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California
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June 12, 2024
Money Fight Between Trustee, Law Firm Goes To Mediation
A money conflict between a Chapter 11 bankruptcy trustee and an outside law firm is going to mediation, the parties announced in a court filing this week. It's the latest move in the saga of Litigation Practice Group, the failed California debt relief law firm that was secretly run by a disbarred lawyer.
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June 12, 2024
FBI Told OneTaste Witness To Delete Evidence, Ex-Execs Say
Two former executives of sexual wellness company OneTaste Inc. said they uncovered "shocking" evidence that an FBI agent told a former employee of the business and key government witness to delete an old email account, allegedly destroying exculpatory evidence in a forced-labor conspiracy case.
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June 12, 2024
Magistrate Endorses Axing OT Suit But Allowing 2nd Chance
A federal magistrate judge advised tossing an unpaid overtime lawsuit against a California cold storage company that specializes in packing agricultural goods, but said the worker should have an opportunity to flesh out their claims.
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June 12, 2024
Biden Names Prosecutors, Judge For 3 District Courts
President Joe Biden announced nominees Wednesday for district courts in Minnesota, California and Pennsylvania.
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June 11, 2024
Musk Drops Suit Against OpenAI On Eve Of Dismissal Hearing
Elon Musk on Tuesday voluntarily dismissed his suit accusing former business partner and OpenAI CEO Sam Altman of betraying his promises to run the artificial intelligence operation as a nonprofit, a move that comes the day before a hearing was set on OpenAI's dismissal bid.
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June 11, 2024
Amplitude Execs Face Suit Over Post-IPO Share Inflation
Current and former insiders of business software maker Amplitude were hit with a shareholder derivative suit claiming they profited from misrepresentations they made about the likelihood of the company sustaining its revenue growth following its initial public offering.
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June 11, 2024
UC Berkeley Slams 'Ripped-From-Headlines' Antisemitism Suit
The University of California, Berkeley and its law school asked a California federal court to throw out a suit alleging they tolerated antisemitism on campus, arguing that the latest version of the complaint includes "ripped-from-the-headlines" claims stemming from incidents that are still being investigated and addressed.
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June 11, 2024
Ontrak CEO Told Broker To Sell Shares Quickly, Jury Hears
A stockbroker testifying Tuesday in the California federal insider trading trial for Ontrak's founder said the executive didn't accept his advice to delay selling shares of the healthcare company to avoid the appearance of trading on insider information, but instead insisted on selling the shares immediately.
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June 11, 2024
Calif. Judge Won't Let Apple Escape Tech Patent Case
A California federal judge has found Apple can't dodge a patent suit, allowing claims to move forward that the tech giant's "back tap" feature infringes a patent owned by technology company Haptic Inc.
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June 11, 2024
Quinn Emanuel Swapped Sides For X Suit, Data Co. Says
Israeli data collector Bright Data Ltd. asked a California federal judge on Tuesday to disqualify law firm Quinn Emanuel Urquhart & Sullivan LLP from representing social media company X Corp., which is suing Bright Data over its data-scraping practices, accusing the firm, which was once contracted by the data company for advice in a similar matter, of switching sides.
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June 11, 2024
9th Circ. Judge On Theranos Appeal: 'Good Story' For Holmes
Two Ninth Circuit judges on a three-judge panel expressed concerns Tuesday that the district judge presiding over convicted former Theranos CEO Elizabeth Holmes' criminal trial erred by allowing a layperson witness to offer expert testimony at trial, with one judge saying, "There's a pretty good story here for Ms. Holmes."
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June 11, 2024
HashiCorp Hit With Investor Suit Over $6.4B Sale To IBM
Software company HashiCorp Inc. and its board members face an investor suit seeking to halt an upcoming shareholder vote on a proposed $6.4 billion acquisition of HashiCorp by tech giant IBM, alleging the deal would unfairly benefit company insiders and hasn't been properly detailed in required filings.
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June 11, 2024
Southwest Ditches 2022 Holiday Mayhem Suit, For Now
A California federal judge on Tuesday dismissed a group of Southwest Airlines customers' proposed breach of contract class action stemming from massive flight cancellations during the airline's December 2022 holiday-week meltdown but gave the plaintiffs another shot to bolster their claims.
