Las Vegas Litigation Law Blog

What to know about convertible notes

On behalf of Aldrich Law Firm, Ltd. posted in business formation and planning on Tuesday, July 17, 2018.

Nevada entrepreneurs who are looking to raise money for their companies may want to consider using convertible notes. Essentially, the note is a debt instrument that converts into an equity share of a company as more money is raised. For business owners, it is a simpler way to raise money because there is less of a need to put a strict valuation on the company. It may also be beneficial from a tax perspective.

With a convertible note, the value of the initial investment is determined by the valuation implied by future fundraising rounds. For the investor, it means potentially getting a better price per share in exchange for taking a risk by investing in a company with no set value. However, as a debt instrument, those who hold convertible notes don't have the right to vote on matters like a shareholder would.

Falling AC units in New York: not a myth

On behalf of Aldrich Law Firm, Ltd. posted in premises liability on Thursday, July 12, 2018.

Nevada residents may or may not be familiar with the usual safety concerns that grip New Yorkers, but some of them are myths. A penny thrown from the top of the Empire State Building, for instance, will not gather enough momentum to kill someone below upon impact. Another concern, though, has solid grounding in fact.

Many older apartments have AC units precariously hanging on their windows, and when these fall, they have the potential to kill. The average unit is about 40 pounds and can fatally injure pedestrians at the speed of 25 mph. Even units that are two or three stories up are liable to gain that much speed. On the other hand, while science shows that it's possible, it rarely occurs. Approximately four people were injured or killed by falling ACs in the past decade.

Smartphone distractions and fatal traffic crashes rise in summer

On behalf of Aldrich Law Firm, Ltd. posted in car accidents on Wednesday, July 11, 2018.

Long road trips often take travelers across Nevada during the summer vacation season. Data collected by TrueMotion, a company that analyzes smartphone use, indicates that drivers increase their smartphone usage by about 10 percent during June, July and August. The company studied 20,000 drivers and determined that they were engaged with their mobile devices for about 15 minutes out of every hour during the summer months.

The National Highway Traffic Safety Administration reports that people drive 20 percent more miles in the summer compared to winter. The summer months also produce a 29 percent jump in traffic deaths. Heavier traffic combined with more construction projects and pedestrians raise the potential for accidents.

New study sheds light on healing role of microglia

On behalf of Aldrich Law Firm, Ltd. posted in brain injury on Monday, July 2, 2018.

Microglia are cells found in the central nervous system. They are classified as phagocytic because their role is to consume other cells. Microglia's role in the development and healing of the brain is known to medical experts. In fact, these cells can prune away any inactive neuronal synapses and eat bacteria and other pathogens that infect the brain. Nevada residents who have suffered brain or spine injuries should know that microglia could be crucial to their situations, too.

This is the conclusion of a recent study administered by researchers at the University of Virginia School of Medicine. They studied the effect of optical nerve injuries in mice and found that when the retinal ganglion neurons degenerated and left debris in the brain, the microglia soon engulfed it.

Mobile devices viewed as a major factor in pedestrian deaths

On behalf of Aldrich Law Firm, Ltd. posted in pedestrian accidents on Monday, July 2, 2018.

Nevada motorists may be interested to learn that the increase in pedestrian fatalities is being blamed on distracted driving. The chairperson for Detroit's College for Creative Studies transportation design program believes that social patterns, rather than the design of vehicles themselves, is responsible for the 46 percent uptick in vehicle-related pedestrian fatalities since 2009. During the same period, other forms of vehicle fatalities have only risen by 11 percent.

Many experts believe that the increase in accidents is related to both distractions among drivers and pedestrians. The number of active cell phones in the United States has increased significantly since 2010. According to research by the Foundation for Traffic Safety, touch screens inside vehicles also pose a greater risk. Infotainment systems in more than 30 vehicles were found to have a distraction level of moderate or higher.

Resolving construction disputes

On behalf of Aldrich Law Firm, Ltd. posted in contract disputes on Wednesday, June 27, 2018.

