Insights – June 2024

Skadden Publication

Explore the unique considerations for mergers and acquisitions in the AI sector, the return of IPOs, the implications of new Supreme Court decisions and other developments in this edition of Skadden’s quarterly Insights.

M&A in the AI Era: Key Deal Terms To Watch
M&A in the AI sector has shown the need for tailored deal terms. While standard representations in transaction agreements may suffice in some cases, acquirers are increasingly seeking AI-specific protections to address unique risks.

Challenging Exit and Debt Conditions Prompt Financial Sponsors To Adopt Workarounds
With high interest rates and a weak exit market, financial sponsors have turned to alternative means to fund new investments and return liquidity to their limited partners.

US Capital Markets Midyear Report: The Revival of IPOs and a Possible Turning Point
IPO, debt and private capital markets are all stronger than they were in 2023. Companies considering raising capital should work internally and with their advisers to prepare in advance so they can seize opportunities as soon as they arise.

Supreme Court Lowers the Bar for Title VII Employment Claims
In a closely watched case, the Supreme Court lowered the standard for the degree of harm a plaintiff must establish in a Title VII action, holding it is only necessary to show “some” harm, not necessarily “material” or “significant” harm. 

Shareholder Proposal No-Action Requests in the 2024 Proxy Season: A Surge in Requests and Better Results for Companies
After two proxy seasons in which the SEC received and granted fewer no-action letters to exclude shareholder proposals, there was a surge in requests this year, and the SEC granted a higher percentage than in 2023.

FAQs About the FTC’s Broad New Ban on Noncompetes
What can companies do to prepare for the FTC’s broad ban on noncompetes while challenges to the new rule play out in court? Rulings are expected in July 2024 in two of those cases, well before the rule takes effect in September.

The EU AI Act: What Businesses Need To Know
With the EU’s AI Act coming into effect starting this year, businesses that use AI in some way should consider assessing the risk level of their use and satisfying risk management, oversight and other obligations established under the law.

The FTC Challenges Companies’ Allegedly Improper Orange Book Patent Listings
The FTC is stepping up its initiative to challenge what it views as improper patent listings in FDA’s Orange Book, applying pressure on branded pharmaceutical companies.

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