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Compliance
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January 17, 2025
PE Firm Resolves FTC's Antitrust Anesthesia Roll-Up Case
Private equity firm Welsh Carson Anderson & Stowe agreed to limit its involvement, entanglement and ownership rights with its portfolio company U.S. Anesthesia Partners Inc. to resolve allegations they engaged in a "roll-up" scheme to buy anesthesiology practices in Texas and drive up costs, the Federal Trade Commission said Friday.
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January 17, 2025
CFPB, Student Loan Co. Ink $2.25M Deal Over Debt Practices
The National Collegiate Student Loan Trusts agreed to pay $2.25 million to resolve the Consumer Financial Protection Bureau's suit accusing it of harming borrowers through unfair collection tactics on private student loan debts, according to a joint motion to approve the stipulated judgment filed Thursday in Delaware federal court.
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January 17, 2025
Crypto Coder Sues Feds To Block 'Money Transmitter' Label
Crypto policy think tank Coin Center is supporting one of its fellows in suing the federal government over its allegedly "mistaken view" of how criminal money transition statutes apply to crypto software.
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January 17, 2025
SEC Says Food Tech Startup Overstated Revenue By $550M
The U.S. Securities and Exchange Commission on Friday fined venture-backed food technology startup GrubMarket $8 million for allegedly misleading investors by overstating revenue by more than $550 million, with faulty accounting that regulators say the company should have known was unreliable.
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January 17, 2025
Trade Group Sues To Stop Federal Mental Health Parity Regs
A benefits-focused employer trade group sued the U.S. Department of Labor and other federal agencies in D.C. federal court Friday, seeking to block recently finalized mental health parity regulations the group alleges are unconstitutional and violate administrative procedure laws.
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January 17, 2025
Hospice Compliance Program Uses Faulty Data, Providers Say
A Biden administration regulation that resulted in a list of hospice providers who fail to meet certain standards erroneously includes high-performing facilities because of its flawed algorithm, a group of hospice facilities in multiple states alleges.
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January 17, 2025
Ga. Judge Shoots Down Bias Deal Between Feds, Fire Dept.
A Georgia federal judge has shot down a deal that would have resolved allegations of racial bias in hiring against a metro Atlanta county's fire department, ruling that the proposed settlement with the U.S. Department of Justice lacked a basis to justify prioritizing future Black applicants.
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January 17, 2025
Honda Credit Arm To Pay $12.8M Over Reporting Failures
The Consumer Financial Protection Bureau on Friday ordered American Honda Finance Corp. to pay $12.8 million to resolve claims that it reported inaccurate information that affected the credit reports of 300,000 people who drive Honda and Acura vehicles.
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January 17, 2025
LPL Fined $18M Over Lax Anti-Money Laundering Compliance
The U.S. Securities and Exchange Commission on Friday fined LPL Financial LLC $18 million to settle claims that the firm's anti-money laundering program suffered from significant shortcomings, including the failure to close high-risk accounts such as cannabis-related and international accounts.
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January 17, 2025
CFPB Fines Equifax $15M Over Consumer Dispute Issues
Equifax Inc. and Equifax Information Services LLC must pay a $15 fine over its failure to investigate consumer disputes properly, the Consumer Financial Protection Bureau said Friday.
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January 17, 2025
Nasdaq Pulls Board Diversity Rules After 5th Circ. Loss
Nasdaq has moved to formally undo its rules requiring that companies listed on the exchange disclose board diversity data, following a narrow, en banc ruling from the Fifth Circuit last month finding that the rules ran afoul of federal securities law.
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January 17, 2025
Ex-Conn. State Employee Accused In $1.9M Medicaid Scam
A former employee of Connecticut's Office of Policy and Management is one of two people charged by federal authorities with defrauding the state Medicaid program out of nearly $1.9 million by submitting false claims for services for children with autism, the U.S. attorney's office said Friday.