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June 11, 2024
4 More States Join DOJ's Antitrust Suit Against Apple
The attorneys general of Washington, Massachusetts, Nevada and Indiana on Tuesday became the latest to join the U.S. Department of Justice's antitrust lawsuit in New Jersey federal court claiming Apple is monopolizing the smartphone market.
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June 11, 2024
Co. Wants Instant Effect For Revival Of USPS Contract Dispute
A canine screening company has urged the Federal Circuit to immediately issue a formal mandate after it revived the company's eligibility for disputed U.S. Postal Service mail screening contracts, seeking to block the USPS from transferring work away from the company.
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June 11, 2024
Roblox Based Forecast On 'Tenuous' Factors, Investor Says
A Roblox Corp. shareholder accused the online gaming platform in California federal court Monday of misleading investors with projected online sales revenue that came in at least $100 million short, boasting of its technology developments and advertising efforts despite knowing those revenue opportunities were "tenuous at best."
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June 11, 2024
Home Depot Again Notches Win In OT Suit
A California federal court ruled that although a group of workers accusing Home Depot of unpaid overtime set forth enough new evidence to reconsider a win the home improvement chain snagged, the workers didn't sustain their arguments that the company purposely tried to dodge overtime laws.
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June 11, 2024
Wells Fargo Seeks Exit From 'Free Trial' Marketing Scam Suit
Wells Fargo on Tuesday asked a California federal judge to let it escape a lawsuit alleging that the bank's problematic sales practices led it to play a supporting role in two "free trial" marketing scams that pulled in $200 million from consumers, arguing there is no admissible evidence to support the plaintiff's "story."
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June 11, 2024
Sports Anchor Sues Agency Over Handling Of ESPN Feud
Former ESPN anchor Sage Steele sued her representatives at Creative Artists Agency in California court Tuesday, alleging that the agency did not sufficiently advocate for her during a public dispute over comments she made regarding her employer's COVID-19 vaccine mandate.
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June 11, 2024
SEC Probing Autodesk After Accounting Practices Report
Autodesk Inc. said the U.S. Securities and Exchange Commission is investigating the software corporation after it voluntarily contacted the regulatory body to inform it of the company's own internal investigation into its free cash flow and non-generally accepted accounting principles operating margin practices.
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June 11, 2024
Adeia, X Reach Deal In IP Dispute
A California federal judge has agreed to stay a case where X, formerly known as Twitter, filed a declaratory judgment action against Adeia, while the parties work through a settlement.
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June 11, 2024
NBA Pro Sues Luxury Car Reseller Over Deal That Went Foul
Los Angeles Lakers guard Spencer Dinwiddie has sued a Beverly Hills luxury car seller and its reality-star manager in California state court, alleging that the dealership refused to return his $350,000 deposit to him when his agreement to purchase a $1 million Ferrari went sour.
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June 11, 2024
Mattel Wants Out Of Suit Over Forfeited 401(k) Funds
Mattel urged a California federal court to throw out a lawsuit a former employee launched alleging the company should have used former workers' forfeited 401(k) funds to cover plan expenses, saying its decision to use that money to satisfy its own contributions is in line with federal benefits law.
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June 11, 2024
JPML Consolidates AT&T Data Breach Suits In Texas
Thirty lawsuits brought against AT&T over a data breach that left 70 million customers' information on the dark web are being consolidated in the Northern District of Texas, with the Judicial Panel on Multidistrict Litigation ruling that proximity to AT&T headquarters will bring added efficiency to the proceedings.
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June 11, 2024
Stanford Says Instructor's Firing Over Gaza Class Is Legit
Stanford University has asked a judge to dismiss a lawsuit by a Black Muslim lecturer who said he was let go after giving a controversial talk on the Gaza war, saying it didn't dismiss him because of his race, color or religion, but because he ran a bad classroom exercise.
Expert Analysis
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What Rescheduling Could Mean For Cannabis Bankruptcies
Bankruptcy courts have historically been closed for cannabis-related businesses, but recent case law coupled with a possible reclassification of cannabis provides cautious optimism, say attorneys at Duane Morris.
