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Compliance
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February 20, 2025
DOJ Says Job Protections For ALJs Are Unconstitutional
The U.S. Department of Justice announced Thursday that it no longer backs long-standing job protections for administrative law judges, saying it has determined that the "multiple layers of removal restrictions" shielding ALJs are unconstitutional because they violate the separation of powers doctrine.
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February 20, 2025
Trump Admin Must Obey Order To Restore Aid, Judge Says
A Washington, D.C., federal judge on Thursday ordered the Trump administration to restore foreign assistance funding in accordance with his temporary restraining order, but stopped short of sanctioning the government officials.
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February 20, 2025
Landmark AI Legislation On Kids, Bias Introduced In Calif.
A California lawmaker Thursday unveiled first-of-its-kind legislation aimed at protecting children from safety and privacy risks associated with artificial intelligence as well as a revised version of a bill addressing bias by AI tools.
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February 20, 2025
Florida Hits Target With New Suit Over Pride Month Merch
The state of Florida's investment management body Thursday became the latest to sue Target Corp. over its Pride-themed merchandise, saying the retail giant "betrayed" investors with its "exceptionally offensive" LGBTQ marketing campaign and product lines.
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February 20, 2025
Calif. Privacy Agency Takes Regulatory Aim At 6th Data Broker
The California Privacy Protection Agency continued to keep the heat on data brokers Thursday, announcing that it's pursuing a monetary penalty against a Florida-based company that allegedly failed to comply with the registration requirements of a groundbreaking state data deletion law.
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February 20, 2025
Ex-Rio Tinto CFO Must Keep Fighting SEC Fraud Case
A New York federal judge on Thursday refused to throw out the U.S. Securities and Exchange Commission's suit accusing Rio Tinto PLC's former chief financial officer of violating accounting and auditing rules, ruling that certain claims should be decided by a jury.
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February 20, 2025
New SEC Enforcement Unit Shows Drift From Crypto Focus
The U.S. Securities and Exchange Commission continued its efforts to shift its approach to digital asset enforcement under the Trump administration when it announced Thursday that it replaced the unit responsible for many of its controversial crypto registration suits with a new fraud-focused iteration that will take a broader focus on "cyber and emerging technologies."
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February 20, 2025
FDIC Watchdog Will Review Agency Layoffs' Impact
The Federal Deposit Insurance Corp.'s inspector general has indicated that she will review how the agency and the larger banking industry will be impacted by the agency's acting Chairman Travis Hill's recent decision to rescind more than 200 job offers to bank examiners following a presidential executive order.
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February 20, 2025
Ex-CFPB Chief Chopra Raps 'Totally Weird' Trump Shutdown
Former Consumer Financial Protection Bureau Director Rohit Chopra knocked the Trump administration's efforts to shut down the consumer agency as a bizarre and potentially self-owning policy choice, warning Thursday that it will only hurt businesses and consumers.
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February 20, 2025
Warby Parker Hit With $1.5M Fine After HHS Breach Probe
The U.S. Department of Health and Human Services announced Thursday that it has imposed a $1.5 million fine on Warby Parker Inc. following a cyberattack on the eyewear manufacturer's website that exposed the protected health information of nearly 200,000 customers.
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February 20, 2025
Better Process Not Certain As White House Loses NEPA Regs
The White House says it rescinded National Environmental Policy Act regulations in an effort to "expedite and simplify" the federal permitting process, but attorneys say the immediate effect of the move will likely be to confuse agencies and slow down project approvals.
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February 20, 2025
Trump Trans Edicts Will Cause More Teen Suicides, States Say
Washington, Colorado, Oregon and Minnesota argued Wednesday for a court order halting President Donald Trump's executive orders targeting federal funding for gender-affirming care for young people, saying the edicts are unconstitutional and have "unleashed unbridled fear and irreparable harms."
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February 20, 2025
FINRA Foe Asks Justices To Stay In-House Case
A brokerage firm facing possible expulsion from the securities industry asked the U.S. Supreme Court on Thursday to press pause on the Financial Industry Regulatory Authority's case against it while the justices decide whether to hear a challenge to the regulator's constitutionality.
