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Compliance
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February 21, 2025
Ga. Provider Bashes FCC Over Subsidy Verification Rules
A Georgia-based phone and internet provider is appealing a $429,000 recovery order from the Federal Communications Commission's Wireline Competition Bureau over the company's alleged failure to verify subscribers qualified for pandemic-era subsidies, arguing that it is being punished for using the eligibility verification system that the commission itself requires them to use.
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February 21, 2025
Nuke Plant Renewal Rules Ignore Climate Risks, DC Circ. Told
Anti-nuclear power groups told the D.C. Circuit that the U.S. Nuclear Regulatory Commission unlawfully ignored accident risks due to aging equipment and climate change when it crafted new nuclear power plant license renewal rules.
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February 21, 2025
Steel, Aluminum Tariffs May Throw Wrench Into Future Deals
President Donald Trump's targeted tariffs on steel and aluminum imports could assist in his goal of reshoring more production to the U.S., but the elimination of agreements he reached during his first term may undermine the ability to strike new trade agreements — while also spurring historic price hikes.
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February 21, 2025
WilmerHale Corporate Ace Joins DLA Piper In California
DLA Piper has added a former WilmerHale attorney to strengthen its corporate practice, including bolstering its service to clients in the life sciences and healthcare industries.
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February 21, 2025
GC Cheat Sheet: The Hottest Corporate News Of The Week
Experts say the new U.S. guidelines on enforcing the Foreign Corrupt Practices Act could open the door for American companies to pay business bribes overseas. And a new survey shows adoption of AI by lawyers has nearly doubled in the past year. These are some of the stories in corporate legal news you may have missed in the past week.
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February 21, 2025
1st Circ. Revives Clean Air Claims Over Idling Shuttle Buses
Excessive exhaust fumes and concerns about the negative health effects of pollution from idling buses are injuries in fact that can establish standing for members of an environmental advocacy group to sue over violations of the Clean Air Act, the First Circuit said on Thursday, reviving a 5-year-old lawsuit.
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February 21, 2025
Ex-Cognizant Execs Balk At Wording Of Trial Date Draft Order
Attorneys for two former executives of Cognizant Technology Solutions Corp. told a New Jersey federal judge on Friday that they object to the government's wording of a proposed order for proceeding with their Foreign Corrupt Practices Act trial on March 3.
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February 21, 2025
Coinbase Says SEC Will Drop Suit Amid Crypto Policy Shift
Coinbase said Friday the U.S. Securities and Exchange Commission has committed to dropping its enforcement action against the crypto exchange, a move that would see the regulator walk away from one of its flagship crypto suits amid a wider policy shift under the Trump administration.
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February 21, 2025
High Court Finds FCC's E-Rate Subject To False Claims Act
The U.S. Supreme Court ruled unanimously Friday that telecoms participating in the federal E-Rate program supporting school and library connectivity can be sued for excess payouts under the False Claims Act because the subsidy's funds are provided through the U.S. Treasury.
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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.
Expert Analysis
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4 Potential Effects Of 3rd Circ.'s Coinbase Ruling
The Third Circuit's recent landmark decision in Coinbase v. U.S. Securities and Exchange Commission that the SEC's refusal to engage in rulemaking to clarify its stance on crypto enforcement was "insufficiently reasoned" could have wide-ranging impacts, including on other cases, legislation and even the SEC's reputation itself, says Daniel Payne at Cole-Frieman.
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Applying ABA Atty Role Guidance To White Collar Matters
The American Bar Association’s recently published guidance, clarifying the duties outside counsel owes to both organizational clients and those organizations' constituents, provides best practices that attorneys representing companies in white collar and other investigative matters should heed, say attorneys at MoFo.
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Tax-Free Ways To Help Employees After The LA Wildfires
Following the recent wildfires in Los Angeles, there are various tax-free ways to give employees the resources and flexibility they need, including simpler methods like disaster relief payments under Internal Revenue Code Section 139 and leave-sharing programs, and others that require more planning, says Ligeia Donis at Baker McKenzie.
