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Compliance
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November 21, 2024
Ohio City Tax Exemption Isn't Retroactive, Court Affirms
An Ohio property in a reinvestment area is not eligible for a city's tax exemption offered to remodeled homes, as the remodel was completed before the property was included in the reinvestment district, an Ohio appellate court affirmed Thursday.
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November 21, 2024
House Panel Seeks Info On DOL Agreements With Law Firms
The U.S. House Committee on Education and the Workforce on Thursday pressed the U.S. Department of Labor for details about its information-sharing agreements with plaintiffs law firms after discovery in a proposed class action revealed a pact between the agency and Cohen Milstein Sellers & Toll PLLC.
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November 21, 2024
New SEC 'Dealer' Rule Tossed In Win For Hedge Funds, Crypto
A Texas federal judge on Thursday overturned a U.S. Securities and Exchange Commission rule that expanded the definition of "dealer" to include proprietary trading firms, some hedge funds and crypto firms, saying the agency overstepped its authority when it adopted the rule.
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November 21, 2024
SEC Chair Gensler To Step Down When Trump Takes Office
U.S. Securities and Exchange Commission Chair Gary Gensler said Thursday that he will be leaving the agency on Jan. 20, clearing the way for new leadership under an incoming Trump administration that is expected to dismantle Gensler's climate disclosure regulation and open the SEC's door to more crypto-friendly policies.
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November 21, 2024
House Dems Tell Gorsuch To Recuse Over NEPA Case Conflict
A group of House Democrats has called for U.S. Supreme Court Justice Neil Gorsuch to recuse himself from a dispute over federal environmental review requirements, arguing the court's decision could directly benefit a Colorado billionaire and former client who campaigned for the justice's first judicial appointment.
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November 21, 2024
Gaetz Ends AG Bid, Citing 'Distraction' To Trump Transition
Former U.S. Rep. Matt Gaetz withdrew his name from consideration Thursday as President-elect Donald Trump's nominee for attorney general amid allegations of sexual misconduct and drug use.
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November 21, 2024
Biden's FCC Chair Stepping Down From Agency Jan. 20
The Democratic head of the Federal Communications Commission said Thursday she will be leaving the agency on Jan. 20.
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November 21, 2024
CFPB Wraps Rule To Pull Big Payment Apps Into Supervision
The Consumer Financial Protection Bureau said Thursday that it has finalized a measure to bring providers of major digital payment apps under its supervisory umbrella, expanding the reach of its oversight deeper into the technology sector and drawing fresh calls to reverse course.
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November 21, 2024
DOJ Urges Chrome, Android Sales In Google Case
The U.S. Department of Justice late Wednesday formally asked a Washington, D.C., federal judge to order a range of steps to end Google's monopolization of general search services and the text ads shown alongside search results, most notably by forcing the company to spin off the Chrome browser.
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November 20, 2024
SEC Cooperators More Likely To See Pay Reprieve In 2024
The U.S. Securities and Exchange Commission's recent emphasis on cooperation seems to have paid off for both the agency and some of the entities it regulates, according to a report released Thursday, which found that more public companies entered into nonmonetary settlements with the SEC in fiscal year 2024 than in any year over the previous decade.
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November 20, 2024
Not So Fast: Lenders Say CFPB Payday Rule Must Stay On Ice
Lender trade groups challenging the Consumer Financial Protection Bureau's payday loan rule have told the Fifth Circuit that they anticipate pursuing another U.S. Supreme Court appeal in their case, and that the rule should be kept on hold for even longer in the meantime.
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November 20, 2024
Musk, Ramaswamy Say High Court Rulings OK Federal Cuts
Billionaire Elon Musk and former presidential candidate Vivek Ramaswamy, President-elect Donald Trump's picks to lead a newly created "Department of Government Efficiency," on Wednesday said two recent U.S. Supreme Court rulings will give them the authority to cut off power to regulatory agencies and conduct massive federal layoffs.
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November 20, 2024
Lululemon Execs Hit With Derivative Suit Over DEI Program
Lululemon leadership was hit with a shareholder derivative suit Wednesday claiming they made false statements related to the company's new "Inclusion, Diversity, Equity and Action" program that artificially boosted the company's stock price and also concealed problems with the company's inventory allocation.
