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By Philip Mattera Table of Contents Introduction I. GETTING STARTED: THE KEY SOURCES OF COMPANY INFORMATION
A.
Sources for basic corporate profiles II. EXPLORING A COMPANY’S ESSENTIAL RELATIONSHIPS
A.
Parent company/subsidiaries III. ANALYZING A COMPANY’S SOCIAL RESPONSIBILITY RECORD
A.
Social responsibility profiles and ratings;
dissident websites *********************************************************************** INTRODUCTION The corporate crime wave that came to light beginning in late 2001 makes it increasingly important for progressive activists to know how to gather information on the way business operates. These days, all of us also need to be watchdogs against the excesses of corporate power. This Guide is designed to help researchers and activists gather essential information on any type of U.S.-based company, whether small or large, privately held or publicly traded. Given space limitations, the Guide does not contain sources that relate to specific industries or geographic areas. Also, aside from a few brief references to Canadian sources, there is no detailed discussion of information sources outside the United States. Actually, there wouldn’t be that much to say, since corporate disclosure in most of the world is much more limited than what we have in this country. Given that most business research these days is done via computer, most of the sources listed are found online. Wherever possible, the recommended resources are free sites on the web, but the Guide also points out where certain valuable information can be found only on pay websites and subscription services such as Lexis-Nexis or Westlaw. Keep in mind that it is easy to run up large bills on some of these services, so you may want to get help from an experienced user. Also keep in mind that not everything is available online. There are times when you still have to go to the library or a government agency. This Guide tells you when that is necessary. The resources listed here are all, in one way or another, part of the public record. If you want to know about business espionage or private investigative techniques, you will have to look elsewhere. The Guide, nonetheless, will introduce you to many lesser known public sources that contain information that may feel as if it is secret. The Guide is divided into three parts. The first covers leading sources of basic information on companies of all kinds. The second part focuses on information sources relating to the key relationships every company must have in order to function. The final part shows you how to gather information about a company’s social responsibility record. Together, these sections will help you find all the basic information needed to support efforts to get companies to do the right thing. Happy hunting!
The biggest challenge in most corporate research projects is not a shortage of information, but rather too much of it. The key to efficient research is figuring out how to sort through the barrage of data and zero in on what is important. An essential part of this is knowing where to begin. This section provides a list of the besting starting points for getting a basic understanding of a company, including its finances, its operations, its executives and its history. A. SOURCES FOR BASIC CORPORATE PROFILES
Hoover’s Online
Hoover’s also sells subscriptions that give users access to additional information, including more extensive narrative profiles, more details on products and subsidiaries, and biographical information about top executives and directors.
The Mergent manuals, which are updated with weekly reports, can be found in most large libraries. For a more detailed description of the volumes, see the Mergent website (click on Products and Services). The information from the manuals is also available online from Mergent via a high-priced subscription. Some Mergent material is available on Dialog and Westlaw.
Canadian companies
Advice for
Investors
Much of the material on corporate websites amounts to little more than company propaganda, but there is also a fair amount of useful information, especially on the sites of larger firms. Here are some of the main items to look for
Every corporation – whether publicly traded, privately held or non-profit – must register at the state level to receive a charter to do business. The agency that handles this process is usually the state Secretary of State’s office, which will also provide public access to at least some of the information that corporations must provide in their filings. There are several ways to obtain this information. The best is to go to the Secretary of State’s office directly, make a request and obtain hard-copy printouts of all the documents available on your target company. Along with the articles of incorporation, the materials should at least contain the exact name and mailing address of the company plus the name of its registered agent (a person or entity that is served papers when the company is sued but may not otherwise be involved in operations). In many states companies must also provide information such as the name (and sometimes home address) of each officer and director and his/her ownership of the company’s stock. These facts are especially valuable when researching small, privately-held companies that may otherwise not be required to disclose much information. If you cannot go to the Secretary of State’s office in person, check if there is a telephone request service. In addition, more and more states are putting their corporate filings on the Internet. For a guide to which states have created free sites for this or other kinds of public records, see the BRB Publications site at or that of Search Systems. If you don’t know what state the company is located in, there are several ways of doing nationwide searches. The website KnowX allows you to search records from most states for free; there is a charge for viewing the details. If you have access to a subscription service such as Lexis-Nexis or Westlaw, you can search nearly all states at once – either by the name of the company or the name of an officer or director (though the entries from some states do not include such names); Delaware can also be searched through a separate service. On Lexis-Nexis or Westlaw you can also search Fictitious Names (DBA) files for the same states. Property Records The real estate holdings of corporations, like those of individuals, are a matter of public record, usually at the county level. You will want to check the records of the Tax Assessor to see what properties are held in the company’s name, how much property tax is supposed to be paid on those properties and whether the payments have been made. You will also want to search at the office of the Recorder of Deeds to get copies of documents such as deeds, mortgages and tax liens. Note that the names of these offices will vary in different places. To do a search beyond a single county, use services such as KnowX, the Assets Library of Lexis-Nexis or the Asset Locator on Westlaw. Note that these services can also search for ownership of boats and aircraft; Lexis-Nexis and Westlaw have some motor vehicle information as well.
