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Compliance
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December 13, 2024
Advocacy Group Has Change Of Heart On SEC Reg Challenge
An investor advocacy organization that sued the U.S. Securities and Exchange Commission over its recently adopted "tick size" rule has said it will let others take the reins of the lawsuit because it is worried that the incoming administration will not propose the stronger stock market regulations it wants.
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December 13, 2024
NHTSA Publishes Whistleblower Program Final Rule
The National Highway Traffic Safety Administration finalized its whistleblower program, which could award as much as 30% of monetary sanctions to a worker of an auto manufacturer who calls out bad behavior.
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December 13, 2024
SEC Sued In 9th Circ. To Move On Accredited Investor Petition
The U.S. Securities and Exchange Commission is facing a Ninth Circuit lawsuit seeking to force it to address a proposal that would change the definition of "accredited investor" so that lower and middle-income Americans can invest in the private markets.
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December 13, 2024
Del. Chancellor Positions Musk Pay Fight For Likely Appeal
Delaware's chancellor positioned for likely appeals late Friday final pieces of a landmark six-year battle over Tesla Inc.'s attempt to award CEO Elon Musk a more than $55 billion, 10-year pay package, in a trio of orders that also directed the company to pay in cash or post sufficient bond for a $345 million stockholder attorney fee.
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December 13, 2024
SEC's Corporation Finance Director Gerding To Step Down
The U.S. Securities and Exchange Commission announced Friday that the head of its Division of Corporation Finance, who oversaw the finalization of controversial new rules covering environmental disclosures and share repurchases, will leave the agency at the end of the year.
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December 13, 2024
DC Circ. Declines To Disturb Law That Could Ban TikTok
The D.C. Circuit on Friday rejected TikTok's request for a preliminary injunction delaying implementation of a law requiring the app to split with its Chinese parent company ByteDance Ltd. or face a nationwide ban, saying that TikTok wants to block "the enforcement of a presumptively valid act of Congress."
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December 13, 2024
Employment Authority: 2024's Wage And Hour Curveballs
Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with a look at major wage and hour developments including President elect-Donald Trump's no tax on tips proposal, why experts say the National Labor Relations Board's recent precedent shift about unilateral changes is unlikely to stick around and a review of five rulings in 2024 with notable interpretations of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act.
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December 13, 2024
10th Circ. Leans Against Spiking Colo. Air Plan
A Tenth Circuit panel appeared inclined Friday to order the U.S. Environmental Protection Agency to reconsider its approval of a Colorado air emissions permitting program that a green group challenged as too permissive.
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December 13, 2024
Duke Energy Accused Of Negligence Ahead Of Data Breach
Duke Energy Carolinas LLC failed to protect sensitive personal information ahead of a data breach in May, and now its current and former customers are at risk of identity theft and tax fraud, according to a proposed federal class action.
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December 13, 2024
FCC Says It Won't Look At Telecom's SIM Card Beef Again
The FCC isn't going to rethink its contention that it has no say over a Haitian mobile carrier's decision to deactivate a bunch of SIM cards that were brought into the United States to trick the carrier into thinking calls from the U.S. were coming from the Caribbean country.
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December 13, 2024
EPA Mandates More Worker Safety For Carbon Tetrachloride
The U.S. Environmental Protection Agency finalized a rule this week on carbon tetrachloride exposure, requiring "robust" employee safety planning on worksites but continuing to allow for its use as a feedstock for refrigerants.
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December 13, 2024
IRS To Wrap Up Worker Retention Credits In 2025, Werfel Says
The Internal Revenue Service plans to wrap up processing next year for thousands of claims for tax credits meant to provide incentives for businesses that retained employees during the COVID-19 pandemic, agency Commissioner Daniel Werfel said Friday.
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December 13, 2024
ByteDance Ex-Coder Perjured Himself In Suit, Judge Finds
A California federal judge imposed terminating sanctions against a former engineer at TikTok's parent company, finding he committed perjury in a suit alleging he was wrongly fired and ordered the dispute to arbitration.
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December 13, 2024
Sexual Abuse, Price-Gouging Bills Clear Michigan Senate
Michigan state senators passed a flurry of bills during a marathon session ending early Friday morning, including legislation giving sexual assault victims more time to file lawsuits, strengthening protections against price-gouging and expanding polluter liability.
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December 13, 2024
GC Cheat Sheet: The Hottest Corporate News Of The Week
Albertsons and its general counsel claim Kroger did not try hard enough to keep their proposed merger from being blocked by the courts, and a new survey says tight budgets are forcing in-house counsel to increasingly turn to artificial intelligence tools for help.
