners.

In addition, a core program should not be viewed in isolation of a company’s core values, mission, and culture. Management should align a core program with a company’s core values, mission, and culture to reap tangible benefits.

• A strong program provides important benefits including safeguards for weak or absent controls, and integral to an open environment of trust, accountability, and integrity – all ingredients that benefit productivity and the bottom line.
• While every company is unique, there are a few universal program outcomes/objectives that it every company would benefit from:
  • an enhanced culture of trust, accountability, and integrity;
  • process for prevention, detection, and management of issues;
  • protection (to the extent possible) from negative consequences, and detection of non-compliance;
  • defined escalation measures for non-compliance and material issues; and

• Accountability – Management should foster a culture of accountability to help the success of a core program. Accountability requires management to know what the material issues are with a core program and how to act on them promptly.

• Escalation – A defined escalation process to alert management is critical to management accountability. This is particularly important when the company is getting close to (or crossing) a risk or challenge that prevents the achievement of a material program objective or deliverable or runs afoul of a legal, regulatory or business requirement.
• Monitoring – Program processes and results should be monitored and measured on a regular basis. If done properly, monitoring measures keep regulators happy during reviews, but more importantly keep management informed and accountable.

Robust monitoring and reporting results can be used to:

• facilitate management response to program issues and challenges;
• help company’s gauge progress of objectives and how they are contributing to the success of the company’s strategy;
• improve program components from time-to-time; and
• prevent, detect, and respond to identified malfeasance in the future.

Note: Be mindful of matters that may warrant referral or reporting to the relevant governmental agency or regulator following presentation to management.

o Access – Management should ensure key areas have access to them to ensure timely, proper and informed responses to program issues.

• Key program administrators and messengers – Legal, Compliance, Risk Management, Operations, Human Resources, Audit, Information Technology – need unrestricted access to management to help them respond to the issue/challenge.
• Responsibility – Management should also be prepared to go so far as to take the blame for a material failure involving a core program. Consider when a company CEO publicly acknowledges responsibility for a company failure, everyone takes notice – employees, investors, business partners and industry regulators.
• Support – Management should support program leaders and administrators so that they have the authority and sufficient resources to: 1) manage a program on a day-to-day basis; and 2) maintain them in the event of regulatory and operational changes, varying and possibly increasing risks.

You’ve drawn your outline together and ready to discuss with your CEO. You know that by working together, management and program administrators can help ensure a core program not only contributes to the improvement of the company’s governance practices but the success of its company’s strategy as well.

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The National Association of Corporate Directors will present a complimentary webinar discussing how progressive general counsel use the board evaluation process as a tool to effect positive change in the boardroom.

The webinar is part of NACD’s Strategic-Asset General Counsel Webinar Series.

The event will be March 23, 2017, 2-3 p.m. Eastern time.

Board evaluation will be the main topic for the NACD webinar.

Speakers will be announced closer to the event date.

Register for the webinar.

The Internal Revenue Service’s Large Business and International division is taking a new approach to tax compliance, with a series of 13 campaigns aimed at cracking down on tax evasion, reports Accounting Today.

Reporter Michael Cohn writes that the IRS division is moving toward issue-based examinations and a compliance campaign process in which it decides which compliance issues present enough of a risk that they require a response.

Those responses, known as “treatment streams,” could include examinations and letters to achieve the IRS’s tax compliance objectives, leveraging IRS expertise in various compliance issues, Cohn explains.

Some of the areas considered will be tax credits for advanced energy projects, people who withdraw from or are denied entry to the Offshore Voluntary Disclosure Program, TV broadcasters and channels who claim film production tax credits for distributing shows produced by third parties, and micro captive insurance.

Read the Accounting Today article.

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The National Association of Corporate Directors (NACD), the advocate for the profession of directorship, announced the formation of its first-ever General Counsel Steering Committee. As part of NACD’s goal to equip boards with the information they need to create long-term value for businesses, this invitation-only committee brings together more than 60 progressive general counsel — all nominated by Fortune 500 board committee chairs.

The members of the steering committee will directly shape and inform NACD’s brand-new initiative, The Strategic-Asset GC, which includes resources, a webinar series, and a live meeting on June 1, 2017, in New York City. This initiative is designed to explore the continuing evolution of the role of the general counsel and its impact on boardroom issues, and will help to form leading governance practices as well as NACD resources and additional educational programming.

