Crisis Could Be Big Test of Law Firms’ Diversity Efforts

Here are the day’s top coronavirus stories from the team at Bloomberg Law:

• DIVERSITY LOSSES: Firms are turning to layoffs, pay cuts, and furloughs to weather the economic storm caused by the pandemic, and diversity experts are anxious that minority lawyers and the efforts designed to help them could bear the worst of the financial pain.
• CONSIDERING HEALTH POLICIES: Covid-19 is pushing some of the Trump administration’s top health priorities to the backburner. The pandemic is drawing agency staff and resources away from policies such as curbing drug prices, lowering new HIV infections in the U.S., and basing care payments on patient outcomes rather than procedures.
• SMALL BUSINESS RESCUE: Concerns about the Small Business Administration’s ability to handle a flood of new applications, as well as how long the additional funding for the program will last, and whether struggling mom-and-pop shops will get the aid they need, are the biggest concerns as the program restarted today with an additional $320 billion in funding.

Editor’s Top Picks

More Covid Testing for Minorities Is Key to Opening U.S. Economy
There’s a growing consensus that getting testing to minorities will be an important part of getting America back to work. Many people of color work in essential jobs, putting them at risk of contracting and spreading the virus. In New York City, over 50% of public transit and grocery, convenience, and drug store workers are black or Hispanic.

Distancing at Reopened Offices Will Mean Long Elevator Lines
The line for the elevator will probably look a lot different for many office dwellers when businesses gradually start reopening amid the coronavirus pandemic.

Businesses Wary of Using Virus Tax Perk Absent More IRS Guidance
The tax break can be a huge help to businesses suffering financially but there are so many unanswered questions that some aren’t taking advantage for fear that the IRS might hit them with large penalties or that they’ll face public backlash for wrongly claiming the benefit, according to tax professionals working with these businesses.

Cures 2.0 Aims to Speed Up Virus Response, Curb Future Outbreaks
The HHS would have to develop a national strategy for beefing up the nation’s ability to spot and test for Covid-19 as well as future outbreaks, under a proposal from two lawmakers looking to follow up on their landmark biomedical innovation law.

Remote Work, New Work Shifts, More Layoffs: CFO Expectations
Roughly half of 305 chief financial officers who took part in a PwC LLP survey said that working from home will continue to be an option for staff after Covid-19 restrictions give way to a new-normal state.

Sports Park Cites Trump Comments to Bolster Insurance Suit
A Pennsylvania youth sports center is hoping to leverage President Trump’s recent remarks on business interruption insurance to force its provider to cover pandemic-related losses.

U.S. Loans Didn’t Flow to Businesses Most at Risk, Study Shows
Loans to small businesses through a federal program haven’t flowed to areas hardest hit by the pandemic, according to a new analysis by economists.

Why a Second Wave of Covid-19 Is Already a Worry: QuickTake
As authorities the world over consider when to lift economy-crippling movement restrictions aimed at curbing infections, the fear on everyone’s minds can be expressed in two words: second wave.

INSIGHT: Invoking Material Adverse Effect Clauses During an Economic Downturn
The economics of some pending business deals are likely to deteriorate significantly in the coming weeks and months, and Vinson & Elkins attorneys predict that acquirers will increasingly consider invoking material adverse effect provisions in an attempt to renegotiate or terminate signed deals.

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Editor’s Note: The Bloomberg Law news team has been closely covering the legal, regulatory, business, and tax implications of the coronavirus pandemic. This daily email highlights the top stories of the day, across practice areas. To unsubscribe, please adjust your Bloomberg Law newsletter settings. For assistance, contact our help desk at 888-560-2529 or help@bloomberglaw.com.