We welcome the LawProf Blogs to the KM Blogwatch

When it rains, it pours. We are delighted to announce a twofer, with the addition of two LawProf blogs to the Knowledge Mosaic Blogwatch. We welcome Professor Barbara Black, who brings us the Securities Law Prof Blog, and Professor Steven Davidoff, who brings us the M&A Law Prof Blog.

If you are not familiar with the Law Professors Blogs Network, it is definitely worth checking out. Published by University of Cincinnati College of Law Professor (and Associate Dean of Faculty) Paul Caron and managed by Cincinnati College of Law Associate Library Director Joseph Hodnicki, the Law Professors Blogs Network now includes more than 50 blogs covering every conceivable legal practice interest, ranging from Antitrust Law and Aviation Law to White Collar Crime and Wills, Trusts, and Estates.

Barbara Black is the Charles Hartsock Professor of Law and Director of the Corporate Law Center at the University of Cincinnati College of School. A prolific scholar, Professor's Black most recent SSRN publication is Stoneridge Investment Partners v. Scientific-Atlanta (8th Cir. 2006) What Makes it the Most Important Securities Case in a Decade? In the Securities Law Prof Blog, Professor Black offers immediate and comprehensive coverage of the leading events and scholarship in the securities law community.

Steven Davidoff is Assistant Professor at the Wayne State University School of Law. His most recent SSRN paper is Black Market Capital, which explores the fascinating phenomenon of "shadow" hedge fund and private equity fund instruments, which are the result of the lack of direct access of public investors to hedge fund and private equity funds because of regulatory prohibitions.

Dangerous Times for General Counsel? Maybe Not.

The Harvard Law School Corporate Governance Blog publishes a post addressing new concerns about stepped-up Justice Department enforcement against General Counsel and other legal officers at public companies.

Data from SM Litigator's SEC Enforcement Actions database suggests the trend may not be that dire for GCs. Our data indicates that the SEC has brought actions against 11 GCs in 2007, compared to 7 in 2006, and 13 in 2005. So there is not much of a discernible trend.

The only difference we can spot is that the nature of the violations has changed. In 2005 and 2006, there were a number of violations for Sale of Securities and Late Trading/Market Timing. In 2007, the violations have tended more toward Accounting/Auditing, along with options backdating.

So what is the source of the fuss? Probably that options backdating scandals have pulled more prominent public companies into the spotlight and put their GCs more at risk.

Insider Trading Enforcement

In today's SM Litigator Blogwatch, Tom Gorman discusses the SEC's renewed campaign against inside trading. On SM Litigator's SEC Enforcement Actions data analysis page, you can actually review the trends. In the past 12 months, the SEC has instituted proceedings against 106 defendants. In the 12 months previous, the Commission launched actions against 72 defendants. In the 12 months previous to that period (October 2004 through October 2005), the SEC brought actions against 96 defendants. So there is clearly an upward enforcement trend, although perhaps not dramatically in excess of previous years. Institutions associated with individual defendants include Dell, Goldman Sachs, Banc of America Securities, Morgan Stanley, Credit Suisse, Bear Stearns, UBS Securities, the law firm Katten Muchin Rosenman, and Fredericks of Hollywood!