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Compliance
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December 17, 2024
Feds Intervene In $200M FCA Case Against CVS
The federal government has intervened in a whistleblower case accusing CVS and its subsidiaries of pocketing more than $200 million in overpayments, in order to defend the constitutionality of the False Claims Act's whistleblower provisions.
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December 17, 2024
CFPB Finalizes Rule For PACE Loans
The Consumer Financial Protection Bureau on Tuesday finalized a rule that applies standard mortgage protections to so-called Property Assessed Clean Energy loans, where homeowners pay for upgrades through property tax bills.
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December 17, 2024
Grubhub To Pay $25M To End FTC Suit Over Deceptive Tactics
The Federal Trade Commission and the Illinois attorney general teamed up Tuesday to announce a settlement that requires Grubhub Inc. to pay $25 million to resolve claims that the food-delivery service charged customers hidden junk fees, listed restaurants on its app without their permission and misled drivers about how much money they could make.
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December 17, 2024
Rival Says In-Flight Internet Provider Gogo Foils Competitors
SmartSky Networks LLC is seeking more than $1 billion in damages in a new lawsuit accusing Gogo Business Aviation LLC of blocking its entry in the market for internet service on business flights, building on an intellectual property dispute between the companies.
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December 17, 2024
US Seeks Foreclosure To Pay 'Survivor' Winner's $3.3M Taxes
A federal magistrate judge should have recommended allowing the U.S. government to foreclose on two properties it claims are controlled by a winner of the "Survivor" TV series who owes $3.3 million in taxes, the government told a Rhode Island federal court.
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December 17, 2024
Seattle, Solar Group Sue To Block Natural Gas Ballot Initiative
The city of Seattle and solar industry and environmental groups have sued the state of Washington to preserve municipalities' ability to curb natural gas use in new buildings, arguing a voter-approved measure blocking that power had unrelated provisions that made it unconstitutional.
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December 17, 2024
Senate Dem's Bill Would Mandate New FCC Outage Reports
Networks that receive funding to help them rebound from climate-related disasters would need to file new reports of outages to the Federal Communications Commission under a Democratic bill filed in the U.S. Senate.
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December 17, 2024
Apple Fights Epic's Atty Privilege Challenge Win Over Docs
Apple has asked a California federal judge to overturn a magistrate judge and allow it to withhold documents in a discovery spat with Epic Games, arguing Monday the documents in the antitrust case aren't simply business analyses but rather, reflect "'legal advice on a business decision,' which is protected."
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December 17, 2024
4 Recent Policy Developments Benefits Attys Should Know
A trio of federal agencies finalized new disclosure requirements for how health plans cover mental health treatments, states took steps to regulate pharmacy benefit managers, the U.S. Department of Labor's investment advice regulations failed in court, and Congress passed legislation to make compliance with the Affordable Care Act easier. Here, Law360 looks back at four policy-related developments in the employee benefits field from the latter half of 2024.
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December 17, 2024
IRS Corrects Proposed Admin Requirements For Direct Pay
The Internal Revenue Service issued a correction Tuesday to proposed regulations laying out administrative requirements for tax-exempt entities to elect out of their partnership status in order to take advantage of new rules enabling direct cash payment of clean energy tax credits.
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December 17, 2024
Groups Want Win In Partially Blocked Prevailing Wage Rule
The U.S. Department of Labor's final rule updating how prevailing wages are calculated under the Davis-Bacon Act should sink because it is arbitrary and capricious, a group of construction groups said, urging a Texas court to ax the rule after it partially blocked it.
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December 17, 2024
IRS Finalizes Expanded 'Coverage Month' For Premium Credit
The Internal Revenue Service finalized rules Tuesday that will expand the definition of a coverage month for purposes of computing the health insurance premium tax credit.
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December 16, 2024
Split SEC Will Require Certain Filings Be Made Electronically
A split U.S. Securities and Exchange Commission on Monday adopted rule amendments that require certain filings be made electronically, with Chair Gary Gensler saying the changes will streamline the commission's filing process.
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December 16, 2024
TikTok Brings Sale-Or-Ban Fight To High Court
TikTok asked the U.S. Supreme Court on Monday to stay a federal law that would force its owners to divest from the wildly popular social media app or shut its U.S. operation down just before Donald Trump's inauguration, saying his administration should get a say in the app's fate.
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December 16, 2024
'Plans Do Matter,' Tempur Sealy Says In Final Merger Hearing
Tempur Sealy made its final push Monday in support of its $4 billion planned Mattress Firm purchase, telling a judge during closing arguments that the Federal Trade Commission hadn't shown that the company planned to deviate from its intent for Mattress Firm to remain autonomous.
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December 16, 2024
Judge OKs Par Funding Receiver's Plan To Distribute $110M
A Florida federal judge on Monday approved a distribution plan by the receiver for Par Funding and authorized the first distribution of more than $110 million that the receiver has collected for the investors who were defrauded in a Ponzi scheme that raised nearly a half-billion dollars.
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December 16, 2024
Becton Dickinson To Pay SEC $175M Over Pump Claims
Becton Dickinson & Co. has agreed to pay $175 million to settle the U.S. Securities and Exchange Commission's allegations that the medical device manufacturer misled investors about the risks of selling its Alaris infusion pump and overstated its income, the agency announced Monday.
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December 16, 2024
High Court Faces Dueling Views Over EPA Rule Fights
The U.S. Supreme Court on Friday was presented with dueling arguments over whether the bulk of judicial challenges to U.S. Environmental Protection Agency air pollution rules should remain in the D.C. Circuit or can be heard in other, regional circuit courts.
