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Compliance
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March 10, 2025
CVS PBM Caused Up To $330M In Part D Damages, Judge Told
A CVS-owned pharmacy benefits manager caused anywhere from $240 million to $330 million in damages by overbilling the government for Medicare Part D sponsored drugs, counsel for a whistleblower told a Pennsylvania federal judge at the beginning of a False Claims Act bench trial on Monday.
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March 10, 2025
Judge May Pause Trump Admin's Cuts To Teacher Training
A Massachusetts federal judge hinted Monday it would be reasonable to order the U.S. Department of Education to temporarily reinstate $250 million in teacher-training grants targeted for cuts by the Trump administration over their ties to diversity, equity and inclusion initiatives.
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March 10, 2025
Senate Confirms Trump's Labor Secretary Pick
The U.S. Senate confirmed President Donald Trump's nominee for labor secretary Monday evening, with support from more than a dozen Democrats and opposition from some members of the nominee's own party.
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March 10, 2025
AFL-CIO, Unions Defend Fight Against DOGE Access
The AFL-CIO and a group of unions sought to keep alive their claims that Elon Musk's Department of Government Efficiency can't legally access data from the U.S. Department of Labor and other federal agencies, telling a D.C. federal judge they have standing to file their suit.
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March 10, 2025
DOJ Defends Musk's Influence Against States' Challenge
The U.S. Department of Justice is defending Elon Musk's influence in the federal government against a constitutional challenge brought by 14 states, telling D.C. federal court that the "special government employee" does not occupy an official office that would be subject to the Constitution's appointments clause.
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March 10, 2025
Trump Asks For Stay Of NLRB Member's Reinstatement
The Trump administration asked the D.C. Circuit on Monday to stay a federal judge's order reinstating fired National Labor Relations Board member Gwynne Wilcox, saying the order steps on the president's authority to control the workings of the executive branch.
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March 10, 2025
Feds Sue FDIC For $1.9M For First Republic Tax Bill
The U.S. government sued the Federal Deposit Insurance Corp. in D.C. federal court as receiver for the failed First Republic Bank, alleging the bank understated its withholding tax for U.S.-sourced income of foreigners and now owes almost $2 million to the federal government.
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March 10, 2025
DOJ Accuses Live Nation Of 'Delay Tactics' In Antitrust Suit
U.S. Department of Justice officials have urged a New York federal judge to issue an order compelling Live Nation Entertainment Inc. to produce documents held by several executives, accusing the company of using "delay tactics" in the lawsuit alleging anticompetitive behavior since merging with Ticketmaster Entertainment LLC in 2010.
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March 10, 2025
Treasury's CTA Halt Doesn't Justify Block, Feds Tell 5th Circ.
The U.S. Treasury Department halting enforcement of the Corporate Transparency Act on domestic entities doesn't add justification to a nationwide block on the law because it's a valid exercise of Congress' powers to regulate commerce, taxes, foreign affairs and national security, the U.S. government told the Fifth Circuit.
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March 10, 2025
Money Manager Can't Block Alleged Client Poach, Judge Says
Connecticut investment firm TJT Capital Group LLC has not demonstrated that it will suffer irreparable harm without a temporary restraining order that bars a former member from using client information he allegedly misappropriated, a federal judge has ruled in denying the request.
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March 10, 2025
11th Circ. Affirms FCC Ownership Ruling, But Scraps Penalty
The Eleventh Circuit upheld a Federal Communications Commission finding that Gray Television broke ownership consolidation rules when it bought a CBS affiliate in Anchorage, Alaska, but vacated a $518,283 penalty against the broadcast company, saying the agency failed to serve Gray proper notice on an "egregiousness" finding.
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March 10, 2025
SEC Leaves Meme Coin Fraud For Other Cops To Chase
The U.S. Securities and Exchange Commission staff's decision to say that so-called meme coins are beyond the agency's purview is a welcome change from past practices, experts say, but the devil is in the details when it comes to policing fraud and helping consumers recover when projects go bust.
