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Compliance
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April 18, 2025
5 Takeaways From Texas Stock Exchange's SEC Filing
The newly formed Texas Stock Exchange LLC is proposing rules that largely resemble those of the New York heavyweights it seeks to challenge, along with some notable differences, leaving questions on how the exchange will distinguish itself. Here are five takeaways from TXSE's securities filing.
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April 18, 2025
CFPB Mass Layoffs Blocked Again In DC Court
A D.C. federal judge once again halted the layoffs of more than 1,000 employees of the Consumer Financial Protection Bureau, saying at an emergency hearing Friday morning that she needed a full record to determine whether the firings complied with a D.C. Circuit order from last week.
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April 18, 2025
Capital One's Discover Deal Gets Bank Regulators' Approval
Capital One on Friday received the last regulatory sign-offs needed for its $35 billion purchase of Discover, putting the megadeal on track to close for the former while also clearing the decks of a more than $1 billion enforcement matter for the latter.
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April 18, 2025
DOJ To Move Ahead In SafeMoon Case Despite Crypto Memo
Prosecutors told a federal judge in Brooklyn on Friday that they plan to proceed with an investor fraud case against the CEO of crypto firm SafeMoon, having reviewed a Justice Department directive not to pursue certain charges related to digital assets.
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April 18, 2025
GC Cheat Sheet: The Hottest Corporate News Of The Week
Google and its chief legal officer have now lost two major antitrust cases to DOJ prosecutors after a federal judge ruled Thursday the search engine monopolized markets and servers related to display advertising. Meanwhile, a new study shows companies are disclosing their business risks, and how they are trying to mitigate those risks, amid changing tariffs and the uncertainty of the U.S.-China trade war. These are some of the stories in corporate legal news you may have missed in the past week.
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April 17, 2025
FTC To Narrow Data Privacy Scope As Uncertainties Loom
The Republican-led Federal Trade Commission is poised to pursue a data privacy agenda focused on established harms and statutory authorities rather than ambitious rulemaking, although the recent firing of two commissioners casts doubt on the long-term viability of these actions and the future of a crucial transatlantic data transfer pact.
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April 17, 2025
NY Judge Scrubs Groups' Anti-Congestion-Pricing Claims
A Manhattan federal judge on Thursday rejected claims from local residents and community groups alleging New York's revised congestion pricing tolls wrongfully discriminated against out-of-state commuters and unfairly benefited public transit riders instead of roadway users.
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April 17, 2025
Musk Blames Twitter Investors For 'Languish' In Case
Elon Musk on Thursday pushed back against a trial schedule proposed by a class of former Twitter investors in litigation accusing the right-wing billionaire of intentionally tanking the social media platform's stock price, saying the investors have caused the case to "languish."
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April 17, 2025
Polymarket Operator To Pay Fine Over Binary Options Claims
The Ontario Securities Commission said Thursday that the operators of prediction market platform Polymarket have agreed to a 200,000 Canadian dollar ($144,456) penalty over allegations it served Ontario customers despite the jurisdiction's ban on binary options.
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April 17, 2025
Sandberg Says FTC Market View Makes No Sense In Meta Case
Meta Platforms' former longtime board member and Chief Operating Officer Sheryl Sandberg pushed back Thursday on crucial Federal Trade Commission arguments trying to shape the market the social media giant is accused of monopolizing, criticizing a friends and family definition the FTC is using to exclude TikTok as a competitor.
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April 17, 2025
Ill. Sen. Planned To Report Red-Light Camera Exec, Jury Hears
An Illinois state senator accused of taking a bribe to help a red-light camera company testified Thursday that he "didn't have a chance" to report his questionable interactions closer to when they occurred in summer 2019, but he intended to raise his concerns later that fall.
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April 17, 2025
Feds Say Estonians Won't Be Deported Before Fraud Sentence
Prosecutors told a Washington federal judge Thursday that they had secured approval for "deferred action" from the Department of Homeland Security on potential immigration proceedings against two Estonian men awaiting sentencing for a cryptocurrency fraud scheme.
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April 17, 2025
Robocall Arb. Denied Despite Alleged Recording Of Consent
A federal judge declined to force a Tennessee man into arbitration in his suit accusing a health insurance brokerage of making illegal robocalls, ruling that the plaintiff had created enough doubt to get to trial.
