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Compliance
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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.
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December 11, 2024
Nippon Offers $5K Bonuses To Ease US Steel Deal Concerns
Nippon Steel Corp. has committed to providing $5,000 closing bonuses to employees of U.S. Steel in hopes of easing concerns about the controversial $14.9 billion merger between the two companies, which both the sitting and incoming president have said they oppose.
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December 11, 2024
FCC Allows Full 6 GHz Band For Unlicensed Wireless Devices
The Federal Communications Commission on Wednesday opened two more slices of the 6 gigahertz airwaves to power unlicensed wireless uses ranging from augmented reality to body-worn technologies.
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December 11, 2024
Ozy Media Ex-CEO's Atty Seeks More Time Or OK To Quit
An attorney for former Ozy Media Inc. CEO Carlos Watson asked a New York federal judge Wednesday for permission to withdraw from Watson's fraud and identity theft case unless he and other defense counsel can have more time to prepare for sentencing proceedings set to begin Friday.
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December 11, 2024
Conn. Attorney General In Line To Helm National Association
Connecticut Attorney General William Tong is the new president-elect of the National Association of Attorneys General, his office announced and the association confirmed Wednesday.
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December 11, 2024
DC Circ. Lets Pipeline Safety Rule Remain Amid Agency Fix
The D.C. Circuit has agreed to leave in place one of four new safety standards for gas transmission pipelines while the U.S. Department of Transportation works to amend them, after an industry group said not doing so could cause unnecessary repair costs.
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December 11, 2024
Former SEC Unit Chief Joins Gibson Dunn In NY
Gibson Dunn & Crutcher LLP said Monday that a veteran of more than 14 years at the U.S. Securities and Exchange Commission is joining its New York office.
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December 11, 2024
Developer, Feds Ask Justices To Pass On Offshore Wind Case
The federal government and Vineyard Wind 1 LLC are urging the U.S. Supreme Court to reject a Massachusetts group's latest bid to block the large offshore wind farm taking shape in waters off Nantucket and Martha's Vineyard.
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December 11, 2024
CFPB's Chopra Won't Head For Exit Ahead Of Trump's Arrival
Consumer Financial Protection Bureau Director Rohit Chopra signaled Wednesday that he won't leave his post early unless and until the incoming Trump administration fires him next month, indicating that he plans to keep running the agency in the meantime.
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December 11, 2024
Justices' Cold Feet On Nvidia, Meta Leaves Attys Guessing
The U.S. Supreme Court threw out a second securities case on Wednesday by refusing to issue a ruling in a Nvidia Corp. case with no explanation on its change of heart, leaving the defense bar to guess at the court's motivation and its potential implication for the future of high court securities cases.
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December 11, 2024
Albertsons Sues Kroger In Chancery After Blocked Megadeal
Grocery giant Albertsons, in a Wednesday lawsuit in the Delaware Court of Chancery, said Kroger did not put forth its "best efforts" into getting their planned $24.6 billion megamerger cleared while also announcing official plans to nix the deal, moves that came just one day after two judges blocked the proposed acquisition.
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December 10, 2024
Md. Jury Convicts Ex-Biotech Execs On Some Fraud Counts
Two former biotech executives were convicted on some counts Monday following a monthlong Maryland federal court trial in a case alleging they juiced CytoDyn Inc.'s share price by lying to investors about the development of a drug to treat HIV and COVID-19.
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December 10, 2024
SEC Says Ex-Rep Defrauded Investors With Short-Term Bets
A former registered representative of broker-dealer Western International Securities Inc. has agreed to pay over $2.1 million to end U.S. Securities and Exchange Commission allegations he orchestrated a scheme to defraud retail clients by recommending costly investment strategies, and then covered up their "substantial" losses with phony financial statements.
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December 10, 2024
SEC Outlines Municipal Adviser Exam Process
The U.S. Securities and Exchange Commission's Division of Examinations has issued a risk alert outlining its process for selecting municipal advisers to examine, how advisers can prepare for exams, and the types of information examiners may request.
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December 10, 2024
9th Circ. Upholds $850K Penalty In EPA Fine Suit
The Ninth Circuit on Tuesday upheld a $850,000 penalty against Multistar Industries Inc. for Clean Water Act violations related to chemical storage, saying it agrees with the Environmental Protection Agency's view that the company was not exempt from the rules for storing hazardous materials.
