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Compliance
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January 08, 2025
CFPB Hit With Industry Suit Over Medical Debt Reporting Rule
A top trade group for the credit reporting industry has moved to challenge the Consumer Financial Protection Bureau's new rule that would take billions of dollars in medical debt off credit reports, accusing the agency of overreach in a lawsuit filed in Texas federal court.
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January 08, 2025
H&R Block To Pay $7M Fine In False Ad Settlement With FTC
Tax preparation giant H&R Block will pay a $7 million fine to help customers harmed by what the Federal Trade Commission called its deceptive advertising practices and make it easier for customers to downgrade to cheaper products under a settlement with the agency announced Wednesday.
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January 08, 2025
IRS Updates Guidance For Taxes In Employment Disputes
The Internal Revenue Service updated guidance Wednesday related to disputes over whether individuals are considered employees for employment tax purposes as well as clarified situations in which an employer can remit unpaid taxes at reduced rates in cases where the employer treated an employee as a nonemployee.
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January 08, 2025
Ariz. Tribe Sues Social Media Giants Over Youth Mental Health
An Apache tribe has hit all the social media giants with a suit in California federal court claiming the companies' platforms are designed to addict young people but have a particularly bad effect on Native American youth, who already face a high risk of depression, addiction and suicide.
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January 08, 2025
DOI Reveals No Bids In Alaska Oil, Gas Lease Sale
The U.S. Department of the Interior revealed Wednesday that it received no bids in response to the Arctic National Wildlife Refuge oil and gas lease sale, just days after Alaska accused the agency of imposing too severe restrictions on development.
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January 08, 2025
Exiting CFTC Chair Warns Crypto Without Rules 'Ends Badly'
The outgoing chair of the U.S. Commodity Futures Trading Commission Rostin Behnam used his final speech on Wednesday to urge lawmakers and regulators to address the "gap" in oversight of cryptocurrency markets.
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January 08, 2025
Criminal Case Against Terraform Founder Said To Exceed SEC's
The $40 billion criminal case against Terraform founder Do Kwon contains evidence such as recordings and seized mobile phones that exceed what securities regulators presented when they prevailed against him at a civil fraud trial, prosecutors said Wednesday.
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January 08, 2025
Mortgage Cos. Fined $20M Over Cybersecurity Breach
Bayview Asset Management LLC and three affiliates on Wednesday agreed to pay a $20 million fine and improve their cybersecurity programs to settle allegations from 53 state financial regulators that the mortgage companies had deficient cybersecurity practices and didn't fully cooperate with regulators after a 2021 data breach.
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January 08, 2025
Chancery Awards $176M Atty Fee In Tesla Board Pay Suit
Delaware's chancellor approved on Wednesday a $176.16 million Tesla stockholder class attorney fee award to three firms for a settlement of an excessive director compensation suit that is expected to return $734 million to the company through a combination of director stock, option and cash givebacks.
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January 07, 2025
JPMorgan Ditches Climate Coalition Ahead Of Trump 2.0
JPMorgan Chase & Co. on Tuesday joined a slew of banks in departing the United Nations-convened Net Zero Banking Alliance, apparently bowing to regulatory pressure and jumping ship ahead of a second Trump term.
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January 07, 2025
HHS Fines Mass. Health Firm $80K Over Ransomware Attack
Elgon Information Systems, which provides digital medical record and billing support services, will pay $80,000 over alleged healthcare data protection rule violations following a ransomware attack on its systems in March 2023 that impacted roughly 31,248 customers, the U.S. Department of Health and Human Services announced Tuesday.
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January 07, 2025
'Cyber Trust Mark' To Soon Adorn Smart Devices, Gov't Says
The makers of internet-connected devices such as home security cameras and voice-activated assistants will soon be able to obtain a label to certify that their products meet certain cybersecurity standards, under a new program officially launched by the Biden administration Tuesday.
