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Compliance
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December 11, 2024
5th Circ. Tosses SEC's OK Of Nasdaq's Board Diversity Rule
A split Fifth Circuit ruled Wednesday that Nasdaq cannot implement U.S. Securities and Exchange Commission-approved rules requiring that companies listed on the exchange disclose board diversity data, finding that the stock exchange's rules run afoul of federal securities law.
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December 11, 2024
Feds Fire Back At TikTok's Bid To Halt Sale-Or-Ban Law
The federal government Wednesday urged the D.C. Circuit to reject TikTok's bid to pause legislation poised to bar the app from the U.S. market next month while it takes its First Amendment fight to the Supreme Court, arguing TikTok is "downplaying" national security concerns that prompted the law.
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December 11, 2024
FTC, DOJ Pull Antitrust Competitor Collaboration Guidelines
The Federal Trade Commission and the U.S. Department of Justice announced Wednesday that they are withdrawing Clinton-era antitrust guidelines for collaborations among competitors, saying they "no longer provide reliable guidance" about how collaborations are assessed.
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December 11, 2024
MDL Judge Rejects Meta's Claim Discovery Is Burdensome
A California federal magistrate judge overseeing discovery in multidistrict litigation over social-media platforms' allegedly addictive designs on Wednesday rejected Meta Platforms' arguments additional discovery sought by personal-injury plaintiffs is overly burdensome, noting that Meta's discovery production pales in comparison to the millions of documents that Meta has demanded from plaintiff states.
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December 11, 2024
Big Tech, 'Censorship' Animate Trump FTC Picks
President-elect Donald Trump's picks Tuesday to lead and join the Federal Trade Commission show he plans to continue Washington's focus on antitrust enforcement against major technology platforms, while also signaling a potential shift toward more populist Republican concerns alleging that Big Tech censors conservative voices.
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December 11, 2024
Grocery Store Rulings Back Enforcers' Merger Approach
Federal and state enforcers scored key victories Tuesday with a pair of court rulings blocking the planned $24.6 billion merger between Kroger and Albertsons that largely adopted their allegations about the deal and rejected a proposal to unload nearly 600 stores to save it.
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December 11, 2024
Ex-Telecom CEO Charged With Insider Trading On His Own Firing
The U.S. Department of Justice announced Wednesday that former Comtech Telecommunications Corp. CEO Ken Peterman has been charged with insider trading after he used nonpublic information about the company and his own impending termination to profit from the sale of tens of thousands of dollars' worth of Comtech stock.
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December 11, 2024
Texas Sues 3M And DuPont Over Forever Chemicals
Texas launched a suit against 3M and DuPont for "misrepresentations and key omissions" the companies made about so-called forever chemicals, telling a state court on Wednesday that the companies lied to the public about the harmful chemicals for over 50 years.
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December 11, 2024
Seminole Tribe Can't Intervene In Gaming Ad Suit, Court Told
A class action party is objecting to the Seminole Tribe of Florida's proposed intervention in the lawsuit, saying the tribe's interests are adequately protected by vendor Seminole Hard Rock Digital, which has already raised the tribe's defenses in successive motions to dismiss.
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December 11, 2024
Ex-Rep. TJ Cox Reaches Plea Deal On Fraud Charges
Former U.S. Rep. T.J. Cox reached a deal with California federal prosecutors and agreed to plead guilty to two charges and pay up to a $3.5 million fine over allegations he stole from his companies and took illegal campaign contributions, according to a plea agreement filed Wednesday.
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December 11, 2024
Split 9th Circ. Nixes Trump-Era Hospital Reimbursement Rule
A split Ninth Circuit on Wednesday struck down a U.S. Department of Health and Human Services policy that boosted the Medicare reimbursement rate for hospitals in lower-income communities, saying the agency's former secretary lacked authority to issue the policy despite his "laudable goal" of helping lower-wage hospitals.
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December 11, 2024
Tesla Stockholder Contests $345M Musk Pay Fight Fee In Del.
