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Compliance
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January 06, 2025
7th Circ. Affirms 'Do Not Call' Liability, But Balks At $28M Fine
The Seventh Circuit vacated a $28.6 million penalty against two sales companies over unwanted telemarketing calls Friday, but upheld a district court ruling that they shared liability, ordering the lower court to reconsider the penalty and whether the companies could pay it.
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January 06, 2025
CFPB Sues Berkshire-Owned Lender Over 'Risky' Home Loans
The Consumer Financial Protection Bureau filed suit Monday against a lending arm of Clayton Homes Inc., the Berkshire Hathaway-owned builder of manufactured homes, accusing it of underwriting failures that stuck vulnerable borrowers with unaffordable loans.
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January 06, 2025
Gemini To Pay CFTC $5M For Bitcoin Contract Statements
Crypto exchange Gemini has agreed to pay a $5 million penalty to the U.S. Commodity Futures Trading Commission to resolve claims that it misrepresented certain aspects of a proposed bitcoin futures contract, according to a settlement agreement filed in New York federal court on Monday.
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January 06, 2025
Fed's Barr To Step Down As Supervision Head Next Month
Federal Reserve Vice Chair for Supervision Michael S. Barr announced Monday that he will step down from his current role next month, a reversal that paves the way for President-elect Donald Trump to appoint his own head of the central bank's oversight of big banks and regulatory policymaking.
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January 06, 2025
Nippon, US Steel Hit Back With Suits After Biden Blocks Deal
Japan's Nippon Steel Corp. and U.S. Steel Corp. have filed two lawsuits following President Joe Biden's Friday decision to block their planned $14.9 billion merger, claiming Monday that the deal was blocked for "purely political reasons."
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January 03, 2025
3rd Circ. Won't Hit Brakes On NY Congestion Toll Launch
New York City's highly litigated congestion pricing toll program began Sunday morning after the Third Circuit denied an emergency motion for an injunction to delay it while an appeal by the state of New Jersey unfolds.
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January 03, 2025
Feds Fight Trump-Backed Bid For Justices To Stop TikTok Ban
The Biden administration on Friday urged the U.S. Supreme Court to reject a call backed by President-elect Donald Trump to freeze the looming deadline for TikTok to divest from its Chinese parent company or face a nationwide ban, arguing that the video-sharing app's First Amendment claims continue to fall flat.
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January 03, 2025
Boeing, DOJ Say No Agreement Yet For Revised 737 Max Plea
The Boeing Co. and the U.S. Department of Justice told a Texas federal judge Friday they have not yet reached an agreement on how to revise the aircraft manufacturer's plea agreement in the 737 Max criminal conspiracy case, after the judge last month rejected the initial deal.
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January 03, 2025
Real Estate Recap: All Eyes On '25
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including what the experts think is in store for 2025.
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January 03, 2025
Epic Slams Apple's 'Deeply Disturbing' Doc Review Delays
Epic Games Inc.'s counsel expressed shock Friday that Apple has only rereviewed 21,000 of more than 50,000 documents Apple claims are attorney-client privileged in their antitrust fight, telling a California magistrate judge during a hearing the number is "deeply disturbing" and "very low."
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January 03, 2025
TikTok's Live Feature 'Groomed' Minors, Utah AG Claims
TikTok has long known that its popular video livestreams encourage sexual content, including streams exploiting and "grooming" minors, according to details in a lawsuit from the state of Utah that were unredacted Friday.
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January 03, 2025
Hospital Org Inks $135M Deal To End Ex-CFO's Fraud Claims
Community Health Network has agreed to pay $135 million to end federal healthcare fraud claims brought by its former chief financial officer, a deal reached two years after the Indiana healthcare system agreed to pay $345 million to settle False Claims Act allegations from the government in the qui tam action, the ex-CFO's counsel announced Thursday.
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January 03, 2025
Fla. Gov't Contractor Agrees To Pay $1M Over Rigging Bids
A Florida owner of two government contractors agreed to fork over $1 million to the U.S. government to settle civil allegations he conspired with a Massachusetts-based company to submit false bids and resulted in driving up the cost of U.S. Department of Defense contracts, federal officials said Friday.
