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Corporate
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April 03, 2025
Ex-SunEdison Exec Gets 'Historic' $34.5M Deal In SOX Case
A former SunEdison Inc. executive scored a record-breaking $34.5 million settlement with SunEdison-sponsored yieldcos he once ran following a nearly decadelong legal battle and a finding that he was fired as retaliation in violation of the Sarbanes-Oxley Act for highlighting potential securities laws violations, his Hinckley Allen attorneys announced Thursday.
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April 03, 2025
Wash. Justices To Hear Amazon Chemical Suicide Suits
The Washington Supreme Court will review whether Amazon can be sued under the state's product liability law for the online sale of a chemical that four people used to kill themselves, in cases brought by family members that were dismissed by a lower appellate court.
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April 03, 2025
FINRA Member Can't Avoid Testifying In Fraud Investigation
A District of Columbia federal judge has refused to immediately block the Financial Industry Regulatory Authority from requiring a New York financial adviser to testify in an investigation into alleged fraud, ruling there is "no likelihood of irreparable harm here."
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April 03, 2025
Bigelow CEO Denies Deliberately Misleading Tea Buyers
The CEO of R.C. Bigelow repeatedly denied from a California federal court witness stand Thursday that her company deliberately misled consumers by labeling its teas as "manufactured in the USA 100%," saying that the phrase — which a judge has already found to be false — was well-intentioned.
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April 03, 2025
Alsup Calls Out Anthropic Over Missed Discovery Deadlines
U.S. District Judge William Alsup scolded Anthropic for again delaying discovery production in a proposed class action accusing the artificial intelligence startup of exploiting the copyrighted works of journalists and authors to train its large language model.
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April 03, 2025
Texas Appeals Court Reverses Exxon's $25M Insurance Win
A Texas state appeals court reversed a $25 million judgment for Exxon Mobil on Thursday, finding that because of a policy exclusion, the company's excess insurer did not have to cover it in connection with a $35 million settlement following a deadly 2013 explosion at one of its facilities.
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April 03, 2025
CFPB Says It Will Reopen Small-Biz Lending Rule
The Consumer Financial Protection Bureau said Thursday that it will reopen its Biden-era rule requiring financial institutions to report data on their small business lending activity, the latest policy pivot for the agency under its new Trump-appointed leadership.
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April 03, 2025
Relator Can't Cut Gov't From DOD Price Gouging FCA Case
A Virginia federal judge has tossed a whistleblower False Claims Act case accusing several contractors of overcharging the military for replacement parts with the aid of the Defense Logistics Agency, after rejecting the relator's bid to cut the federal government as a plaintiff.
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April 03, 2025
Samsung Can't Yet Beat Epic's Claim It Colluded With Google
A California federal judge denied Samsung's bid to end Epic Games' suit claiming it colluded with Google to skirt an impending injunction forcing Google to allow competition with its Play Store, saying Thursday the allegations are plausibly stated so "this is not time to put an end to the case."
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April 03, 2025
2nd Circ. Judge Thinks Drug Price Fight Sounds Like Antitrust
A Second Circuit judge on Thursday suggested that the federal government may be insulated from claims over its demand for lower prices for Medicare and Medicaid recipients, musing that Boehringer Ingelheim Pharmaceuticals Inc.'s constitutional challenge to an Inflation Reduction Act provision sounds more like an antitrust allegation.
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April 03, 2025
Nestlé, Other Parent Cos. Freed From Baby Food Metals MDL
Overseas food giants Nestlé, Danone and Hero can exit a multidistrict litigation alleging baby food tainted with toxic metals caused children to develop autism, a California federal judge has ruled, but domestic subsidiaries who manufactured the products, such as Gerber, Nurture and Beech-Nut, must remain as defendants.
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April 03, 2025
Crypto Co. Sentenced In Fed Market Manipulation Suit
United Arab Emirates-based CLS Global FZC LLC has been sentenced in Massachusetts federal court on criminal charges over running a fraudulent "wash trading" scheme after it pled guilty to the charges in January and agreed to stop working in the U.S. cryptocurrency industry.
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April 03, 2025
Baby Food Suit Must Face Trial Or Calif. Panel, 9th Circ. Told
Plum Organics buyers urged the Ninth Circuit on Thursday to ask the California Supreme Court to clarify Golden State's deception-by-omission law, or reverse Plum's summary judgment win and send to trial the consumers' allegations that the baby-food-maker failed to disclose potential toxins in its baby food products.
