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A new study from researchers at the University of North Carolina, Miami University of Ohio, and the University of Oklahoma finds that a reduction in the overall expected securities litigation costs for companies plays a role in their voluntary environmental, social, and governance (“ESG”) reporting – albeit not in the way that might be expected. While demands for companies to voluntarily release ESG information is up, the reduction in risk on the cost front has not translated to companies issuing more ESG reporting. However, it has had an impact on the way in which companies talk about ESG in their reports, resulting in the overall adoption of a more optimistic tone in companies’ reports. 

Setting the stage in their recently-published paper, “The Effect of Expected Shareholder Litigation on Corporate ESG Reporting: Evidence from a Quasi-Natural Experiment,” Lijun (Gillian) Lei, Sydney Qing Shu, and Wayne Thomas point to growing demand for ESG information from stakeholders and the general lack of strict regulation of ESG reporting. Against this background (and in light of rising litigation over ESG reporting), they state that senior lawyers view ESG-related disputes as the top source of litigation risk facing their organizations.

– Julie Zerbo
Founder & Editor-in-Chief

Here are TFL’s top articles of the week …

1. Chanel Seeks Reseller’s Profits in Latest Round of Trademark Trial. Chanel and What Goes Around Comes Around are in the middle of the second phase of a trademark-centric trial in New York.

2. What is Driving Nike’s Crackdown on Customizations? Nike has targeted multiple companies and notable figures in the relatively recent past, and as it has shown this week, there is no sign of the company slowing the flow of its customizations-centric litigation.

3. Temu’s Parent Company Hit With Spam Call Class Action. Temu and its holding company Whaleco have another case in the growing pile of lawsuits being waged against them thanks to a new class action complaint.

4. Skechers Takes On L.L. Bean in Patent Case as Tech Heats Up Brand Competition. Skechers has accused L.L. Bean of copying one of its patent-protected shoe designs, suing the clothing company in New York federal court after it allegedly began making and selling a shoe that has the same sloping heel design as certain shoes that Skechers makes.

5. Molo and Chanel Trade Jabs in Ongoing Store Decor Patent Battle. The maker of intricate accordion-style in-store displays continues to wage its patent infringement battle against Chanel for allegedly copying its popular designs.

7. In case you missed this … From Travis Kelce’s Shirt to Button Jewelry: Unpacking the Upcycling Craze. Upcycling and other types of product customizations have taken the luxury industry by storm in recent years, as jewelry-makers and apparel companies, alike, look to fashion new wares out of coveted designer garments and accessories.

8. A Running Timeline of Fashion, Luxury Funding and M&A. Our Running Timeline of Fashion, Luxury Funding and M&A is up to date. The newest deal on the list: EssilorLuxottica will acquire Supreme from VF Corporation for $1.5 billion in cash.