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Corporate
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March 07, 2025
Employment Authority: Where Trump's DEI Orders Stand
Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with coverage on where President Donald Trump's executive orders scrambling diversity, equity, and inclusion programs stand following legal challenges; which cases are currently stalled at the National Labor Relations Board while it lacks a quorum; and how child labor enforcement may change under Trump's presidency.
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March 07, 2025
ByteDance Wants Sanctions For Attys After Client's Perjury
TikTok's parent company ByteDance has urged a California court to sanction Nassiri & Jung LLP attorneys it says "enabled" a former engineer's perjury in a suit alleging he was wrongly fired, arguing that the lawyers should've prevented their client's "abuse of the justice system."
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March 07, 2025
Musk To Give Deposition In Twitter Shareholder Suit
Elon Musk has agreed to sit for a deposition in early April in a proposed shareholder class action accusing him of fraudulently claiming Twitter had a bot problem to get out of his $44 billion acquisition of the site, his attorneys said Friday.
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March 07, 2025
Ga. PFAS Liability, DEI Bills Among Those To Not 'Crossover'
Georgia lawmakers failed to push forward legislation that would have reduced corporate liability for PFAS contamination, would have given voters a say on whether to legalize sports betting and curbed diversity initiatives in schools, after having previously passed bills to advance the governor's tort reform agenda.
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March 07, 2025
Trump Sues Capital One Over 'Illegal' De-Banking
President Donald Trump's company and his son Eric Trump sued Capital One on Friday in a Florida state court, claiming it illegally canceled hundreds of Trump-affiliated accounts in the aftermath of the Jan. 6, 2021, attacks on the U.S. Capitol.
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March 07, 2025
FTC: Outlining World Sans Amazon Price-Floor 'Not Possible'
The Federal Trade Commission told a Washington federal judge Friday that it can only offer pieces, and not the entire outline, of what an alternative world might look like without Amazon.com's allegedly monopolistic pricing floor created by penalties for sellers offering their goods more cheaply through other retailers.
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March 07, 2025
Hints Of A New High Court Majority Emerge In Trump Cases
The U.S. Supreme Court's recent rejection of President Donald Trump's bid to keep frozen nearly $2 billion in foreign aid funding gave court watchers a glimpse of a coalition majority that could end up thwarting some of the president's more aggressive and novel attempts to expand executive power.
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March 07, 2025
9th Circ. Critical Of Nordstrom Nixing $6.7M Order
A Ninth Circuit judge doubted Nordstrom Inc.'s stance on Friday in a suit accusing it of using labor concerns as a false pretense to pull a $6.7 million menswear order, calling the department store chain's alleged oversupply of dress shirts at the time of the cancelation "the elephant in the room."
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March 07, 2025
Occidental Prevails In Ex-Anadarko Worker's Severance Fight
A Texas federal judge granted an early win Friday to Anadarko Petroleum's severance plan and benefits committee in an ex-executive's suit alleging he was owed severance after an acquisition by Occidental Petroleum in 2019, finding the petroleum giant's decision to deny benefits wasn't an abuse of discretion.
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March 07, 2025
Goodyear Must Include Microplastic Proposal In Proxy
The U.S. Securities and Exchange Commission has rejected Goodyear Tire & Rubber Co.'s bid to exclude from its annual proxy statement a shareholder proposal calling for goals and timelines related to reducing tire wear shedding and subsequent microplastic pollution.
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March 07, 2025
MGM Scraps Suit After FTC Withdraws Cybersecurity Probe
MGM Resorts International on Friday dismissed its D.C. federal court lawsuit against the Federal Trade Commission after the agency dropped its investigation into the hospitality giant's data security practices.
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March 07, 2025
Robinhood To Pay $30M To Settle FINRA Supervisory Claims
Two Robinhood units on Friday agreed to pay $29.75 million to settle a sprawling series of supervisory and disclosure failures in a case brought by the Financial Industry Regulatory Authority, including that they failed to establish proper protocols to curb money laundering and give customers accurate disclosures about a particular equities strategy.
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March 07, 2025
No Ch. 11 Plan Stay For Ex-Eletson Owners
A New York bankruptcy judge has declined to pause Greek shipping group Eletson Holdings' Chapter 11 plan while its former owners appeal the plan's confirmation, handing the company's current management a win as they seek to compel the ex-leadership to enforce the plan.
