Consumer Protection

  • September 18, 2024

    SEC Says Unregistered DeFi Project Pooled $1B In Crypto

    The U.S. Securities and Exchange Commission announced settlements with the business and co-founders behind decentralized finance, or DeFi, project Rari Capital Inc. on Wednesday after the regulator accused the project of misleading investors and acting as an unregistered broker.

  • September 18, 2024

    First Horizon To Pay SEC $325K Over Reg BI Violations

    The U.S. Securities and Exchange Commission announced Wednesday that First Horizon Advisors Inc. will pay a $325,000 penalty to settle claims the broker-dealer violated Regulation Best Interest in the wake of its parent company's 2020 merger with IberiaBank Corp.

  • September 18, 2024

    SEC Must Clarify Murky Crypto Rules, Ex-Officials Tell House

    Two former U.S. Securities and Exchange Commission officials who now represent crypto businesses told House lawmakers Wednesday that the agency's insistence on analyzing the economic realities of every crypto transaction in lieu of clear rulemaking has put the sector and its attorneys in unworkable situations.

  • September 18, 2024

    FTX Auditor Prager Metis Settles SEC Charges For Negligence

    The former auditor of Sam Bankman-Fried's defunct cryptocurrency exchange FTX agreed Tuesday to pay $1.95 million to resolve allegations by the U.S. Securities and Exchange Commission of misconduct in FTX audits and, in a separate case, violations of auditor independence rules.

  • September 18, 2024

    SEC Files Its 1st Suits Over 'Pig Butchering' Crypto Scams

    The U.S. Securities and Exchange Commission has filed two first-of-their-kind suits against a series of entities and individuals behind a pair of so-called pig butchering schemes that allegedly solicited investments in fake crypto platforms by gaining people's trust over social media only to scam them out of nearly $3 million.

  • September 18, 2024

    9th Circ. Won't Revive Gas Price-Fixing Suit Over Trump Pact

    The Ninth Circuit upheld the dismissal of a proposed class action alleging price fixing between major oil producers as part of the Trump Administration's 2020 deal with Russia and Saudi Arabia to cut production, saying that subjecting the pact to judicial review would be inappropriately "second-guessing" executive branch foreign policy.

  • September 18, 2024

    Health AI Co. Says Texas AG 'Misrepresents' Compliance Deal

    The Texas attorney general's Wednesday announcement of a compliance agreement with a healthcare-focused artificial intelligence company has sparked backlash from the company, which accused the state prosecutor of "dangerously" misrepresenting their agreement.

  • September 18, 2024

    Gov't Lifeline Gives Nippon A Fighting Chance On US Steel

    The Biden administration has indicated it's poised to block Nippon Steel from proceeding with a controversial $14.9 billion acquisition of U.S. Steel, but the government is reportedly giving the Japanese steelmaker an additional 90 days to prove its case, a development that should give Nippon hope it can get the deal done, attorneys say.

  • September 18, 2024

    Altria's Vape As Popular As Kale Juice, Elf Bar Tells Calif. Court

    Blocking the Chinese companies behind Elf Bar from importing their flavored vapes won't increase the market share of Altria Group subsidiary NJOY's nicotine e-cigarettes, the foreign companies argued, saying it's just as unlikely as consumers going from grape juice to kale juice.

  • September 18, 2024

    Meta Ditches Investor Suit Over Apple Ad Changes For Good

    A California federal judge on Tuesday tossed an investor suit against Meta alleging the tech giant hid the financial impact of Apple's privacy changes on its business, finding the suit's allegations weren't detailed enough to avoid dismissal.

  • September 18, 2024

    Pa. Jury Clears SeaWorld-Owned Park In Race Bias Trial

    A Pennsylvania jury on Wednesday freed SeaWorld's Philadelphia-area park Sesame Place of claims that minority children endured discrimination by costumed performers who were accused of ignoring them during character parades.

  • September 18, 2024

    House Panel Easily Passes Mandate For AM Radio In Cars

    Congress has inched closer to passing a mandate on the auto industry to keep putting AM radio devices in cars, with a key House committee overwhelmingly approving the bipartisan bill Wednesday and brushing past some lawmakers' concerns about over-regulation.

