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Corporate
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November 07, 2024
Vanguard Investors Ink $40M Settlement In Tax Liability Suit
Vanguard investors have asked a Pennsylvania federal judge to give the first green light to a $40 million settlement reached with the firm over it allegedly breaching its fiduciary duty when it triggered a sell-off of assets that left investors with massive tax bills.
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November 07, 2024
Alaska Flyers Lodge Emergency 9th Circ. Bid To Halt Merger
Flyers and travel agents hoping to block Alaska Airlines' $1.9 billion merger with Hawaiian Airlines are asking the Ninth Circuit for an emergency halt to any further integration between the companies while they appeal a district court's dismissal of their suit, telling the judges consumers will be hurt if the merger continues.
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November 07, 2024
Navy Federal Inks $95M Settlement Of CFPB Overdraft Claims
Navy Federal Credit Union on Thursday agreed to refund more than $80 million to its members and pay a $15 million civil penalty to the Consumer Financial Protection Bureau to settle allegations that it charged illegal "surprise" overdraft fees.
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November 07, 2024
FINRA Grants Client Poach Injunction To TD Bank
The Financial Industry Regulatory Authority has issued a permanent injunction against Raymond James Financial and its subsidiary Crescent Point Private Wealth that bars their solicitation of certain TD Bank clients until April 2025, according to a status report filed in a federal lawsuit in the District of Connecticut.
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November 07, 2024
Dell, Lattice Semiconductor Attys Work Through AI Risks
A Dell in-house attorney picked up errors artificial intelligence made in his daughter's math homework, while a Lattice Semiconductor attorney was surprised that a rough translation AI provided was actually accurate, leading them to encourage a room of patent attorneys on Thursday to be cautious.
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November 07, 2024
Attys For Solar Co. Ex-CEO Should Be DQ'd, Plaintiffs Say
The lawyers representing the former CEO of a bankrupt solar energy company should be disqualified, attorneys for the plaintiffs in a suit against him said Wednesday, arguing that the firm had multiple conflicts of interest with its work as in-house counsel for the solar energy company and was intentionally delaying discovery because of its "obvious web of conflicting obligations."
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November 07, 2024
Transparency Act Should Exclude Housing Co-Ops, Court Told
A group of housing cooperatives asked a Michigan federal judge to grant them an exemption from the "dragnet" Corporate Transparency Act, claiming the disclosure requirements will deter members from serving on boards that govern affordable housing developments.
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November 07, 2024
Canada's Competition Bureau Seeks Dye & Durham Docs
Canada's Competition Bureau announced Thursday that it obtained a court order to gather information and advance an ongoing investigation into alleged anti-competitive conduct by legal technology company Dye & Durham Ltd., which has been scrutinized over the past year by activist investors and other national regulatory bodies.
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November 07, 2024
Former Delaware DOJ Attorney Joins Chancery As Magistrate
Delaware's judiciary announced this week that a former Young Conaway Stargatt & Taylor LLP attorney who also previously worked for the state's Department of Justice has been appointed to serve as a magistrate in the Chancery Court.
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November 07, 2024
Trump's Victory Muddles NY Sentencing: 'No Playbook Here'
The fate of President-elect Donald Trump's criminal conviction in New York remains unclear following his resounding electoral victory Tuesday night, as last-minute motions, a pending decision on presidential immunity and appeals may derail or delay a punishment slated to be handed down before Thanksgiving.
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November 06, 2024
Trump's SEC Expected To See 'Dramatic' Enforcement Change
Former President Donald Trump's reelection means a notable shift in the types of cases the U.S. Securities and Exchange Commission is expected to bring, attorneys said Wednesday at a Washington, D.C., conference, while the agency's current top enforcer vowed business as usual for now as it carries on with its well over 1,500 investigations.
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November 06, 2024
FTC Pushes For Amazon Docs In Antitrust Case
The Federal Trade Commission on Tuesday urged a federal court in Seattle to make Amazon hand over documents in the agency's monopolization case against the e-commerce giant, saying its discovery requests aren't unduly burdensome given the breadth of Amazon's alleged anticompetitive conduct.
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November 06, 2024
Danone Beats Suit Alleging Microplastics In Evian, For Now
An Illinois federal judge on Tuesday granted Danone Waters of America's request to dismiss a putative class action accusing the Evian-maker of violating Illinois and California state consumer fraud statutes by labeling its spring water as "natural" even though the product contains microplastics, finding the claims are preempted by federal law.
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November 06, 2024
FTX Exec Looks To Avoid Prison For 'Smallest Share' Of Crime
Former FTX technology chief Zixiao "Gary" Wang on Wednesday asked a Manhattan federal judge not to give him prison time for his part in the $11.2 billion fraud case, calling himself "the one who stands convicted of the smallest share of misconduct" among former CEO Sam Bankman-Fried's lieutenants.
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November 06, 2024
Masimo Expert Cites LED And Foam As Evidence Apple Stole IP
Apple misappropriated Masimo's pulse oximetry trade secrets and used them to improve its Apple Watch, a Masimo expert witness testified in California federal court Wednesday, pointing to Apple's use of a short circuit LED and a black foam test.
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November 06, 2024
Ex-McElroy Deutsch CFO Ordered To Pay $1.2M For Theft
A New Jersey state judge on Wednesday ordered McElroy Deutsch Mulvaney & Carpenter LLP's former chief financial officer to pay the firm $1.2 million in restitution for the "excess salary and bonuses" he paid himself.
