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Compliance
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November 18, 2024
5th Circ. Says Texas County Wrong To Close Court Hearings
A Fifth Circuit panel has upheld a trial court's ruling that a Texas county improperly blocked the press and public from attending criminal pretrial proceedings known as magistrate hearings, finding that the practice violates the First Amendment and harms the two news outlets and an advocacy group that brought the lawsuit.
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November 18, 2024
Pa. AG-Elect Likely To Target AI, Robocalls And Opioids
Pennsylvania Attorney General-elect Dave Sunday is likely to focus on cracking down on artificial-intelligence-related scams that prey on vulnerable populations, unwanted robocalls, and opioid makers, while being less inclined to hammer down on energy and fossil fuel companies, experts said.
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November 17, 2024
Trump Names FCC's Carr As New Agency Chair
President-elect Donald Trump has picked Brendan Carr, the senior Republican on the Federal Communications Commission, as the agency's next chair, selecting a former general counsel of the agency and frequent critic of the current administration to lead the telecom regulator.
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November 15, 2024
Big Banks Still Need To Beef Up Controls, Fed Report Says
The Federal Reserve said Friday that even as the banking system has remained "sound and resilient," large banks continue to grapple with governance and controls issues, while regional and small banks have seen increases in outstanding supervisory findings.
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November 15, 2024
Jordan Says DOJ, FTC, CFTC Teed Up Actions Ahead Of Trump
House Judiciary Committee Chairman Jim Jordan, R-Ohio, lambasted three federal departments and their leaders, accusing them of either trying to push out enforcement actions or make last-minute hires during President Joe Biden's final days in office.
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November 15, 2024
Real Estate Recap: Industry Leaders Weigh In
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including President-elect Donald Trump's industry pick for Middle East special envoy, a playbook on commercial real estate distress from BigLaw leaders and one KKR exec's optimism for the end of a two-year real estate slump.
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November 15, 2024
Trump's SDNY Pick A Familiar Face In Wall Street's Legal Wing
Jay Clayton's nomination to be the Manhattan U.S. attorney would seat a highly regarded Wall Street lawyer in one of the top law enforcement jobs in the country, but he may face headwinds over his industry relationships and lack of criminal prosecution experience.
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November 15, 2024
Employment Authority: NLRB Captive Audience Shift's Impact
Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with coverage on the impact of the National Labor Relations Board's decision deeming illegal captive audience meetings and tips employers can follow to curtail workplace friction after the presidential election.
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November 15, 2024
X Sues To Block Calif.'s New Deepfake Political Ads Law
X Corp. filed a lawsuit in California federal court seeking to block a new Golden State law aimed at combating artificial intelligence-generated deepfake political ads, claiming the regulation that takes effect in January is unconstitutional and violates Section 230 of the Communications Decency Act.
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November 15, 2024
SEC-Sanctioned Accounting Firm Sued Over Pre-IPO Work
The former public company accounting firm BF Borgers is facing a California state lawsuit by an ex-client that says it was forced to scuttle its plans for an initial public offering after the U.S. Securities and Exchange Commission accused the firm of being a "sham auditing mill."
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November 15, 2024
Ex-GE Exec's Connection To Forged Docs Is Clear, Feds Say
Prosecutors told a New York federal jury Friday that trial evidence clearly proves a former GE executive knowingly used forged documents to secure a $1.1 billion gas turbine deal in Angola and demanded millions of dollars for his troubles.
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November 15, 2024
Social Media Cos. Must Face Schools' Public Nuisance Claims
Meta Platforms and other social media giants must face most of the public nuisance claims brought by school districts and local government entities in multidistrict litigation alleging the companies designed their platforms to addict children, a California federal judge ruled Friday.
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November 15, 2024
Kroger, Texas Ink $83M Deal Over Opioid Crisis
Texas announced it has agreed to an $83 million settlement with Kroger to resolve the state's claims alleging the groceries and pharmacy chain maintained practices that contributed to the opioid crisis in Texas, apparently as part of a larger $1.37 billion agreement the retailer recently reached with several states.
