Cadwalader Roundtable Addresses Top-of-Mind Litigation and Compliance Issues for U.S.-based Leaders of Chinese Companies

May 03, 2019

Cadwalader recently hosted a roundtable discussion at its New York office on some of the most pressing litigation and compliance considerations facing Chinese technology companies and asset management firms operating in the United States.

Cadwalader partners Pearl Xiang Yuan-Garg, Jason Halper, Joel Mitnick, Steven Lofchie, Mark Chorazak, Chris Hughes and Todd Blanche led the discussion and responded to questions from the participating senior executives that reflect a range of critical and often complex issues. Topics discussed included:

  • Practical ways to protect intellectual property while navigating multiple countries’ regulatory schemes and addressing potential misappropriation following employee departures
  • Litigation in the U.S., with a focus on how to reconcile differences in U.S. and Chinese law regarding disclosure of non-public information in the course of discovery and national security concerns
  • Potential advantages and disadvantages of opting for arbitration in commercial contracts with U.S. counterparties
  • Unique compliance issues relevant to state-affiliated Chinese companies, such as The Foreign Agents Registration Act (FARA) and the Lobbying Disclosure Act
  • Governance issues for directors and officers of U.S. subsidiaries of Chinese firms, including the desirability of D&O liability insurance and best practices for legal compliance

Regarding all these topics, the partners shared their unique perspectives and guidance, as partly informed by their prior work with Chinese clients that helped underscore not only the legal and regulatory differences between the two countries but also the cultural ones.

“This event demonstrated a sense of urgency felt by the U.S.-based representatives of Chinese companies on the need to successfully navigate the U.S. litigation and compliance landscape as they expand their businesses globally,” said Yuan-Garg.

“In particular, as corporate leaders increasingly rely on intellectual property solutions for their growth, they will need forward-looking compliance plans and systems to underpin their strategies,” she added.

Pearl Xiang Yuan-Garg is a finance partner with considerable experience and senior relationships in finance, business and law in both the U.S. and Asia. She represents private equity sponsors, their portfolio companies, and public and private companies in large-cap and middle-market financing transactions, including acquisition and other leveraged financings, asset-based facilities and corporate credit facilities.

Jason Halper, chair of the firm’s Global Litigation group, is a recognized leader in the fields of financial services and securities law and corporate governance/M&A.

Joel Mitnick is a partner in the Antitrust and Global Litigation groups and represents clients in federal and state antitrust investigations, antitrust class actions and merger clearance proceedings.

Steven Lofchie is a partner in the Financial Services group who advises financial institutions on regulatory issues and financial instruments as part of his regulatory and transactional practices.

Mark Chorazak, a partner in the Financial Services group, represents financial institutions on a wide range of bank regulatory, transactional and compliance matters.

Christopher Hughes is head of the firm’s Intellectual Property practice and has experience in complex patent, trade secret, and trademark trials and litigation, as well as licensing, intellectual property counseling and IP due diligence in corporate transactions, bankruptcies, and more.

Todd Blanche is a partner in the White Collar Defense and Investigations group and represents corporations and individuals in criminal and regulatory matters involving all types of white collar investigations, prosecutions and enforcement actions.