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Compliance
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November 26, 2024
Mass. AG Fines Burger King Franchises Over Labor Violations
The operator of dozens of Burger King franchises in Massachusetts was hit with $2 million in citations for wage and child labor violations, the state attorney general's office announced Tuesday.
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November 26, 2024
FTC Says AI Weapons-Screening Biz Hyped Faulty Scanners
The Federal Trade Commission on Tuesday accused Evolv Technologies of making false and unsupported claims that its AI-powered security screening products detect weapons while ignoring harmless personal items.
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November 26, 2024
IRS Confirms Commerce Payments In Chips Tax Credit
Semiconductor development projects that received funding awards from the U.S. Commerce Department's CHIPS incentives program are considered investments that can also take advantage of the advanced manufacturing tax credit, the Internal Revenue Service confirmed Tuesday in guidance.
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November 25, 2024
Ex-Wamco Exec Charged In 'Criminal Cherry-Picking Scheme'
Federal prosecutors have accused Ken Leech, the former chief investment officer of Western Asset Management Co., of participating in a $600 million "criminal cherry-picking scheme" in which he favored certain clients at the expense of others, according to an indictment unsealed Monday in New York federal court.
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November 25, 2024
Geico, Travelers To Pay NY $11.3M To Settle Data Security Row
New York's financial services regulator and attorney general revealed Monday that they've hit Geico and Travelers with $11.3 million in penalties for the auto insurers' alleged failure to adequately secure driver's license numbers, birth dates and other personal information that was compromised as part of a hacking campaign targeting online rate quote tools.
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November 25, 2024
'Shameful': Dems Rip Credit Bureaus Over Scrapped Hearing
Democratic senators on Monday lit into the Big Three credit bureaus for allegedly backing out of preelection commitments to testify last week before the Senate Banking Committee, calling the move "shortsighted and shameful."
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November 25, 2024
SEC Secured Historic $8.2B Enforcement Haul In 2024
The U.S. Securities and Exchange Commission obtained $8.2 billion in civil penalties and disgorgement via successful enforcement actions in 2024, the highest amount in the history of the agency despite a significant decline in total enforcement actions, the SEC has announced.
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November 25, 2024
Ad Tech Judge Says Google 'Completely Different' From Amex
The Virginia federal judge weighing the fate of Google's display advertising placement business cast doubt Monday on a key element of the company's defense, asserting during closing arguments that the U.S. Supreme Court's landmark Amex decision, requiring consideration of two-sided markets, is far removed from Google's ad tech stack.
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November 25, 2024
Cruz Calls Digital Equity Program Rules 'Unlawful'
Sen. Ted Cruz, R-Texas, is criticizing the U.S. Commerce Department's grant program created to encourage broadband use among minorities, saying it unlawfully discriminates based on race in distributing broadband funds.
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November 25, 2024
Gov't Defends EB-5 Rule That Hikes Up Petition Fees
The U.S. Department of Homeland Security and its U.S. Citizenship and Immigration Services agency pushed for an early win in Texas federal court against a suit challenging increases for filing fees for petitions related to USCIS' EB-5 immigrant investor program.
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November 25, 2024
Grayscale Seeks Win In Rival's $2M Unfair Practices Suit
Digital asset management firm Grayscale Investments LLC seeks a quick finding in its favor that certain securities-related conduct it is being sued over did not violate Connecticut's unfair trade practices law because the law has a securities matters carveout.
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November 25, 2024
Informant Says He Brought Developers To Madigan's Law Firm
An ex-Chicago alderman who wore a wire to meetings with former Illinois House Speaker Michael Madigan was back on the stand Monday describing how he arranged a meeting with developers of a Chicago apartment building at Madigan's law office, with jurors hearing a call in which Madigan said to "go ahead and process" a zoning change for that project after the alderman asked if the developer gave him legal work.
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November 25, 2024
Colo. Law Could Imperil Dual Banking System, 10th Circ. Told
Texas, Utah and other Republican-led states have joined industry calls for the Tenth Circuit to affirm a court-ordered hold on a Colorado law targeting higher-cost online lending, warning the measure could lead to the unraveling of the dual banking system.
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November 25, 2024
FHWA Says Rule Doesn't 'Compel' States To Lower Emissions
The Federal Highway Administration defended a new rule calling on states to set targets to reduce greenhouse gas emissions from federally funded highway projects, telling the Fifth Circuit in a Friday brief the rule doesn't actually compel states to lower their emissions.