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March 07, 2025
9th Circ. Probes Ax Of Trader Joe's IP Suit Against Union
Ninth Circuit judges on Friday questioned a federal judge's decision to toss Trader Joe's trademark suit against a union selling merchandise with the grocers' name, with one saying it was "a little bit unusual" to have a determination about the likelihood of confusion decided at the motion to dismiss stage.
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March 07, 2025
Boeing Investors Certified As Class In 737 Blowout Suit
A Virginia federal judge on Friday certified a class of Boeing investors in a securities fraud suit accusing the aviation giant of making false statements about the safety of its 737 Max fleet.
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March 07, 2025
Tariffs, Diversity And DOGE Dominate Trump 2.0 'Risk Factors'
Public companies are busily reworking risk disclosures since the arrival of President Donald Trump's second administration, seeking to walk a fine line of being upfront with investors about potential threats to business despite vast legal and policy uncertainties.
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March 07, 2025
Husband Of Ex-Takeda VP Gets 2½ Years For Invoice Scam
The husband of a former Takeda Pharmaceuticals vice president was sentenced in Massachusetts federal court Friday to two and a half years in prison for his role in a scheme to dupe the drug giant out of $2.3 million through bogus invoices.
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March 07, 2025
Bed Bath & Beyond Investors Can't Move Judge On Class Cert.
Bed Bath & Beyond shares did not trade on an efficient market during the class period, a Washington, D.C., federal judge confirmed again, refusing to reconsider his class certification denial in a suit from the now-bankrupt retailer's investors who alleged they were misled by company executives and a billionaire investor.
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March 07, 2025
Dem AGs Back NLRB In Appeal Over Board Functionality
Nearly two dozen Democratic attorneys general have backed the National Labor Relations Board in a Sixth Circuit fight over the agency's ability to adjudicate unfair labor practice cases, saying workers' rights under labor law would be trampled if the agency is restrained from performing its duties.
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March 07, 2025
Tulane Panel Clashes Over Activist Investor Motivations
There's no debate that activist investor campaigns have increasingly taken aim at CEOs, but attorneys on a Friday panel at the annual Tulane Corporate Law Institute were sometimes at odds on the activists' motivations.
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March 07, 2025
How To Tell If A Litigation Funder Is Helping Your IP Opponent
Knowing when a litigation funder is involved in an intellectual property case can help attorneys better understand their adversary's footing in a dispute, and while most courts don't have disclosure requirements, lawyers told Law360 there are several signs attorneys can look out for to determine whether their opponent is receiving funding from an outside party.
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March 07, 2025
GC Cheat Sheet: The Hottest Corporate News Of The Week
ESPN made news in the past week with a five-year, $100 million contract for talking head Stephen A. Smith, but so did Netflix, where chief legal officer David Hyman pulled in more than $100 million worth of stock sales in just seven days. Meanwhile, Honeywell revealed that its general counsel is busy figuring out how to create new subsidiaries where the company hopes to stash its asbestos and environmental liabilities.
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March 07, 2025
Atty Fights $190K Demand After Malicious Litigation Trial Loss
A lawyer who recently lost her malicious prosecution lawsuit against three Blank Rome attorneys and an aviation parts company is fighting their demand that she pay $190,000 in costs stemming from the litigation, arguing the amount is excessive and otherwise unrecoverable.
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March 07, 2025
Off The Bench: NASCAR Feud Grows, ACC Peace, NCAA Wins
In this week's Off The Bench, NASCAR insists that the two teams suing it are the real antitrust bullies, the ACC keeps two valued and valuable members in the fold, and a baseball player ends his court fight to play another year in college.
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March 07, 2025
Dropbox CLO Exiting After 13 Years, New Legal Chief Named
The chief legal officer of Dropbox Inc. is resigning after 13 years with the company, and will be replaced by the current vice president of product counseling and privacy, according to a filing Friday with the Securities and Exchange Commission.
Expert Analysis
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2024 Election Results May Prove Fortuitous For Family Offices
Thanks to the decisive Republican victories in the 2024 elections, family offices have a unique opportunity for accelerated growth and influence, particularly through the benefits afforded by patient capital, says Edward Taibi at Olshan Frome.
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10 Noteworthy CFPB Developments From 2024
In a banner year for consumer finance regulation, the Consumer Financial Protection Bureau made significant strides in its efforts to rein in Big Tech and nonbank financial firms, including via rules regarding open banking, credit card late fees, and buy now, pay later products, say attorneys at Wiley.
