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Consumer Protection
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November 01, 2024
'Mutant Ape' NFT Developer Avoids Prison For 'Rug Pull'
A 26-year-old French citizen was spared further incarceration on Friday for a $2.9 million scheme to fraudulently market "Mutant Ape Planet" nonfungible tokens to investors, a sentence in large part driven by the uncertainty over the purchasers' loss.
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November 01, 2024
Delta Rips 'Transparent' CrowdStrike Bid To Duck Liability
Delta Air Lines on Friday pressed a Georgia federal court to throw out CrowdStrike's declaratory judgment action against it, arguing that it's merely a "transparent attempt" to avoid the airline's own state court suit blaming the cybersecurity firm for the July outage that crashed millions of computers worldwide.
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November 01, 2024
Meet The Attys Arguing Meta's High Court Disclosure Suit
Both Meta Platforms and its investors are calling in the big guns as two U.S. Supreme Court veterans are set to go head-to-head Wednesday in a case that could limit the types of information corporations are required to disclose to shareholders.
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November 01, 2024
EBay Must Face Punitive Damages For Some Stalking Claims
A Massachusetts federal judge held Friday that a pair of bloggers can pursue punitive damages from eBay Inc. on some of their civil claims over an "extraordinary and troubling" harassment campaign orchestrated by the e-commerce giant's security staffers.
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November 01, 2024
Wheeling & Appealing: The Latest Must-Know Appellate Action
One circuit court will hold an oral argument for the history books, with dizzying logistics and stakes surpassing almost anything on the U.S. Supreme Court's calendar. Other circuit showdowns will delve into the high court's latest opinions and flesh out fascinating feuds involving big beer brands and emerging theories of "administrative state" overreach. All that and more is making November a month of exceptional appellate intrigue.
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November 01, 2024
Boeing Supplier Should Win Texas Probe Suit, Judge Says
A magistrate judge on Friday recommended a Texas federal judge grant Spirit AeroSystems Inc.'s bid to permanently enjoin a Texas statute requiring businesses to immediately comply with the state's demand to examine business records, saying the statute is unconstitutional.
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November 01, 2024
'Razzlekhan' Asks For Time Served For Role In Crypto Hack
The wife of a hacker convicted for his role in a scheme to steal bitcoin worth billions of dollars from crypto exchange Bitfinex has asked to dodge future prison time ahead of sentencing for her role laundering the scheme's proceeds.
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November 01, 2024
Suit Calls School Lunch Pay Processors Junk Fee 'Bullies'
Three parents filed a proposed class action in New Jersey federal court alleging consumer fraud against a major school lunch payment processor, saying it has misrepresented the purpose of the "junk fees" it charges for electronic transactions that are imposed on families mostly just for profit.
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November 01, 2024
Crypto Co. Gemini Teed Up For CFTC Trial After Appeal Denied
A New York federal judge has denied crypto exchange Gemini's bid to immediately appeal his decision that Gemini could be held liable for alleged misrepresentations to the U.S. Commodity Futures Trading Commission concerning its proposed bitcoin futures contract, sending the case to trial.
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November 01, 2024
Cloud Co. To Pay $300K Over FCC Subsidy Fund Paperwork
Cloud communication company Fuze Inc. is going to be shelling out $300,000 to the Federal Communications Commission for not following certain rules related to Universal Service Fund contributions, the agency said Friday.
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November 01, 2024
5th Circ. Punts On Bid To Stay CFPB Small Biz Rule
The Fifth Circuit said Thursday it won't immediately start tolling compliance deadlines for the Consumer Financial Protection Bureau's small business lending data collection rule and will reserve judgment on whether to stay the rule pending an appeal by the bank trade groups challenging it.
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November 01, 2024
Kroger Blasts 'Food Desert' Fears From Wash. Nonprofits
Kroger and Albertsons said the trial judge in Washington's bid to block a $24.6 billion merger should reject amicus briefs from two cities, a food bank and a poverty nonprofit, saying their assertions that the deal would inflate grocery prices and create food deserts in some communities rehash claims by activists and the media.
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November 01, 2024
CFPB Inks Deal With Townstone Over Redlining Claims
The Consumer Financial Protection Bureau informed an Illinois federal court on Friday that it has reached a settlement with Townstone Financial resolving its redlining claims against the mortgage lender.
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November 01, 2024
Paramount Sends User Data To Facebook, TikTok, Suit Says
Paramount Global faces a proposed class action in New York federal court by a subscriber who accuses the streaming giant of sharing users' personally identifiable information, including their viewing history, with third parties like Facebook, TikTok and Google without permission, in violation of the Video Privacy Protection Act.
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November 01, 2024
Egg Producer Milo's Sued Over Salmonella Contamination
An egg producer was hit Thursday with a proposed class action in Wisconsin federal court over a recent recall that came after U.S. Food and Drug Administration tested and found samples that tested positive for salmonella bacteria.
