Most startups initially focus on incorporation, funding, and protecting their intellectual property, which is logical and practical! While these are all important and necessary, startups should also ensure that they are protecting their new startup from legal actions such as a lawsuit – the dreaded “L” word. A lawsuit is the official court process in which two or more parties seek to resolve a dispute. A legal battle can be lengthy, expensive, and create bad publicity. Startups are experiencing a rise in litigation and below we will focus on three growing risks to startups and provide practical steps to prevent these types of lawsuits.

Being threatened with a lawsuit is always frightening and unsettling but sometimes can be avoided. For example, in a sole proprietorship, both the company and owner could be liable for the damages. Structuring a startup as a corporation or a limited liability company could help reduce owner liability. Generally speaking, the creditors of a business also cannot succeed against the founders and other investors of corporations and LLCs for unpaid debts because they are sheltered by the corporate status.
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Toxic Tort Monitor

June 18, 2018 | Editor: Jen Dlugosz | Assistant Editor: Natalie Holden
New Developments
New Tool for Non-Resident Defendants Seeking to Challenge Personal Jurisdiction in Illinois
By Dominque Savinelli

If you are a non-resident corporate defendant in Cook County, Illinois, you should become familiar with Campbell v. Acme Insulations, Inc., as it will undoubtedly

On Friday, February 23, 2018, the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) imposed blocking sanctions against one individual, twenty-seven entities and twenty-eight vessels known to have previously provided maritime support to North Korean coal and petroleum transactions. OFAC added the individuals, entities and vessels to its Specially Designated Nationals List (the “SDN List”), which will generally prohibit the fifty-six sanctioned parties from transacting with the United States or any United States person.

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data securityYou are an entrepreneur. You have great ideas. Those ideas are going to change your industry. In most cases, to accomplish those goals, you are going to need help from others. How do you protect your intellectual property and data? You need to focus on protecting those assets in the contracting process.

Most developing companies rely on third party service providers. As an entrepreneur, you will likely rely on hosting and cloud solutions. While we advise that you consider business considerations first, you should also consider legal issues relating to data privacy and security issues. You cannot achieve 100% security for your assets, but there are many ways to protect yourself. You should also consider obtaining cyber-liability insurance for your company and you should ask your service providers whether they have it.


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Product Liability Monitor

September 12, 2016
New Developments
FDA Requires Highest Level of Warning on Opioids & Benzodiazepines
By Jenna Marie Stupar

On August 31, 2016 the Food and Drug Administration (FDA) issued a new directive to include the “black box” label on approximately 400 opioid and benzodiazepine products. Opioids are powerful pain reducing medications including prescription oxycodone,

Labor OfficeOn June 14, 2016, the Office of Federal Contract Compliance Programs (OFCCP) published its final rule substantially revising the sex discrimination guidelines for federal contractors and subcontractors. The new rule brings the sex discrimination guidelines implemented in 1970 “from the ‘Mad Men’ era to the modern era.”

The final rule applies to any business or organization that (1) holds a single federal contract, subcontract or federally assisted construction contract in excess of $10,000; (2) has federal contracts or subcontracts that, combined, total in excess of $10,000 in any 12-month period; or (3) holds government bills of lading, serves as a depository of federal funds, or is an issuing and paying agency for U.S. savings bonds and notes in any amount.


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Toxic Tort Monitor

April 1, 2016
New Developments
Second Circuit Upholds Dismissal of Asbestos Defendant for Lack of Personal Jurisdiction
By David Dean

In February 2016, the United States Court of Appeals for the Second Circuit upheld dismissal of an out-of-state corporate defendant for lack of personal jurisdiction in an asbestos case, Brown v. Lockheed Martin Corp., No.

safe moneyThe following is Part VI of a six-part series of blog postings regarding whether a captive insurance subsidiary or one owned by the owners or affiliates of a company may represent an effective risk management tool that also provides economic benefits. Although there are various types of captive insurance, this posting will focus primarily on single parent/pure captives and how they might provide economic benefits for you or your food and agribusiness company. Part I, Part II, Part III, Part IV and Part V of the blog series are here.

This posting provides an overview of certain other considerations to forming a single parent or pure captive.    

PART VI – COSTS, EXPENSES AND OTHER CONSIDERATIONS IN FORMING A CAPTIVE

As any experienced business owner, executive or manager understands, risks, costs and expenses are associated with almost every business opportunity. The opportunities and benefits that may be realized through a single parent captive subsidiary are no different; they, too, are subject to costs and expenses.


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The following is Part V of a six-part series of blog postings regarding whether a captive insurance subsidiary or one owned by the owners or affiliates of a safe moneycompany may represent an effective risk management tool that also provides economic benefits. Although there are various types of captive insurance, this posting and the one to follow will focus primarily on single parent/pure captives and how they might provide economic benefits for you or your food and agribusiness company. Part I, Part II, Part III and Part IV of the blog series are here.

This posting provides an overview of the benefits to a company and its shareholders or members of forming a single parent or pure captive.    

PART V – CERTAIN BENEFITS OF FORMING A SINGLE PARENT OR PURE CAPTIVE

After identifying the most salient risks facing a company (which should be a part of any company’s risk management function) management considering captive insurance should evaluate the following:


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safe moneyThe following is Part IV of a six-part series of blog postings regarding whether a captive insurance subsidiary or one owned by the owners or affiliates of a company may represent an effective risk management tool that also provides economic benefits. Although there are various types of captive insurance, this posting and the two to follow will focus primarily on single parent/pure captives and how they might provide economic benefits for you or your food and agribusiness company. Part I,  Part II and Part III of the blog series are here.

This posting discusses the types of insurance coverage that may be effectively provided by a captive insurance subsidiary.    


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