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March 10, 2025
NY AG Sues Allstate Unit Over Pair Of Data Breaches
Allstate unit National General Insurance Co. was sued Monday by New York Attorney General Letitia James over two data breaches in 2020 and 2021, saying the company failed to safeguard sensitive data or inform customers.
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March 10, 2025
High Court Will Review Colo.'s Conversion Therapy Ban
The U.S. Supreme Court announced Monday that it will review a challenge to Colorado's ban on licensed therapists providing conversion therapy to transgender minors, in a case that asks whether the state's law is a permissible regulation of professional conduct or an unconstitutional restriction of speech.
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March 10, 2025
Court Affirms FBAR Penalties Against Estate, Not Widow
The estate of a man who failed to report his Swiss bank accounts is liable for tax penalties of at least $2 million, an Idaho federal court determined, finding the man's widow off the hook.
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March 10, 2025
Ex-Cognizant Execs Support 180-Day Trial Delay In FCPA Case
Two former Cognizant Technology Solutions Corp. executives have told a New Jersey federal judge they agree with prosecutors that their bribery trial should be delayed for 180 days after the Trump administration paused enforcement of the Foreign Corrupt Practices Act.
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March 10, 2025
Ex-Magellan CEO Pleads Guilty Over Faulty Lead Tests
The former CEO of Magellan Diagnostics Inc. admitted Monday to selling faulty devices that tested blood lead levels, the final of three defendants to plead guilty ahead of a jury trial scheduled for April.
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March 07, 2025
As Key Hearing Looms, CFPB Emails Hint At Signs Of Life
Recent batches of Consumer Financial Protection Bureau internal emails hint at early, fumbling efforts to bring parts of the agency back online, but whether these flickers of life will undercut an employee union's fight to keep the agency intact remains to be seen.
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March 07, 2025
Real Estate Recap: NAR Suits, Tariff Tactics, Betting On Texas
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including a look at widespread antitrust litigation surrounding the National Association of Realtors broker rules, the role contracts may play in combating a trade war, and the implications for real estate if casinos come to the Lone Star State.
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March 07, 2025
Trump DOJ Agrees: Google Must Sell Chrome Browser
The Department of Justice on Friday reiterated to a D.C. federal judge that Google should have to divest the Chrome browser to give rival search engines a fighting chance against its illegal monopoly, but backed off its previous request that Google sell its investments in artificial intelligence companies.
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March 07, 2025
Employment Authority: Where Trump's DEI Orders Stand
Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with coverage on where President Donald Trump's executive orders scrambling diversity, equity, and inclusion programs stand following legal challenges; which cases are currently stalled at the National Labor Relations Board while it lacks a quorum; and how child labor enforcement may change under Trump's presidency.
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March 07, 2025
9th Circ. Open To Reviving Monsanto Expiration Label Fight
A Ninth Circuit panel appeared open Friday to reviving a proposed class action over expiration dates on Monsanto's Roundup pesticides, but two judges were skeptical of claims against a distributor, which the distributor's counsel argued could open the floodgates of litigation.
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March 07, 2025
ByteDance Wants Sanctions For Attys After Client's Perjury
TikTok's parent company ByteDance has urged a California court to sanction Nassiri & Jung LLP attorneys it says "enabled" a former engineer's perjury in a suit alleging he was wrongly fired, arguing that the lawyers should've prevented their client's "abuse of the justice system."
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March 07, 2025
Musk To Give Deposition In Twitter Shareholder Suit
Elon Musk has agreed to sit for a deposition in early April in a proposed shareholder class action accusing him of fraudulently claiming Twitter had a bot problem to get out of his $44 billion acquisition of the site, his attorneys said Friday.
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March 07, 2025
FINRA Says High Court Appeal Shouldn't Stop Broker's Case
The Financial Industry Regulatory Authority told the U.S. Supreme Court on Friday that it would like to move forward with disciplinary proceedings against a broker currently challenging the organization's constitutionality before the high court, arguing that the broker doesn't face the immediate harm of expulsion from the industry while the case is pending.
Expert Analysis
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The Current And Future State Of Bank-Fintech Partnerships
Though the Consumer Financial Protection Bureau under President Donald Trump seems likely to cultivate an environment friendlier to the financial services industry, bank-fintech partnerships should stay devoted to proactive compliance and be ready to adapt to regulatory shifts that may intensify scrutiny from enforcers, say attorneys at Greenberg Traurig.