When a dispute arises between a Nevada construction company and its client, figuring out a workable solution can be difficult. Both parties can suffer financially from an ongoing disagreement, especially when a lawsuit is involved. The optimal strategy for this situation is to prevent it from happening in the first place, but having remedies available when a dispute does arise is important.

Preventing a dispute requires careful planning and attention to detail. The most common problems arise from lack of understanding, incomplete claims and delays. While a dispute in itself doesn't necessarily mean there has been a contract violation, it can rise to that level quickly. All parties involved should carefully read and understand the contract, negotiate vague points to make them clearer, document all issues and make sure expectations are realistic.

New discoveries offer hope for brain injury treatment

On behalf of Aldrich Law Firm, Ltd. posted in brain injury on Wednesday, June 27, 2018.

Because brain injuries can have such severe and catastrophic effects on the lives of victims in Nevada and across the country, scientists are constantly investigating new treatment potentials that could offer positive hope to victims and their families. In a study released by University of Pennsylvania researchers, they indicate that molecules that address the clumping of certain proteins could help to create better, more effective treatment for brain injury.

As these proteins clump together, they form structures called amyloid plaques, which are closely associated with cognitive decline and neurological problems. The development of amyloid plaques is one of the consequences that follow brain injuries and diseases. At the same time, scientists found that certain brain molecules, called NAA or N-acetylaspartate, decrease following brain injuries. These molecules have been used in the past as a marker to assess the likelihood of disease. However, these researchers found that the NAA molecules inhibit the development of amyloid plaques by preventing the protein fibers involved from locking together.

GHSA analyzes role of drugs in fatal car crashes

On behalf of Aldrich Law Firm, Ltd. posted in car accidents on Thursday, June 21, 2018.

Between 2006 and 2016, the percentage of fatally injured drivers who tested positive for drugs went up from 28 to 44 percent. This is according to a report from the Governors Highway Safety Association. Its other findings should interest drivers in Nevada, considering how the state has legalized the use of recreational marijuana.

It turns out that marijuana was found in 38 percent of those who tested positive for drugs. Sixteen percent had consumed opioids, while 4 percent had a combination of both drugs in their systems. Fifty-one percent were discovered with two or more drugs, while 49 percent had combined drug use with alcohol consumption. For this reason, separating alcohol- and drug-impaired driving is a bad idea.

Nine injured in Daytona Beach roller coaster accident

On behalf of Aldrich Law Firm, Ltd. posted in premises liability on Wednesday, June 20, 2018.

Nevada residents may think twice about amusement parks after hearing about a Daytona Beach, Florida, roller coaster accident. The Daytona Beach Boardwalk features a ride called the Sand Blaster, which has been in use there since 2013. It was made 40 years ago and previously belonged to an amusement park in Delaware.

On the night of June 14, this roller coaster derailed and sent two people plummeting to the ground 34 feet below. They survived but with traumatic injuries. Two other riders were left dangling in midair until fire crews rescued them. There were a total of 10 riders, nine of whom were admitted to a nearby medical center. The severity of the victims' injuries is not known.

Shareholders' agreements among most important corporate documents

On behalf of Aldrich Law Firm, Ltd. posted in business formation and planning on Thursday, June 14, 2018.

Nevada business owners and those who are considering starting a business sometimes have questions about corporate formation documents and their relevance. The most important corporate document in most states is the articles of incorporation. In Nevada, the filing of the articles of incorporation with the Secretary of State is the action that brings the corporate entity into existence. Typically, following the filing of the articles of incorporation, the shareholders or board of directors meet to adopt bylaws, appoint officers and issue stock certificates.

Corporate bylaws set forth the rules and guidelines by which the corporation will operate. They will typically include provisions stating where and when shareholders' meetings will take place, the process for calling a meeting, the quorum and voting requirements and how notice for special shareholders' meetings will be given. Corporate bylaws might include anything required for the operation of the corporation, but they cannot conflict with the articles of incorporation or violate state law.