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Compliance
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February 13, 2025
Mass. Auto Telematics Data Law Not Preempted, Judge Says
A Boston federal judge's dismissal of an auto industry group's challenge to a Massachusetts vehicle telematics data law centered on a limited interpretation of the statute's reach and the lack of a clear conflict with federal laws, according to an order unsealed Thursday explaining the decision.
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February 13, 2025
EPA Boss Says Biden Admin Wrongly Ceded Control Of $20B
The U.S. Environmental Protection Agency's new leader said Thursday that $20 billion Congress appropriated for an EPA grant program had been inappropriately transferred outside the agency and is lacking adequate supervision — a claim disputed by a Biden-era official.
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February 13, 2025
EPA Asks 5th Circ. To Pause State Ozone Plan Decision
The U.S. Environmental Protection Agency asked the Fifth Circuit to hold off on deciding whether it was allowed to deny three states' plans to comply with federal ozone standards to give the Trump administration time to evaluate the rule at the center of the litigation.
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February 13, 2025
Compliance Group Of The Year: Sidley
Sidley Austin LLP's regulatory and enforcement lawyers helped various financial services firms settle out of the U.S. Securities and Exchange Commission's off-channel communications enforcement sweep with relatively minimal fines, earning them a place as one of the 2024 Law360 Compliance Groups of the Year.
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February 13, 2025
Musk Says He'll Drop OpenAI Bid If It Scraps 'For Profit' Plans
Elon Musk has hit back at OpenAI's claim that his $97.375 billion takeover bid is improper, noting if the ChatGPT maker agrees to nix plans to become a for-profit business, his offer will be dropped.
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February 13, 2025
SDNY US Atty Resigns, Alleging Trump-Adams 'Quid Pro Quo'
Danielle R. Sassoon, the interim U.S. attorney for the Southern District of New York, resigned Thursday after she refused an order by U.S. Department of Justice officials to drop the federal corruption charges against New York City Mayor Eric Adams and expressed concern the move was part of an improper quid pro quo with President Donald Trump.
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February 13, 2025
GOP Rep. Moves To Nix SEC's Enhanced Fund Disclosures
A Republican congressman has introduced a resolution that would repeal a recently adopted U.S. Securities and Exchange Commission regulation requiring more detailed and frequent disclosures from mutual funds.
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February 13, 2025
Tribe Can't Revisit $16M Ovintiv Settlement, Feds, Utah Say
The U.S. government and Utah urged a federal judge to reject a tribe's bid to challenge a $16 million Clean Air Act consent decree with Ovintiv USA Inc., arguing that its comments on the settlement were already considered and rejected.
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February 13, 2025
Amtrak Worker Admits Role In $11M Healthcare Fraud
An Amtrak employee has pled guilty in Newark federal court in New Jersey to conspiracy to commit healthcare fraud as part of a scheme that cost Amtrak $11 million, acting U.S. Attorney Vikas Khanna announced.
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February 12, 2025
Baltimore Sues To Stop 'Unilateral Defunding' Of CFPB
The city of Baltimore sued Wednesday to block the Trump administration from defunding the Consumer Financial Protection Bureau, alleging the agency is in danger of being bled dry and left unable to protect city residents from financial abuse.
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February 12, 2025
House Republicans Launch Effort To Craft Data Privacy Law
The Republican leaders of an influential House committee on Wednesday established a working group to draft privacy legislation that would be able to overcome hurdles that have long stymied efforts to set a national standard for how companies collect, use and share consumers' personal information.
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February 12, 2025
Wells Fargo Cheated Seminole Trust Out Of $800M, Jury Hears
Wells Fargo and its predecessor Wachovia cheated minors of the Seminole Tribe of Florida out of $818 million by secretly hiking fees and mismanaging investments in a multibillion-dollar gambling trust, a Florida jury heard Wednesday in opening statements for a multiweek trial in litigation involving more than 2,000 minors.
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February 12, 2025
Social Media MDL Judge Rips Google, Snap Quick Appeal Bid
A California federal judge indicated Wednesday she likely won't let Google and Snap file interlocutory appeals in multidistrict litigation over social media's allegedly addictive designs, saying the appeals requests make "no sense," and she slammed Meta insurers' unnecessary motion to expedite its coverage dispute with Meta as "unprofessional."