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What Trump Actions Mean For Federal Research Funding
New guidance from the National Institutes of Health represents a massive policy shift regarding federal funding for researchers at institutions of higher education, contributing to a perfect storm of significant resource shortfalls in upcoming years, say attorneys at Arnold & Porter.
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Workforce Data Collection Considerations After DEI Order
Following President Donald Trump's executive order targeting diversity, equity and inclusion efforts, employers should balance the benefits of collecting demographic data with the risk of violating the order’s prohibition on "illegal DEI," say Lynn Clements at Berkshire Associates, David Cohen at DCI Consulting and Victoria Lipnic at Resolution Economics.
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Opinion
NFT Bill Needs Refining To Effectively Regulate Digital Assets
A recent bill in the U.S. House proposing to regulate nonfungible tokens as digital assets would leave key concepts undefined until the U.S. comptroller general completes an after-the-fact study of NFTs, showing it needs more work before it is comprehensive enough to meaningfully protect the market, say attorneys at Duane Morris.
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How The AI Antitrust Landscape Might Evolve Under Trump
The Trump administration's early actions around artificial intelligence and antitrust policy, along with statements from competition regulators, suggest that the AI competition landscape may see reduced scrutiny around acquisitions, but not an entirely hands-off enforcement approach, say attorneys at Hogan Lovells.
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McMahon SEC Settlement Warns Of Nondisclosure's Price
The U.S. Securities and Exchange Commission's recent financial nondisclosure settlement with former WWE CEO Vince McMahon illustrates the breadth of executives' reimbursement obligations under the Sarbanes-Oxley Act and highlights the importance of building robust internal corporate reporting processes, say attorneys at BCLP.
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Series
Racing Corvettes Makes Me A Better Lawyer
The skills I use when racing Corvettes have enhanced my legal practice in several ways, because driving, like practicing law, requires precision, awareness and a good set of brakes — complete with the wisdom to know how and when to use them, says Kat Mateo at Olshan Frome.
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Questions Remain After Justices' Narrow E-Rate FCA Ruling
The U.S. Supreme Court’s recent decision in Wisconsin Bell, holding that requests for reimbursement from the Federal Communications Commission's E-Rate program are subject to False Claims Act liability, resolves one important question but leaves several others open, says Jason Neal at HWG.
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How DOGE's Severance Plan May Affect Federal Employees
President Donald Trump's administration, working through the Department of Government Efficiency, recently offered a severance package to nearly all of the roughly 2 million federal employees, but unanswered questions about the offer, coupled with several added protections for government workers, led to fewer accepted offers than expected, says Aaron Peskin at Kang Haggerty.
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Opinion
Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Short-Term Predictions For The CFPB's Fate Under Trump
Though the Trump administration is unlikely to succeed in abolishing the Consumer Financial Protection Bureau, new leadership will likely moderate enforcement, possibly prompting state attorneys general to step up supervision, say attorneys at Husch Blackwell.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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A Closer Look At FDX's New Role As Banking Standard-Setter
Should the new Consumer Financial Protection Bureau let stand the decision empowering Financial Data Exchange as an industry standard-setter, it will be a significant step toward broader financial data-sharing, but its success will depend on industry adoption, regulatory oversight and consumer confidence, say attorneys at Clark Hill.
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What To Expect In Crypto Banking After SEC Nixed Guidance
With the U.S. Securities and Exchange Commission recently rescinding its controversial cryptocurrency accounting guidance, the industry's focus will turn to the potentially significant hurdle to crypto banking posed by the federal banking regulators, say attorneys at Duane Morris.
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Partially Faulting Airline For 401(k) ESG Focus Belies ERISA
A Texas federal court's recent finding that American Airlines breached its fiduciary duty of loyalty, but not of prudence, by letting its 401(k) pursue environmental, social and governance investments, misinterprets the Employee Retirement Income Security Act's standard of care, says Jeff Mamorsky, a Cohen & Buckmann partner and ERISA drafter.