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December 10, 2024
Walgreens Sued For Docs After $107M FCA Deal With DOJ
Walgreens shareholders have sued the company in Delaware seeking to inspect its books and records over its alleged long-running practice of billing government healthcare programs for prescriptions that were not dispensed, arguing Monday "there's more than a credible basis to infer evidence" of wrongdoing by the retailer.
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December 10, 2024
OneTaste Execs Want Sexually Explicit Evidence Out Of Trial
Former OneTaste executives on Tuesday asked a New York federal judge to block prosecutors from showing jurors sexually explicit evidence at their upcoming forced labor conspiracy trial, saying the government is trying to put the sexual wellness company and "orgasmic meditation" on trial.
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December 10, 2024
Arb. Award 'Unjust' Enough To Toss? Ga. Justices Ponder
Justices of Georgia's Supreme Court appeared to agree Tuesday that arbitration of a dispute between a medical provider and its contractor unjustly turned into a one-sided affair, but hesitated to endorse the argument that the issues raised warrant throwing out the arbitrator's $1.75 million award in the contractor's favor.
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December 10, 2024
US Sanctions Chinese Hacker, Employer For Firewall Exploits
A Chinese national is facing federal charges and U.S. sanctions, with prosecutors accusing him of scheming to exploit tens of thousands of firewalls, including those the government noted Tuesday protected sensitive systems of companies that run oil rigs and vital infrastructure.
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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
2nd Circ. Revives Antitrust Suit Over Instagram Algorithm
A split Second Circuit Tuesday revived defunct app Phhhoto Inc.'s claims that Meta Platforms used anticompetitive means, including an algorithm for Instagram to suppress rival content, to squash its business, finding that Phhhoto adequately alleged Meta's fraudulent concealment of an anticompetitive scheme would stretch out the four-year statute of limitations.
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December 10, 2024
2nd Circ. Backs Deloitte's Win In 401(k) Fee Suit
The Second Circuit said a trial court correctly tossed a proposed class action by a group of workers claiming Deloitte saddled its $7.3 billion retirement plan with excessive recordkeeping fees, stating they couldn't overcome concerns that their claims amounted to comparisons of apples to oranges.
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December 10, 2024
Tekion Accuses CDK Of Blocking Rival Dealership Software
Tekion Corp. accused CDK Global LLC of monopolizing the market for auto dealership management software by holding its customers' data "hostage" to prevent them from switching to competing platforms.
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December 10, 2024
FinCEN Says CTA Still Constitutional In Post-Injunction Alert
The Financial Crimes Enforcement Network has alerted companies that they do not currently need to file so-called beneficial ownership information with the agency after a federal judge's nationwide preliminary injunction blocking the Corporate Transparency Act, though the bureau maintained that the law calling for such information is constitutional.
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December 10, 2024
Split 9th Circ. Won't Revive Tesla Worker's Whistleblower Suit
A split Ninth Circuit refused to revive a terminated Tesla worker's Sarbanes-Oxley whistleblower claim alleging he was retaliated against for reporting unlawful activity, ruling on Tuesday the worker is precluded from re-litigating in district court whether he engaged in protected activity, since an arbitrator already decided that he did not.
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December 10, 2024
Trump Taps Ferguson As FTC Chief, Kressin Atty To GOP Seat
President-elect Donald Trump named current Federal Trade Commission member Andrew N. Ferguson to be its next chair Tuesday night while also picking Kressin Meador Powers LLC partner Mark Meador, a former deputy chief counsel to Sen. Mike Lee, R-Utah, to round out the FTC as its third Republican member.
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December 10, 2024
FTC's Holyoak Says Chair OK With Some Cartels
Federal Trade Commissioner Melissa Holyoak said Lina Khan, the agency's current chair, is suggesting enforcers ignore anticompetitive activity if it's not being committed by what she considers "dominant firms."
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December 10, 2024
USTR To Probe Nicaragua For Labor, Human Rights Abuses
The Office of the United States Trade Representative on Tuesday said it is planning to investigate reports of labor and human rights abuses in Nicaragua, echoing concerns voiced by both President Joe Biden and President-elect Donald Trump about the country's government.
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December 10, 2024
6th Circ. Judges Doubt Engineers' Claims Avoid Labor Act
Sixth Circuit judges on Tuesday sounded skeptical that a group of auto engineers' claims over a bribery scheme between the United Auto Workers union and Fiat Chrysler, which the engineers allege negatively affected their employment, wouldn't be based on their collective bargaining agreement and thus preempted by federal labor law.