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January 07, 2025
Judge Sanctions Match For Glitch Ahead Of FTC Ad Trial
A Texas federal judge on Tuesday sanctioned Match Group after the company failed to turn over sensitive emails to the Federal Trade Commission on time in a suit over alleged shady business practices, saying that the mistake was honest, but that the company still had not surrendered the documents in a timely manner.
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January 07, 2025
Feds Defend FCA Whistleblower Constitutionality At 11th Circ.
The federal government has called on the Eleventh Circuit to uphold the constitutionality of the False Claims Act's whistleblower provisions, saying a Florida district court ruling otherwise is an "outlier" that goes against U.S. Supreme Court precedent.
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January 07, 2025
Feds Urge 9th Circ. To Uphold Ringed Seal Protections
The federal government and environmentalists on Monday asked the Ninth Circuit to keep Endangered Species Act protections for Arctic ringed seals in place and reject Alaska's effort to roll them back.
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January 07, 2025
Amneal Calls Teva's IP Delisting Panic 'Theatrical Distraction'
The pharmaceutical industry won't fall into "chaos and disruption" if the Federal Circuit doesn't stay an injunction ordering Teva to remove inhaler patents from the Orange Book, and Teva's arguments otherwise are "a mere theatrical distraction" from the weakness of its position, according to Amneal Pharmaceuticals.
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January 07, 2025
Conn. AG, Feds Reach 3rd Dentist Kickback Settlement
A joint investigation by state and federal law enforcement has netted its third settlement with a Connecticut dentist accused of using illegal patient recruiting tactics to rip off Medicaid.
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January 07, 2025
FCC Urged To Revisit New Robocall Penalty Plan
Voice providers are calling on the Federal Communications Commission to ease robocall reporting requirements, with one prominent telecom trade group calling a potential agency proposal to fine companies $10,000 for submitting false or inaccurate compliance reports "unnecessarily punitive."
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January 07, 2025
Coinbase Judge Sends Crypto's Howey Question To 2nd Circ.
A New York federal judge Tuesday waved through a request from Coinbase to have the Second Circuit weigh in on whether the cryptocurrency transactions on its platform are investment contracts, putting the U.S. Securities and Exchange Commission's ongoing registration suit against the crypto exchange on ice for now.
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January 07, 2025
Trade Orgs. Fight DOL's Bid To Ax Prevailing Wage Rule Suit
Two construction groups pressed a Texas federal court to grant them a win in their challenge to the U.S. Department of Labor's final rule updating how prevailing wage rates are calculated under the Davis-Bacon Act, rejecting the department's argument that they couldn't sue.
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January 07, 2025
PCAOB Drops Probe That Led To Constitutional Challenge
One of the constitutional challenges facing the Public Company Accounting Oversight Board came to an end Tuesday after the board informed a Texas court that it would not pursue an enforcement action against the accounting firm at the center of the case.
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January 07, 2025
Mont. Bill Floats Mine, Data Center Property Tax Changes
Montana would lower the property tax rate imposed on metal mines, certain agricultural land and railroads but raise the rate on data center property as part of a bill introduced in the state Senate.
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January 07, 2025
CFPB Senior Litigator Who Defended Key Rules Is Departing
A veteran Consumer Financial Protection Bureau litigator who represented the agency in a slew of high-profile cases challenging its rulemakings and constitutionality is heading for the exit after more than a decade at the consumer watchdog.
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January 07, 2025
Top Groups Lobbying The FCC
The Federal Communications Commission heard from advocates more than 50 times in December on issues ranging from prison phone rates to the use of artificial intelligence in text messages, shared use of the airwaves, marketing consent rules and more.
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January 07, 2025
MoviePass Parent Co. Ex-CEO Cops To Investor Fraud
The former CEO of Helios & Matheson Analytics Inc., which owned a majority stake in the defunct discount unlimited movie ticketing service MoviePass, pled guilty Tuesday to making false statements about its business operations and inflating stock prices to attract investors.