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April 17, 2025
Think Tank Urges FCC To Drop $4.5M Fine Against Telnyx
A think tank claimed Thursday the Federal Communications Commission went too far when floating a nearly $4.5 million fine against a telecom for alleged robocall violations and that due process concerns call for rescinding the penalty.
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April 17, 2025
Arkansas Bans PBMs From Owning Pharmacies
Pharmacy benefit managers operating in Arkansas will soon be prohibited from owning pharmacies in the state after Gov. Sarah Huckabee Sanders signed a bill that lawmakers say is meant to minimize conflicts of interest and safeguard patients.
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April 17, 2025
Tribal Members Fight Bid To Transfer Canadian Tariff Dispute
Four members of Montana's Blackfeet Nation are fighting a motion by the federal government to transfer their bid to block several Trump administration orders and proclamations imposing tariffs on Canadian goods, arguing there's no legal basis for the move to the U.S. Court of International Trade.
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April 17, 2025
Globalstar Pushes For Feds' OK On Mobile Satellite Plan
Globalstar is pressing its bid for the Federal Communications Commission to approve its plan for a U.S. mobile satellite service using licensed spectrum in what's known as the "Big LEO" band.
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April 17, 2025
DC Circ. Refreezes EPA Climate Grant Funds
The D.C. Circuit has paused a federal court's order directing Citibank to start disbursing funds to nonprofits undertaking climate change projects that were appropriated by Congress to the U.S. Environmental Protection Agency during the Biden administration.
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April 17, 2025
Crypto Casino Owner Gambled With Investor Funds, Feds Say
The founder of a purported cryptocurrency casino was criminally charged with stealing millions of dollars from investors and gambling the funds away at a different online gambling platform and in the stock market.
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April 17, 2025
Lawmakers Probing Fire Truck Manufacturing For PE Harms
A bipartisan pair of senators has launched an investigation into the alleged adverse effects of private-equity driven consolidation in the multibillion dollar fire truck industry.
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April 17, 2025
NC Hospital Operator Can't Escape AG's Merger Suit Yet
A North Carolina Business Court judge rejected HCA Healthcare's bid for a partial win in state Attorney General Jeff Jackson's compliance suit reviewing the company's 2019 purchase of another hospital system, ruling that the purchase agreement's language is too ambiguous to decide the matter without further discovery.
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April 17, 2025
CFPB Mass Layoffs Resume, Hitting All Corners Of Agency
The Consumer Financial Protection Bureau's acting Director Russell Vought moved Thursday to resume mass firings at the agency, prompting a scramble from its employee union to head off a torrent of pink slips terminating the vast majority of the agency's workforce.
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April 17, 2025
Man's Deportation Looms After Tax Evasion Plea Stands
A Connecticut federal judge denied a man's attempt to vacate his guilty plea for tax evasion, despite accepting that his lawyers had misled him into believing that if he received no prison time he could avoid mandatory detention and likely deportation by U.S. Immigration and Customs Enforcement.
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April 17, 2025
AFL-CIO, Unions Can Pursue Some DOGE Access Claims
The AFL-CIO, unions and advocacy groups may pursue allegations that Elon Musk's Department of Government Efficiency lacks the power to access data from the U.S. Department of Labor and other federal agencies, a D.C. federal judge ruled while tossing some claims under federal administrative and privacy law.
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April 17, 2025
Harvard Says No Grounds For IRS To Deny Tax-Exempt Status
Harvard University said Thursday that there is no legal basis to rescind its tax-exempt status amid an investigation by President Donald Trump's administration into whether the university has violated the terms of that status.
Expert Analysis
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Series
Baseball Fantasy Camp Makes Me A Better Lawyer
With six baseball fantasy experiences under my belt, I've learned time and again that I didn't make the wrong career choice, but I've also learned that baseball lessons are life lessons, and I'm a better lawyer for my time at St. Louis Cardinals fantasy camp, says Scott Felder at Wiley.
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DOJ Immigration Playbook May Take Cues From A 2017 Case
A record criminal resolution with a tree trimming company accused of knowingly employing unauthorized workers in 2017 may provide clues as to how the U.S. Department of Justice’s immigration crackdown will touch American companies, which should prepare now for potential enforcement actions, says Jonathan Porter at Husch Blackwell.