“The formation of this initiative and committee couldn’t be more timely,” said Peter Gleason, the recently appointed CEO of NACD. “Our members turn to general counsel now more than ever before for their unique legal and strategic perspective. In fact, almost two-thirds of our full board members have their general counsel on their membership roster.”

NACD’s General Counsel Steering Committee members come from a diverse range of Fortune 500, nonprofit, and private companies. GC are from such companies as Foot Locker, Campbell Soup, Hanesbrands, General Motors, and Lockheed Martin.

See a list of the committee members.

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Donald Trump’s executive order Friday banning citizens of certain countries from entering the U.S. for 90 days blindsided the technology industry, reports The Los Angeles Times.

Reporter Tracey Lien writes that the industry had thought that its main battle on the immigration front was over the number of H-1B visas — granted to high-skilled foreign workers — that will be made available each year.

But now lawyers are fielding calls from worried tech workers with visas and green cards. And they’re having to adjust their advice to those clients as each day’s news comes out.

“For those abroad, we are telling them to come back as soon as possible, and be prepared to face questioning and possible refusal,” Los Angeles immigration attorney Ayda Akalin said.

Read the Los Angeles Times article.

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Zapproved has published the proceedings catalog from the 2016 PREX, the premier conference for in-house e-discovery professionals. The catalog is available for free downloading.

The volume includes reflections shared by participants and faculty about the ongoing challenge of sustainably managing and preserving data to meet e-discovery demands.

It includes a recap of the fireside chat with Hon. Shira Scheindlin led by attorney and professor Maura Grossman; roadmaps for creating the perfect preservation notice and plan; strategies for improving e-discovery process and compliance; and predictions about the future of legal software and its impact on e-discovery. The content also covers the panel review where six judges summed up 10 cases and their key “takeaways” from each one in an hour.

Download the PREX catalog.

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Mark Zuckerberg, chief executive of Facebook, testified Tuesday in a trial that could cost his company $2 billion if a federal jury in Dallas finds that a company bought by Facebook stole technology that eventually went into a virtual reality headset.

A New York Times report on the trial says the “dispute started more than two and a half years ago when ZeniMax Media sued Oculus just months after Facebook announced that it would acquire the start-up. ZeniMax accused Oculus of stealing important elements of the technology that went into the creation of the headset, eventually including Facebook among the parties it was suing.”

Reporters Nick Wingfield and Mike Issac write that this case defied predictions by reaching a jury trial.

ZeniMax’s case is based on the idea that one of its former employeesshared ZeniMax virtual reality technology with a founder of Oculus, during the company’s early days, technology for which ZeniMax was never compensated, according to the report.

Read the NYT article.

Reuters is reporting that Japan’s Takata Corp is expected to plead guilty to criminal wrongdoing as Friday as part of a $1 billion settlement with the U.S. Justice Department over its handling of air bag ruptures linked to 16 deaths worldwide, sources said.

David Shepardson writes that the settlement includes a $25 million criminal fine and $125 million in victim compensation. He added that his sources told him the settlement also will include  $850 million to compensate automakers who have suffered losses from massive recalls.

“The company is poised to plead guilty to wire fraud, or providing false test data to U.S. regulators, according to the sources, who were not authorized to discuss the settlement publicly,” according to the report.

Read the Reuters article.

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Veteran trial lawyer Jay Old has joined commercial litigation firm Hicks Thomas LLP where he will continue to represent construction, insurance, petrochemical and health care companies as part of his client portfolio.

Old’s addition will add offices in Austin and Beaumont. Old joined the firm effective Jan. 1.

“We are thrilled to be adding Jay and his team. He’s an exceptional lawyer with an outstanding track record,” said John B. Thomas, name partner and firm co-founder. “Many of us have known Jay for years, dating back to our days together at Andrews Kurth.”

Old’s clients include refineries, construction contractors, manufacturers, hospital systems and insurers. Joining him is labor and employment lawyer Jim Henges, along with four other lawyers from Old’s firm.

“I like to say I represent the job creators,” Old said. “I’m very excited to be joining the Hicks Thomas team, and hope to add to its reputation as a premier trial firm.”

