Compliance Stuff

Corporate espionage has become one of the most significant threats to enterprise value in today’s data-driven economy. In recent years, allegations of trade-secret theft and insider leaks have disrupted funding rounds, delayed public offerings and triggered parallel criminal and civil investigations across multiple jurisdictions. As competition intensifies around artificial intelligence (AI), advanced manufacturing and life-science innovation, companies must treat trade-secret protection as both a legal and operational imperative. The following three strategies represent best practices for mitigating espionage risk and preserving the value of proprietary IP assets. 1. Build a Zero-Trust IP Perimeter Traditional network security models that rely on single-layer authentication are no longer sufficient to protect sensitive intellectual property. A zero-trust architecture assumes that every user, device and application is a potential risk until verified. Companies should deploy multilayer...

Pennsylvania could soon join the growing list of states to enact comprehensive data privacy laws, and businesses that operate in PA must take note. Earlier this month, the commonwealth’s House passed a bipartisan consumer privacy bill that would set parameters on the collection and sale of consumers’ personal data. We’ll explain everything you need to know about HB 78, why it’s important, and six steps your business should consider taking now. Quick Background Pennsylvania’s  HB 78 , which passed the state’s House of Representatives on October 1, would establish the Consumer Data Privacy Act (CDPA) if ultimately approved by the state Senate and Gov. Josh Shapiro. T he bill, like its predecessors in other states, is intended to provide consumers with greater control over the collection, use, and sale of personal data . But unlike California’s data privacy law, PA’s proposed law would  not  cover employment-related information. Snapshot of the Proposed CDPA If enacted,...

In July 2025, the  SEC settled charges  against the Chief Compliance Officers (CCOs) of two investment advisers that involved backdating compliance documents and attempting to conceal these fabrications from examiners. The settlements imposed civil monetary penalties for both officers as well as a three-year bar for the more severe violation. These actions reinforce a lesson that should be familiar: regardless of the party in power, regulators do not look kindly on backdated documents or attempts to mislead them. While most CCOs would never consider engaging in similar conduct, any action against a CCO in their personal capacity inevitably raise broader questions in the industry about what other actions could expose a CCO to personal liability. Put another way: most CCOs understand not to go 60 miles per hour in a school zone, but what if they roll through a stop sign? While every case will be judged individually, SEC staff members have previously provided  some guidance ...

Corporate governance & compliance preserves the corporate veil and is a duty of any officer of an LLC or Corporation. What is corporate governance and compliance, and why is it important to protect the integrity of the “corporate veil” throughout California and the U.S.? Important Takeaways of How and Why Corporate Governance & Compliance Preserves the Corporate Veil: The "corporate veil" is the primary reason for having any business entity. The business entity shields the company's owners from personal liability that might otherwise arise out of the risks and disputes of business. Protecting the corporate veil through governance and compliance is a key duty of any officer of the corporation, and should always be a focus. Depending on the size and scope of the corporation or LLC, governance and compliance should be an annual priority, and at least a quarterly focus. Governance is about setting the policies and direction of the corporation. Compliance is preci...

On September 26, 2025, the White House Office of Management and Budget (OMB)  extended  two timelines under Statistical Policy Directive No. 15 (SPD 15): Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity. In 2024, OMB issued updates to the race and ethnicity categories that are used for data collection across the federal government. Those updates remain in effect, but OMB has pushed back deadlines for implementation by six months. Quick Hits Chief Financial Officers Act agencies and the U.S. Equal Employment Opportunity Commission must now submit Action Plans on Race and Ethnicity Data to OMB by March 28, 2026, extending the September 28, 2025, deadline that had been imposed when OMB released the SPD 15 revisions in March of 2024. OMB also extended the deadline to update federal information collections of race and ethnicity data to be consistent with the new standards. Such updates must be made as soon as possible, but the new deadline h...

As deepfake tools and voice cloning become cheaper and more convincing, employers are increasingly encountering a troubling trend: fraudsters using artificial intelligence (AI) to create fake appearances, voices, or profiles to land remote jobs . In addition to the risk of hiring unqualified applicants, the practice raises significant concerns about individuals trying to steal company trade secrets, install malware on company-owned devices, or engage in other subversive activities. Quick Hits Some scammers are using AI to fake their voice and image during video interviews. This trend raises the risk that employers could experience poor performance by unqualified workers, cyberattacks, theft of sensitive data, or embezzlement. Careful hiring strategies can help employers prevent these schemes. The last thing employers want to do is to hire a person with a fake identity—whether the person’s goal is to obtain a job for which they are not qualified, steal data or money, or install spyware ...