Hello, readers of Inside Track! Welcome back to your favorite newsletter on all things in-house counsel. Are you feeling the trade war? Do you want it to end? Will that make your life a little easier?

Well, whatever the answer to those questions, this week we try to find out how Trump's trade policies are affecting you and your legal department? We also talk about a major breach that occurred last week. And I would be remiss if I didn't point you to the December issue of Corporate Counsel which features the in-house National Women of Law honorees. If you get the chance, fill out this short survey so I can better figure out what you'd like to read in this newsletter.

As always, I'm Dan Clark and you can reach me through Twitter @DanclarkALM or through my email at [email protected].

|

What's Happening-

Preparing for Uncertainty

Remember the trade war? Well, President Donald Trump and General Secretary of the Communist Party of China Xi Jinping have agreed to a shaky 90-day truce in their trade war. But that seems to be the only thing that anyone is clear on. If you're in-house, here's what you need to know.

╋ New Suppliers? If you're a general counsel, it may be best to find different suppliers while the 90-day trade war armistice is in effect. Hogan Lovells partner Warren Maruyama, the former GC for the U.S. Trade Representative, said he would also try to get all shipments from Chinese suppliers in before the truce period ends.

╋ Don't Expect Too Much. Burl Finkelstein, the GC of Kason Industries Inc.said he thinks that China is promising action, but will not actually do anything. He said that the tariffs President Trump planned to impose could lead to a better market for U.S. goods, but if those tariffs are at all relaxed, companies could lose the market before getting it back.

╋ What are others doing? Doreen Edelman, chair of the global trade and policy practice at Lowenstein Sandler, said that some of her clients are planning to move supplier contracts from China to Mexico in an effort to avoid tariffs.

How has the trade war impacted your business and the issues confronting your legal department? Let me know!

Read more: Truce and Uncertainty Follow G20 Talks: How Can GC's Prepare?


New York Attorney General Barbara Underwood
|

Spooky Stuff

Regulators can be scary, right? Well in the absence of federal regulators wanting to crack down on your businesses, Law.com reporter Sue Reisinger reports that state AGs are picking up the slack. 

These aren't just horror stories told by the campfire. There's plenty of evidence to back up this theory. Case in point: New York AG Barbara Underwood on Tuesday announced a $5 million settlement with Oath Inc. in a COPPA case. It's the largest-ever penalty under the Children's Online Privacy Protection Act—a federal law, it's worth noting, that's usually enforced by the FTC.

Daniel R. Savor (pictured above), counsel with O'Melveny & Myers, told Sue that there are more actions like these to come, especially with an influx of Democratic AGs after the last election. “Each one of the new attorneys general is intent on increasing enforcement over big companies.”

|

Another Day, Another Data Breach

Last week, Marriott Hotels announced that in September it discovered it had been the victim of a data breach which potentially exposed the personal information of up to 500 million customers. The in-house team at Marriott has a lot to do, to say the least.

First on the to-do list is to prepare for the inevitable questions from regulators. New York attorney Joseph Facciponti, a partner at Murphy & McGonigle, said a slew of state, federal and global regulators will be probing what happened and why it took so long to disclose the breach. Facciponti also told me that Marriott's in-house counsel should be on the lookout for any potential signs of insider trading. Remember Equifax, where at least two employees were indicted for insider trading during their major cyber incident?

Finally, the team should review what was (or was not) disclosed during due diligence before the company's 2015 purchase of Starwood Hotels, the apparent origin of the breach. If Starwood's leaders knew about the hack at the time of the sale and kept quiet, Marriott might have grounds to sue.

Why do you read Inside Track? What would you like to see more of?

Representing Bubble Wrap. Or at least the company that makes it. Angel Willis was named on Tuesday to be Sealed Air Corp.'s general counsel. She replaces acting GC Tom Lagaly, who's held the interim role since early 2017. Willis previously held senior legal roles at Ingersoll Rand.

From Lawyer Reviews To Facelifts. The former CLO of AVVO was named as the top lawyer for cosmetic surgery company RealSelf. Josh King left Avvo earlier this year after its acquisition. At RealSelf, King handles the company's legal and government affairs matters.

Transferring Schools. Martha McCampbell is picking up her transcripts from the Indiana University South Bend where she served as director of diversity and inclusion to become the general counsel of St. Mary's College in Notre Dame, Indiana. She takes the role after Janice Cervelli up dropped out of her job without giving a reason.

Moving Up the Ranks. HP Inc.'s longtime chief legal officer Kim Rivera is stepping into the role of president for strategy and business management. Rivera, who joined HP in 2015, is taking over for retiring interim chief operating officer Cathie Lesjak.

Finding A Home On The Board. The soon to be former CLO of Zillow has found a home as the audit chair on the board of directors of Axiom. At Axiom, Kathleen Philips will help guide the company's growth and help to oversee its finances. Philips announced she would be leaving her role as the COO of Zillow earlier this year and would stay on as its CLO until the end of 2018.

Thanks for reading Inside Track. 

See you next week with more in-house news, career tips and updates.