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Paul Atkins' Past Speeches Offer A Glimpse Into SEC's Future
Following Paul Atkins' Thursday Senate confirmation hearing, a look at his public remarks while serving as a commissioner at the U.S. Securities and Exchange Commission between 2002 and 2008 reveals eight possible structural and procedural changes the SEC may see once he likely takes over as chair, say attorneys at Covington.
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NM Case Shows Power Of Environmental Public Nuisance Law
A recent ruling from a New Mexico appeals court finding that a pattern of environmental violations, even without any substantial impact on a nearby community, can trigger nuisance liability — including potential damages and injunctive relief — has important implications for regulated entities in the state, says Kaleb Brooks at Spencer Fane.
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McKernan-Led CFPB May Lead To Decentralized Enforcement
Though Jonathan McKernan’s confirmation as director would likely mean a less active Consumer Financial Protection Bureau, the decreased federal oversight could lead to more state-led investigations, multistate regulatory actions and private lawsuits under consumer protection laws, says Jonathan Pompan at Venable.
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Include State And Local Enforcers In Cartel Risk Evaluations
Any reassessment of enforcement risk following the federal designation of drug cartels as foreign terrorist organizations should include applicable state and local enforcement authorities, which have powerful tools, such as grand jury subpoenas and search warrants, that businesses would be wise to consider, say attorneys at King & Spalding.
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Series
Adapting To Private Practice: From Fed. Prosecutor To BigLaw
Making the jump from government to private practice is no small feat, but, based on my experience transitioning to a business-driven environment after 15 years as an assistant U.S. attorney, it can be incredibly rewarding and help you become a more versatile lawyer, says Michael Beckwith at Dickinson Wright.
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How Justices Rule On Straight Bias May Shift Worker Suits
Following oral argument at the U.S. Supreme Court in Ames v. Ohio Department of Youth Services, in which a heterosexual woman sued her employer for sexual orientation discrimination, the forthcoming decision may create a perfect storm for employers amid recent attacks on diversity, equity and inclusion, say attorneys at Proskauer.
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How Del. Supreme Court, Legislature Have Clarified 'Control'
The Delaware Supreme Court's January decision in In re: Oracle and the General Assembly's passage of amendments to the Delaware General Corporation Law this week, when taken together, help make the controlling-stockholder analysis clearer and more predictable for companies with large stockholders, say attorneys at Baker Botts.
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What To Expect For Stem Cell Regulation Under Trump Admin
The new administration's push for deregulation, plus the post-Chevron legal landscape, and momentum from key political and industry players to facilitate stem cell innovation may create an opportune backdrop for a significant reduction in the U.S. Food and Drug Administration's regulatory framework for stem cells, say attorneys at Sheppard Mullin.
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Opinion
SEC Shouldn't Complicate Broker-Dealers' AML Compliance
Recent U.S. Securities and Exchange Commission anti-money laundering enforcement actions show that regulators should not second-guess broker-dealers' reasonable judgment, or stretch the law or their jurisdiction to regulate through enforcement, lest they expect broker-dealers to vigorously defend their AML programs, say attorneys at WilmerHale.
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Executive Orders Paving Way For New Era Of Crypto Banking
Recent executive orders have already significantly affected the day-to-day operations of financial institutions that have an interest in engaging with digital assets, and creating informed strategies now can support institutions as the crypto gates continue to open to the banking industry, say attorneys at Spencer Fane.
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PG&E Win Boosts Employers' Defamation Defense
A California appeals court's recent Hearn v. PG&E ruling, reversing a $2 million verdict against PG&E related to an ex-employee’s retaliation claims, provides employers with a stronger defense against defamation claims tied to termination, but also highlights the need for fairness and diligence in internal investigations and communications, say attorneys at Kaufman Dolowich.
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How Calif. Algorithmic Pricing Bills Could Affect Consumers
California's legislative efforts to regulate algorithmic pricing may address antitrust and fairness concerns, but could stop retailers from providing consumer discounts, says Alyssa Sones at Sheppard Mullin.
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Justices' False Statement Ruling Curbs Half-Truth Liability
The U.S. Supreme Court’s recent Thompson v. U.S. decision clarified that a federal statute used to prosecute false statements made to bank regulators only criminalizes outright falsehoods, narrowing prosecutors’ reach and providing defense counsel a stronger basis to challenge indictments of merely misleading statements, says Tamara de Silva at De Silva Law Offices.