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December 10, 2024
SEC Says Xtreme Fighting CEO And GC Defrauded Investors
The U.S. Securities and Exchange Commission has accused Xtreme Fighting Championships and CEO Steven Smith of defrauding investors by selling millions of dollars of stock in the martial arts organization without disclosing the involvement of Smith or its criminally charged general counsel, according to a Florida federal lawsuit.
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December 10, 2024
NY DA Says Trump's 'President-Elect Immunity Does Not Exist'
Prosecutors told the New York state judge presiding over Donald Trump's hush money case that "president-elect immunity does not exist" and that the court could delay sentencing — or even "terminate" the case without dismissing it.
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December 10, 2024
Keller Postman Seeks To DQ Jenner & Block In Tubi Fight
Keller Postman LLC wants Jenner & Block LLP sanctioned and disqualified for a "shocking pattern of unethical conduct" — which allegedly includes hiring a private investigator to interrogate the firm's clients — in a lawsuit accusing Keller Postman of filing thousands of "fraudulent" arbitration claims against streaming service Tubi Inc.
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December 10, 2024
NY AG Refuses To Drop $489M Fraud Case Against Trump
The office of New York Attorney General Letitia James has announced it won't drop its civil financial fraud case against President-elect Donald Trump, two of his sons, his companies and their executives, saying his upcoming inauguration has no bearing on litigating his appeal of the $489 million judgment.
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December 10, 2024
$24.6B Kroger-Albertsons Merger Blocked By 2 Judges
Kroger's planned $24.6 billion purchase of Albertsons suffered double whammy blows Tuesday, first from an Oregon federal judge who temporarily blocked the deal in a Federal Trade Commission challenge, and then from a Washington state judge who sided with the state's attorney general and issued a permanent, national block.
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December 10, 2024
NLRB Reworks Standard For Employers' Unilateral Changes
The National Labor Relations Board made it more difficult Tuesday for employers to make changes to their employees' working conditions without approval from their union, replacing a Trump-era standard that strengthened management rights clauses in labor contracts.
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December 10, 2024
Ex-Conn. Utility Execs Win Pretrial Diversion Bid In 2nd Case
A Connecticut federal judge has approved pretrial diversion agreements between federal prosecutors and two former public utility executives, pausing a second prosecution as the duo prepare to serve prison sentences in a case alleging they misused public funds.
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December 10, 2024
Advent Says Chancery Rulings End Funeral Co. Suit
Private equity firm Advent International told a Boston federal judge that a heated fraud lawsuit tied to its sale of a Mexican funeral business must be dismissed due to rulings from a Delaware judge upholding agreements it entered with the buyer limiting claims related to the transaction.
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December 09, 2024
Calif. Floats Requiring Social Media Warning Labels
California Attorney General Rob Bonta on Monday introduced a bill that would require a "black box warning" to be displayed on social media platforms to remind users of the risks of prolonged social media use, citing research linking children's and teens' use to health harms like depression.
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December 09, 2024
Akin Gump 'Totally Messed Up' With Texts, Vaxart Judge Says
A California federal judge asked by Vaxart investors to impose sanctions over a hedge fund's deleted text messages in a case claiming Vaxart inflated its stock price with deceptive headlines about a COVID-19 vaccine said Monday that the fund's lawyers at Akin Gump "totally, totally messed up."
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December 09, 2024
9th Circ. Tosses Regal Cinemas' COVID Coverage Suit
Regal Cinemas cannot get coverage for its losses stemming from the COVID-19 pandemic, the Ninth Circuit ruled Monday, finding that a decision from New York's top court, along with a contamination exclusion, doomed any chance of coverage under the theater chain's policies with units of Allianz, Liberty Mutual and Zurich.
Expert Analysis
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Calif. Bill, NTIA Report Illustrate Open-Model AI Safety Debate
The National Telecommunications and Information Administration’s balanced recommendations for preventing misuse of open artificial intelligence models, contrasted with a more aggressive California bill, demonstrate an evolving regulatory debate about balancing democratic access to this powerful new technology against potential risks to the public, say Stuart Meyer and Fredrick Tsang at Fenwick.
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Behind 3rd Circ. Ruling On College Athletes' FLSA Eligibility
The Third Circuit's decision that college athletes are not precluded from bringing a claim under the Fair Labor Standards Act raises key questions about the practical consequences of treating collegiate athletes as employees, such as Title IX equal pay claims and potential eligibility for all employment benefits, say attorneys at Debevoise.