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What To Expect From EEOC Next Year After An Active 2024
While highlights this year for the U.S. Equal Employment Opportunity Commission include its first-ever Pregnant Workers Fairness Act cases and comprehensive workplace harassment guidance, the question for 2025 is whether the commission will sustain its momentum or shift its focus in a new direction, says Shannon Kelly at GrayRobinson.
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Series
Fixing Up Cars Makes Me A Better Lawyer
From problem-solving to patience and adaptability to organization, the skills developed working under the hood of a car directly translate to being a more effective lawyer, says Christopher Mdeway at Kaufman Dolowich.
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2024 Has Been A Momentous Year For ESG
Significant developments in the environmental, social and governance landscape this year include new legislation, evolving global frameworks, continued litigation and enforcement actions, and a U.S. Supreme Court decision that has already affected how lower courts have viewed some ESG challenges, say attorneys at Katten.
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2024's Most Notable FTC Actions Against Dark Patterns And AI
In 2024 the Federal Trade Commission ramped up enforcement actions related to dark patterns, loudly signaling its concern that advertisers will use AI to manipulate consumer habits and its intention to curb businesses' use and marketing of AI to prevent alleged consumer deception, say attorneys at Goodwin.
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Making The Pitch To Grow Your Company's Legal Team
In a compressed economy, convincing the C-suite to invest in additional legal talent can be a herculean task, but a convincing pitch — supported by metrics and cost analyses — may help in-house counsel justify the growth of their team, say Elizabeth Smith and Roger Garceau at Major Lindsey.
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The Story Of 2024's Biggest Bank Regs, And Their Fate In 2025
U.S. federal bank regulators were very active in 2024 with initiatives ranging from antitrust and capital to proposals regarding controlling shareholders and incentive-based compensation, but many regulations face an uncertain future under the new administration, say attorneys at Latham.
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Musk Pay Fight Shows Investor Approval Isn't Universal Cure
The Delaware Court of Chancery's recent denial of a motion revising its prior rescission of Elon Musk's nearly $56 billion compensation package is a reminder of the heightened standard corporate boards must meet in conflicted controller transactions and that stockholder approval doesn't automatically cure fiduciary wrongdoing, say attorneys at A&O Shearman.
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Considering European-Style Lockboxes For US M&A In 2025
The lockbox mechanism, commonly used in Europe, offers an attractive alternative to the postclosing price adjustments that dominate U.S. merger and acquisition transactions in private equity, particularly with the market's demand for transparency likely to remain steadfast under Trump, says Laurent Campo at Potomac Law.
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Compliance Lessons From Raytheon's FCPA Settlement
A recent Foreign Corrupt Practices Act action involving aerospace and defense company Raytheon underscores the importance of risk management related to retaining and overseeing third parties — especially in higher-risk jurisdictions — and the promotion of a companywide culture of compliance, say attorneys at Debevoise.
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Opinion
Justices Rightly Corrected Course In Nvidia And Facebook
By dismissing both the Nvidia and Facebook class actions, over investors' ability to hold corporations accountable for fraud, the U.S. Supreme Court was right in refusing to favor corporations over transparency, and reaffirmed its commitment to corporate accountability, investor protection and the rule of law, says Laura Posner at Cohen Milstein.
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Del. Dispatch: The 2024 Corporate Cases You Need To Know
The Delaware Court of Chancery in 2024 issued several decisions that some viewed as upending long-standing corporate practices, leading to the amendment of the Delaware General Corporation Law and debates at some Delaware corporations about potentially reincorporating to another state, say attorneys at Fried Frank.
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2025's Midmarket M&A Terrain May Hold A Few Bright Spots
Attorneys at Stoel Rives assess middle-market merger and acquisition trends, and explain why many dealmakers have turned cautiously optimistic about the sector's 2025 prospects, despite potential inflation and new Federal Trade Commission rules.
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Top 10 Whistleblowing And Retaliation Events Of 2024
From a Florida federal court’s ruling that the False Claims Act’s qui tam provision is unconstitutional to a record-breaking number of whistleblower tips filed with the U.S. Commodity Futures Trading Commission, employers saw significant developments in the federal and state whistleblower landscapes this year, say attorneys at Proskauer.