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February 12, 2025
Trump Picks Encore Fiduciary Founder As DOL Benefits Chief
The Trump administration on Wednesday nominated Encore Fiduciary's principal and professional fiduciary liability expert Daniel Aronowitz to steer the US Department of Labor's employee benefits division, which produces and enforces federal regulations that apply to employer-provided retirement and healthcare plans.
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February 12, 2025
Trump's Federal Worker Resignation Offer Gets Green Light
A Massachusetts federal judge on Wednesday lifted an order temporarily blocking President Donald Trump's federal worker "deferred resignation" offer and allowed it to proceed, ruling that unions representing hundreds of thousands of federal workers don't have standing to challenge the directive.
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February 12, 2025
Crypto CEO Made $425K Disappear, Investor Tearfully Testifies
A former business partner of a Texas man accused of running a $5 million fraud centered on a new "anti-money laundering" cryptocurrency testified tearfully before a California federal jury on Wednesday that her family invested about $425,000 in the defendant's previous cryptocurrency venture and lost every penny.
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February 12, 2025
OpenAI Says Musk Takeover Bid 'Exposes' Intent Behind Suit
OpenAI on Thursday told a California federal judge overseeing Elon Musk's lawsuit seeking to block OpenAI from becoming a for-profit enterprise that the Tesla founder has proposed acquiring OpenAI's business, saying the takeover effort reveals Musk's lawsuit to be "an improper bid to undermine a competitor."
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February 12, 2025
SEC Rescinds Stricter Gensler-Era Proxy Exclusion Guidance
The U.S. Securities and Exchange Commission on Wednesday rescinded Biden-era guidelines around excluding certain shareholder proposals from proxy statements, reverting the agency's posture to an era that was generally more receptive to companies seeking such exclusions.
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February 12, 2025
Unions Beef Up Suit To Keep DOGE Out Of Federal Agencies
Unions and nonprofits seeking to stop Elon Musk's Department of Government Efficiency from accessing the U.S. Department of Labor's data have enhanced their injunction request, looking also to shield the Consumer Financial Protection Bureau's and Department of Health and Human Services' data and prove they have standing to sue.
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February 12, 2025
DOJ Removes For-Cause Protection For FTC, Other Agencies
The U.S. Department of Justice has determined that for-cause removals for members of the Federal Trade Commission, National Labor Relations Board and Consumer Product Safety Commission are unconstitutional, acting Solicitor General Sarah Harris informed Sen. Dick Durbin, D-Ill., ranking Democrat of the Senate Judiciary Committee, in a letter Wednesday.
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February 12, 2025
Crypto Operator Seeks No Prison Time For $1M Fraud Plea
The founder of a cryptocurrency project who copped to wire fraud after gambling with over $1 million from investors wants to avoid a custodial sentence, though prosecutors have asked to see him serve just over two years.
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February 12, 2025
Boeing Brass Face Chancery Suit Over Safety Breach Scandal
Public employee pension funds in Ohio and Oklahoma have launched a derivative suit in Delaware's Chancery Court against Boeing board members and executives, seeking damages on the aircraft company's behalf tied to production issues and multiple safety breaches involving several Boeing commercial passenger jets.
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February 12, 2025
FCC Chief Says Comcast To Be Probed For Supporting DEI
The FCC's new leader is going after Comcast and NBCUniversal for their efforts to be diverse and inclusive, revealing Wednesday that he had directed the agency to open an investigation into the pair of companies to ensure they aren't "promoting invidious forms of discrimination."
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February 12, 2025
OCC Departs International Network Focused On Climate Risks
The Office of the Comptroller of the Currency on Tuesday became the latest U.S. government entity to withdraw from the Network of Central Banks and Supervisors for Greening the Financial System, an international consortium focused on the financial sector's responses and resilience to climate change.
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February 12, 2025
Ex-Schwab Employee Enjoined From Using Client Info
A Texas federal judge on Wednesday barred a former Charles Schwab employee from using the brokerage firm's allegedly stolen client information, requiring him to return all records and submit any devices with relevant materials for forensic examination.
Expert Analysis
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Considering European-Style Lockboxes For US M&A In 2025
The lockbox mechanism, commonly used in Europe, offers an attractive alternative to the postclosing price adjustments that dominate U.S. merger and acquisition transactions in private equity, particularly with the market's demand for transparency likely to remain steadfast under Trump, says Laurent Campo at Potomac Law.