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November 20, 2024
Adani Group Chairman Charged In Sprawling Bribery Case
Prosecutors unsealed a sprawling criminal indictment in New York federal court Wednesday, accusing Adani Group Chairman Gautam S. Adani and seven others of orchestrating a $250 million bribery scheme to secure lucrative Indian government renewable energy contracts, while misleading investors about the Adani Group subsidiary's dealings.
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November 20, 2024
Prison Phone Cos. Say FCC Reg Fight Belongs In 5th Circ.
There should have been no lottery to decide where to place an appeal challenging the Federal Communications Commission's new caps on rates charged for prison phone calls — the matter belongs in the Fifth Circuit, a pair of prison phone service providers told the First Circuit.
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November 20, 2024
9th Circ. Judge Asks How Loper Bright Impacts EPA Fine Case
A Ninth Circuit judge wondered on Wednesday what weight the court should give the Environmental Protection Agency's view in a chemical wholesaler's appeal of an $850,000 fine in light of the U.S. Supreme Court's Loper Bright decision, suggesting the justices might next end agency deference in regulatory interpretation.
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November 20, 2024
Ex-Pharma CEO Demands Legal Fees For SEC Probe
Cancer treatment development company Eagle Pharmaceuticals Inc.'s founder and ex-CEO told Delaware's Chancery Court Wednesday that he is entitled to legal fees he says the company owes him in connection with a U.S. Securities and Exchange Commission probe into the company's accounting practices, saying he continues to incur fees in addition to the $875,000 he has already requested.
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November 20, 2024
2nd Circ. Doubts Error In Tenant Screener's FHA Suit Win
A Second Circuit panel appeared skeptical Wednesday that a Connecticut federal judge used the wrong analysis to find that a tenant screener's criminal history reporting practices do not violate the Fair Housing Act, grilling counsel for the federal government about the lower court's process.
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November 20, 2024
GM Can't Get Full 6th Circ. Redo Of Duramax Emissions Case
The full Sixth Circuit on Wednesday left untouched a divided panel's recent decision partly reviving drivers' claims alleging General Motors deceptively marketed Chevrolet Silverado and Sierra vehicles as being more environmentally friendly than they actually were, but two dissenting judges said the case warranted en banc review.
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November 20, 2024
FDIC Says BofA Deliberately Underpaid For Deposit Insurance
A D.C. federal judge on Wednesday weighed the Federal Deposit Insurance Corp.'s $1.1 billion unjust enrichment suit against Bank of America, promising to rule shortly on competing summary judgment motions in the years-long proceeding, but not tipping her hand as to how she might ultimately come down.
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November 20, 2024
'Fat Leonard' To Appeal 15-Year Sentence Over Navy Bribery
A Malaysian defense contractor and ex-fugitive who pled guilty nearly 10 years ago to a bribery scheme that authorities said cost the U.S. Navy over $20 million has indicated in California federal court that he will appeal his 15-year sentence to the Ninth Circuit.
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November 20, 2024
US Called Upon To Lead Cross-Border Payment Overhaul
A senior official with the U.S. Department of the Treasury has warned that wide adoption of a poorly designed, cross-border payment system could threaten international financial stability and economic security, advising the U.S. to take the lead in developing and governing such systems.
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November 20, 2024
Ex-Wells Fargo Adviser Admits To Stealing $3M From Clients
A former Wells Fargo broker and investment adviser admitted on Wednesday to stealing more than $3 million from his clients and customers and using the money for, among other things, buying gold coins, New Jersey federal prosecutors said.
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November 20, 2024
Bumble Brass Fumbled App Revamps, Investor Suit Says
Current and former brass of dating app Bumble's parent company face shareholder derivative claims that they projected overconfidence about revamping its app, then saw trading prices crater when Bumble lowered its 2024 growth projections amid the tinkering.
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November 20, 2024
Judge Opens Path For Ex-Yale Student's Asylum Bid
A Connecticut federal judge has illuminated a potential path for an expelled Yale student to send his sex assault accuser's name to immigration officials, suggesting that submitting a state trial transcript would "not seem to run afoul" of a magistrate judge's ban on otherwise naming the woman.
