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FCBJ TODAY Solar flare: New Jersey still eclipsing Conn. in PV … 2 If you are starting a company, you’ve got company … 3 Op-ed: But wait, there’s more … 4 Executive compensation: optional paydays … 5
“Plug and play” nukes – in your backyard? … 7 In the field: $90m for Fairfield County investors … 8 The List: Fairfield fairways … 10 Special report: The Travelers eyes the green a third year in Stamford … 11. Also … “We plan to have a robust program for corporations where they will be able to give their employees access to all sorts of facilities and programs.” 12
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Vol 48, No. 14 • April 2, 2012
For the public benefit – with benefits
In Pursuit of Moody’s and UBS BY CAROL E. CURTIS
ccurtis@westfairinc.com
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BY ALEXANDER SOULE
casoule@westfairinc.com
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ay Moore had a big problem in 2009, a “turn-away-orders kind of problem” in her words, as she sought to build up a socially responsible business. Now Connecticut faces a big question on whether to make it easier for Moore and entrepreneurs like her to stitch together viable, low-profit companies here. Under multiple bills before the Connecticut General Assembly, businesses could organize as social enterprise or public benefit companies, making it easier for them to raise capital while freeing them from some of the onerous regulations governing nonprofits. Such businesses would have to demonstrate they are achieving a broader social benefit in fields such as social or health services, education, arts, or other endeavors dominated by nonprofits. New York enacted a similar law late last year. Secretary of State Denise Merrill said she did not anticipate a large number of filings in any first year the bill became effective, but a significant number of supporters testified they would take advantage, including Day Moore, owner of Milford-based GG2G L.L.C. which as Green Goods 2 Give sells handbags and other accessories made out of salvaged restaurant seating and billboard materials. Moore and co-founder Phyllis Fryzel won a social enterprise innovation award last October from ReSET Social Enterprise Trust, a Farmington organization that has been leading efforts in Connecticut to introduce the concept. ReSET has scheduled a “structure lab” for April 17 in Hartford to explore how hybrid corporate structures can help or hinder a business; and another conference for May 2 at Quinnipiac University in Hamden. Moore said GG2G is prepared to open a “cut
Day Moore, left, hopes to see Connecticut stitch together a form of organization for low-profit companies.
n attorney predicted “shock” from the details of a local hedge fund’s lawsuit against Swiss banking giant UBS and credit rating firm Moody’s Investors Service Inc., now scheduled for trial next January. If Pursuit Partners L.L.C. is successful in Connecticut Superior Court, the case could open the door to similar lawsuits from hedge funds or other parties who bought securities from investment banks leading up to the 2008 financial crisis. Pursuit accuses UBS and Moody’s of fraud, alleging the defendants colluded in downgrading derivatives before selling them to Pursuit on the eve of the 2008 meltdown. Pursuit’s $35.6 million investment was wiped out when the notes became worthless.
‘n sew” facility in Bridgeport, but needs a public benefit corporation law on the books to give the company its best chance at success. “We feel our next step is to grow our business into a for-profit social enterprise,” Moore stated. “We are having trouble finding funding for this as it is not recognized as a business entity and our needs tend to fall through the cracks for traditional funding.” Moore said she hopes to open a production shop in Bridgeport, if she can get the finances to work. “I refused to go to Asia as that would not be in keeping with our low-carbon footprint, ecominded mission,” she said. “So this became a big problem.”
In March, Judge Barbara Brazzel-Massaro ruled that Pursuit properly stated claims against Moody’s and that the credit-rating giant is not entitled to have the case dismissed on constitutional or preemption grounds. Brazzel-Massaro rejected also Moody’s argument that it is entitled to First Amendment protection in the case.
Benefits, page 6
Pursuit, page 6
“It will be very dramatic”
Chris vs. Linda?
Murphy already running against McMahon BY CAROL E. CURTIS
ccurtis@westfairinc.com
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emocratic Senate Candidate Chris Murphy said that he is assuming his Republican opponent will be Linda McMahon and not Chris Shays, her rival for the Republican nomination. He also said he expects the Connecticut economy to be the dominant issue. A recent Quinnipiac University poll showed McMahon leading Shays by 9 per-
cent. Shays, a veteran former Congressman, is not well known outside his home district of Fairfield County, said Murphy. “The rest of the state is McMahon country,” Murphy said. “The [Republican] party changed. It is Linda McMahon’s kind of party.” Murphy, the Fifth District congressman, is seeking the Democratic nomination for the seat of Sen. Joseph Lieberman. His primary opponents are Susan Bysiewicz, Connecticut’s Murphy, page 6