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January 17, 2025
Feds Urge 9th Circ. To Restore Threatened Seals' Habitat
The federal government has asked the Ninth Circuit to overturn an Alaska federal district court judge who vacated the National Marine Fisheries Service's designation of critical habitat for Pacific bearded seals and Arctic ringed seals.
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January 17, 2025
Wells Fargo, BofA Units Pay SEC $60M Over Cash Sweeps
The U.S. Securities and Exchange Commission on Friday announced that Merrill Lynch and two units of Wells Fargo will pay a combined $60 million to settle claims they failed to implement preventative procedures concerning their cash sweep programs.
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January 17, 2025
FCC Mandates More Efforts To Combat Telecom Cyber Threats
The Federal Communications Commission has provided details of new requirements on telecom providers to counter cybersecurity threats, a late-hour move criticized several days ago by the agency's incoming Republican leadership before the new rules were formally released.
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January 17, 2025
Drink Maker Celsius Settles SEC's Accounting Claims For $3M
The U.S. Securities and Exchange Commission on Friday fined beverage company Celsius Holdings Inc. $3 million to settle claims that it issued financial statements that were materially inaccurate and misleading due to misreported stock award information.
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January 17, 2025
Energy Co. To Pay $19M SEC Fine Over Ohio Bribery Scandal
American Electric Power Inc. on Friday agreed to pay $19 million to resolve claims from the U.S. Securities and Exchange Commission that the utility company violated federal securities laws in connection with a bribery scandal embroiling the Ohio Legislature.
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January 17, 2025
DC Circ. Sends LNG-By-Rail Rule Back To Drawing Board
The D.C. Circuit on Friday wiped out a Trump-era rule allowing liquefied natural gas to be transported by rail and said any replacement rule must contain an extensive environmental review given the catastrophic risks of an accident or spill.
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January 17, 2025
Ex-Mozambique Finance Head Gets 8½ Years In $2B Bond Rap
A Brooklyn federal judge sentenced Mozambique's former finance minister to 8½ years in prison Friday for facilitating a corrupt $2 billion loans-for-bribes deal, ordering him to forfeit $7 million and imposing time beyond the six years the defendant has been incarcerated.
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January 17, 2025
SEC Fines Crypto Giant DCG, Ex-Genesis CEO $38.5M
Crypto venture capital firm Digital Currency Group and the ex-CEO of its bankrupt lending subsidiary Genesis Global Capital LLC agreed to a combined $38.5 million civil penalty Friday to settle claims they misled investors about Genesis' financial condition ahead of its collapse.
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January 17, 2025
SEC Fines Unregistered Broker $3M Over Pre-IPO Work
The U.S. Securities and Exchange Commission on Friday fined an unregistered broker $3 million to resolve charges for illegally brokering transactions related to the stock of private companies that were expected to conduct initial public offerings.
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January 17, 2025
EEOC Brought Back Record High $700M For Workers In 2024
The U.S. Equal Employment Opportunity Commission said Friday it secured "the highest monetary recovery in its recent history" by bringing in $700 million for workers in the 2024 fiscal year.
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January 17, 2025
EBay Can't Appeal Punitive Damages Ruling In Stalking Case
A Massachusetts federal judge has denied a request by eBay Inc. to ask the First Circuit whether it should have to face the possibility of punitive damages in a civil suit brought by a Bay State couple who say the e-commerce company waged a stalking and intimidation campaign against them.
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January 17, 2025
Vanguard To Pay SEC, States $106M Over Surprise Tax Bills
The U.S. Securities and Exchange Commission was joined by dozens of state regulators Friday in announcing a $106.4 million settlement with The Vanguard Group Inc. over claims that the company misled investors about the heightened capital gains taxes they would have to pay on certain retirement savings accounts.
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January 17, 2025
FTC Accuses Pepsi Of Giving Advantage To Favored Retailer
The Federal Trade Commission on Friday accused Pepsi of giving a big box retailer better terms and promotional payments, putting smaller competitors at a disadvantage.
Expert Analysis
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Looking Back At 2024's Noteworthy State AG Litigation
State attorneys general across the U.S. took bold steps in 2024 to address unlawful activities by corporations in several areas, including privacy and data security, financial transparency, children's internet safety, and other overall consumer protection claims, say attorneys at Troutman Pepper.
