THIS ISSUE'S HEADLINES

Cyber Security in a Covid-19 World

Register Today: Hot Topics in Labor and Employment Law Webinar

What You Need to Know About Raising Capital for Startups


Stay Informed – PLDO COVID-19 Resource Library



CYBER SECURITY IN A COVID-19 WORLD

A recently published article by the Harvard Law School Forum provides valuable insight to the multiple challenges being faced due to the pandemic. Although businesses have readily discussed the actions to be taken in the event of a pandemic, the scope of challenges faced resulting from the COVID-19 attack is unprecedented. As governing boards have discussed and analyzed the appropriate response to cyber issues, they are ongoing and creating stress from an operational and governance perspective.

The most significant change that has occurred during the past nine months is the new normal of remote working that has created a cultural upheaval to the workplace, in addition to placing a strain on the networks that support the activity. Many companies had a small percentage of their staff and managers working remotely; however, the surge in positive cases has significantly increased this percentage to maintain a safe environment.

Businesses have struggled to move the employees from an in-office environment to a virtual world. The potential for security breaches has dramatically increased due to employees working from home on shared computers vs. using a dedicated computer or laptop for business only that has the appropriate firewalls and other network protection that prevents cyberattacks.

According to a survey conducted by Deloitte & Touche LLP, the amount of cyber attacks during the pandemic have increased significantly and the types of attacks include phishing, online scams and disruptive malware, including ransomware and malicious domains. Budget cuts severely limit closely-held businesses from investing in the resources that are necessary to protect against these attacks.

In order for the challenges presented to companies and their boards to be addressed, it will be necessary for extreme vigilance to be the theme at meetings, and for boards to establish oversight committees with the expertise to develop mitigation plans that have built-in flexibility and efficiency to allow for rapid response should a breach occur. If you would like to learn more about data protection, cyber security strategies or other business matters, please contact Attorney Pannone at 401-824-5100 or email gpannone@pldolaw.com.

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REGISTER TODAY: HOT TOPICS IN LABOR AND EMPLOYMENT LAW WEBINAR
How the Election Results Will Impact Your Community


Employers have faced unprecedented challenges in 2020 due to the pandemic and other factors. The need to stay informed to avoid potential legal risks in this rapidly changing environment is more important than ever before. To help you make informed decisions, please register to attend a December 16, 2020 webinar from 9 a.m. to 11 a.m. on Hot Topics in Labor and Employment Law: How the Election Results Will Impact Your Community, with PLDO Partner Matthew C. Reeber, employment lawyer and litigator, and Brian Zartarian, Account Executive with Starkweather & Shepley Insurance Brokerage Inc.

Attorney Reeber and Mr. Zartarian will take a look back at the year’s most pressing employment issues and share their insights regarding the impact of federal and state election results, as well as provide practical guidance and resulting trends to watch for in the new year.

Mark your calendar and register now for this important informational webinar, co-sponsored by Rhode Island Assisted Living Association (RIALA) and LeadingAge RI. If you have questions about employment matters and would like more information, please contact Attorney Reeber at 401-824-5105 or mreeber@pldolaw.com.

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WHAT YOU NEED TO KNOW ABOUT RAISING CAPITAL FOR STARTUPS

As we all know, banks are not inclined to lend to startup companies, which is why you need investors. When seeking outside capital for startups or existing companies, it is important to be aware of a range of securities laws in terms of what they require or prohibit in this type of exercise. The backdrop of raising capital begins after you have successfully incorporated the startup company. As a general proposition, the legal issues involved when raising capital from outside investors arise from laws that regulate the offer and sale of securities. Such laws exist at both the federal and state level, which are designed to protect the investor from overselling an opportunity or fraud. The securities laws on the books require the registration and qualification of securities prior to an investor purchasing the security, which is a cumbersome and expensive process.

Fortunately, there exists a variety of exemptions to the qualification process on both the federal and state level that simplify how a startup may raise capital without having to register the security, making this process more efficient and far less costly. The two most prominent exemptions are found in Rule 504 and 506 of the securities laws and are referred to as “Reg D” exemptions in that they are part of Regulation D of the Securities Act enacted in 1933. There is a third type of exemption found in Rule 701 that relates to granting of stock to employees and consultants.

To help business owners gain an understanding of the provisions and details about Reg D exemptions, PLDO Managing Principal Gary R. Pannone provides a thorough review in his advisory, Raising Capital for Startups. Readers will learn about registration requirements, the importance of providing accurate information, funding level and criteria for non-accredited investors, and other information vital to making an informed decision for your organization. If you would like to learn more or have questions about other business matters, please contact Attorney Pannone at 401-824-5100 or email gpannone@pldolaw.com.

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STAY INFORMED – PLDO COVID-19 RESOURCE LIBRARY

As the COVID-19 pandemic evolves, information is key to addressing challenges that impact decision-making for our families, businesses and community. PLDO’s team of attorneys continue to provide updates and advisories that our accessible in our online Resource Library. Among the featured articles include the following:

If you have questions and concerns about impacts to your organization, please contact your PLDO attorney directly in our Rhode Island, Massachusetts or Florida offices or call our toll free number at 866-353-3310 to discuss your legal matter. We are here to help.

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Thank you for reading our newsletter. For further information about the firm and the Corporate & Business and Health Care Teams, please visit our website at www.pldolaw.com or contact PLDO Managing Principal Gary R. Pannone at gpannone@pldolaw.com or 401-824-5100. We welcome your inquiry and appreciate your feedback. If you feel you have received this email in error, or would no longer like to receive this newsletter, please click here to unsubscribe. Thank you.

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