Expert Analysis
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Why K-Cup Claims Landed Keurig In Hot Water With SEC
The U.S. Securities and Exchange Commission's recent settlement with Keurig Dr. Pepper for making incomplete statements regarding the recyclability of K-cup pods highlights the importance of comprehensive corporate disclosures, particularly with respect to ESG matters, say attorneys at BCLP.
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Unpacking CFPB's Unwieldy Buy Now, Pay Later Guidance
Both the Consumer Financial Protection Bureau's recent interpretive rule regarding buy now, pay later transactions, and its FAQ guidance, place providers in murky waters with the unenviable position of attempting to place a square, closed-end product in a round, regulatory framework meant for open-end products, say attorneys at Troutman Pepper.
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2nd Circ. Halkbank Ruling Shifts Foreign Immunity Landscape
Following the Second Circuit’s recent common law immunity ruling in U.S. v. Halkbank, foreign state-owned banks, wealth funds and other entities now must seriously consider the risk of criminal liability for commercial activity that violates U.S. laws, say attorneys at Debevoise.
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9 Considerations Around Proposed Connected Vehicle Ban
Stakeholders should consider several aspects of the U.S. Department of Commerce's recent proposal to ban U.S. imports and sales of vehicles incorporating certain connectivity components made in China or Russia, including exempted transactions and vehicle hardware imports, say attorneys at Blank Rome.
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Predicting Shareholder Activism Trends In New Trump Admin
While President-elect Donald Trump has promised tax policies, deregulation and lax antitrust enforcement — which all fuel shareholder activism — a closer look at his first administration's track record suggests that his second presidency might be a mixed bag for activist investors and companies alike, say attorneys at Sidley.
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What Trump's 2nd Presidency Could Mean For Crypto Sector
Trump's second term will bring a fundamental shift from the Biden administration's approach to crypto-asset regulation and banking supervision, with the most significant changes likely taking effect in the first two quarters of 2025 and broader policy shifts emerging over the next year, say attorneys at Cahill.
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Putting NYDFS AI Cybersecurity Guidance Into Practice
New guidance from the New York Department of Financial Services explains how financial institutions should assess and mitigate cybersecurity risks associated with artificial intelligence, focusing on four main threats and highlighting how varying environments require specific mitigation measures, say attorneys at Saul Ewing.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Opinion
In Visa Case, DOJ Continues To Misapply The Sherman Act
The recent U.S. Department of Justice debit market monopolization case against Visa fuels concerns that a misguided Biden administration DOJ is inappropriately expanding its interpretation of the Sherman Antitrust Act beyond the demonstrable economic effects that business conduct has on consumers, says Shubha Ghosh at Syracuse University.
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Opinion
Preserving The FCA Is Crucial In Trump's 2nd Term
While the Trump administration may pursue weaker False Claims Act enforcement, it remains an essential tool in safeguarding public funds and maintaining corporate accountability, so now is not the time to undermine ethical behavior, or reduce protections and incentives for whistleblowers, says Adam Pollock at Pollock Cohen.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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Key Legal Considerations After Supply Chain Disruptions
After U.S. supply chain disruptions — like the recent port workers' strike, and Hurricanes Helene and Milton — stakeholders should look to contractual provisions to mitigate losses, and keep in mind that regulators will be watching closely for unfair shipping practices, say attorneys at Holland & Knight.
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Dissecting New Circuit Split Over SEC's Proxy Adviser Rule
The Sixth Circuit recently upheld the U.S. Securities and Exchange Commission's partial rescission of enhanced conflict-of-interest disclosure requirements for proxy voting advice businesses, creating a circuit split over broader questions concerning the standard for assessing the legality of agency actions in general, say attorneys at Cahill Gordon.
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Federal Salary History Ban's Reach Is Limited
Though a newly effective Office of Personnel Management rule takes important steps by banning federal employers from considering job applicants' nonfederal salary histories, the rule's narrow applicability and overconfidence in the existing system's fairness will likely not end persistent pay inequities, says Margaret House at Kalijarvi Chuzi.
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Call For Input Shows How Banks, Fintechs Can Address Risks
A recent request for information by federal banking regulators suggests that watchdogs are zeroing in on the bank-fintech partnerships they have long perceived as risky to consumers, but analyzing the publication can help companies anticipate regulators’ chief concerns and take steps to avoid becoming enforcement targets, say attorneys at K&L Gates.