Expert Analysis
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Fluoride Ruling Charts Path To Bypass EPA Risk Evaluations
A California federal court's recent ruling in Food and Water Watch v. U.S. Environmental Protection Agency, ordering the agency to address the public health risks of fluoridated drinking water, establishes a road map for other citizen petitioners to bypass the EPA's formal risk evaluation process, say attorneys at Wiley.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Don't Phone A Friend: Disclosing Friendships With Executives
The U.S. Securities and Exchange Commission's recent settlement against a former Church & Dwight chairman for violating proxy disclosure rules by neglecting to disclose his friendship with an executive officer amid a CEO search illustrates the perils of relying solely on responses to questionnaires circulated to boards, say attorneys at BCLP.
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Planning For Cyber Incident Reporting Requirements In Sports
Attorneys at Wiley discuss the proposed rules under the Cybersecurity Incident Reporting for Critical Infrastructure Act that would impose extensive reporting requirements on professional and collegiate athletic organizations, universities and sports venues, including defining a covered entity and analyzing the types of events that would trigger reporting.
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Why Diversity Jurisdiction Poses Investment Fund Hurdles
Federal courts' continued application of the exacting rules of diversity jurisdiction presents particular challenges for investment funds, and in the absence of any near-term reform, those who manage such funds should take action to avoid diversity jurisdiction pitfalls, say attorneys at Sher Tremonte.
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The Ups And Downs Of SEC's Now-Dissolved ESG Task Force
The U.S. Securities and Exchange Commission's Climate and ESG Enforcement Task Force, which was quietly disbanded sometime over the summer, was marked by three years of resistance from some stakeholders to ESG regulation, a mixed record in the courts and several successful enforcement actions, say attorneys at Crowell & Moring.
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FDIC Guidance Puts Next-Gen ATMs In Regulatory Spotlight
The boring existence of ATMs is changing thanks to the emergence of new-age interactive teller machines, prompting the Federal Deposit Insurance Corp. to sound off in a potentially influential August letter to branches on which services might need regulatory approval, says Thomas Walker at Jones Walker.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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Understanding New ACH Network Anti-Fraud Rules
Many of the National Automated Clearing House Association’s recent amendments to ACH network risk management rules went into effect this month, so financial institutions and corporations must review and update their internal policies as needed, says Aisha Hall at Taft.
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Useful Product Doctrine May Not Shield Against PFAS Liability
Courts have recognized that companies transferring hazardous recycled materials can defeat liability under environmental laws by showing they were selling a useful product — but new laws in California and elsewhere restricting the sale of per- and polyfluoroalkyl substances may change the legal landscape, says Kyle Girouard at Dickinson Wright.
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The OIG Report: Bad Timing For FEC To Be Underresourced
With less than two weeks to the election, the Federal Election Commission’s job has never been more urgent, but a report from its Office of the Inspector General earlier this year found that the agency is facing a resource squeeze that will only get worse without corrective action, says Diana Shaw at Wiley.
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Tobacco Surcharge Suits Spotlight Wellness Reg Compliance
A mounting wave of tobacco-user surcharge litigation against employee benefit plans highlights compliance challenges associated with the Health Insurance Portability and Accountability Act wellness regulations, and reminds plan sponsors to ask existential questions about the utility of their wellness programs, say Finn Pressly and Lesley Wolf at Ballard Spahr.
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6 Tips For Cos. Facing Service Provider Cyber Incidents
When a third-party service provider experiences a cybersecurity incident, businesses may wonder if their information is compromised and if their systems are safe, but there are certain steps that can help businesses prepare for and respond to targeted attacks on vendors, say attorneys at Troutman Pepper.
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SEC Fine Shows Risks Of Nonpublic Info In X, LinkedIn Posts
The U.S. Securities and Exchange Commission recently announced a settlement with DraftKings over charges arising from posting material nonpublic information on the CEO's social media accounts, highlighting that information posted to company websites and social media sites does not automatically qualify as "publicly disclosed" for purposes of Regulation FD, say attorneys at O'Melveny.
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What To Know About New Employment Laws In Fla.
Florida employers should familiarize themselves with recent state laws, and also federal legislation, on retirement benefits, teen labor and heat exposure, with special attention to prohibitions against minors performing dangerous tasks, as outlined in the Fair Labor Standards Act, say Katie Molloy and Cayla Page at Greenberg Traurig.