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Yahoo
5 hours ago
- Business
- Yahoo
How and why to conduct a DEI audit in construction
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. This feature is a part of 'The Dotted Line' series, which takes an in-depth look at the complex legal landscape of the construction industry. To view the entire series, click here There's a saying when it comes to making hit movies in Hollywood: No one knows anything. While Tinseltown is pretty far afield from construction, attorneys in the building space are now borrowing that underlying sentiment when approaching diversity, equity and inclusion. 'I've got to be honest with you,' said Jason Tremblay, a partner and labor and employment practice vice chair in the Chicago office of law firm Saul Ewing, 'anybody who says they know 100% what they're talking about in this area, they don't. You just don't know what's going to happen or how it's going to evolve.' This is especially true when navigating DEI in 2025, given the stance of President Donald Trump's administration to root out what it refers to as 'illegal DEI' in federal agencies as well as the private sector. Soon after taking office, Trump issued a raft of executive orders directing federal agencies to stop promoting diversity while requiring federal contractors to certify they aren't running illegal DEI programs or engaging in other workforce balancing efforts. Those changes are particularly relevant in construction, an industry that has proactively tried to shed its White-guys-only image. For example, the sector's Construction Inclusion Week is aimed at bringing more workers into its labor force, with an emphasis on diversity. It is set for its fifth running this October. But attorneys say this area is now rife with potential issues for builders. Federal contractors that certify they aren't running illegal DEI programs could face stiff False Claims Act penalties — up to three times a contract's value — if they are in fact doing so, according to Andrew Turnbull, an attorney in the Washington, D.C., office of Morrison Foerster who co-chairs the firm's DEI Strategy + Defense Task Force. 'Every time that you're submitting a payment, there can be damages related there,' Turnbull said. 'They have a big sledgehammer.' And though DEI requirements have been struck from federal contracts, many still exist at the state level. That means a contractor trying to satisfy one client may run afoul of another. 'Some of these things are going to be red flag issues,' said Turnbull. 'You've got a real risk here.' Against that backdrop, attorneys recommend that firms conduct DEI audits. This level-setting process can help companies understand what policies they have in place and where they might conflict with the new rules. They should also apply a business lens to the undertaking. 'The first thing you want to do is take a look at your book of business,' said Trent Cotney, a partner and construction team leader in the Tampa office of law firm Adams & Reese. 'Clearly if you're a larger, national contractor or doing public work, federal work, there's probably additional scrutiny there.' What to look for With the exception of veterans and disabled persons, Trump's illegal DEI orders specifically target affirmative action-type programs. That means efforts where quotas or goals are set using specific, protected-class characteristics for inclusion, such as gender or race. 'It's programs that look for what's known as workforce balancing,' said Cotney. 'It's taking criteria, typically race or sexual preference or any protected classes and looking to hire specifically to check boxes or make sure you've got more of those individuals, regardless of performance-based criteria.' Other types of educational, cultural or historical initiatives, such as celebrating Black History Month, are likely not an issue. Yet additional efforts, including recruiting from historically Black colleges and universities, if done exclusively, could draw the administration's ire. 'The more that it is determined that you are only dedicating your recruitment efforts toward historically Black colleges, the more you'd be increasing your chances under this administration that you are implementing an unlawful, non-merit-based DEI program,' said Tremblay. Instead, he suggested that if, for instance, companies recruit from Howard University, which is historically Black, they should also roll out a program at Georgetown University, which is not. Doing so could provide more of a legal shield. Contract review From a contract standpoint, lawyers recommend reviewing whatever agreements you might already have that include DEI language — especially those based on standard industry form contracts. 'Some primes will flow this down to their subs who just have kind of their form contracts,' said Turnbull. 'They need to review those and make sure these things are all struck out.' When signing on to a state-level contract that may still contain DEI language or even workforce requirements, be sure to know what you're signing. 'We get a lot of questions about, 'I can't do it in the federal context, but at the state level, there's still an obligation,'' said Turnbull. 'There's not a clear answer on that, but technically, if your state contract requires it, that is still good law at this point in time. At the very least, those are things to look at.' For Cotney, contractors should seek to put any conflicting requirements back on the owner or job sponsor requesting they be in place. 'If there's anything questionable, I'd put in a statement that says the owner or whoever is providing me with this contract has determined that it is compliant with all federal rules and regulations,' said Cotney. 'Shift the burden, to the extent possible, upstream.' Deciding a path forward Once you've completed an audit — which, when conducted under the direction of legal counsel, will be protected by attorney-client privilege — companies should determine a path forward from there. 'I have companies I represent who have welcomed this, and have scrapped any mention of any type of affirmative action,' said Tremblay. 'I have others who have dug in their heels and said, 'Absolutely not. We're going to stay the course and keep our programs. If they come at us, we'll deal with it.'' Most clients, though, have taken a more evaluative approach, determining which programs they can continue to implement while reducing the chance of triggering an audit. The reason why is because it's not only the government that is looking at these programs — employees do, too. Attorneys say contractors who discard DEI wholesale not only risk alienating the employees they have — while triggering potential discrimination claims from within — they put themselves at a disadvantage for bringing new talent into their workforce. 'The one message I want to send is don't abandon your diversity policies just because of this focus on illegal DEI,' said Cotney. 'You should still have a good anti-harassment policy and encourage diversity. It brings a significant amount to the table both internally, and in changing your overall viewpoint. Diversity is a great thing.' Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Wall Street Journal
18-07-2025
- Business
- Wall Street Journal
Aleon Metals Engages Restructuring Counsel
Aleon Metals, a metals recycler and processor, has tapped restructuring lawyers from Morrison & Foerster to advise on efforts to revamp its troubled balance sheet, according to people familiar with the matter. The Freeport, Texas-based private company has struggled with operational issues, the people said. Aleon is considering a potential sale to an outside investor as part of its restructuring or handing over control of the company to its creditors, according to one of the people. Aleon and Morrison & Foerster didn't respond to requests for comment. Founded in 1973, Aleon describes itself as a leader in recycling catalyst and lithium-ion batteries, focusing on the recovery of strategic metals for infrastructure and renewable energy. According to its website, Aleon is the world's largest recycler of spent petroleum catalysts.
