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Compliance
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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.
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January 03, 2025
CPSC, Apple Reach Agreement Over AirTag Battery Warnings
The U.S. Consumer Product Safety Commission on Thursday said Apple AirTags imported after March 2024 didn't have federally required warnings about the harms of swallowing the tracking devices, but the company has agreed to include warnings.
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January 03, 2025
GOP Defends FEC Discretion To Ax Campaign Finance Cases
The GOP is backing the Federal Election Commission's bid to preserve a line of D.C. Circuit cases barring judges from second-guessing the commission's refusal to take enforcement actions, urging the en banc appeals court to safeguard "the careful, conscious congressional plan for the agency."
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January 03, 2025
Booz Allen To Pay $15.8M To Settle False Claims Case
Booz Allen Hamilton struck a $15.8 million settlement with the federal government Friday, resolving claims a subsidiary submitted false claims under a contract meant to supply computer military training simulators to the U.S. Department of Defense.
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January 03, 2025
FCC Republicans Slam Marketplace Report As Falling Short
Republicans who are set to take control of the Federal Communications Commission blasted an agency report on the state of the communications marketplace, saying it fails to take into account the convergence of various broadband technologies.
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January 03, 2025
3 Firms Seek $36M Fee Award In 'Historic' NJ PFAS Deal
The Law Offices of John K. Dema PC, Kelley Drye & Warren LLP and Cohn Lifland Pearlman Herrmann & Knopf LLP have asked a New Jersey state court to award $36.7 million in attorney fees for their work in securing a $393 million deal over "forever chemical" contamination by Belgian chemical company Solvay as special counsel to the Garden State.
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January 03, 2025
Treasury Unveils Flexible Final Regs For Hydrogen Tax Credit
The U.S. Treasury Department released final rules Friday for hydrogen production tax credits that allow fuel produced using nuclear-generated electricity or methane to qualify for the incentive, making the regulations more flexible than what was proposed last year.
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January 03, 2025
FCC Hits Broadband Co. With $56K Fine For Default
The Federal Communications Commission has ordered an Illinois broadband provider to shell out more than $56,000 for allegedly defaulting on obligations under a federal program to expand high-speed internet service in unserved regions.
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January 03, 2025
FCC Says Cash On Way Soon For 'Rip And Replace'
The Federal Communications Commission says the additional $3.08 billion for its "rip and replace" program to get Chinese telecommunications equipment out of the nation's networks is on its way and will soon close a wide gap between what was originally allocated for the program and what telecoms say they need.
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January 03, 2025
Physician Assistant Can't Avoid Suspension For Hiding Probe
An Ohio appeals court has affirmed sanctions the state's medical board gave a physician assistant for not disclosing his employer's investigation into sexual misconduct allegations against him, rejecting the argument he misunderstood his obligation to report it on his license renewal application.
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January 03, 2025
Insurers Ordered To Pay $165M For Deceptive Marketing
Insurance companies banned from selling policies in Massachusetts due to alleged deceptive marketing practices have been ordered to pay $165 million for selling the plans anyway and using similar false advertising in their pitches to consumers, a state judge has ruled.
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January 03, 2025
Biden Blocks $14.9B US Steel-Nippon Deal
President Joe Biden on Friday formally blocked the planned $14.9 billion merger between Japan's Nippon Steel and U.S. Steel, making good on a prior pledge to keep the latter steelmaker U.S.-owned in one of his final flexes of executive power over cross-border deals.
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January 02, 2025
FTC Asks 5th Circ. To Revive Noncompete Ban
The Federal Trade Commission told the Fifth Circuit on Thursday the agency is authorized to make rules like the one that would ban enforcement of most employee noncompetes, arguing that a Texas district court took a "cramped view" of the agency's authority to promulgate rules that define unfair competition methods.
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January 02, 2025
Calif. Judge Ices Social Media Addiction Law For 30 Days
A California federal judge Thursday blocked the state from beginning its enforcement of a new law designed to bar online platforms from using algorithms to deliver addictive feeds to children, finding there was "great value" in giving the Ninth Circuit 30 days to consider his decision to largely uphold the measure.
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January 02, 2025
Ex-Bank Chair Asks 7th Circ. To Halt FDIC Enforcement Order
An Illinois community bank's onetime chairman has asked the Seventh Circuit for an emergency stay of professional sanctions ordered by the Federal Deposit Insurance Corp. after an in-house proceeding that he argues was unconstitutional and wrongly decided.