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April 03, 2025
ADM Faces Del. Derivative Suit Amid Accounting Fraud Claims
Agricultural supply chain giant Archer-Daniels-Midland Co. was hit with a derivative complaint Thursday in Delaware's Court of Chancery, seeking damages from 17 current or former officers entangled in claims of years of fraudulent accounting and disclosures involving its nutrition segment.
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April 03, 2025
Southwest Gets Second Shot At Tossing Investors' Outages Suit
A Texas judge said Thursday he plans to rewrite his decision on Southwest Airlines' request to dismiss a shareholder class action over a disastrous 2022 holiday travel season because the Fifth Circuit may require a more thorough record of the extent of the airline's knowledge about the risks of its outdated technology.
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April 03, 2025
Del. Suit Challenges 'DExit' Corporate Law, Dropbox Move
One of Delaware's oldest law firms on Thursday challenged the constitutionality of a corporate law overhaul pushed through the General Assembly last month in a declared bid to stem "DExit" corporate charter relocations to other states and protect the state's legal industry and $2 billion in annual corporate franchise fees.
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April 03, 2025
Tequila Maker Sues Acquirer In Del. Alleging Earnout Dodge
A stockholder representative of tequila company 21Seeds Inc. has filed suit against Diageo North America, accusing the global liquor giant of undercutting post-acquisition earn-out targets for 21Seeds and putting the company "in mothballs" in a scheme to develop its own competing brand to the women-founded flavored tequila.
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April 03, 2025
UFC Asks Court To Deny Class Cert. In Fighters' Antitrust Suit
UFC has urged a Nevada federal court not to certify a class of fighters in the second antitrust lawsuit it is facing over allegedly suppressed wages, saying the class is legally defective because the plaintiffs who filed the lawsuit cannot represent the group of fighters.
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April 03, 2025
Trump Makes First Use Of Mexico Labor Enforcement Tool
The Trump administration called on Mexico to investigate "credible" allegations of worker rights violations at a Mexico City auto parts plant Thursday, marking the Trump administration's first use of a labor-specific enforcement tool first implemented five years ago.
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April 03, 2025
Justices' Ruling Empowers FDA To Rein In Vapes, Experts Say
A unanimous U.S. Supreme Court decision affirming federal regulators' authority to deny marketing applications for flavored vapes was noted as a victory for federal agency autonomy, but vaping industry interests said it could remove a crucial harm reduction tool.
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April 03, 2025
Google, Apple Staff Must Testify In Meta Antitrust Case
A D.C. federal judge said current and former employees of Google, Apple, TikTok, X Corp., Snap and other tech companies must testify at the Federal Trade Commission's upcoming antitrust trial against Meta Platforms Inc.
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April 03, 2025
DOGE Cuts Overlook Long-Standing Bids To Improve IRS
As President Donald Trump moves to downsize the federal government, the new administration may be missing an opportunity to evaluate long-standing proposals that aim to make the Internal Revenue Service run more efficiently, such as major technology upgrades and improving the dispute resolution process.
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April 03, 2025
Baltimore Sues 'Exploitative' Online Sports Betting Giants
The city of Baltimore, in what appears to be a groundbreaking action for a municipality, on Thursday became the latest entity to sue sportsbooks DraftKings and FanDuel for alleged deceptive practices to entice potential bettors.
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April 03, 2025
Reed Smith Wants To Pull Out Of Eletson Ch. 11
An attorney from Reed Smith LLP asked a New York bankruptcy judge Thursday to let the firm withdraw its representation of one of two parties vying to control international shipping group Eletson Holdings, noting that opposing counsel has urged it for months to exit the case.
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April 03, 2025
Echoing EEOC, Red State AGs Target Law Firms Over DEI
A dozen Republican state attorneys general on Thursday urged 20 law firms to fork over information the U.S. Equal Employment Opportunity Commission requested last month about their workplace diversity practices, doubling down on the acting EEOC chair's claim that those practices may be unlawful.
Expert Analysis
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Trade Policy Shifts Raise Hurdles For Gov't And Cos. Alike
The persistent tension between the Trump administration's fast-moving and aggressive trade policies and the compliance-heavy nature of the trade industry creates implementation challenges for both the business community and the government, says Sara Schoenfeld at Kamerman.
