Americas




Hedge Funds Experiencing Rising Costs for Insider Trading
Insider Trading

There have always been well known costs associated with insider trading. A new expense can now be added to the list, higher insurance rates. According to the SKCG Group, hedge funds looking to insure themselves against fraud and insider trading litigation are facing rates five to ten percent higher than in previous years. Firms already facing issues will face even high rates. The increase comes at the same time as the government’s new focus on hedge funds and its attempts to thwart crimes like fraud and insider trading within the industry. According to a statement from SKGC president Richard Canter “Insurance carriers know that hedge funds are in regulators’ cross hairs…. More than just insider trading, the S.E.C. is cracking down on a variety of areas and, when regulators come knocking, the cost to defend these funds is seldom cheap and the insurers may be on the hook for it.”

New York Times: The High Cost of Insider Trading (13 March 2012)
(Source: New York Times)


Stolen Data Causes Company Collapse
Privacy and Data Protection

The Wall Street Journal (WSJ) reports that national medical records firm Impairment Resources has filed for bankruptcy, following a burglary in which “detailed medical information for roughly 14,000 people” was stolen. The stolen information reportedly included patient addresses, social security numbers and medical diagnoses. Reportedly, the company stated that ”[t]he cost of dealing with the breach was prohibitive”, in explaining its decision to file for bankruptcy. Government agencies are still investigating the matter, reports the WSJ. 
WSJ: Burglary Triggers Medical Records Firm’s Collapse (12 March 2012)
(Source: WSJ)


Movie and Games Retailer Settles EEOC Case for US$70,000
Employment and Workplace Issues, Respect in the Workplace

The US Equal Employment Opportunity Commission (EEOC) has announced that Family Video Movie Club (Family Video) has agreed to pay US$70,000 to resolve a disability discrimination case brought against it by the EEOC. According to the EEOC, Family Video subjected Jeffrey Spoonley, a sales associate with major depression and social anxiety disorder, to harassment because of his disability, and dismissed him after he complained of the harassment. In addition to the monetary relief, Family Video is prohibited from engaging in further discriminatory or retaliatory conduct, and is required to recruit an equal employment opportunity coordinator to implement anti-discrimination policies and procedures, provide training, and monitor and investigate discrimination complaints.
EEOC’s media release (14 March 2012)
(Source: EEOC)


Retaliation Case Brought to End With US$120,000 Settlement
Employment and Workplace Issues, Respect in the Workplace

The US Equal Employment Opportunity Commission (EEOC) has announced that insurance company Sterling and Sterling has agreed to settle a retaliation case brought against it by the EEOC for US$120,000. According to the EEOC, the company dismissed Rochelle Legette, a sales marketer, from her position “after she filled out an EEOC questionnaire stemming from her complaints of race and sex harassment”. The consent decree requires the company to provide equal employment opportunity training to employees, report on its obligations and post anti-discrimination notices.
EEOC’s media release (14 March 2012)
(Source: EEOC)


Nursing Facility to Pay US$125,000 to Settle Religious Discrimination Suits
Employment and Workplace Issues, Respect in the Workplace

The US Equal Employment Opportunity Commission (EEOC) has announced that Boca Group (trading as Menorah House), a nursing and rehabilitation facility, has agreed to pay US$125,000 to settle two religious discrimination cases brought against it by the EEOC. According to the charges, Menorah House refused to provide religious accommodation to two certified nursing assistants who were Seventh-Day Adventists and dismissed them on account of their religious beliefs. The business had accommodated the women’s religious needs for at least eight years until management instituted a policy, requiring all employees to work on Saturdays, regardless of their religious beliefs. Menorah House has agreed to revise its written discrimination policies with respect to religious discrimination, post anti-discrimination notices at all of its facilities and conduct anti-discrimination training for all employees, particularly on accommodating religion in the workplace.
EEOC’s media release (12 March 2012)
(Source: EEOC)