Since the federal government instituted an extensive system of securities oversight in the 1930s, publicly traded companies have been required to file a variety of reports with the Securities and Exchange Commission (SEC), which in turn releases most of these filings to the public. The reports, which cover financial and some operational matters, are designed to assist investors, but they also widely consulted by trade unionists and other progressive activists. Gaining access to these reports became much easier in the mid-1990s, when the SEC initiated a system called EDGAR (Electronic Data Gathering Analysis and Retrieval) under which most of the public filings are posted on the Internet. EDGAR documents are available from the SEC website itself or from several commercial sites. For online access to SEC documents that predate the EDGAR system, try the Company Library on Lexis-Nexis or SEC-ONLINE on Westlaw, which have documents going back to around 1987. Older filings can also be found on microfiche at the SEC public reading room in Washington, DC or at larger reference libraries. The Access Disclosure file on Lexis-Nexis and the Company Index on Westlaw have lists of all SEC filings back to the late 1960s. There are dozens of different types of SEC filings. Here are descriptions of the key ones to check when profiling a corporation: 10-K The 10-K is an annual report that companies file with the SEC, but it is quite different from the glossy annual report that firms use for public relations purposes. The 10-K may lack photographs and fancy graphics, but it includes a wealth of information about the company. Along with a full set of financial statements, the document includes:
Note: A company may be privately held in that it does not have shares that trade publicly, yet it still is required to file a 10-K if it sells bonds or other debt securities to the public. 10-Q and 8-K The 10-Q is a quarterly filing that updates the information in the 10-K. The 8-K is a filing made by the company when an extraordinary event has taken place. This would include things such as a change in top management, a takeover bid or merger plan, and the initiation of a major legal action against the company. Proxy Statement (Form DEF 14A) Another disclosure goldmine is the proxy statement (or simply proxy), which the SEC designates as Form DEF 14A. The primary function of the proxy is to notify shareholders when and where the company’s annual meeting will take place. It is called a proxy because the version sent to shareholders includes a card that those who do not plan to attend the meeting can send in to give management the right to vote their shares in the election of directors and any ballot measures. Information about the annual meeting is also useful to trade unionists and other activists who may be trying to influence corporate policy. The annual meeting may be the only opportunity for you to address top management and the board of directors face to face. If you are engaged in an intensive campaign, you may want to formulate a shareholder resolution and try to get it on the ballot for the meeting. This is a complicated process that you should not undertake without consulting groups that specialize in shareholder activism (see below). If you succeed, the text of your resolution would appear in the proxy statement. The value of the proxy statement as an information source goes beyond matters relating to the annual meeting. Here are some of the other gems it contains:
The Interfaith Center on Corporate Responsibility has a high-priced database called EthVest that contains comprehensive information on shareholder resolutions. Prospectus and S-1 Registration Statement These are documents issued in connection with an initial public offering (IPO) of stock or the issuance of new stock by a company that is already public. The disclosure process begins with a preliminary prospectus (known informally as a “red herring”). This contains:
The S-1 Registration Statement contains a detailed account of the company’s history, operations and financial record. It is similar to a 10-K, but it contains more detail. Forms 3 and 4 These filings are the means by which company insiders (officers and directors) report sales or purchases of the firm’s stock.. The SEC requires these reports so that investors are aware of personal transactions that may reflect the insiders’ assessment of the company’s prospects. Form 3 is an initial filing and Form 4 reflects changes in the holding. Canadian companies Canada is one of the only other countries with a corporate disclosure system comparable to that of the United States. It has a program called SEDAR (System for Electronic Data Analysis and Retrieval). The Canadian filings have different names from those in EDGAR (see the website for a guide), but the content is similar.