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Opinion
DOJ Press Office Is Not Fulfilling Its Stated Mission
The U.S. Department of Justice Office of Public Affairs’ apparent practice of issuing press releases when someone is indicted or convicted, but not when a defendant prevails, undermines its stated mission to disseminate “current, complete and accurate” information, and has negative real-world ramifications, says Sara Kropf at Kropf Moseley.
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Opinion
Expanded Detention Will Not Solve Immigration Challenges
The recently defeated bipartisan border package included provisions that would increase funding for detention, a costly distraction from reforms like improved adjudication and legal representation that could address legitimate economic and public safety concerns at much lower cost, say Alexandra Dufresne and Kyle Wolf at Cornell University.
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Opinion
Neb. Justices Should Weigh IRC Terms In Dividend Tax Case
Nebraska’s highest court, which will hear oral arguments in Precision CastParts v. Department of Revenue on April 1, should recognize that the Internal Revenue Code provides key clues to defining “dividends received or deemed to be received,” and therefore limits Nebraska’s tax on foreign-sourced corporate income, says Joseph Schmidt at Ryan.
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What New Waste Management Laws Signal For The Future
Several states have enacted extended producer responsibility and recycling labeling laws that will take effect in the next few years and force manufacturers to take responsibility for the end of life of their products, so companies should closely follow compliance timelines and push to innovate in the area, say attorneys at Perkins Coie.
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Series
Spray Painting Makes Me A Better Lawyer
My experiences as an abstract spray paint artist have made me a better litigator, demonstrating — in more ways than one — how fluidity and flexibility are necessary parts of a successful legal practice, says Erick Sandlin at Bracewell.
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Examining The Arbitration Clause Landscape Amid Risks
Amid a new wave of mass arbitrations, recent developments in the courts and from the American Arbitration Association suggest that companies should improve arbitration clause drafting to protect themselves against big-ticket settlements and avoid major potential liability, say attorneys at Benesch.
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How Activision Ruling Favors M&A Formalities Over Practice
The Delaware Chancery Court’s recent nod to a proposed class action, alleging shareholder notice violations in Activision Blizzard’s sale to Microsoft, puts practitioners on notice that customary merger and acquisition market practices do not offer protection from potential liability, say John Stigi and Eugene Choi at Sheppard Mullin.
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Past CCPA Enforcement Sets Path For Compliance Efforts
The California Privacy Protection Agency and the California Attorney General's Office haven't skipped a beat in investigating potential noncompliance with the California Consumer Privacy Act, and six broad issues will continue to dominate the enforcement landscape and inform compliance strategy, say attorneys at Reed Smith.
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Where 9th Circ. Lowe's Ruling Leaves PAGA Jurisprudence
Leah Kennedy and Carolyn Wheeler at Katz Banks discuss the legal landscape and controlling precedent around the Private Attorneys General Act that led to the Ninth Circuit's Johnson v. Lowe's decision last month on individual PAGA wage claims, and explore the open questions that it leaves.
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Meta Data Scraping Case Has Lessons For Platforms, AI Cos.
The California federal court ruling that artificial intelligence company Bright Data's scraping of public data from Meta social media sites does not constitute a breach of contract signals that platforms should review their terms of service and AI companies could face broad implications for their training of algorithms, say attorneys at Arnold & Porter.
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Opinion
Judicial Independence Is Imperative This Election Year
As the next election nears, the judges involved in the upcoming trials against former President Donald Trump increasingly face political pressures and threats of violence — revealing the urgent need to safeguard judicial independence and uphold the rule of law, says Benes Aldana at the National Judicial College.
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Series
Riding My Peloton Bike Makes Me A Better Lawyer
Using the Peloton platform for cycling, running, rowing and more taught me that fostering a mind-body connection will not only benefit you physically and emotionally, but also inspire stamina, focus, discipline and empathy in your legal career, says Christopher Ward at Polsinelli.
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Class Actions At The Circuit Courts: March Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses four notable circuit court decisions on topics from consumer fraud to employment — and provides key takeaways for counsel on issues including coercive communications with putative class members and Article III standing at the class certification stage.
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Compliance Steps After ABA White Collar Crime Conference
Senior law enforcement officials’ statements this month at the American Bar Association's white collar crime conference suggest government enforcement efforts this year will increasingly focus on whistleblower incentives, artificial intelligence and data protection, and companies will need to update their compliance programs accordingly, say attorneys at Baker McKenzie.