Yahoo
30-06-2025
- Automotive
- Yahoo
CarUX to buy Pioneer for $1.1bn
Global investment organisation EQT has agreed to the sale of Pioneer Corporation to CarUX, a subsidiary of Taiwan-based Innolux Corporation and smart cockpit solution innovator, for $1.1bn. This move signifies a substantial milestone in Pioneer's evolution, especially following the transformation initiatives since EQT's initial investment in 2019. Completion of the transaction is anticipated in fourth quarter (Q4) of this year, contingent upon customary conditions and approvals. Deutsche Securities acted as the lead financial advisor for the deal. BofA Securities also provided financial advisory services, while Morrison Foerster, White & Case, and Nagashima Ohno & Tsunematsu offered legal counsel to EQT. Pioneer is a Japanese firm established in 1938, with research and development (R&D) and manufacturing capabilities. It offers a wide array of solutions, including navigation and audio systems for both original equipment manufacturers (OEMs) and the consumer aftermarket, as well as software and hardware products tailored for the automotive sector. For the fiscal year ending this March, the Japanese firm has reported double-digit earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins and robust free cash flow. EQT's strategic actions included reinforcing corporate governance, appointing a new leadership team, and implementing cost and capital discipline measures, which collectively led to a boost in profitability and cash flow. Pioneer has reconnected with its foundational expertise in automotive sound by introducing a new amp technology platform and winning substantial projects from both domestic and international clients. The company has also ventured into new growth areas, including Mobility Services, offering software-led navigation with Japan-specific map data, and Mobility AI Connectivity, featuring AI-based dash cams for global markets. Pioneer CEO and president Shiro Yahara said: 'EQT has been instrumental in helping us drive transformation and innovation while preserving our DNA as a global leader in automotive technology. 'We look forward to this next chapter of growth with CarUX, building on the solid foundation that EQT helped us establish.' "CarUX to buy Pioneer for $1.1bn" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
South China Morning Post
30-05-2025
- Business
- South China Morning Post
Chinese biotech's mega drug-licensing deals with multinationals surge on cost savings
A potential multibillion-dollar deal unveiled on Friday by CSPC Pharmaceutical Group is the latest in a growing number of agreements by Chinese biotechnology firms to license development rights for innovative medicines to global pharmaceutical firms, according to lawyers advising the companies. Advertisement Many of these deals use a so-called newco structure, which combines traditional intellectual property licensing with fundraising via a newly established corporate vehicle, said the Shanghai-based partners of San Francisco-based international law firm Morrison Foerster. 'Last year we saw at least seven newco deals,' managing partner Sun Chuan said. 'So far this year we have already identified five deals, and more are under discussion.' The broader trend of Chinese biotech firms licensing their intellectual property – as an alternative to raising funds by selling shares amid depressed valuations – was also continuing, with both the number of deals so far this year and their value exceeding the same period a year earlier, he said. On CSPC, based in Shijiazhuang in northern China's Hebei province, said it was in talks with unnamed parties on licensing development and marketing rights for its drug candidates including a targeted cancer therapy. Advertisement Potential payments to CSPC on each candidate could add up to US$5 billion, the company said. CSPC shares surged as much as 12.3 per cent on Friday.
South China Morning Post
24-03-2025
- Business
- South China Morning Post
AI boom drives record loans for data centres in Southeast Asia
Artificial intelligence (AI) advances are fuelling a funding frenzy for data centres in Asia, spawning a series of record-breaking loans and filling the pipeline with even more potential deals. Advertisement In the span of a week, two major Asian data-centre operators secured their biggest-ever loans, partly earmarked for the expansion of their operations in Malaysia , which is becoming a hub for these facilities. The deals underscore the industry's appeal in attracting a range of investors – from banks to real estate players – as the AI boom drives demand. They also show how much of a data-centre hotspot Asia has become, with demand set to expand by about 32 per cent a year through 2028, according to data by real state services firm Cushman and Wakefield, outpacing the US' expected growth of 18 per cent, though US tariff policy could be a wild card for the industry. A surge in demand of AI services and the US-China tech war are driving a data-centre boom in Southeast Asia. Photo: Shutterstock 'The surge in demand for data-centre capacity has piqued the interest of an ever-growing diverse pool of capital investors and providers across Asia-Pacific,' said Yemi Tepe, a partner at law firm Morrison Foerster, who has worked on tech-related financial transactions. Advertisement