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What Trump Admin's Anti-DEI Push Means For FCA Claims
President Donald Trump's recent rescission of a 60-year-old executive order imposing nondiscrimination requirements on certain federal contractors has far-reaching implications, including potential False Claims Act liability for contractors and grant recipients who fail to comply, though it may be a challenge for the government to successfully establish liability, say attorneys at Bass Berry.
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As EPA Backs Down, Expect Enviros To Step Up Citizen Suits
As President Donald Trump's U.S. Environmental Protection Agency draws down federal enforcement efforts, environmental groups will step into the void and file citizen suits — so companies should focus on compliance efforts, stay savvy about emerging analytical and monitoring methods, and maintain good relations with neighbors, say attorneys at Beveridge & Diamond.
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CFPB's Message To States Takes On New Weight Under Trump
The Consumer Financial Protection Bureau's January guidance to state enforcers has fresh significance as the Trump administration moves to freeze the bureau's work, and industry should expect states to use this series of recommendations as an enforcement road map, say attorneys at Brownstein Hyatt.
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What Companies Should Consider During FCPA Pause
While waiting for updated guidance on Foreign Corrupt Practices Act criminal investigations after a Feb. 10 executive order froze FCPA enforcement, companies should consider the implications of several possible policy shifts, rather than relaxing internal oversight of questionable business practices, say attorneys at Simpson Thacher.
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How Criminal Enforcement Of Trump Tariffs May Work
While tariff enforcement has traditionally been handled as a civil matter, tariffs are central to President Donald Trump's broader economic, immigration and national security agendas — making it likely that the U.S. Department of Justice will be tasked with criminal enforcement of tariff evasion, say attorneys at BakerHostetler.
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National Bank Act Rulings Facilitate More Preemption Analysis
Two recent National Bank Act preemption decisions from an Illinois federal court and the Ninth Circuit provide the first applications of the U.S. Supreme Court’s May ruling in Cantero v. Bank of America, opening the potential for several circuit courts to address the issue this year, say attorneys at Moore & Van Allen.
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Series
Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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It Starts With Training: Anti-Harassment After 'It Ends With Us'
Actress Blake Lively's recent sexual harassment and retaliation allegations against her "It Ends With Us" co-star, director and producer, Justin Baldoni, should remind employers of their legal obligations to implement trainings, policies and other measures to prevent sexual harassment in the workplace, say attorneys at Morrison Cohen.
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Preparing For Stricter Anti-Boycott Enforcement Under Trump
Given the complexity of U.S. anti-boycott regulations and the likelihood of stepped-up enforcement under the new administration, companies should consider adopting risk-based anti-boycott compliance programs that include training employees to recognize and assess potential boycott requests, and to report them expeditiously when necessary, say attorneys at Debevoise.
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Opinion
New DOJ Leaders Should Curb Ill-Conceived Prosecutions
First-of-their-kind cases have seemingly led to a string of overly aggressive prosecutions in recent years, so newly sworn-in leaders of the U.S. Department of Justice should consider creating reporting channels to stop unwise prosecutions before they snowball, says Jonathan Porter at Husch Blackwell.
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Tips For Pharma-Biotech Overlap Reporting In New HSR Form
While there’s no secret recipe for reporting overlaps to the Federal Trade Commission in the new Hart-Scott-Rodino Act form, there are several layers of considerations for all pharma-biotech companies and counsel to reflect on internally before reporting on any deal, say attorneys at A&O Shearman.
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Complying With Calif. Price-Gouging Law After LA Fires
The recent tragic Los Angeles fires have brought attention to the state's sometimes controversial price-gouging protections, and every California business should keep the law's requirements in mind, despite the debate over whether these statutes help consumers, say attorneys at Cooley.