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January 02, 2025
DC Kept Disabled People In Restrictive Care Too Long: Ruling
After 15 years of litigation, a D.C. federal judge ruled this week that the District of Columbia has been violating a federal law that prohibits the segregation of people with disabilities by refusing to remove people from Medicaid-funded nursing homes into less restrictive forms of care.
Expert Analysis
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Cos. Must Brace For New PFAS Regulations And Litigation
The U.S. Environmental Protection Agency recently proposed adding over 100 per- and polyfluoroalkyl substances to the Toxic Release Inventory — and with increasing scrutiny of PFAS from the states and the plaintiffs bar as well, companies should take steps to reduce risks in this area, say attorneys at Dechert.
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Tips For Employers Facing Looming Immigration Changes
As Trump's second term heralds a challenging period for immigration policy, employers should look to lessons from his first administration as they implement strategies for their global talent programs and communications protocols, says Eileen Lohmann at BAL.
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Opinion
6 Changes I Would Make If I Ran A Law School
Reuben Guttman at Guttman Buschner identifies several key issues plaguing law schools and discusses potential solutions, such as opting out of the rankings game and mandating courses in basic writing skills.
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How Landlords Can Navigate Cannabis-Related Leases
As the cannabis industry continues to rapidly grow, landlords should consider a variety of lease terms and operational details that may help mitigate uncertainty involving federal laws, zoning restrictions and tax implications, says Kyla Baker at Holland & Knight.
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Using Data To Inform Corporate Disclosure Decisions
With today’s market volatility and regulatory factors requiring public companies to confront competing transparency and protection demands, incorporating stock price reaction analysis of company-specific news into the controller's role could be beneficial for disclosure determinations, say Liz Dunshee at Fredrikson & Byron and Nessim Mezrahi at SAR.
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How White Collar Attys Can Use Mythic Archetypes At Trial
A careful reading of a classic screenwriting guide shows that fairy tales and white collar trials actually have a lot in common, and defense attorneys would do well to tell a hero’s journey at trial, relying on universal character archetypes to connect with the jury, says Jack Sharman at Lightfoot Franklin.
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How CFPB Rule Would Affect Data Brokers And Beyond
The Consumer Financial Protection Bureau recently proposed a rule that would not only expand data broker oversight by classifying many as consumer reporting agencies, but would also impose new limitations on companies seeking to obtain information from them, potentially requiring such entities to alter their business models, say attorneys at Orrick.
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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Reviewing 2024's State Consumer Privacy Law Enforcement
While we are still in the infancy of state consumer privacy laws, a review of enforcement activity this year suggests substantial overlaps in regulatory priorities across the most active states and gives insight into the likely paths of future enforcement, says Thomas Nolan at Quinn Emanuel.
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5th Circ. Crypto Ruling Shows Limits On OFAC Authority
The Fifth Circuit's recent decision that immutable smart contracts on the Tornado Cash crypto-transaction software protocol are not "property" subject to Office of Foreign Assets Control jurisdiction may signal that courts can construe OFAC's authority more restrictively after Loper Bright, say attorneys at Morgan Lewis.
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Preparing For The New Restrictions On Investment Into China
In light of a new regulatory program governing U.S. investments in China-related technology companies of national security concern, investors should keep several considerations in mind, including the rules' effect on existing and new investments, compliance hurdles, and penalties for noncompliance ahead of the rules' January implementation, say attorneys at Gunderson Dettmer.
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Opinion
Congress Should Expand Investment Options For 403(b)s
Lawmakers should pass pending legislation to give 403(b) plan participants access to collective investment trusts, leveling the playing field for public sector retirement investors by giving them an investment option their private sector counterparts have had for decades, says Jason Levy at Great Gray Trust Company.
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AV Compliance Is Still A State-By-State Slog — For Now
While the incoming Trump administration has hinted at new federal regulations governing autonomous vehicles, for now, AV manufacturers must take a state-by-state approach to compliance with safety requirements — paying particular attention to states that require express authorization for AV operation, say attorneys at Frost Brown.
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Opinion
Antitrust Posturing Against Algorithmic AI Should End
President-elect Donald Trump needs to rein in the federal government's antitrust crusade against algorithmic AI, sending the message that antitrust enforcement must be grounded in evidence and real harm, says attorney David Balto, a former Federal Trade Commission assistant director of policy and evaluation.
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Risk Disclosure Issue Remains After Justices Nix Meta Case
After full briefing and argument, the U.S. Supreme Court recently dismissed Facebook v. Amalgamated Bank as improvidently granted, leaving courts with the tricky endeavor of determining when the failure to disclose a past event in an Item 105 risk disclosure is materially misleading, say attorneys at Lowenstein Sandler.