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February 20, 2025
SafeMoon Exec Says He'll Cop To 2 Conspiracy Charges
The chief technology officer behind the alleged SafeMoon LLC crypto fraud was a step closer to changing his not guilty plea Thursday on two of three counts of the indictment — a move that came after a Brooklyn federal judge declined to delay his co-defendant's trial last week.
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February 20, 2025
Fed's Barr Defends Long-Term Debt Mandate For Big Banks
The Federal Reserve's chief bank regulator said Thursday that the country's financial system was "sound and resilient" but warned of increased risks if post-financial crisis reforms aren't maintained and finished, specifically arguing for the implementation of Basel III Endgame rules on liquidity standards and debt requirements.
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February 20, 2025
Calif. Rail Project Back In Trump's Crosshairs With DOT Probe
The U.S. Department of Transportation on Thursday launched a compliance review into California's high-speed rail project, casting uncertainty over approximately $4 billion in federal funding for the beleaguered project that is back in the Trump administration's crosshairs.
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February 20, 2025
DOJ Keeps Focus In Agri Stats Case Off Specific Data
A Minnesota federal magistrate judge refused Wednesday to force the U.S. Department of Justice to provide Agri Stats a line-by-line recitation of particular problematic data fields in the company's protein industry reports, finding the agency's explanations about how those reports can facilitate price-fixing are "adequately responsive."
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February 20, 2025
Trump Admin Says CFPB Defunding Suit Guesses At Harms
The Trump administration on Thursday pushed back on a lawsuit alleging it seeks to "defund" the Consumer Financial Protection Bureau, arguing that concerns about access to a consumer complaint database and other information are "baseless speculation" about the agency's future financial decisions that don't justify an injunction.
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February 20, 2025
FERC Chair Seeking More Clarity On Scope Of Trump Order
Federal Energy Regulatory Commission Chairman Mark Christie downplayed concerns Thursday that a recent executive order from President Donald Trump will erode the agency's authority, but acknowledged that it's unclear how much the order seeks to involve the White House in FERC's operations.
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February 20, 2025
New SEC Guidance Throws A 'Bit Of Chaos' Into Proxy Season
The U.S. Securities and Exchange Commission's recent effort to loosen its guidance around what companies can exclude from their proxy statements isn't surprising given the change in administration, but the timing of its release has thrown a monkey wrench into a proxy season that is already underway, attorneys said.
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February 20, 2025
Another Ex-Allianz Exec Gets No Time For $7B Investor Fraud
A former managing director for Allianz SE's U.S. unit on Thursday avoided a term of imprisonment for his role in a ploy to con investors about the riskiness of a group of private funds that lost over $7 billion when the COVID-19 pandemic hit.
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February 20, 2025
Green Groups Ask 9th Circ. To Press EPA Again On Atrazine
Environmental groups are urging the Ninth Circuit to reopen a long-running case against the U.S. Environmental Protection Agency over its regulation around the pesticide atrazine, arguing that the agency's yearslong delay in completing a court-ordered review of the chemical has allowed "serious harm to people, plants and wildlife."
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February 20, 2025
Feds Say DC Judge Can't Bar 'Hypothetical' Spending Freezes
A Justice Department attorney argued before a D.C. federal judge Thursday that there is no basis to continue blocking the Trump administration from implementing a blanket suspension on federal spending, saying the court cannot bar "hypothetical" future freezes.
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February 20, 2025
Unions Demand Insight Into DOGE's Agency Audits
Worker and consumer advocates asked a D.C. federal judge Thursday to make the Department of Government Efficiency detail its probes into three federal agencies, arguing the information is needed to resolve their claims that the new entity's audits violate the public's privacy rights.
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February 20, 2025
9th Circ Asks Calif. High Court To Rule On Insurance Lapse
A Ninth Circuit panel asked the California Supreme Court on Thursday to clarify whether state laws regarding the steps insurance companies must take before canceling a policy for premium non-payment apply to policies issued out-of-state but later maintained in California, in a case over a widow's $2 million claim against a MetLife unit.