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November 15, 2024
SEC Says Risky Bond Recommendations Violated Reg BI
A Texas-headquartered broker-dealer has agreed to pay nearly $154,000 to resolve U.S. Securities and Exchange Commission allegations that it improperly recommended risky bonds in violation of the federal investor protection measure known as Regulation Best Interest.
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November 15, 2024
PBMs Denied Breakup Of Combined FTC Insulin Price Trial
The Federal Trade Commission's allegations that pharmacy benefit manager giants Caremark Rx, Express Scripts and OptumRx are artificially inflating insulin prices through unfair rebate schemes will forge ahead as a single case following an in-house agency judge's refusal to break them into separate proceedings.
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November 15, 2024
Convicted TV Guru Trudeau, FTC Strike Deal In 21-Year Case
An Illinois federal judge on Friday approved and offered high praise for a consent order negotiated by the Federal Trade Commission and weight-loss guru Kevin Trudeau, saying they did a "spectacularly good job" laying out the plan for Trudeau to pay the remaining $8 million he owes in the 21-year-old fraud case.
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November 15, 2024
EPA Watchdog Flags Drinking Water Cybersecurity Risks
The U.S. Environmental Protection Agency's internal watchdog is sounding the alarm about cybersecurity weaknesses in the nation's drinking water systems, and said there are problems with the plans for reporting and coordinating responses to attacks.
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November 15, 2024
Kalshi Fires Back At CFTC's 'Futile' Election Betting Appeal
The Commodity Futures Trading Commission is attempting to "rewrite" its governing statute by claiming that placing bets on the outcome of elections is a form of prohibited gaming, trading platform KalshiEx LLC told the D.C. Circuit on Friday as it fought to continue listing election contracts in the future.
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November 15, 2024
GOP Sens. Decry 'Lack Of Urgency' On FDIC Misconduct
Six Republican senators wrote a letter to the Federal Deposit Insurance Corp. Inspector General Jennifer L. Fain asking for a briefing on the FDIC's progress investigating claims of widespread misconduct at the agency, asserting there has been "a shocking lack of urgency."
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November 15, 2024
GAO Says EPA Must Act On Waste Sites' Climate Risks
Nearly 70% of the nation's hazardous waste treatment, storage and disposal facilities are vulnerable to climate change impacts such as flooding, wildfires, storm surge and sea level rise, and the U.S. Environmental Protection Agency needs to be more proactive, a new federal report says.
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November 15, 2024
California Blames Travelers For Rot Remediation Policy Deceit
In a case with potentially untold financial consequences, California district attorneys are blaming Travelers in state court for trying to attract customers by offering coverage for fungi and rot remediation for years without adequately disclosing stringent exclusions to state policyholders, in violation of state code.
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November 15, 2024
FERC Ignored Calif. Hydro Permitting Mischief, DC Circ. Told
The Federal Energy Regulatory Commission turned a blind eye to clear evidence that California's water board gamed the permitting process in concluding that the state agency didn't waive its Clean Water Act permitting authority over two hydroelectric dams, the D.C. Circuit heard this week.
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November 15, 2024
GM's Cruise Accepts $500K Criminal Fine Over Robotaxi Crash
Cruise LLC, the autonomous vehicles subsidiary of General Motors Co., has agreed to pay $500,000 in criminal fines to end claims that it made false statements to federal highway investigators by omitting that one of its vehicles dragged a pedestrian over 20 feet, according to an announcement by federal prosecutors.
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November 15, 2024
Political Fundraiser Avoids Jail In LA 'Casino Loyale' Probe
A former political fundraiser was sentenced by a California federal judge Friday to one year of home detention for facilitating a bribe to former Los Angeles City Councilman José Huizar, the latest in a string of recent sentences handed out to cooperating witnesses in the FBI's "Casino Loyale" probe.