Old is a frequent speaker at continuing education programs for lawyers across the country. He also is a former president of the Texas Association of Defense Counsel and has chaired the Construction Law Section of the State Bar of Texas.

He has defended national clients in statewide and regional mass tort litigation, in toxic torts, construction and product liability cases. He also successfully defended insurance companies in a series of high-profile trials involving hailstorm claims in Galveston and elsewhere.

Old is Board Certified in Personal Injury Trial Law by the Texas Board of Legal Specialization and has been recognized on the Texas Super Lawyers list every year since 2005. A native of Beaumont, he is a graduate of Texas A&M University and the Texas Tech University School of Law.

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Navex Global will present a free webinar discussing how a new administration and anticipated enforcement and regulatory changes will impact third party due diligence programs.

The event will be Thursday, Jan. 26, at 1 p.m. EST (10 a.m. PST).

Topics will include:

• Potential impacts of the Trump administration on compliance
• Changes to FCPA enforcement approaches
• Disgorgement trends
• Yates Memo impacts
• Upcoming regulatory changes

Participants also will techniques and technology to help mitigate political and regulatory turmoil with a risk-based approach to modernizing due diligence.

Speakers will be Michael Volkov, CEO, Volkov Law Group, LLC; and Tim Morss & Chris Bailey, of NAVEX Global.

Register for the webinar.

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The National Association of Corporate Directors (NACD) has published a complimentary executive summary of “Eight Key Practices for Overseeing Risk Management.”

“As the number and magnitude of business risks increase, so do the expectations for stronger risk oversight — through both greater board awareness of risk and more disciplined board review of enterprise-risk management,” the NACD says on its website.

The reports offers key practices that all directors can use to oversee risk more effectively, such as:

• Clarify the roles of the board, committees, and management.
• Understand the company’s risk profile.
• Define the company’s risk appetite.

Download the executive summary.

With the U.S. House, Senate and presidency all soon to be in Republican hands and with all agreeing that a major tax bill is a top priority, some kind of change to the American taxation system appears likely to happen, according to The New York Times.

Writer Neil Irwin says that change may turn out to be “a very big deal, particularly if a tax plan that House Republicans proposed last summer becomes the core of new legislation.”

That plan is known as a “destination-based cash flow tax with border adjustment.” Supporters of the plan say it could address the situation of companies using overseas holding companies and corporate inversions to lower taxes, Irwin writes.

Read the NYT article.

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Bloomberg BNA will present a complimentary afternoon briefing on DOJ and SEC enforcement trends, new emerging risks, and recent cases that will keep attorneys ahead of the changing landscape, on Tuesday, Jan. 24, from 3:30-6 p.m., with a networking reception to follow.

The event is underwritten by EY and will take place at Bloomberg LP, 120 Park Ave., New York, NY 10165.

Lanny A. Breuer, the Vice Chair for Covington & Burling LLP and one of The National Law Journal‘s 100 most influential lawyers in America, will give a keynote interview at the event.

Experts will discuss:

• Navigating investigations in the new administration, including how to prepare for a pending investigation
• Recent cases and emerging areas of risk in 2017 and beyond
• Technology’s role in global investigations and how to leverage new technologies to implement fraud-prevention rules

Register for the event.

Further expanding its Latin American presence, Gardere Wynne Sewell LLP announces the addition of two partners and three associates to the firm’s international trade practice in Mexico City. The group joins Gardere from Carrasco, García Abogados, S.C. and Trade Law Consultores, S.C.

“These are important new hires that increase the size of our dynamic Mexico City office and add firepower to our accomplished international trade practice,” says Gardere chair Holland N. O’Neil. “This is one more example of our commitment to providing top quality legal counsel to clients with cross-border business.”

Partner Marcos Carrasco-Menchaca provides advisory and consulting services related to international trade, customs, free trade agreements, customs litigation and taxation on foreign trade, as well as rendering services in international contracting and administrative litigation. Carrasco is currently an advisor on foreign trade for major multinational and national companies in the retail, fashion, oil and gas, automotive, auto parts and manufacturing industries.