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November 25, 2024
GATX Rips Norfolk Southern's Bid To Shift Derailment Liability
GATX Corp. and its subsidiary General American Marks Co. have told an Ohio federal court that Norfolk Southern cannot offload liability for the February 2023 East Palestine derailment and toxic chemical spill, saying there's zero evidence GATX improperly maintained or inspected a tank car involved in the accident.
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November 25, 2024
Kalshi's Election Contracts Are Here To Stay, DC Circ. Told
Prediction market advocates and legal scholars have told the D.C. Circuit that the U.S. Commodity Futures Trading Commission stretched existing statutes too far in its bid to block KalshiEx's election wagering market, and now that the votes are in, the agency's concerns that the markets would threaten election integrity have not borne out.
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November 25, 2024
FCC To Bar Fla. Telecom From Aid After Fraud Conviction
The Federal Communications Commission is looking to block a Florida-based wireless service provider from participating in any universal service programs for at least three years after it was convicted of conspiring to defraud the federal government through the agency's Lifeline Program for low-income phone users.
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November 25, 2024
Ex-DOJ Attorney Joins Moore Tax Law Group In Chicago
The Moore Tax Law Group has brought on a former trial attorney for the U.S. Department of Justice, Tax Division, the firm announced.
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November 25, 2024
FTC's Antitrust Case Against Meta Gets April Trial Date
A D.C. federal court has set an April 14 trial date for the Federal Trade Commission's antitrust case accusing Meta of monopolizing personal social networking through its acquisitions of Instagram and WhatsApp.
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November 25, 2024
Broker Appeals For Pause of FINRA's 'Unconstitutional' Case
A Philadelphia-area broker challenging the constitutionality of Financial Industry Regulatory Authority's in-house proceedings told a Pennsylvania federal judge on Monday the regulator's case against him should be put on ice while he argues his case before the Third Circuit.
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November 25, 2024
TMX Moves For Emergency Block On $52M Pa. Fine Hearing
An affiliate of TMX Finance asked a Texas federal court to pause Pennsylvania regulators' efforts to enforce the state's anti-usury laws against it, claiming it faced a "Hobson's choice" of responding to an enforcement proceeding whose legality was being questioned, or waiving its arguments and facing a $52.7 million fine.
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November 25, 2024
Colo. Justices Take Up Political Donor Secrecy Case
The Colorado Supreme Court on Monday agreed to consider whether election officials were allowed to fine a conservative political group for refusing to disclose its donors after it spent millions of dollars on state ballot questions in 2020.
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November 25, 2024
Calif. Board Seeks Comment On AI Rules Amid Pushback
The California Privacy Protection Agency on Friday opened the public comment period for its latest rulemaking package proposing expansive draft rules regulating technologies fueled by artificial intelligence — including in the employment, education, healthcare, consumer protection, banking and insurance contexts — which business groups have already criticized as being overly broad and burdensome.
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November 25, 2024
4th Circ. Stands By HELOC 'Offset' Ruling Against PNC
The full Fourth Circuit has declined to reconsider a panel decision that extended protections under the Truth In Lending Act by barring banks from dipping into a cardholder's deposit account to cover outstanding payments on a home equity line of credit without the borrower's consent.
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November 25, 2024
Quarles & Brady Lands Buchalter Employment Duo In Calif.
Quarles & Brady LLP has brought on a pair of Buchalter PC employment attorneys as partners in its San Diego office, marking the Milwaukee-based firm's latest expansion in the Golden State since arriving there through a merger nearly two years ago.
Expert Analysis
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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.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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How To Safely Leverage AI In The Digital Assets Industry
Digital asset businesses that use or plan to implement artificial intelligence should assess their risk management frameworks to ensure that AI-related business areas, including customer support and fraud detection, are in compliance with applicable laws and regulatory guidance from the last year, say attorneys at Winston & Strawn.
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What Cos. Can Learn from Water Microplastics Class Actions
Class actions against companies whose bottled spring water allegedly contains microplastics, challenging claims such as "natural" and "100% spring water," seem to be drying up — but these cases serve as a good reminder to other businesses to review regulatory standards, and carefully vet plaintiff allegations at the outset, say attorneys at Keller and Heckman.