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November 15, 2024
Paxton Says Texas Porn Site Law 'Modest' Way To End 'Crisis'
Texas Attorney General Ken Paxton told the U.S. Supreme Court on Friday that a state law requiring visitors to prove their age before accessing content on certain adult-oriented websites is tailored in the most "modest" way possible to address a "public health crisis."
Expert Analysis
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Peeling Back The Layers Of SEC's Equity Trading Reforms
The U.S. Securities and Exchange Commission's recently adopted amendments lowering the tick sizes for stock trading and reducing access fee caps will benefit investors and necessitate broad systems changes — if they can first survive judicial challenges, say attorneys at Sidley.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Insights On NLRB General Counsel's New 'Stay-Or-Pay' Memo
Attorneys at Davis Wright discuss the National Labor Relations Board general counsel's new memorandum on employer “stay-or-pay” policies and noncompete agreements, and explain key takeaways concerning the proposed financial remedies, prosecution framework and more.
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Bristol-Myers Win Offers Lessons For Debt Security Holders
A New York federal judge's recent dismissal of a $6.4 billion lawsuit against Bristol-Myers Squibb, due to plaintiff UMB Bank's lack of standing, serves as an important reminder to debt security holders to obtain depositary proxies before pursuing litigation, say attorneys at Milbank.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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CFPB School Lunch Focus Could Expand E-Payment Scrutiny
The Consumer Financial Protection Bureau's recent spotlight on payment processing systems used to add funds to school lunch accounts shows its continued ambitions to further expand its supervisory power in the payments industry, all the way down to the school lunch market, says Tom Witherspoon at Stinson.
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How Project 2025 Could Upend Federal ESG Policies
If implemented, Project 2025, the Heritage Foundation's policy playbook for a Republican presidential administration, would likely seek to deploy antitrust law to target ESG initiatives, limit pension fund managers' focus to pecuniary factors and spell doom for the U.S. Securities and Exchange Commission's climate rule, say attorneys at Mintz.
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Opinion
Rental Price-Fixing Suit Against RealPage Doesn't Add Up
Recent government antitrust litigation against RealPage, alleging that the software company's algorithm for setting rental prices amounts to price-fixing, has failed to allege an actual conspiracy, and is an example of regulatory overreach that should be reined in, says Andrew Ketterer at Ketterer & Ketterer.
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Navigating FEMA Grant Program For Slope Fixes After Storms
In the aftermath of Hurricanes Helene and Milton, it is critical for governments, businesses and individuals to understand the legal requirements of the Federal Emergency Management Agency's grant programs to obtain funding for crucial repairs — including restoration of damaged infrastructure caused by landslides and slope failures, says Charles Schexnaildre at Baker Donelson.
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Compliance Pointers For Amended Pa. Data Breach Law
Recent updates to the Pennsylvania Breach of Personal Information Notification Act include a requirement that organizations alert the state's attorney general of certain consumer data breach notifications, and several incident response and cybersecurity considerations will be necessary to ensure compliance, say Matthew Meade and Laura Decker at Eckert Seamans.
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Smith's New Trump Indictment Is Case Study In Superseding
Special counsel Jack Smith’s recently revised Jan. 6 charges against former President Donald Trump provide lessons for prosecutors on how to effectively draft superseding indictments in order to buttress or streamline their case, as necessary, says Jessica Roth at Cardozo Law School.
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Opinion
FDIC's Foray Into Index Fund Rules Risks Regulatory Chaos
A proposed Federal Deposit Insurance Corp. rule concerning control over passive index fund investments in banks is outside the agency's remit, clashes with an existing Federal Reserve process and would inhibit competition in the index fund sector, says J.W. Verret at George Mason University.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Ga. Fintech Bank Charter Could Reshape Payments Industry
Georgia’s recent granting of a special banking charter to transaction processor Fiserv, allowing the fintech company to access major card payment networks without a traditional bank as intermediary, could spark a restructuring of the national payments infrastructure and open new possibilities for businesses and consumers, says Jessica Cino at Krevolin & Horst.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.