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November 06, 2024
Natera Declared 'War' On Guardant, Jury Told At Trial's Start
Guardant on Wednesday told a California federal jury during opening statements in its false advertising lawsuit that rival Natera saw Guardant's competing colorectal cancer detection test as "an existential threat" and declared "war" while Natera maintained that its ads to doctors comparing the tests were meant "to educate, not deceive."
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November 06, 2024
9th Circ. Says No New Trial For Tesla Investors' Suit
The Ninth Circuit on Wednesday ruled that a lower court didn't err in denying Tesla investors' request for a new trial regarding their $12 billion claim over Elon Musk's 2018 tweets that he had "funding secured" to take the electric car giant private, saying there were no improper instructions given to the jury.
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November 06, 2024
Trump's Win Likely To Spur Deals For Capital Markets Attys
Former President Donald Trump's decisive win in Tuesday's presidential election will enable deals to proceed on a more certain basis, capital markets advisers said Wednesday, citing pent-up demand to restart capital raising after a long period of subdued activity.
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November 06, 2024
SEC's Gensler Faces Group's Call To Resign After Trump Win
Following Donald Trump's election victory Wednesday, a financial services trade association called on U.S. Securities and Exchange Commission Chair Gary Gensler to "immediately" step down in order to boost trust in the agency.
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November 06, 2024
Chancery OKs Trade Desk Vote On Charter Move To Nevada
The Trade Desk Inc. received a Delaware Court of Chancery go-ahead Wednesday for a Nov. 14 stockholder vote on reincorporating the digital advertising company in Nevada, after a vice chancellor rejected claims in a stockholder suit that the company's move requires a supermajority stockholder vote.
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November 06, 2024
Customers Look To Preserve Lead Class Action Against AT&T
AT&T shareholders are telling a Texas federal judge that the company acted with scienter when it allegedly misled investors about the removal of lead-covered copper cables from its network, pushing back on AT&T's motion to dismiss the suit stemming from a drop in the company's stock price.
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November 06, 2024
2nd Circ. Revives Authors' Breach Claim Against McGraw Hill
The Second Circuit has partially restored a breach of contract claim from a would-be class action that alleged McGraw Hill shortchanged textbook authors on royalties from e-book sales, saying there was merit to one of their arguments relating to contract language.
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November 06, 2024
Judge Axes NY Claims In Chase Bank Counterfeit Check Row
A New Jersey federal judge partly granted JPMorgan Chase Bank's bid to toss a tile company's lawsuit over the financial giant's alleged acceptance of $5 million in counterfeit checks drawn from its Valley National Bank account, reasoning that Florida law claims could stand but allegations under New York statutes could not.
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November 06, 2024
Amazon Can't 'Just Walk Out' On BIPA Claims
An Illinois federal judge largely allowed two biometric privacy suits to proceed against Amazon and a Midway Airport shop operator over Amazon's Just Walk Out cashierless checkout technology, trimming just an unlawful profiting claim against the travel retailer.
Expert Analysis
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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.
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Opinion
Big Oil Climate Ruling Sets Dangerous Liability Precedent
The recent Maryland court dismissal of Baltimore's case seeking to hold BP responsible for climate damage mischaracterized the city's injuries as divorced from the conduct that caused them, and could allow companies that conceal the dangers of their products to escape liability, says Randall Abate at George Washington University Law School.
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DOJ Must Overcome Hurdles In RealPage Antitrust Case
The U.S. Department of Justice's recent claims that RealPage's pricing software violates the Sherman Act mark a creative, and apparently contradictory, shift in the agency's approach to algorithmic price-fixing that will face several key challenges, say attorneys at Clifford Chance.
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How Companies Are Approaching Insider Trading Policies
An analysis of insider trading policies recently disclosed by 49 S&P 500 companies under a new U.S. Securities and Exchange Commission rule reveals that while specific provisions vary from company to company, certain common themes are emerging, say attorneys at Gibson Dunn.
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11 Patent Cases To Watch At Fed. Circ. And High Court
As we head into fall, there are 11 patent cases to monitor, touching on a range of issues that could affect patent strategy, such as biotech innovation, administrative rulemaking and patent eligibility, say Edward Lanquist and Wesley Barbee at Baker Donelson.
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Why India May Become A Major Patent Litigation Forum
India is reinventing itself with the goal of becoming a global hot spot for patent litigation, with recent developments at the Delhi High Court creating incentives for plaintiffs to assert patent rights in India, say Ranganath Sudarshan at Covington and IP litigator Udit Sood.
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Increased IPOs In '24 Shows Importance Of Strategic Planning
Initial public offerings, debt issuances and M&A activity so far in 2024 have shown substantial increases over comparable periods in 2023, highlighting why counsel should educate clients on market trends and financing alternatives to proactively prepare them to be ready to take advantage of opportunities, say attorneys at Skadden.
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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The State Law Landscape After Justices' Social Media Ruling
Following the U.S. Supreme Court’s recent NetChoice ruling on social media platforms’ First Amendment rights, it’s still unclear if state content moderation laws are constitutional, leaving online operators to face a patchwork of regulation, and the potential for the issue to return to the high court, say attorneys at Crowell & Moring.
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Navigating New Enforcement Scrutiny Of 'AI Washing'
The U.S. Securities and Exchange Commission's recent lawsuit against Joonko Diversity, its first public AI-focused enforcement action against a private company, underscores the importance of applying the same internal legal and compliance rigor to AI-related claims as other market-facing statements, say attorneys at Fried Frank.
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Avoiding Corporate Political Activity Pitfalls This Election Year
As Election Day approaches, corporate counsel should be mindful of the complicated rules around companies engaging in political activities, including super PAC contributions, pay-to-play prohibitions and foreign agent restrictions, say attorneys at Covington.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.