Dun & Bradstreet (D&B) is one of the leading credit-rating companies; i.e., it collects information on how promptly firms pay their bills and sells this information to other companies that want to determine how risky it is to extend credit to a commercial customer. In the course of assembling this payment data, D&B also collects a great deal of descriptive information on millions of U.S. and foreign companies, including ones that are privately held and ones that are tiny in size. D&B is thus an invaluable source of information on companies that do not file with the SEC. Keep in mind, however, that there is no legal penalty for lying to D&B (as there is with the SEC), so the data in its databases cannot be regarded as authoritative. It is, however, often the only source of descriptive information (beyond what is in state corporate filings) for small, private firms. Many unions and other organizations subscribe to D&B’s services. If you do not have such access, you can purchase individual reports on the Internet (using a credit card) at this site. Among the various reports, the most useful for general corporate research is the Business Background Report. It does not contain payment data, but it usually has the following:
Note: D&B databases with some of this information (not including company history and biographies) can be found on Lexis-Nexis in the Dun & Bradstreet Library. Access to D&B databases is also possible through the Westlaw service. D&B also publishes print volumes such as the Million Dollar Directory that can be found in business libraries.
Newspaper and magazine articles may be secondary sources, but they often contain company information found nowhere else. This is especially so with specialized trade journals and newspapers in cities where a company has its headquarters or a major facility. Searching for news articles used to a cumbersome process of paging through hefty printed indexes and then retrieving the actual texts from bound volumes or microfilm. Thanks to the creation of digital archives, it is now possible to search for articles via your computer. Some publications have set up websites with an archive of back issues. To locate the website of a print publication, try NewsLink, which is arranged by subject and by geography. For a more thorough search, use one of the databases that collect the full text of articles from many publications. The best of these is Nexis, which brings together articles – in some cases going back 20 years – from several thousand newspapers, magazines, trade journals, wire services and press release services. Nexis can be expensive, but it is possible to arrange for reasonably priced flat-rate subscriptions for small organizations. It may also be possible to gain access through a public or academic library. The other leading source of full-text articles is Factiva (formerly Dow Jones Interactive), which is somewhat more affordable than Nexis. It is the only source for the full online archive of the Wall Street Journal. If you are on a tight budget, there are a few websites that allow full-text searching of articles for free, though the material available is far less extensive than on Nexis or Factiva. See, for example, Find Articles or MagPortal. Also keep in mind that many public and academic libraries provide free online access to commercial databases to authorized users.
One of the results of the spread of the internet is that it enables people around the country who share specialized interests – including the fact that they have investments in the same company – to communicate with one another. The web has numerous sites where investors (and sometimes company insiders) can share information (or rumors) with one another, or simply mouth off about the company. These postings cannot be regarded as authoritative, but sometimes they contain valuable leads that you can then research using more reliable sources. Yahoo Finance, for example, has a set of message boards on individuals stocks that you reach by plugging in the stock symbol and then clicking on Message Board. A website called Internal Memos posts company documents that have been leaked by employees. Some of the documents can be viewed for free; full access requires a subscription.