  • September 18, 2024

    Pa. AG Sues Robot Co. Over $2M In Unfilled Orders, Refunds

    A Pittsburgh robotics company took orders for more than $4 million worth of robot toys but failed to deliver many of them — and in the case of a toy based on the TV show "Rick and Morty," didn't secure the intellectual property rights — according to a consumer protection lawsuit announced by the Pennsylvania Attorney General's Office on Wednesday.

  • September 18, 2024

    Groups Seek To Sway FCC's Campaign Ad AI Disclosure Plan

    Consumer advocates want the Federal Communications Commission to strengthen its planned rules to require broadcasters to disclose the use of artificial intelligence in political ads, while the effort continues to draw strong conservative opposition.

  • September 18, 2024

    Staffing Co. Ex-CEO Gets Prison Time For $6M Billing Scheme

    The former CEO of a purported Georgia-based staffing company was sentenced to nearly eight years in federal prison after pleading guilty to fraud-related charges in a $6 million scheme using fake payroll invoices he sent to a financing business in Florida while pretending to be someone else.

  • September 18, 2024

    New Hampshire Residents Push To Save PFOA Class Action

    A class of New Hampshire residents seeking to hold the Saint-Gobain Performance Plastics Corp. liable for the contamination of their properties with a toxic forever chemical is fighting the company's bid for summary judgment.

  • September 18, 2024

    Data Brokers Say NJ Judicial Privacy Law Goes Too Far

    A group of data brokers accused of violating the New Jersey judicial privacy measure Daniel's Law has doubled down on its argument to a federal court that the law cannot survive strict constitutional scrutiny and must be thrown out.

  • September 18, 2024

    Chicago Slams Airline Group's Suit Against Sick Leave Law

    Chicago's recently enacted paid sick leave law doesn't clash with federal law because it doesn't affect airlines' prices or routes, the city said, urging an Illinois federal judge to toss a trade group's challenge to the ordinance.

  • September 18, 2024

    Video Game Giants Want Addictive Games Suit Tossed

    Microsoft Corp., Nintendo of America Inc., Activision Blizzard Inc., Roblox Corp. and other well-known companies in the video game industry moved to dismiss a lawsuit alleging they intentionally got users addicted to their games for profit Tuesday, arguing the case is barred by the First Amendment.

  • September 18, 2024

    Avangrid Unit Defends Counterclaim In Cleanup Battle

    An Avangrid Inc. unit has urged a Connecticut state judge not to throw out its counterclaim against the state's commissioner of energy and environmental protection in her suit accusing the utility of moving too slowly on an ordered cleanup of a shuttered power plant site, arguing the government is acting outside its authority.

  • September 18, 2024

    NJ Bank Agrees To $14M Subsidy Fund In DOJ Redlining Deal

    A New Jersey regional bank has agreed to provide at least $14 million in loan subsidies as part of a proposed consent order unveiled Wednesday to settle U.S. government claims that it engaged in redlining, a form of illegal lending discrimination, in certain central parts of the state.

  • September 17, 2024

    CFPB Warns Banks On ATM Overdraft Fees Without Consent

    The Consumer Financial Protection Bureau on Tuesday warned banks that charging customers debit card overdraft fees without their consent violates the law, the latest escalation in the regulator's crackdown on so-called junk fees.

  • September 17, 2024

    FDIC Proposes Rule On Bank-Fintech Partnership Risks

    The Federal Deposit Insurance Corp.'s rulemaking board on Tuesday proposed new recordkeeping rules aimed at both shoring up consumer protections as more fintech firms enter the banking space, and preventing a repeat of account freezes that have occurred after fintech service provider Synapse entered into bankruptcy earlier this year.

  • September 17, 2024

    Allstate Freed From Texas Auto Insurance Class Action

    A Texas federal judge handed Allstate a win in a proposed class action over allegedly discriminatory auto insurance premium rates, adopting a magistrate judge's recommendations that the class not be certified and that the insurer be freed from the suit before trial.