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November 01, 2024
Health Data Co. Urges 4th Circ. To Keep Access Open
Nursing home data analytics company Real Time Medical Systems urged the Fourth Circuit on Friday to keep in place an order that stops electronic medical records company PointClickCare from using unsolvable captcha prompts to block access to patient records.
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November 01, 2024
CFPB Fines VyStar $1.5M For 'Botched' Web Platform Rollout
The Consumer Financial Protection Bureau has fined VyStar Credit Union $1.5 million for an alleged "botched" rollout of a new online banking platform that made it hard for members to perform basic banking functions for weeks, with some features unavailable for more than six months.
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November 01, 2024
Amazon Denies Alexa Spying Claims, Seeking Class Suit Win
Amazon is trying to stamp out a proposed class action in Washington federal court brought by Alexa users who claim the device surreptitiously recorded their personal conversations, saying years of discovery has shown audio from their accidental device activations was never exploited by the company or even subject to human review.
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November 01, 2024
Blockchain Gaming Co. Immutable Says SEC May Bring Suit
Blockchain gaming firm Immutable said Friday that the U.S. Securities and Exchange Commission is considering bringing an enforcement action after the firm received notice of the regulator's scrutiny on an "accelerated timeline" ahead of the U.S. election.
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November 01, 2024
Electric Co-Ops Urge NTIA To 'True Up' Broadband Funding
Electric cooperatives want the U.S. Commerce Department to implement a "true-up" process to ensure that only locations still in need of reliable broadband match well with federal funds available under a $42.5 billion spending program to deploy service in unserved areas.
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November 01, 2024
Judge In Philly Inquirer Data Sharing Case Won't Join Class
The Pennsylvania federal judge overseeing a consolidated action accusing the Philadelphia Inquirer of sharing subscribers' video viewing habits with Meta is eligible to join the class, but has decided to renounce his right to class membership in order to continue being the judge.
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November 01, 2024
Up Next At High Court: Fed Funds And Securities Risks
The U.S. Supreme Court will return to the bench Monday for its November arguments session, which will start off with a debate over whether the Federal Communications Commission telecom subsidy program involves federal funds subject to the False Claims Act, and on Tuesday how Medicare funding should be calculated for hospitals that serve large numbers of low-income patients.
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November 01, 2024
Capital One Says CFPB Eyeing Case Over Savings Accounts
The Consumer Financial Protection Bureau is considering whether to pursue an enforcement action against Capital One over the interest rates it pays on high-yield savings accounts that are the subject of ongoing class action litigation, the financial services company said.
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November 01, 2024
US Must Revamp Spectrum Policy To Compete, Org. Says
The U.S. is on the verge of a "great strategic blunder" by allowing its spectrum auction authority to lapse and setting aside too much spectrum for short-range unlicensed wireless use, risking the loss of its competitive edge to China, a think tank says.
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November 01, 2024
Tree Removal Co. Swindled Helene Victims, NC AG Says
A landscaping business fleeced a western North Carolina couple for tree removal services after Hurricane Helene, dropping tree limbs into their house through a hole in the roof and then leaving without finishing the job, according to a new complaint filed by the state's attorney general.
Expert Analysis
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Empathy In Mediation Offers A Soft Landing For Disputes
Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.
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A Look At The Increased Scrutiny Of Cash Sweep Programs
Financial industry regulators have increasingly probed the adequacy of so-called cash sweep disclosures and policies, underscoring the heightened risk faced by investment advisers and broker-dealers, as well as the importance of adequately disclosing material conflicts of interest, say attorneys at Dechert.
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Series
Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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Election Outcome Could Reshape Financial Industry
The policies of the next presidential administration and Congress will shape the landscape of financial services in the U.S. — including banking, mortgage, investment and credit services — for years to come, affecting Wall Street investors and aspiring homeowners alike, say Alexander Hecht and Frank Guinta at Mintz.
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Consider The Impact Of Election Stress On Potential Jurors
For at least the next few months, potential jurors may be working through anger and distrust stemming from the presidential election, and trial attorneys will need to assess whether those jurors are able to leave their political concerns at the door, says Ken Broda-Bahm at Persuasion Strategies.
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How Judiciary Can Minimize AI Risks In Secondary Sources
Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.
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3 Steps For Companies To Combat Task Scams
On the rise in the U.S., the task scam — when scammers offer a victim a fake work-from-home job — hurts impersonated businesses by tarnishing their name and brand, but companies have a few ways to fight back against these cons, says Chris Wlach at Huge.
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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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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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Where Can Privacy Plaintiffs Sue When Injury Is Online?
Website owners need to understand wiretapping laws to understand whether they may be sued for activity tracking in California or Pennsylvania courts, where the statutory damages for violations of half-century-old laws can be substantial — and a recent Third Circuit decision suggests establishing specific jurisdiction is not as easy as 1-2-3, say attorneys at Crowell & Moring.
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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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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.