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Firms Must Embrace Alternative Billing Models Or Fall Behind
As artificial intelligence tools eliminate inefficiencies and the Big Four accounting firms enter the legal market, law firms that pivot from the entrenched billable hour model to outcomes-based pricing will see a distinct competitive advantage, says attorney William Brewer.
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Opinion
7 Ways CFTC Should Nix Unnecessary Regulatory Burdens
Several U.S. Commodity Futures Trading Commission regulations do not work efficiently in practice, all of which can be abolished or improved in order to comply with a recent executive order requiring the elimination of 10 regulations for every new one implemented, say attorneys at K&L Gates.
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Key Insurance Issues Likely To Arise From NY Superfund Law
The recently enacted New York Climate Change Superfund Act imposes a massive $75 billion in liabilities on energy companies in the fossil fuel industry, which can be expected to look to their insurers for coverage, raising a slew of coverage issues both old and new, say attorneys at Wiley.
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How Attorneys Can Master The Art Of On-Camera Presence
As attorneys are increasingly presented with on-camera opportunities, they can adapt their traditional legal skills for video contexts — such as virtual client meetings, marketing content or media interviews — by understanding the medium and making intentional adjustments, says Kerry Barrett.
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What Del. Corporate Law Rework Means For Founder-Led Cos.
Although the amendments to the Delaware General Corporation Law have proven somewhat divisive, they will provide greater clarity and predictability in the rules that apply to founder-led companies navigating transactions concerning controlling stockholders and responding to books-and-records requests, say attorneys at Munger Tolles.
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Series
Baseball Fantasy Camp Makes Me A Better Lawyer
With six baseball fantasy experiences under my belt, I've learned time and again that I didn't make the wrong career choice, but I've also learned that baseball lessons are life lessons, and I'm a better lawyer for my time at St. Louis Cardinals fantasy camp, says Scott Felder at Wiley.
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DOJ Immigration Playbook May Take Cues From A 2017 Case
A record criminal resolution with a tree trimming company accused of knowingly employing unauthorized workers in 2017 may provide clues as to how the U.S. Department of Justice’s immigration crackdown will touch American companies, which should prepare now for potential enforcement actions, says Jonathan Porter at Husch Blackwell.
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Paul Atkins' Past Speeches Offer A Glimpse Into SEC's Future
Following Paul Atkins' Thursday Senate confirmation hearing, a look at his public remarks while serving as a commissioner at the U.S. Securities and Exchange Commission between 2002 and 2008 reveals eight possible structural and procedural changes the SEC may see once he likely takes over as chair, say attorneys at Covington.
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Series
Adapting To Private Practice: From Fed. Prosecutor To BigLaw
Making the jump from government to private practice is no small feat, but, based on my experience transitioning to a business-driven environment after 15 years as an assistant U.S. attorney, it can be incredibly rewarding and help you become a more versatile lawyer, says Michael Beckwith at Dickinson Wright.
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How Del. Supreme Court, Legislature Have Clarified 'Control'
The Delaware Supreme Court's January decision in In re: Oracle and the General Assembly's passage of amendments to the Delaware General Corporation Law this week, when taken together, help make the controlling-stockholder analysis clearer and more predictable for companies with large stockholders, say attorneys at Baker Botts.
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Retirement Plan Suits Show Value Of Cybersecurity Policies
Several data breach class actions that were recently filed against retirement plan administrator The Pension Specialists in Illinois federal court are a reminder that developing and following a good written cybersecurity policy provides a blueprint for compliance and may prevent lawsuits, says Carol Buckmann at Cohen & Buckmann.
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How Importers Can Minimize FCA Risks Of Tariff Mitigation
False Claims Act risks are inherent in many tariff mitigation strategies, making it important for importers to implement best practices to identify and report potential violations of import regulations before they escalate, says Samuel Finkelstein at LMD Trade Law.
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Explaining CFPB's Legal Duties Under The Dodd-Frank Act
While only Congress can actually eradicate the Consumer Financial Protection Bureau, the Trump administration has sought to significantly alter the agency's operations, so it's an apt time to review the minimum baseline of activities that Congress requires of the CFPB in Title X of the Dodd-Frank Act, say attorneys at Bradley Arant.
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State Securities Enforcers May Fill A Federal Enforcement Gap
The U.S. Securities and Exchange Commission appears poised to take a lighter touch under the new administration, but state enforcement efforts are likely to continue unabated, and potentially even increase, particularly with regard to digital assets and ESG disclosures, say attorneys at Ropes & Gray.