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What Broker-Dealers Must Know Before Selling Bitcoin ETPs
Interest in bitcoin exchange-traded products is already high, and only expected to grow in light of the incoming Trump administration's pro-crypto stance, but broker-dealers must still consider numerous regulatory requirements before recommending a bitcoin ETP to a client, say Frank Weigand and Justine Woods at Cahill Gordon.
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Updated FWS Regs Will Streamline Right-Of-Way Permitting
Although the U.S. Fish and Wildlife Service's final rule covering rights-of-way across lands administered by the service will bring increased up-front fees and stricter permit terms and conditions, it also provides a clearer application process and should reduce permitting delays and total costs, say attorneys at Holland & Hart.
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Cyber Disclosure Is A Mainstay In 2025 SEC Exam Priorities
Despite a new administration and a new U.S. Securities and Exchange Commission chair incoming, the SEC's 2025 examination priorities signal that cybersecurity disclosures and risk management practices will remain important due to the growing threat of cyberattacks, says Anjali Das at Wilson Elser.
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Reviewing 2024's Evolving EdTech Privacy Regulations
Lawmakers are trying to keep up with the privacy and security risks of the increasingly prevalent education technology, with last year's developments including the Federal Trade Commission's proposed amendments to the Children's Online Privacy Protection Act, and the U.S. Senate passing two new children's privacy acts, say attorneys at McDermott.
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Nippon, US Steel Face Long Odds On Merger Challenge
Following the Committee on Foreign Investment in the United States' review of Japan's Nippon Steel's proposed acquisition of U.S. Steel, the companies face a formidable uphill battle in challenging the president's exercise of authority to block the deal on national security grounds, say attorneys at Kirkland.
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Opinion
No, Litigation Funders Are Not 'Fleeing' The District Of Del.
A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.
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The Compliance Trends And Imperatives On Tap In 2025
The corporate ethics and compliance landscape is rapidly evolving, posing challenges from conflicting stakeholder expectations to technological disruptions, and businesses will need to explore human-centered, data-driven and evidence-based practices, says Hui Chen at CDE Advisors.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q4
Douglas Thompson at Snell & Wilmer highlights a number of recent and pending issues, actions and potentially pivotal federal regulatory and legislative developments on deck that will affect California banks and financial institutions.
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Hydrogen Regs Will Provide More Certainty — If They Survive
Newly finalized regulations implementing the Section 45V clean hydrogen tax credit allow producers more flexibility, and should therefore help put the industry on more solid footing — but the incoming Trump administration and Republican Congress will have multiple options for overturning or altering the regulations, say attorneys at Steptoe.
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Top 10 Noncompete Developments Of 2024
Following an eventful year in noncompete law at both state and federal levels, employers can no longer rely on a court's willingness to blue-pencil overbroad agreements and are proceeding at their own peril if they do not thoughtfully review and carefully enforce such agreements, say attorneys at Faegre Drinker.
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5 E-Discovery Predictions For 2025 And Beyond
In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.
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NY Plastic Pollution Verdict May Not Bode Well For Other Suits
The dismissal of New York state's public nuisance complaint against PepsiCo over pollution of the Buffalo River with the company's single use plastic bottles may not augur well for similar lawsuits filed by Baltimore and Los Angeles County, although tort law varies from state to state, say attorneys at Winston & Strawn.
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Key Ethical Issues For Gov't Attys Moving To Private Practice
Transitioning from government service to private practice presents complex ethical challenges for attorneys, including navigating conflicts of interest, confidential information rules and post-employment restrictions, say attorneys at HWG.
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Climate Disclosure Spotlight Shifts To 2 Calif. Laws
With Donald Trump's election spelling the all-but-certain demise of the proposed federal climate disclosure rules, new laws in California currently stand as the nation's only broadly applicable climate disclosure requirements — and their brevity is both a blessing and a curse, say attorneys at Davis Polk.