Companies are like people: they need relationships to survive. These include, for example, relationships with those who buy the firm’s products, those who invest in the company and those who lend it money. When you are researching a company, it is essential to understand these relationships. When you are involved in a corporate campaign against a company, chances are that you will end up intervening in these relationships in some way, since this is often the most effective way to get a corporation’s attention and persuade it to abandon socially irresponsible policies. A. PARENT COMPANY/SUBSIDIARIES If you are researching a large company, there is a good chance that it has subsidiaries or is itself a subsidiary of a larger corporation. This is vital information for any campaign. An indication of where a particular company fits into a corporate hierarchy may be obtained from sources such as Hoover’s or Dun & Bradstreet (see above for both); public companies must provide a list of subsidiaries in their 10-K. These lists are included in the Mergent Manuals (see above). Keep in mind that the fact that a company is publicly traded does not mean that it is an ultimate parent company. It is not uncommon for large companies to make a public offering of stock in a subsidiary while retaining a majority of the shares. The most complete data on corporate family trees can be found in a publication called the Directory of Corporate Affiliations, which covers public and larger private companies. It is published in print form by the Lexis-Nexis Group, which also makes the information available on its online service or via subscription or credit card on the web. Dun & Bradstreet publishes a similar work called America’s Corporate Families, which is available online as Who Owns Whom on the Dialog database service.
Outside directors – i.e., those who are not are not members of management – are supposed to serve as watchdogs, protecting the interests of shareholders against transgressions by executives of the company. As the scandals involving Enron, WorldCom and other companies have shown, outside directors often look the other way or are oblivious to accounting and other forms of fraud. Nevertheless, board members are ultimately responsible for the actions and policies of a company, so it is perfectly legitimate to put pressure on them when a company is trying to bust a union or otherwise act in a socially irresponsible manner. As noted above, a publicly traded company’s proxy statement is the best source of information about directors, including their stock ownership, their compensation for serving on the board and their other affiliations. Proxy statements are not always complete when it comes to listing other affiliations (especially when they involve privately held companies or non-profits), so it is worth the effort to check other sources such as the following: The website of Forbes magazine has a feature called People Tracker that allows you to search for an individual’s corporate affiliations (as well as listings on the Forbes lists of rich people). To find references to individuals in SEC filings, use full-text search services such as 10K Wizard. The Dun & Bradstreet Library on Lexis-Nexis has a file called EXAFFL that allows you to search for an individual’s affiliations with public and private companies. Westlaw has a similar database called Executive Affiliation. Who’s Who in America, available in print form in libraries or online via Dialog, Lexis-Nexis or Westlaw, provides biographical information on thousands of prominent individuals. Keep in mind that the information is supplied by the subject, so there may be omissions or embellishments. Standard & Poor’s Register, also available in libraries or on Dialog, Lexis-Nexis and Westlaw, provides affiliation information for executives and directors. The Social Register, available in larger reference libraries, has information on socially prominent persons. One way of tracking down articles on better known directors is to use the Wilson Biographical Index, which can be found in most libraries. If the director you are researching is a well-connected member of the power elite, also try plugging his or her name into a search engine called Namebase that contains an index of references to people in hundreds of books, articles and reports about big business, corporate crime, the intelligence agencies, the federal government, etc.
Most big publicly traded companies are no longer controlled by individuals or families; instead, the largest portion of their stock is held by entities known as institutional shareholders. They include pension funds, university endowments and various categories of investment managers. These institutions wield enormous power in the stock market, so it is standard procedure to engage these investors in corporate campaigns. Sometimes the institutions can be allies, especially Taft-Hartley pension funds (those in which unions play a role in managing) or public employee pension funds (which are often susceptible to political influence). Many of these funds, as well as giants such as TIAA-CREF (the pension fund for many academics and employees of non-profits), may be sympathetic to campaigns that raise some issue of social responsibility. Dealing with institutional investors is a complicated process that you should not undertake without consulting shareholder activism specialists at groups such as the following: Before engaging institutional investors, you need to know which ones have significant holdings in your target company. You can get a free list of the top ten on several websites, including Yahoo Finance (enter the stock symbol, hit enter, then click on Major Holders). If you have access to Lexis-Nexis, you can get a longer list in the Vickers Securities file in the Company library. However, to get the most complete data, you need to subscribe directly to services provided by Vickers or Thomson Financial. These products include a complete list of institutional holders plus an indication of whether the institution has voting authority for all or some of the shares. The Thomson service is more expensive, while Vickers has introduced subscriptions with unlimited usage for a flat monthly fee.