During President Vicente Fox´s administration (2000-2006), partner Alejandro Nemo Gómez-Strozzi served as the undersecretary of economy in charge of foreign investment, standards and trade remedies. In addition, he has previously led the Mexican Investigative Authority regarding trade remedies (UPCI) in the Ministry of Economy. Gómez focuses on international trade, antidumping, customs, foreign trade and Mexican administrative law.

Miguel Angel Concha-Fuentes, Luis Jahir Contreras-Guadarrama and Alberto Santillán-Gaitán are also joining Gardere as associates. Concha is a foreign trade and customs attorney who specializes in customs and administrative litigation, customs advisory and unfair international trade practices, primarily dumping. In addition, Contreras provides advisory and consulting services related to foreign trade, customs and free trade agreements. Santillán specializes in advising and consulting on international trade and taxes on foreign trade, as well as customs and administrative litigation.

“With continued foreign investments entering Mexico’s market, it is imperative for Gardere to meet our clients’ growing need for international counsel,” says Roberto Arena, who heads the firm’s Mexico City office. “The team is highly regarded for their work with a diverse portfolio of organizations in Mexico and abroad, and we welcome them to the Firm.”

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General Counsel News and Zapproved have posted a complimentary on-demand webinar titled “Trends in Corporate E-Discovery Data Processing: Benchmark Survey Insights Revealed.”

An expert panel will explore the trends, and discuss the results of the 2017 benchmark survey.

The event provides insights and analysis on:

• In-sourcing vs. outsourcing e-discovery projects
• Satisfaction of process with an eye on factors such as time, cost and ease
• Technology trends affecting how in-house legal teams’ work evolves in 2017 and beyond

Corena Bahr

Speakers were Brad Harris, VP of Products, Zapproved, Inc.; Jack Thompson, Sr. Manager – eDiscovery & Legal Operations, Sanofi US; and Brad Ellis, Corporate VP of Legal Services, Physician Acquisitions, Asst General Counsel – Scripps Health.

The moderator was Corena Bahr, Webinar Consultant & Producer, YourWebinarGuru.

Brad Harris

Brad Harris has more than 30 years of experience in the high technology and enterprise software sectors, including assisting Fortune 1000 companies enhance their e-discovery preparedness through technology and process improvement. He is a frequent author and speaker on data preservation and e-discovery issues, including articles in National Law Journal, Corporate Counsel, Metropolitan Corporate Counsel and Information Management and presentations at leading industry events such as LegalTech New York. Prior to joining Zapproved, he led the development of electronic discovery readiness consulting efforts for Fios, Inc. from 2004 to 2009. He has held senior management positions at prominent public and privately held companies, including Hewlett-Packard, Tektronix and Merant.

Jack Thompson

Jack Thompson is a corporate eDiscovery and Legal Operations professional, specializing in the advancement of efficiency of legal technical operations and information governance.  From 2001 through 2014, He was legal operations manager at Purdue Pharma LP in Stamford, CT providing services and solutions to Purdue’s legal technology operations as well as leading the company’s legal analytics programs.  In 2014, Thompson relocated to Atlanta, GA to work as the legal technology manager for the UPS Corporate Legal Department, followed by working as an IT Business Services Manager for The Coca Cola Company’s global legal department providing technical expertise and process workflow implementations.  Heis currently working as the eDiscovery Manager and Legal Operations Lead for Sanofi US, located in Bridgewater, NJ.

Brad Ellis

Brad Ellis received both his Juris Doctorate and a Master of Law in Taxation from the University of San Diego School of Law. He has 25 years experience in healthcare law, and has worked at Scripps Health for the last 18 years. Prior to joining Scripps Health he was in private practice with a focus in healthcare and the banking industries. In addition to his legal duties, he is responsible for physician acquisition in a business role, and is also responsible for system-wide cyber-security for the Scripps Health system.

See the on-demand webinar.

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Corporate legal departments will decrease spend on outside counsel and take more work in-house in 2017, reveals a new report released by Liquid Litigation Management, Inc. (LLM), a legal workflow unification platform provider. “The State of the Legal Industry” report explores the motivations for technology adoption among U.S. law firms and corporations. It also examines the business benefits firms and their clients expect from technology adoption, as well as the lingering challenges they face.