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January 03, 2025
CashCall Still On Hook For $134M To CFPB, 9th Circ. Rules
The Ninth Circuit on Friday affirmed a $134.1 million restitution payment CashCall Inc. owes to the Consumer Financial Protection Bureau, saying in a published opinion that the loan company's voluntary participation in a bench trial meant that it had waived a right to a jury trial.
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January 03, 2025
DOJ Wants Oct. Amedisys Trial, UnitedHealth Wants Aug.
The U.S. Department of Justice sparred with UnitedHealth Group in a Maryland federal court filing Friday over when to hold a trial on the government challenge to the $3.3 billion purchase of home health and hospice services company Amedisys Inc.
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January 03, 2025
FTC Fines AI Software Co. $1M Over Web Accessibility Claims
Software maker accessiBe will pay the Federal Trade Commission $1 million to settle the agency's allegations that the company misrepresented how its artificial intelligence-powered tool could make websites compliant with international guidelines for disability accessibility, the FTC announced Friday.
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January 03, 2025
CFPB Flags Concerns About Workplace Collections Calls
The Consumer Financial Protection Bureau has urged federal and state counterparts to "be on the lookout" for companies that call people at work in pursuit of past due debts, a practice the agency said can be unlawful and may need further legislative attention.
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January 03, 2025
FDIC 'Pause' Letters Focused On Banks' Crypto Activity
The Federal Deposit Insurance Corporation directed banks to pause the development of certain crypto products and services in 2022 but stopped short of scrutinizing banks' decisions to provide traditional services to crypto-focused customers, according to documents released by the regulator on Friday.
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January 03, 2025
In A First, JetBlue Fined $2M Over Chronic Flight Delay Claims
JetBlue Airways agreed on Friday to pay a $2 million penalty — the first of its kind — to resolve claims by the U.S. Department of Transportation that the airline operated chronically delayed flights on East Coast domestic routes at least 145 times between 2022 and 2023.
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January 03, 2025
Student Loan Servicer Gets CFPB Deal Paused Amid Appeal
Student-loan servicer Pennsylvania Higher Education Assistance Agency can pause its work on fulfilling a settlement with the Consumer Financial Protection Bureau while an appeal to the Third Circuit of an "intertwined" settlement with the loan holders plays out, a federal judge ruled Friday.
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January 03, 2025
Fund Manager Says Broker-Dealer's Retaliation Led To Losses
Financial services company Leader Capital Corp. has sued a broker-dealer and a marketing services company for allegedly making false and misleading representations to investors about Leader Capital's compliance with securities laws, causing at least $3.5 million in damage after the investors withdrew funds.
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January 03, 2025
NY Org. Settles, Churchill Downs Still In Horse Racing Fee Suit
The New York Racing Association has settled its portion of a federal suit accusing the Horseracing Integrity and Safety Authority of imposing illegal and unconstitutional fees on racetrack operators, while Churchill Downs remains in the court fight against the federally sanctioned private organization.
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January 03, 2025
Calif. Tribes Sue Casino Card Rooms Under New Law
Seven California tribes are taking advantage of a new state law that prohibits games in card rooms to sue a slew of private casinos, accusing them of brazenly profiting from illegal gambling.
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January 03, 2025
FTC Dems Eye Merger Review, Noncompete Legacy
Federal Trade Commission Democrats started the new year with legacy on the brain, urging the soon-to-be Republican majority in a pair of statements to preserve their more "stringent approach" to merger review and their currently blocked ban on employment noncompete agreements, despite heavy criticism both received from their GOP peers.
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January 03, 2025
Outcome Execs Say Ill. Judge Should End Restitution Process
Outcome Health's former executives say the Illinois federal judge working to calculate how much they should repay investors following their fraud conviction should end the "largely academic" exercise because prosecutors haven't shown financial loss, and other repayment avenues remain open.
Expert Analysis
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Mitigating Defamation Liability Risks Of AI-Generated Content
Until Congress and the courts provide clear guidance about defamation liability stemming from generative artificial intelligence tools, companies should begin building controls to prevent the creation of defamatory content, says Michael Gerrity at Accenture.
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Key Requirements In New Maryland Pay Transparency Laws
Although several jurisdictions now require pay transparency in job advertisements, Maryland's new law is among the broadest in the country, both in terms of what is required and the scope of its applicability, says Sarah Belger at Quarles & Brady.