Expert Analysis
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Tracking The Uncertainty Of The FTC's Negative Option Rule
The fate of the Federal Trade Commission's final rule requiring businesses that utilize negative options to provide consumers with a simple cancellation method remains in limbo as it faces multiple legal challenges and the threat of possible congressional action looms, say attorneys at Manatt.
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Corporate Liability Issues To Watch In High Court TM Case
The U.S. Supreme Court will hear arguments in a trademark dispute between Dewberry Group and Dewberry Engineers next week, presenting an opportunity for the court to drastically alter the fundamental approach to piercing the corporate veil, or adopt a more limited approach and preserve existing norms, say attorneys at Bracewell.
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Plugging Gov't Leaks Is Challenging, But Not A Pipe Dream
As shown by ongoing legal battles involving New York City Mayor Eric Adams and Sean “Diddy” Combs, it’s challenging for defendants to obtain relief when they believe the government leaked sensitive information to the media, but defense counsel can take certain steps to mitigate the harm, says Kenneth Notter at MoloLamken.
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Rethinking Clawback Policies For 2025 Compensation Season
The start of a new year presents an opportunity for companies to reassess their executive compensation clawback policies, and while mandatory Dodd-Frank clawbacks are necessary, discretionary policies can offer companies greater flexibility to address misconduct, protect their reputations and align with shareholder priorities, say attorneys at Debevoise.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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Federal Embrace Of Crypto Regs Won't Lower State Hurdles
Even if the incoming presidential administration and next Congress focus on creating clearer federal regulatory frameworks for the cryptocurrency sector, companies bringing digital asset products and services to the market will still face significant state-level barriers, say attorneys at Mayer Brown.
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SEC Prioritized Enforcement Sweeps As Cases Slowed In '24
Following three consecutive years of increasing activity, fiscal year 2024 marked the lowest number of cases the U.S. Securities and Exchange Commission has brought since Gary Gensler assumed office in April 2021, buttressed by some familiar enforcement sweeps, say attorneys at Covington.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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2 Cases Show DAOs May Face Increasing Legal Scrutiny
Two ongoing cases that recently survived motions to dismiss in California federal courts concerning Compound DAO and Lido DAO threaten to expand the potential liability for activity attributed to decentralized autonomous organizations — and to indirectly create liability for their participants, say attorneys at Cahill Gordon.
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The Fashion Industry Should Prep Now For State PFAS Bans
New York and California have each passed legislation regulating PFAS in apparel and other textiles, so retailers should consult with manufacturers and suppliers and obtain the requisite certification documents as soon as possible to avoid disruptions in supply chains, say attorneys at Venable.
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Expect More State Scrutiny Of PE In Healthcare M&A
While a California bill that called for increased antitrust scrutiny of many healthcare private equity transactions was recently vetoed by the governor, state legislatures are likely to continue introducing similar laws, particularly if the Trump administration eases federal enforcement, say attorneys at Morgan Lewis.
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7 Ways To Prepare For An I-9 Audit Or Immigration Raid
Because immigration enforcement is likely to surge under the upcoming Trump administration, employers should take steps to ensure their staff is trained in employment eligibility verification requirements and what to do in the event of an Immigration and Customs Enforcement I-9 audit or workplace raid, say attorneys at Littler.
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Unpacking Arguments From High Court's Rural Hospital Case
During oral arguments in Advocate v. Becerra, the U.S. Supreme Court justices focused questions on the meaning of being "entitled to" supplementary security income assistance, and there's reason for optimism that the likely split decision will break in favor of hospitals, say attorneys at King & Spalding.
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California Supreme Court's Year In Review
Attorneys at Horvitz & Levy highlight notable decisions on major questions from the California Supreme Court's last term, including voter initiatives, hostile work environment and the economic loss rule.
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3 Changes Community Banks Should Expect Under Trump
A second Trump administration promises a sea change for regional and community banks, including shifts in the regulatory environment, Community Reinvestment Act rules and the M&A landscape, say attorneys at Manatt.