  • September 17, 2024

    FCA Cash Access Rules For Banks Bite Early

    The Financial Conduct Authority said Wednesday its rules for large banks to protect cash access for businesses and consumers have already made an impact, with multiple extra banking hubs confirmed across the U.K.

Expert Analysis

  • Illinois BIPA Reform Offers Welcome Relief To Businesses

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    Illinois' recent amendment to its Biometric Information Privacy Act limits the number of violations and damages a plaintiff can claim — a crucial step in shielding businesses from unintended legal consequences, including litigation risk and compliance costs, say attorneys at Taft.

  • Gilead Drug Ruling Creates Corporate Governance Dilemma

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    If upheld, a California state appellate court's decision — finding that Gilead is liable for delaying commercialization of a safer HIV drug to maximize profits on another drug — threatens to undermine long-standing rules of corporate law and exposes companies to liability for decisions based on sound business judgment, says Shireen Barday at Pallas.

  • Class Action Law Makes An LLC A 'Jurisdictional Platypus'

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    The applicability of Section 1332(d)(10) of the Class Action Fairness Act is still widely misunderstood — and given the ambiguous nature of limited liability companies, the law will likely continue to confound courts and litigants — so parties should be prepared for a range of outcomes, says Andrew Gunem at Strauss Borrelli.

  • Unpacking The Latest FTC Guidance On Multilevel Marketing

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    Branko Jovanovic and Monica Zhong at Edgeworth Economics discuss the Federal Trade Commission's recent advice for multilevel marketers on how MLMs should approach their income and earnings reports, including participants costs, typical proceeds and distributor gains.

  • 3 Leadership Practices For A More Supportive Firm Culture

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    Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.

  • Attorneys Can Benefit From Reverse-Engineering Their Cases

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    Trial advocacy programs often teach lawyers to loosely track the progression of a lawsuit during preparation — case analysis, then direct examination, then cross-examination, openings and closings — but reverse-engineering cases by working backward from opening and closing statements can streamline the process and also improve case strategy, says Reuben Guttman at Guttman Buschner.

  • How Justices' E-Rate Decision May Affect Scope Of FCA

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    The U.S. Supreme Court’s eventual decision in Wisconsin Bell v. U.S., determining whether reimbursements paid by the E-rate program are "claims" under the False Claims Act, may affect other federal programs that do not require payments to be made by the U.S. Department of the Treasury, says David Colapinto at Kohn Kohn.

  • How Courts' Differing Views On Standing Affect PFAS Claims

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    Two recent opinions from New York federal courts — in Lurenz v. Coca-Cola, and Winans v. Ornua Foods North America — illustrate how pivotal the differing views on standing held by different courts will be for product liability litigation involving per- and polyfluoroalkyl substances, particularly consumer claims, say attorneys at Hollingsworth.

  • E-Discovery Quarterly: Rulings On Hyperlinked Documents

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    Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.

  • Loper Bright Limits Federal Agencies' Ability To Alter Course

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    The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.

  • How To Deploy AI In A Dangerous Threat Landscape

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    Businesses are feeling immense pressure to deploy generative artificial intelligence tools to accelerate profits and demonstrate their technological superiority to investors and consumers, and there are a few steps they can take when using AI tools to mitigate liability risks, say B. Stephanie Siegmann and Julianna Malogolowkin at Hinckley Allen.

  • Addressing The Growing Hazards Of Mass Arbitration

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    Though retail companies typically include arbitration provisions in their terms of service, the recent trend of costly mass arbitrations filed by plaintiffs may cause businesses to rethink this conventional wisdom, say attorneys at BCLP.

  • CFPB's Medical Debt Proposal May Have Side Effects

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    The Consumer Financial Protection Bureau’s recent proposal to prevent medical debt information from appearing on consumer reports and creditors from basing lending decisions on such information may have initial benefits for some consumers, but there are potential negative consequences that should also be considered, say attorneys at Cooley.

  • Series

    Teaching Scuba Diving Makes Me A Better Lawyer

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    As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.

  • Lawyers Can Take Action To Honor The Voting Rights Act

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    As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.

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