Like outside directors, Wall Street analysts (who are employed by brokerage houses and investment banks) are a category of corporate watchdog that has turned out to be toothless. Corporate scandals of recent years have featured cases in which analysts promoted dubious stocks to pump up initial public offerings handled by their employer—or else to expand their employer’s investment banking business. The reputation of analysts may have been tarnished, but they remain important influences on the way in which companies are regarded by the market. For this reason, corporate campaigners continue to spend time communicating with analysts, making sure they aware of pertinent facts about the target company. It is thus useful to know how to find out which analysts follow a particular company. The standard source for this information is a publication called Nelson’s Directory of Investment Research, which is available in print form in reference libraries and online via Lexis-Nexis. In addition to knowing which analysts cover a company, it is useful to read what they have written about your target company. At one time, brokerage houses used to give away analyst reports for free. Today, if you are not a major customer, you have to purchase access to these documents through an online service. The most extensive of these is Investext, which is available by direct subscription (as part of the Thomson Research or via Lexis-Nexis or Westlaw (whose versions may not be quite as comprehensive). Analyst reports are also available through at the Reuters website , where you can buy individual reports using a credit card.
Borrowing money is one of the ways in which companies obtain the funds needed to build new facilities or buy other companies. Corporations may borrow from a single lender, from a group of lenders that form a syndicate to provide a large loan, or by issuing bonds or other debt securities. Corporate campaigns often focus on the role of major creditors, making an issue, for example, of the fact that a bank is lending money to a union-busting employer. The bank then becomes a secondary target of the campaign. Publicly traded companies, which have to disclose the size of their debt, often (but not always) reveal which banks it is borrowing from. In many cases this is disclosed only by including a copy of the credit agreement in the exhibits to the company’s 10-K filing. Dun & Bradstreet often includes the name of a company’s primary bank in its information products. There are also several specialized newsletters (such as the Bank Loan Report, which is included in Nexis) that track bank lending to large companies. Bondholder information is harder to come by than institutional shareholder data. The Vickers Securities file on Lexis-Nexis (see above) has a limited amount of data on bond holdings by various types of institutions. The one group of institutional investors that have to disclosed detailed bond holdings are insurance companies. This information appears in the Annual Statements that carriers have to file with state insurance departments. UCC Filings Another source of information on creditors, especially for smaller companies, are Uniform Commercial Code filings (UCCs). These are public lien documents that have to be filed when property is used as collateral on a loan. The UCCs indicate the names of the secured party (the lender) and the debtor (the borrower). UCC filings can be used when a company borrows from a bank or when it purchases equipment on credit. UCC documents can usually be obtained from the same state office that is responsible for corporation filings (see above). They are also available on some official state websites or they can be purchased through services such as KnowX. The liens databases on Lexis-Nexis or Westlaw allows you to search the UCC databases of nearly all states at once.