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December 16, 2024
Disney, Fox And Warner Bros. Can't Duck Fubo's Antitrust Suit
A New York federal court refused dismissal bids Friday from Disney, Fox and Warner Bros. Discovery as they tried to duck an antitrust case over their sports-only streaming service, and also denied Fox's motion to sever the claims against it and transfer the venue to the Central District of California.
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December 16, 2024
AME Church Inks $20M Deal In Retirement Fraud Suit
The African Methodist Episcopal Church has agreed to pay $20 million to resolve a suit claiming it failed to step in when an employee embezzled $90 million from its retirement plan, according to a Tennessee federal court filing seeking an initial green light on the deal.
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December 16, 2024
Yodlee Judge 'Wrestling' With Invasion Of Privacy Question
A California federal judge considering financial data aggregator Yodlee's bid to dismiss allegations it unlawfully collected user data said Monday that she is "wrestling" with whether the company's retention of users' bank credentialing information gave those users standing for an invasion of privacy claim.
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December 16, 2024
Anchorage Digital Awarded BitLicense From NY Regulator
Anchorage Digital said Monday it has received a BitLicense from the New York State Department of Financial Services, allowing the cryptocurrency platform to offer regulated crypto trading to New York-based clients and giving it the ability to custody and settle trades through chartered custodian Anchorage Digital Bank.
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December 16, 2024
DC Circ. Skeptical That EPA Moved Too Early On Particulates
Judges on the D.C. Circuit seemed unlikely to buy arguments from industry groups and a coalition of Republican-led states challenging a February U.S. Environmental Protection Agency rule on particulate matter, grilling an attorney for the challengers on the agency's Clean Air Act authority during oral arguments Monday.
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December 16, 2024
Mich. Judge Troubled By Scope Of Feds' CTA Data Collection
A federal judge in Michigan said new disclosure requirements for small businesses seem burdensome and intrusive during a Monday hearing focused on the privacy implications of the currently blocked anti-money laundering law.
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December 16, 2024
SEC Says Colo. Nonprofit Flouting Probe Into Potential Fraud
The U.S. Securities and Exchange Commission has asked a Colorado federal judge to order a religious-themed financial literary organization to comply with a subpoena in the agency's investigation into possibly unregistered securities and crypto assets.
Expert Analysis
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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.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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Why State Captive Audience Laws Matter After NLRB Decision
As employers focus on complying with the National Labor Relations Board's new position that captive audience meetings violate federal labor law, they should also be careful not to overlook state captive audience laws that prohibit additional types of company meetings and communications, says Karla Grossenbacher at Seyfarth.
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What Bisphenol S Prop 65 Listing Will Mean For Industry
The imminent addition of bisphenol S — a chemical used in millions of products — to California's Proposition 65 list will have sweeping compliance and litigation implications for companies in the retail, food and beverage, paper, manufacturing and personal care product industries, say attorneys at Alston & Bird.
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SEC Custody Rule Creates Crypto Compliance Conundrum
While the U.S. Securities and Exchange Commission's application of the custody rule may be a good faith attempt to enhance consumer protections for client assets, it doesn't appreciate the unique characteristics of crypto-assets, forcing advisers to choose between pursuing their clients' objectives and complying with the rule, say attorneys at Willkie.
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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Tracking The Uncertainty Of The FTC's Negative Option Rule
The fate of the Federal Trade Commission's final rule requiring businesses that utilize negative options to provide consumers with a simple cancellation method remains in limbo as it faces multiple legal challenges and the threat of possible congressional action looms, say attorneys at Manatt.
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Corporate Liability Issues To Watch In High Court TM Case
The U.S. Supreme Court will hear arguments in a trademark dispute between Dewberry Group and Dewberry Engineers next week, presenting an opportunity for the court to drastically alter the fundamental approach to piercing the corporate veil, or adopt a more limited approach and preserve existing norms, say attorneys at Bracewell.
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Plugging Gov't Leaks Is Challenging, But Not A Pipe Dream
As shown by ongoing legal battles involving New York City Mayor Eric Adams and Sean “Diddy” Combs, it’s challenging for defendants to obtain relief when they believe the government leaked sensitive information to the media, but defense counsel can take certain steps to mitigate the harm, says Kenneth Notter at MoloLamken.
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Rethinking Clawback Policies For 2025 Compensation Season
The start of a new year presents an opportunity for companies to reassess their executive compensation clawback policies, and while mandatory Dodd-Frank clawbacks are necessary, discretionary policies can offer companies greater flexibility to address misconduct, protect their reputations and align with shareholder priorities, say attorneys at Debevoise.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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Federal Embrace Of Crypto Regs Won't Lower State Hurdles
Even if the incoming presidential administration and next Congress focus on creating clearer federal regulatory frameworks for the cryptocurrency sector, companies bringing digital asset products and services to the market will still face significant state-level barriers, say attorneys at Mayer Brown.
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SEC Prioritized Enforcement Sweeps As Cases Slowed In '24
Following three consecutive years of increasing activity, fiscal year 2024 marked the lowest number of cases the U.S. Securities and Exchange Commission has brought since Gary Gensler assumed office in April 2021, buttressed by some familiar enforcement sweeps, say attorneys at Covington.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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2 Cases Show DAOs May Face Increasing Legal Scrutiny
Two ongoing cases that recently survived motions to dismiss in California federal courts concerning Compound DAO and Lido DAO threaten to expand the potential liability for activity attributed to decentralized autonomous organizations — and to indirectly create liability for their participants, say attorneys at Cahill Gordon.