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What Trump's Next Term May Mean For Biz Immigration
Leonard D'Arrigo at Harris Beach discusses the employment-based immigration policies businesses can potentially expect during President-elect Donald Trump’s second term, based on policies enacted during his first administration, statements made during his campaign and proposals in Project 2025.
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Takeaways From Final Regulations For China Investment Ban
The U.S. Department of the Treasury’s final rule banning U.S. investment in emerging Chinese technology clarifies some key requirements, includes additional exceptions for covered transactions and attempts to address concerns that the rule will put U.S. businesses at a competitive disadvantage, say attorneys at Simpson Thacher.
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Compliance Considerations Of DOJ Data Security Rule
Under the U.S. Department of Justice's proposed rule aiming to prevent certain countries' access to bulk U.S. sensitive personal data, companies must ensure their vendor, employment and investment agreements meet strict new data security requirements — or determine whether such contracts are worth the cost of compliance, say attorneys at Eversheds Sutherland.
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Balancing Health Tech Advances And Clinical Responsibility
To maintain their clinical responsibilities and mitigate potential legal risk, health professionals should incorporate the benefits of new medical technology powered by artificial intelligence while addressing its risks and limitations, says Kathleen Fisher Enyeart at Lathrop GPM.
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Nvidia Supreme Court Case May Not Make Big Splash
The skeptical tenor of the justices' questioning at oral argument in Nvidia v. Ohman Fonder suggests that the case is unlikely to alter the motion to dismiss pleading standard in securities class actions, as some had feared, say attorneys at WilmerHale.
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Lessons From EEOC Case Of Fla. Worker Fired After Stillbirth
A recent federal court settlement between a Florida resort and a fired line cook shows that the U.S. Equal Opportunity Employment Commission sees stillbirth as protected under the Pregnant Workers Fairness Act, also providing four other important lessons, says Gordon Berger at Pierson Ferdinand.
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AI Monitoring And FCRA: Employer Compliance Essentials
As the Consumer Financial Protection Bureau and the Federal Trade Commission signal determination to treat AI-based workplace surveillance as a potential Fair Credit Reporting Act issue, employers must commit to educating HR and compliance staff on these quickly evolving regulatory expectations, say attorneys at Sheppard Mullin.
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Series
Circus Arts Make Me A Better Lawyer
Performing circus arts has strengthened my ability to be more thoughtful, confident and grounded, all of which has enhanced my legal practice and allowed me to serve clients in a more meaningful way, says Bailey McGowan at Stinson.
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How D&O Coverage Can Aid Against Increased AI Scrutiny
The recent increase in regulatory enforcement and securities class actions stemming from corporate use of artificial intelligence should prompt companies to ensure that their directors and officers liability insurance coverage is appropriately tailored to AI-related risks, say attorneys at Reed Smith.
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Crypto Cos. Add New Play In Their Offense Against SEC
Consensys and Crypto.com have adopted a novel strategy of preempting U.S. Securities and Exchange Commission enforcement actions by moving to crypto-friendly Texas and filing declaratory lawsuits challenging the SEC's jurisdiction to regulate crypto-assets — an aggressive approach that may pay off, say attorneys at Herrick Feinstein.
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Recent Listeria Outbreaks Hold Key Compliance Lessons
Listeria outbreaks in ready-to-eat foods from Boar's Head and other companies, and the U.S. Department of Agriculture and U.S. Food and Drug Administration responses to these outbreaks, should be closely evaluated from an overall compliance and risk management perspective by food manufacturers, retailers and industry investors, say attorneys at Kirkland.
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FTC Focus: Zeroing In On Post-Election Labor Markets
The presidential election and the push-and-pull of the administrative state's reach are likely to affect the Federal Trade Commission's focus on labor markets, including the tenor of noncompete rule enforcement, say attorneys at Proskauer.
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OpenAI's Patent Pledge Is Not All It Seems
A recent statement that OpenAI won't assert its own patents is more of an aspiration than an obligation, and should prompt practitioners to think deeply about the underlying legal mechanisms of patent and contract law when determining the effectiveness of similar nonassertion pledges, say attorneys at McDonnell Boehnen.