A Tesla Inc. stockholder has asked to intervene in the Delaware Court of Chancery class derivative case that scuttled CEO Elon Musk's 10-year, $55.6 billion compensation plan, citing objections to court approval of a stock or cash fee award for class attorneys worth $345 million.
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December 11, 2024
NRA Ordered To Reform Policies After NY Misconduct Verdict
A New York judge ordered changes to the National Rifle Association's board structure and organizational policies Wednesday to "prevent future violations of law," following a jury verdict that found widespread financial misconduct and whistleblower retaliation within the gun group.
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December 11, 2024
Justices Won't Block EPA Coal Ash Rule During Court Case
The U.S. Supreme Court on Wednesday rejected a Kentucky electric utility's effort to halt implementation of the U.S. Environmental Protection Agency's rule strengthening federal regulations for the safe management of coal ash.
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December 11, 2024
Wash. Port Asks Justices To Review 9th Circ. CWA Ruling
The Port of Tacoma urged the U.S. Supreme Court on Wednesday to answer what it calls a "longstanding circuit split" over whether private suits seeking to enforce state permit conditions that go beyond the Clean Water Act can proceed in federal court.
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December 11, 2024
Justices Question Affiliates' Liability In $47M TM Judgment
The U.S. Supreme Court on Wednesday questioned why lower courts ordered affiliates of a real estate company to pay a $47 million trademark infringement judgment against it when they were not defendants, with Justice Clarence Thomas asking counsel for the prevailing party why they did not include the affiliates in the case.
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December 11, 2024
DOJ Tells Justices To Preserve Antitrust Probe Into NAR
The U.S. Department of Justice told the U.S. Supreme Court that it made no commitment not to reopen its investigation into the National Association of Realtors as part of its 2020 consent decree with the company, urging the justices to reject the association's bid for a day before the high court.
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December 11, 2024
SEC Sues Disbarred Calif. Atty And Son For Securities Fraud
The U.S. Securities and Exchange Commission has filed a suit against a father-son duo and a broker for allegedly running a Ponzi-like scheme disguised as an investment company for a start-up content streaming app, raising over $17 million from at least 40 investors.
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December 11, 2024
Feds Say TD Bank Worker Helped Launder Drug Money
A former employee of TD Bank NA who worked in Florida has been arrested and charged with assisting in a money laundering scheme that used the Toronto-based financial institution to illicitly send millions of dollars in narcotics proceeds from the United States to Colombia, according to documents filed in federal court.
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December 11, 2024
LA Fitness Fights To End DOJ's Gym Accessibility Suit
LA Fitness urged a California federal judge to toss the U.S. Department of Justice's civil enforcement lawsuit alleging the gym chain failed to accommodate patrons with disabilities at its nearly 700 locations across the country, arguing the lawsuit relies on "isolated" incidents and doesn't show "a pattern and practice."
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December 11, 2024
Mixed 5th Circ. Backs $14M Exxon Texas Air Pollution Fine
A mixed Fifth Circuit on Wednesday backed a $14 million fine against ExxonMobil Corp. over air pollution in southeast Texas, with a per curiam opinion stating the court wouldn't have reheard the case if it had known it would take more than 18 months to issue an opinion.
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December 11, 2024
More Facts Needed In RJ Reynolds Tax Row, Mich. Court Says
More facts are needed on whether part of a $4.9 billion sale of trademarks by R.J. Reynolds to a Japanese company should be taxable in Michigan, a state court said Wednesday, declining to rule immediately.
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December 11, 2024
Cross-Border Criminal Antitrust Trial Will Stay In Houston
A case against a group of defendants accused of using violence to monopolize the cross-border sale of used cars from the U.S. into Central America must stay in Houston, a federal judge ruled this week.
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December 11, 2024
EPA Gives States, Tribes Clearer Path To Water Permit Power
States and Native American tribes have a clearer path to gaining the authority to set water pollution standards that may be even stronger than federal ones under a U.S. Environmental Protection Agency rule finalized Wednesday.