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5 Lessons From Consulting Firm's Successful DOJ Disclosure
The Boston Consulting Group recently received a rare declination of prosecution from the U.S. Department of Justice after self-disclosing a foreign bribery scheme, and the firm’s series of savvy steps after discovering the misconduct provides useful data points for white collar defense attorneys, says Jonathan Porter at Husch Blackwell.
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'Greenhushing': Why Some Cos. Are Keeping Quiet On ESG
A wave of ESG-related litigation and regulations have led some companies to retreat altogether from any public statements about their ESG goals, a trend known as "greenhushing" that was at the center of a recent D.C. court decision involving Coca-Cola, say Gonzalo Mon and Katie Rogers at Kelley Drye.
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Complying With FTC's Final Rule On Sham Online Reviews
The Federal Trade Commission's final rule on deceptive acts and practices in online reviews and testimonials is effective Oct. 21, and some practice tips can help businesses avert noncompliance risks, say Airina Rodrigues and Jonathan Sandler at Brownstein Hyatt.
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Del. Dispatch: Drafting Lessons For Earnout Provisions
The Delaware Court of Chancery's recent decision in Medal v. Beckett Collectibles provides guidance for avoiding ambiguity in provisions relating to the acceleration of earnout payments under specified circumstances, and provisions mandating good faith negotiations before bringing earnout litigation, say attorneys at Fried Frank.
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Mitigating Risk In Net Asset Value Facility Bankruptcies
In times of economic turbulence, parties to bankruptcy proceedings that involve net asset value facilities can mitigate risk by understanding the purpose of the automatic stay, complications it can create for NAV facility lenders and options for relief, say attorneys at Mayer Brown.
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Opinion
A Fuzzy Label With Bite: FTC Must Define Surveillance Pricing
The Federal Trade Commission recently issued orders to eight companies — including Mastercard, McKinsey and Chase — seeking information on "surveillance pricing," but the order doesn't explain the term or make the distinction between legal and illegal practices, leaving any company that uses personalized pricing in the dark, says Chris Wlach at Huge.
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Assessing Algorithmic Versus Generative AI Pricing Tools
A comparison of traditional algorithmic pricing models and those powered by generative artificial intelligence can help regulators and practitioners weigh the pros and cons of relying on large language models to price products or services, say Maxime Cohen at McGill University, and Tim Spittle and Jimmy Royer at Analysis Group.
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Missouri Injunction A Setback For State Anti-ESG Rules
A Missouri federal court’s recent order enjoining the state’s anti-ESG rules comes amid actions by state legislatures to revise or invalidate similar legislation imposing disclosure and consent requirements around environmental, social and governance investing, and could be a blueprint for future challenges, say attorneys at Paul Hastings.
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New Lessons On Managing Earnout Provision Risks
Earnout provisions can be a useful tool for bridging valuation gaps in M&A, particularly in developmental-stage pharmaceutical transactions, but the Delaware Chancery Court’s recent decision in Shareholder Representative Services v. Alexion sheds new light on the inherent risks and best practices for managing them, say attorneys at Cleary.
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Navigating A Potpourri Of Possible Transparency Act Pitfalls
Despite the Financial Crimes Enforcement Network's continued release of guidance for complying with the Corporate Transparency Act, its interpretation remains in flux, making it important for companies to understand potentially problematic areas of ambiguity in the practical application of the law, say attorneys at Sidley.
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Series
After Chevron: Conservation Rule Already Faces Challenges
The Bureau of Land Management's interpretation of land "use" in its Conservation and Landscape Health Rule is contrary to the agency's past practice and other Federal Land Policy and Management Act provisions, leaving the rule exposed in four legal challenges that may carry greater force in the wake of Loper Bright, say Stacey Bosshardt and Stephanie Regenold at Perkins Coie.
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The Risks Of Employee Political Discourse On Social Media
As election season enters its final stretch and employees increasingly engage in political speech on social media, employers should beware the liability risks and consider policies that negotiate the line between employees' rights and the limits on those rights, say Bradford Kelley and James McGehee at Littler.
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A Preview Of AI Priorities Under The Next President
For the first time in a presidential election, both of the leading candidates and their parties have been vocal about artificial intelligence policy, offering clues on the future of regulation as AI continues to advance and congressional action continues to stall, say attorneys at Mintz.