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Compliance Lessons From Raytheon's FCPA Settlement
A recent Foreign Corrupt Practices Act action involving aerospace and defense company Raytheon underscores the importance of risk management related to retaining and overseeing third parties — especially in higher-risk jurisdictions — and the promotion of a companywide culture of compliance, say attorneys at Debevoise.
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Ledbetter's Legacy Shines In 2024 Equal Pay Law Updates
The federal Lilly Ledbetter Fair Pay Act turned 15 this year, and its namesake's legacy is likely to endure in 2025 and beyond, as demonstrated by 2024's state- and local-level progress on pay equity, as well as several rulings from federal appellate courts, say attorneys at Fisher Phillips.
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The Future Of GLP-1 Policy After Drug Shortage Ends
If and when the U.S. Food and Drug Administration determines that GLP-1 RA drugs are no longer in short supply, regulators will face questions of how to balance access to GLP-1 RAs with statutory and policy considerations applicable to compounded drugs, say attorneys at Skadden.
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Conducting A 'Reasonably Expected Market Area' Analysis
Regardless of whether the incoming administration scales back on redlining examinations and investigations, lenders should take steps to understand how regulators define "reasonably expected market areas," and how to conduct analyses of such areas, say attorneys at Mitchell Sandler.
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Opinion
Justices Rightly Corrected Course In Nvidia And Facebook
By dismissing both the Nvidia and Facebook class actions, over investors' ability to hold corporations accountable for fraud, the U.S. Supreme Court was right in refusing to favor corporations over transparency, and reaffirmed its commitment to corporate accountability, investor protection and the rule of law, says Laura Posner at Cohen Milstein.
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Gov't Scrutiny Of Workplace Chat Apps Set To Keep Growing
The incoming Trump administration and Republican majorities in Congress are poised to open numerous investigations that include increasing demands for entities to produce communications from workplace chat apps, so companies must evaluate their usage and retention policies, say attorneys at Orrick.
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2024 Regulatory Developments For Bank-Fintech Partnerships
Joseph Silvia at Duane Morris reviews a handful of particularly noteworthy 2024 updates regarding bank-fintech partnerships, including federal banking agencies issuing a number of important pieces of guidance that reiterate and update previous guidance in the area of third-party risk management.
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2025's Midmarket M&A Terrain May Hold A Few Bright Spots
Attorneys at Stoel Rives assess middle-market merger and acquisition trends, and explain why many dealmakers have turned cautiously optimistic about the sector's 2025 prospects, despite potential inflation and new Federal Trade Commission rules.
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Top 10 Whistleblowing And Retaliation Events Of 2024
From a Florida federal court’s ruling that the False Claims Act’s qui tam provision is unconstitutional to a record-breaking number of whistleblower tips filed with the U.S. Commodity Futures Trading Commission, employers saw significant developments in the federal and state whistleblower landscapes this year, say attorneys at Proskauer.
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The Implications Of 2024's AI Rules And Regs For Patent Attys
Christina Huang, John Smith and Devin Stein at Faegre Drinker review this year's new rules and regulations on the development and use of artificial intelligence — from the Biden administration, the U.S. Patent and Trademark Office, the American Bar Association and various states — as they apply to patent attorneys.
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Green Card Sponsorship Expectations Reset In 2024
In 2024, adjudication times for employment-based green card applications increased to about 13 months, prompting more employers to implement varied strategies to avoid losing talent and minimize business disruptions, a trend that is likely to continue in the new year, says Jennifer Cory at FisherBroyles.
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When US Privilege Law Applies To Docs Made Outside The US
As globalization manifests itself in disputes over foreign-created documents, a California federal court’s recent trademark decision illustrates nuances of both U.S. privilege frameworks and foreign evidentiary protections that attorneys must increasingly bear in mind, say attorneys at Hunton.
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Changes To Expect From SEC Under Trump Nominee
President-elect Donald Trump's nomination of Paul Atkins for U.S. Securities and Exchange Commission chair will likely lead to significant shifts in the Division of Enforcement's priorities, likely focused on protecting retail investors and the stability of the capital markets, say attorneys at Morrison Foerster.
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Ring In The New Year With An Updated Employee Handbook
One of the best New Year's resolutions employers can make is to update their employee handbooks, given that a handbook can mitigate, or even prevent, costly litigation as long as it accounts for recent changes in laws, court rulings and agency decisions, say attorneys at Kutak Rock.