Companies are usually quite resistant to disclosing the names of their largest customers or suppliers. Publicly traded corporations have to reveal this information in their 10-K filing only if the company is heavily dependent on a small number of customers or suppliers, since that is a significant risk factor that investors need to know about. However, smaller companies may list the larger firms they do business with in order to impress investors. For this reason, useful information about your target company’s customer or suppliers may not come from the company’s own SEC filings but rather from those of other public companies it deals with. You would find this out by doing a full-text search of the entire EDGAR database (see above) for references to your target company. One of the best search engines for doing this is the one on the 10K Wizard website. Another approach is to take advantage of the fact that many companies will brag about their dealings with large companies on their websites and will often provide links to their major customers’ sites. Several of the major web search engines allow you to search for links to a particular site, so you can enter your target company’s domain names and see what links turn up. If you want to know which companies supply a particular product, the best source is the Thomas Register, a guide to products manufactured in North America. The multi-volume work can be found in larger reference libraries or in limited form on the web. Government Contracts Among a company’s customers, perhaps the more significant are government agencies, since a corporate campaign can demand that an anti-union or socially irresponsible firm not enjoy the privilege of doing business with the public sector. States are beginning to put contract information online through the websites of procurement agencies. Otherwise, you can contact the relevant agency directly (and may be asked to file a freedom of information request). A subscription website called Onvia provides data on state and local government procurement opportunities. Information on federal contracts has traditionally been available through the Federal Procurement Data System, which is produced under the auspices of the General Services Administration. You can also look for references to federal contract awards in the Commerce Business Daily, which is searchable online. A more comprehensive and accessible online source of contract information was introduced by OMB Watch in October 2006. The site, Fedspending.org, provides details of individual awards as well as annual summaries of the activities of particular contractors, with the results grouped by parent company. It also has data on federal grants and loans to businesses as well as individuals. Brand Names, Trademarks & Advertising Public companies usually mention their leading brands in the portion of the 10-K that describes the firm’s operations. For a comprehensive list of brand names and the companies that own them, consult reference works such as Brands and Their Companies which is published in print form by the Gale Group and is available electronically on the Dialog database service. Information on company trademarks (as well as patents) can be found at the website of the U.S. Patent and Trademark Office. The leading reference works on advertising, known informally as the Red Books, are the Standard Directory of Advertisers and the Standard Directory of Advertising Agencies, both published by National Register Publishing. You can purchase online access to the books. For a list of the leading national advertisers, see Ad Age’s annual compilation (click on Data Center).
For information on
which companies are sponsoring which events, see
Sponsorship.com. Market Shares The Gale Group publishes an annual volume called Market Share Reporter that collects data from trade journals and other sources on the rankings of the top companies in a large number of business sectors. It is available electronically in the Market Library of Lexis-Nexis.
Trade shows are
events at which companies display their wares to
customers and potential customers. They are thus
useful for gathering intelligence about a
company’s marketing plans. Some corporate
campaigners also find them useful opportunities
to put public pressure on a company. To learn
about upcoming trade shows at which your target
company may exhibit, try
TSNN or
ExhibitorNet. The best source of data on international shipment of goods is an expensive service called PIERS (Port Import/Export Reporting Services), which is available online directly from the company or via Lexis-Nexis.
III. ANALYZING A COMPANY’S SOCIAL RESPONSIBILITY RECORD Companies also have relationships with their employees and with the communities in which they do business. The way they conduct these relationships is known as the company’s social responsibility record. All too many companies behave in an irresponsible manner—breaking the law, violating regulations, mistreating workers, despoiling the environment and manipulating public policy through lobbying and campaign contributions. Investigating these issues is an essential part of any thorough corporate research project. A. SOCIAL RESPONSIBILITY PROFILES AND RATINGS; DISSIDENT WEBSITES The social investing movement has grown in size and sophistication over the past two decades. One of the outcomes of this is that several organizations provide useful profiles of the social responsibility record of large companies. Some of these sources tend to be weak on labor relations issues, but they have good information on other employment matters (affirmative action, etc.), environmental issues and so forth. Among these are:
For current news about corporate misdeeds, one of the best (but expensive) sources is the weekly Corporate Crime Reporter. Another source of information on the business practices of companies, including very small ones, is the Better Business Bureau, which has been collecting consumer complaints since 1912. The Bureau has a website that contains a search engine through which you can research the reputation of business establishments (at least as measured by the number of customer complaints) throughout the country. Dissident websites