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December 11, 2024
Feds, Illinois Sue East St. Louis For Sewage Pollution
The federal government and state of Illinois sued the city of East St. Louis on Wednesday alleging its failure to operate the city's sewer system in compliance with the law has led to the pollution of local waterways with untreated sewage for years.
Expert Analysis
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False Patent Marking Claims Find New Home In Lanham Act
While the Patent Act may have closed the courthouse doors for many false patent marking claims, the Federal Circuit, in its recent decision in Crocs v. Effervescent, may be opening a window to these types of claims under the Lanham Act, says John Cordani at Robinson & Cole.
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Jarkesy May Short-Circuit FERC Enforcement Cases
As a result of the U.S. Supreme Court's June decision in U.S. Securities and Exchange Commission v. Jarkesy, the Federal Energy Regulatory Commission recently suspended an enforcement proceeding under the Natural Gas Act — and the commission's customary use of administrative hearings in such proceedings could face major changes, say attorneys at Willkie.
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Digging Into CFPB's Overdraft Fee Consent Guidance
Although a recent Consumer Financial Protection Bureau circular may seem unassuming, a closer read reveals the bureau is escalating its clampdown on nonconsensual debit card overdraft fees by expanding financial institutions' record-retention obligations beyond a two-year statutory requirement, say attorneys at Cooley.
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A Look At Calif. Biz Code And The Fight Over Customer Lists
To ensure Uniform Trade Secret Act security, California staffing agencies and their attorneys should review Section 16607 of the state Business Code, which prohibits contracts that restrain employees from engaging in other lawful types of business, to understand the process for determining whether a customer list constitutes a trade secret, says Skye Daley at Buchalter.
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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A Look At Insurance Coverage For Government Investigations
Attorneys at Jenner & Block discuss the quirks and potential pitfalls of insurance coverage for government claims and investigations, including those likely to arise from the U.S. Department of Justice's recently announced whistleblower program.
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UCC Article 12 Offers Banks A Chance To Dive Into 'DePINs'
The 2022 update to Article 12 of the Uniform Commercial Code, which provides a legal framework for decentralized physical infrastructure networks, could offer trade and commodity finance banks attractive opportunities, like the energy-related DePIN projects that have recently made headlines, says Chris McDermott at Cadwalader.
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Ex-Chicago Politician's Case May Further Curb Fraud Theories
The U.S. Supreme Court recently agreed to hear Thompson v. U.S. to determine whether a statement that is misleading but not false still violates federal law, potentially heralding the court’s largest check yet on prosecutors’ expansive fraud theories, with significant implications for sentencing, say attorneys at the Law Offices of Alan Ellis.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Crypto.com's Suit Against SEC Could Hold Major Implications
Crypto.com's recent lawsuit against the U.S. Securities and Exchange Commission could affect the operation and regulation of crypto markets in the U.S., potentially raising more questions about the SEC's authority to regulate the industry when it's unclear whether another agency is ready to assume it, say attorneys at McGuireWoods.
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Lessons For Municipalities Facing Cyberattacks
With municipal IT teams facing the daunting task of keeping agencies operational while safeguarding sensitive government data, including residents' and employees' personally identifiable information, there are steps a municipality can take to guard against a major cyberattack, say attorneys at Pillsbury.
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How DOJ's Visa Debit Monopolization Suit May Unfold
The U.S. Department of Justice's recently filed Section 2 monopolization suit against Visa offers several scenarios for a vigorous case and is likely to reveal some of the challenges faced by antitrust plaintiffs following the U.S. Supreme Court's split 2018 American Express decision, say attorneys at Mintz.
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8 Phrases Employers May Hear This Election Season
From sentiments about the First Amendment to questions about political paraphernalia, attorneys at Venable discuss several scenarios related to politics and voting that may arise in the workplace as election season comes to a head, and share guidance for handling each.
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New Export Control Guidance Raises The Stakes For Banks
Recent guidance from the Bureau of Industry and Security alerts banks that they could be liable for facilitating export control violations, the latest example of regulators articulating the expectation that both financial institutions and corporations serve as gatekeepers to mitigate crime and aid enforcement efforts, say attorneys at Freshfields.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.