GlobalTort

GlobalTort

The Intersection Among Torts, Science, Corporate Law, Insurance & Bankruptcy

Category Archives: Reputation Risk

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Walmart Wants 8 Chemicals Out of Products it Sells: Management of D&O Risk, Reputation Risk and Liability Risk?

Posted in Cancer, Litigation Industry, Reputation Risk, Science, TSCA
Walmart wants 8 chemicals out of products it sells, according to a July 20, 2016 article in Bloomberg.  Is this management of D&O risk because of Caremark duties to put in place systems to identify and manage corporate risks? Is it TSCA fall out? Is it abstract concern for customers? Is it risk management as… Continue Reading

Concussions, Science, Sports and the Movies

Posted in Litigation Industry, Mass Tort Issues, Policy Issues, Reputation Risk, Science
For organizations indirectly or directly involved with health, the current world can present massive opportunities and risks due to media that can reach around the globe to millions, in a relative instant. A new example? Concussions, research and emerging science, the subject of a new Will Smith movie in theaters at Christmas, as described here… Continue Reading

Transparency, GM and the Intersections of Criminal Law and Product Liability

Posted in Litigation Industry, Mass Tort Issues, Policy Issues, Reputation Risk, Science, Transparency
Product liability and criminal penalties may soon come together for General Motors due to the ignition switch issues, according to a May 25, 2015  Wall Street Journal article. Risks continue to increase for companies that choose not to share information with regulators and others. Transparency may become a tool for defense.… Continue Reading

Chevron Litigation Risk Cited As Reason for Failure of Possible Law Firm Merger

Posted in Reputation Risk
The ABA Journal reports that Patton Boggs and Locke Lord called off merger talks, in part because of risks and perceptions arising from its participation in part of the Chevron pollution litigation. A LAW360 story goes a bit further, and says Locke Lord clients commented unfavorably, with some being in similar industries to Chevron. … Continue Reading

Google and Chrome – Errors Galore

Posted in Reputation Risk
Google obviously does not bother with serious quality control when it tosses out browsers and other software. However, the errors in Chrome are reaching new lows, as illustrated by the repeated error message that is copied and pasted below:  "Oops! Google Chrome could not find www.prohostbiotech.com Did you mean: www.­prohostbiotech.­com"… Continue Reading

AMEX – A New Nominee for the Laziest and/or Stupidest Company in the US – American Express Refuses to Process Charitable Donations on Giving Tuesday

Posted in Reputation Risk
AMEX has done the impossible – it has eclipsed CapitalOne as the laziest and/or stupidest financial services company in the US. How you might ask? The short answer is: refusing to process as "suspicious" a $ 250 donation to The National Health Law Program.  As described on its web site, "NHeLP protects and advances the health… Continue Reading

Corporate Reputation Risk – the Increasing Risk of Publicity Regarding Mistakes and Short-Term Thinking

Posted in Reputation Risk
Howard Sklar is a former prosecutor and now a compliance specialist, and put out a brief but interesting new article on the reasons behind the increasing corporate risks of getting caught, or at least publicized.   I share his conclusion that the risks are increasing.  He frames the topic as follows:  "So the question “will… Continue Reading

Reputation Risk and the Finance Industry: Will the LIBOR Fraud Turn into “The Tobacco Moment” for Global Finance ?

Posted in Reputation Risk
Especially in these times of economic uncertainty,  the global finance industry does not needs the LIBOR fraud debacle. But it’s very real, very in the news, and very hard on industry credibility, as illustrated in various ways here and here. As a result, even the Economist is talking about the LIBOR debacle in extreme terms, saying:… Continue Reading

Eternit Brazil Issues An Interesting Response to News of the Eternit Convictions

Posted in Reputation Risk
Reputation risk arises in many ways, including sharing trade names and trademarks.  An example arises from the widespread news of the Italian criminal convictions of senior officials of Eternit entities. Feeling pressured by that news, Eternit Brazil issued the following press release. RESS RELEASE Feb. 17, 2012, 1:31 p.m. EST Clarifications From the Brazilian Eternit… Continue Reading

Reputation Risk – Story of Hospital Over-Charging Its Employees for Insurance for Health Care

Posted in Reputation Risk
Here’s a story of short-term gain creating a lousy reputation. A Winston-Salem hospital (N.C. Baptist Hospital) is about to start paying off in a class action because it over-charged its employees for health-care insurance premiums. How? The health care was provided by a plan owned by Baptist and another hospital. The hospital charged its employees… Continue Reading

UBS Rogue Trading Scandal Results in CEO Resigning

Posted in Reputation Risk
Reputation and financial risk are once again headline news as the CEO of UBS has now resigned because of the latest "rogue trader" scandal.   The label "rogue trader" is interesting and great corporate spinning. But, how many times can traders be called "rogues" when there are compliance departments, and traders are placing trades for… Continue Reading

Eternit Asbestos Defendants Set for Criminal Trial in Italy in December 2009

Posted in Criminal Law and Torts, Eternit, Reputation Risk
News articles here (best one), here and here are out with news from Italy that the criminal and civil trial for the Eternit asbestos defendants is to start December 10, 2009. The date was set after the trial court denied objections by the defendants, including objections to the location of the trial. The trial will… Continue Reading

Update: The Difficulties of Managing Contingent Liabilities – Now James Hardie Is Hit with the Burden of $ 14 Million Verdict for Antitrust Violations

Posted in Asbestos Trusts, James Hardie, Reputation Risk, Securities and Asbestos
The Australian version of the WSJ has an interesting article by a McKinnsey consultant writing about corporate reputation risk, with the article somewhat tied back to James Hardie. An interesting read. _________________________________________________________ Contingent liabilities are not easy to manage, as exmplified by this month’s events for James Hardie. To begin with, its business is down… Continue Reading