Another source of
critical (though not always accurate)
information on companies are websites that have
been created by people who have a grievance
against the firm, who disagree with its
policies, or who just don’t like it. See, for
example,
Jiffy
Lube Sucks
Investigating a company’s involvement in litigation is useful for two reasons. First, it says something about a firm’s way of operating if it frequently ends up as a defendant in lawsuits over matters such as race and sex discrimination, defective products and antitrust violations – not to mention outright fraud. Second, in the course of legal proceedings, companies will often be required to divulge information that might otherwise never make it into the public domain. The latter is also true in court proceedings—especially divorces--involving a top executive or owner of your target company. The place to begin, if you are dealing with a public company, is the 10-K filing (see above), which contains a section called Legal Proceedings. Companies are supposed to use this section to describe any legal matters that could have a material impact on the firm’s finances. Some companies choose to interpret this narrowly and say little or nothing about litigation; other firms may provide a long narrative of legal issues. The 10-K is just a starting point, so you need how to do an independent litigation search. There are four main types of court information that you can access: Dockets These are lists of pending and recently closed cases that contain basic information about the nature of the case, the parties involved and a chronology of events (motions, rulings, etc.) in the case. Until a few years ago, the only way to search dockets was to go to the courthouse where the case was filed. Today nearly all federal courts and a growing number of state courts have put their dockets online. The dockets of federal district, appellate and bankruptcy courts can be accessed through a fee-based system called PACER (Public Access to Court Electronic Records), which is run by the Administrative Office of the U.S. Courts. In order to use the system you must open an account and pay a modest fee based on usage. In addition to providing access to individual courts, PACER provides access to the U.S. Party/Case Index, which allows you to search most, but not all federal court dockets at once for cases in which a specific company or individual is a party. Courtlink, a commercial service owned by Lexis-Nexis, provides a more convenient and speedier system for accessing PACER information, though at a substantially higher price. Westlaw also provides access to PACER docket information. The U.S. Tax Court, which hears cases brought by companies and individuals challenging IRS notices of deficiency, puts its docket online. Tax Court cases are important to check, because they may require a company to put its tax return into the public record. State courts have been somewhat slower in putting their dockets online, but they are starting to catch up. For a list of which courts are available electronically, check LLRX.com. Courtlink also provides access to some state court dockets. If you do a large amount of docket checking, you may want to subscribe to a pay website called Legal Dockets Online, which provides a comprehensive set of links to PACER and state court sites. Court filings Once your docket search has turned up an interesting case, the way to find out more about the matter is to look at the actual documents that have been filed by the parties. These would include things such as the original complaint (in a civil matter) or indictment (in a criminal matter), briefs, motions, depositions and transcripts of court proceedings. Generally speaking, these documents are available only in hard-copy form at the clerk’s office of the court in which the case was filed. The federal courts, however, have been developing an extension of PACER that allows subscribers to view images of court filings on their home or office computer. The list of links to court sites on the PACER Service Center site indicates which ones have begun to post document images. Legal Dockets Online (see above) also has this information. Verdicts, Judgments and Liens There are a variety of reporting services around the country that collect information about significant verdicts in civil cases. There are also some that collect nationwide data. For example, the National Law Journal has a pay site called VerdictSearch. A number of services are collected in the Verdicts Library on Lexis-Nexis and on Westlaw. Financial judgments in civil matters become a matter of public record as do liens on property and federal and state tax liens. You can search these records at the county courthouse in the jurisdiction where the action occurred. If you want to do a wider search, use services such as KnowX, the Liens Library on Lexis-Nexis or Westlaw. Written opinions Lawyers and legal researchers review written opinions via expensive services such as Lexis-Nexis or Westlaw. Both allow you to search for cases in which a particular company was a party and to display the full text of the opinions. At the federal level, more and more courts are putting their opinions on the web. See the websites of individual courts; for a list of links, see the Federal Judiciary site or Legal Dockets Online (see above). Legal representation To find out which law firms are used by the 250 largest companies in the United States, see the annual list called Who Defends Corporate America, which is published by the National Law Journal. The list can be found online (click on Legal Surveys). Determining which law firms list a particular company as a client can also be done by searching the electronic version of the Martindale-Hubbell directory on Lexis-Nexis.
The Securities and Exchange Commission The SEC, which regulates publicly traded companies as well as entities and individuals involved in the securities industry, has been much in the news because of controversy over its failure to prevent or even detect the spate of corporate financial scandals in recent years. The SEC does, however, engage in enforcement. The agency’s website contains an archive of Litigati |