While the corporations and law firms surveyed said their number one goal of incorporating technology is to boost efficiency, the way they use this new technology can prove counterproductive. The survey found that 64 percent of law firms rely on more than four distinct legal software systems to aid in developing strategy, tracking case management, and collecting, processing and reviewing data. This outsized number of systems, which can lead to inefficiencies and increased cost, is one example of why corporations think law firms are not as efficient as they should be. As a result, corporations are taking more work in-house and spending less on outside help.

“The law firms and GC offices participating in the survey show some interesting similarities and differences,” said Cas Campaigne, Chief Executive Officer and President of LLM. “Both are heavily focused on cost-cutting and efficiency gains, but their priorities differ. If law firms and corporations can work together to figure out how to consolidate their technology and reduce some of these inefficiencies caused by the complexity of systems they use, firms will be better equipped to meet the demands of their customers and corporations will save money.”

Some of the reports other key findings include the following:

• Corporations and law firms want greater budgeting predictability
• Corporations are using Alternative Fee Arrangements (AFAs) to reduce legal costs
• Nearly half of firms only use email to track communication around budget and strategy for historical purposes

“Doing ‘more with less’ is a mantra of many modern law departments. They are starting to demand similar discipline from their external providers,” said Casey Flaherty, former in-house counsel and founder of Procertas. “Talking about efficiency in the abstract isn’t enough. Corporations want measurable efficiencies and tractable savings without compromising quality. Many law firms struggle to meet these mandates. Buying technology is different from using technology is different from using technology well. Interoperability and integration are among the primary challenges we have in making our tools really work for us.”

The report provides other insights of particular interest to the legal community, such as:

• The most significant changes firms and GC offices anticipate in the coming months
• Their biggest obstacles
• How frequently firms communicate with their clients
• The ways in which corporations and firms want to use tech to improve operating efficiencies
• The degree to which legal departments and law firms leverage historical data and why
• The impact of AFAs on technology purchases
• The relative ability for firms and clients to keep pace with change

Download the report.

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General Electric has developed what it’s calling a Yelp for lawyers, reports Bloomberg Law.

The report says the internal website allows the company’s approximately 800 in-house lawyers to search “preferred providers” of outside counsel and learn about their track record with the company.

“Titled GE Select Connect, more than 200 of the company’s outside law firms maintain profiles (à la Facebook) that feature firm information, including feedback the outside firms have received from GE lawyers, the firm’s diversity staffing levels, hourly rates, along and discounts the company has previously achieved,” Bloomberg reports.

Read the Bloomberg article.

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Corporate compliance consultant, author and lawyer Thomas Fox is producing a new podcast series that has generated an e-book exploring the outlook for business ethics at home and overseas under incoming President Donald Trump. 

“Trump and Compliance: This Conversation is Just Getting Started” is published by Corporate Compliance Insights, headed by Maurice Gilbert. Its content comes from discussions on Fox’s podcast series, “Everything Compliance.” Part 1 is titled, “This is not the apocalypse (yet).”

As an authority on the Foreign Corrupt Practices Act, compliance and ethics, Fox is hosting the discussions with other experts in the field, and all are contributors to this e-book.

His podcasts can be found on his FCPA Compliance & Ethics website.

“I am a bit more sanguine than some when it comes to continued enforcement of the Foreign Corrupt Practices Act,” said Fox. “The FCPA has held many foreign companies accountable, and it’s crucial to fighting terrorism. Enforcing that law is right in line with President-elect Trump’s trade policies.”

Fox also contends that major U.S. companies now have compliance fully integrated into their systems and that the FCPA has few reputable critics. In addition, enforcement heavily relies on self-policing, and penalties from violators largely pay for the cost to investigate.

Both the “Trump and Compliance” podcast and e-book will be updated quarterly to include details from ongoing discussions between Fox and colleagues regarding developments in the corporate compliance and FCPA space. A free copy of the e-book is available at http://corporatecomplianceinsights.com/trump-and-compliance/.

The former general counsel of a global oilfield services company, Fox has worked as a lawyer in the world’s energy capital for more than 30 years. He conducts training in FCPA, business leadership, compliance and ethics in the U.S. and across the globe.

Fox is host of the FCPA Compliance & Ethics website, which provides business solutions to compliance and legal challenges.

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