Expert Analysis
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How New Fraud Enforcement Tool Affects Gov't Contractors
Government contractors will likely face greater scrutiny under the recently enacted Administrative False Claims Act, which broadens federal agencies' authority to pursue low-dollar fraud claims, but contractors may also find the act makes settlement of such claims easier to negotiate, say attorneys at Wiley.
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How Trump Admin May Approach AI In The Workplace
Key indicators suggest that the incoming Trump administration will adopt a deregulatory approach to artificial intelligence, allowing states to fill the void, so it is critical that employers pay close attention to developing legal authority concerning AI tools, say attorneys at Littler.
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Predicting What's Next For SEC By Looking At Past Dissents
While Paul Atkins' nomination to be the next chair of the U.S. Securities and Exchange Commission has taken center stage, an analysis of Republican Commissioners Hester Peirce and Mark Uyeda's past votes and dissents provides a preview of where enforcement may shift in the new administration, say attorneys at Gibson Dunn.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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Searching For Insight On Requested Google Chrome Remedy
The potential for Google to divest its Chrome browser — a remedy requested by the Justice Department following a D.C. federal court’s finding the company is a monopolist — has drawn both criticism and endorsement, but legal precedent likely supports the former, say attorneys at Ballard Spahr.
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Consultants Should Be Aware Of DOJ's Potential New Reach
The U.S. Department of Justice's recent first-of-its-kind settlement with McKinsey & Co. indicates not only the DOJ's more aggressive stance toward businesses' potential criminal wrongdoings, but also the benefits of self-disclosure and cooperation when wrongdoing becomes apparent, says Dom Caamano at Kibler Fowler.
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Lessons Learned From 2024's Top FMLA Decisions
Last year's major litigation related to the Family and Medical Leave Act underscores why it is critical for employers to understand the basics of when leave and accommodations are required, say attorneys at Dechert.
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New Year, New Risks: 8 Top Cyber Issues For Finance In 2025
As financial institutions forge ahead in 2025, they must strike a delicate balance between embracing technological innovation and guarding against its darker threats, which this year could include everything from supply chain vulnerabilities to deepfakes, say attorneys at Baker Donelson.
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5th Circ.'s Nasdaq Ruling Another Piece In DEI Policy Puzzle
The Fifth Circuit's recent en banc opinion vacating Nasdaq's board diversity listing rule wades into the hotly debated topic of diversity, equity and inclusion initiatives at a time when many public companies are navigating the attention that DEI commitments are drawing from activists and shareholders, say attorneys at Debevoise.
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Lessons Learned From 2024's Top ADA Decisions
Last year's major litigation related to the Americans with Disabilities Act highlights that when dealing with accommodation requests, employers must communicate clearly, appreciate context and remain flexible in addressing needs, say attorneys at Dechert.
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A Guide To Significant 2024 Data Broker Legal Developments
2024 saw notable developments in U.S. data broker regulation and enforcement, and this momentum will likely carry into 2025, despite hypothetical efforts to the contrary under the new administration, say attorneys at Frankfurt Kurnit.
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Series
Playing Esports Makes Me A Better Lawyer
Competing in a global esports tournament at Wimbledon last year not only fulfilled my childhood dream, but also sharpened skills that are essential to my day job, including strategic thinking, confidence and networking, says AJ Schuyler at Jackson Lewis.
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How Changes In State Gift Card Laws May Affect Cos. In 2025
2024 state legislative movements around the escheatment of unused gift card balances and consumer fraud protections should prompt issuers to consider whether changes in company domicile or blanket cash-back policies are needed in the new year, say attorneys at Alston & Bird.
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Lessons From The SEC's 2024 Crackdown On AI Washing
AI washing was the subject of increased scrutiny from the U.S. Securities and Exchange Commission in 2024 following a surge in the commercial adoption of generative artificial intelligence technologies in 2023, highlighting the importance of transparency, accuracy and accountability when communicating about AI, say attorneys at Perkins Coie.
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The 6 Most Significant FCRA Litigation Developments Of 2024
From a key sovereign immunity decision at the U.S. Supreme Court to a ruling on creditworthiness out of the Seventh Circuit, several important Fair Credit Reporting Act cases wound their way through the courts in 2024, each offering takeaways for both plaintiffs and defendants, say attorneys at Shipkevich.