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December 13, 2024
Calif.'s 1st-Ever Willful Heat Penalty Issued To Landscaper
The California Division of Occupational Safety and Health has levied its first-ever willful heat violation penalty against a landscaping and maintenance business for failing to provide workers with access to water when the temperature exceeded 95 degrees Fahrenheit, two years after it cited the company for similar heat-related safety violations.
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December 13, 2024
Texas AG Sues NY Doctor Over Telehealth Abortion Script
Texas Attorney General Ken Paxton sued a New York doctor who founded the Abortion Coalition for Telemedicine in the Lone Star State Friday, accusing the physician of violating Texas state abortion laws by providing abortion-inducing prescription drugs to a Texas resident via telehealth.
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December 13, 2024
Off The Bench: PE Buys In On NFL, WWE Abuse Suit Back On
In this week's Off The Bench, two teams usher in a new era for the NFL by bringing in private equity investors, a suit accusing the WWE and Vince McMahon of sexual abuse and trafficking picks back up while a federal investigation continues, and a private equity giant and NHL owner passes away.
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December 13, 2024
Justices To Decide If Industry Can Test Calif. Auto Waiver
The U.S. Supreme Court on Friday granted fossil fuel industry groups' request to review a decision backing the U.S. Environmental Protection Agency's Clean Air Act waiver that allows California to set its own greenhouse gas emissions standards for vehicles and run a zero-emission vehicles program, but the justices won't consider the legality of the waiver itself.
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December 13, 2024
Helicopter Co. Calls Whistleblower Suit 'Premature'
Sikorsky Aircraft Corp. told a Connecticut state court that a self-described well-known whistleblower failed to turn to the Occupational Safety and Health Administration before filing a lawsuit that accuses the company of firing him for reporting wage and hour and environmental violations, and it urged the court to toss the suit.
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December 13, 2024
Lawmakers Press Tech Giants As TikTok D-Day Looms
A pair of lawmakers on Friday leaned on TikTok to ensure it meets a Jan. 19 deadline to sell its operations or face a U.S. ban, while also pressing tech giants Apple and Google to be prepared to deplatform the video-sharing app if it refuses to sell.
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December 13, 2024
McKinsey To Pay $650M For Work With Opioid Maker Purdue
Consulting giant McKinsey & Co. will pay $650 million to resolve charges related to its work helping Purdue Pharma market and boost sales of OxyContin, federal prosecutors announced Friday.
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December 12, 2024
Cantor Fitzgerald To Pay SEC $6.75M Over SPAC Disclosures
Cantor Fitzgerald on Thursday agreed to pay a $6.75 million penalty to the U.S. Securities and Exchange Commission to resolve claims that it caused two special purpose acquisition companies that it controls to make misleading statements to investors ahead of the SPACs' initial public offerings.
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December 12, 2024
SEC Fines Investment Co. For Adviser's Cherry-Picking Scheme
The U.S. Securities and Exchange Commission announced Thursday that it fined SeaCrest Wealth Management $375,000 for allegedly failing to implement policies and procedures that would have possibly prevented the cherry-picking scheme of a former adviser, who is separately being sued by the agency.
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December 12, 2024
Electric Co-Ops Oppose Proposed FCC Customer Service Regs
The National Rural Electric Cooperative Association is adding its name to the list of those who think the Federal Communications Commission's plan to impose new rules surrounding customer service is a bad idea.
Expert Analysis
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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.
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What To Make Of Dueling Corporate Transparency Act Rulings
Although challenges to the Corporate Transparency Act abound — as highlighted by recent federal court decisions from Alabama and Oregon taking opposite positions on its constitutionality — the act is still law, so companies should comply with their filing requirements or face the potential consequences, say attorneys at Lowenstein Sandler.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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California's AI Safety Bill Veto: The Path Forward
California Gov. Gavin Newsom's veto of a bill that sought to impose stringent regulations on advanced artificial intelligence model development has sparked a renewed debate on how best to balance innovation with safety in the rapidly evolving AI landscape, say Bobby Malhotra and Carson Swope at Winston & Strawn.
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Staying Off The CFPB's Financial Services Offender Registry
The Consumer Financial Protection Bureau's soon-to-launch registry of financial services companies that have faced public enforcement orders is designed to ratchet up long-term scrutiny of entities that could become repeat offenders, so companies should take their new compliance and filing requirements seriously, say Andrea Mitchell and Chris Napier at Mitchell Sandler.