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December 06, 2024
GC Cheat Sheet: The Hottest Corporate News Of The Week
The Boeing Co. saw its much sought after plea agreement pulled away by a federal judge in Texas, and amid the grief and shock at the slaying of United Healthcare's CEO, legal experts discussed how general counsel can step up in a crisis. These are some of the stories in corporate legal news you may have missed in the past week.
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December 06, 2024
Mandelbaum Barrett Beats DQ Bid Appeal In Pharmacy Fight
Mandelbaum Barrett PC defeated a disqualification motion Friday in a pharmacy ownership dispute, with a New Jersey state appeals court ruling that a former Mandelbaum Barrett attorney's previous work for the pharmacies was not relevant to the current case.
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December 06, 2024
Senate OKs Bill To Ease SEC Reporting Regs On Rural Telcos
The Senate has unanimously passed a bipartisan bill to expand access to broadband in rural areas by reducing the "red tape" on smaller broadband providers.
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December 06, 2024
Evenflo Nears Settlement In Booster Seat MDL
Baby product maker Evenflo said Friday that it has reached an agreement in principle to settle multidistrict litigation alleging it made deceptive statements about the safety of its Big Kid booster seats.
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December 06, 2024
4 Big Developments In ERISA Cases From 2nd Half Of 2024
The Sixth Circuit reopened a retirement plan mismanagement suit against Parker-Hannifin Corp. and revived a manufacturing company worker's disability benefits bid, while the nation's highest court declined to review a plan trustee's unsuccessful attempt to force an employee stock sale dispute into arbitration. Here, Law360 looks at four recent decisions in Employee Retirement Income Security Act cases that benefits attorneys should know.
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December 06, 2024
DC Circ. Won't Revisit Retroactive FARA Registration
The D.C. Circuit rejected a bid asking the en banc court to reconsider a panel ruling that bars the federal government from suing to compel former foreign agents to retroactively register their onetime foreign influence.
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December 06, 2024
DC Circ. Upholds TikTok Sale-Or-Ban Law
A D.C. Circuit panel on Friday upheld a federal law giving TikTok until January to cut ties with its Chinese parent company or face a ban in the U.S., ruling that the statute survives constitutional scrutiny.
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December 05, 2024
9th Circ. Open To Reviving Snap Stock Suit Over Privacy Tools
A Ninth Circuit panel appeared open Thursday to reviving a proposed securities class action alleging Snap downplayed the impact Apple's privacy changes would have on ad revenues, causing the stock to eventually plunge, with two judges noting they must infer the allegations in the investors' favor at the pleading stage.
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December 05, 2024
Jane Street Ends Trade Secret Fight With Rival Investing Firm
Jane Street Group LLC and Millennium Management LLC have agreed to put to rest their trade secrets dispute over a proprietary trading strategy, according to a joint stipulation of dismissal filed Thursday in New York federal court.
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December 05, 2024
Trump Taps Musk Ally David Sacks As 'AI & Crypto Czar'
President-elect Donald Trump announced Thursday that he has selected David O. Sacks, a tech investor who worked alongside Elon Musk and entrepreneur Peter Thiel in the early days of PayPal, to be the newly created "White House AI & Crypto Czar."
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December 05, 2024
Internet Archive Won't Take E-Book Fair Use To Justices
The Internet Archive on Wednesday said it will not ask the U.S. Supreme Court to weigh in on whether its practice of distributing copyrighted e-books for free without permission from some of the world's biggest publishers is excused by the Copyright Act's fair use doctrine.
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December 05, 2024
Software Co. Five9 Sued After Surprise Guidance Slash
Cloud-based customer contact center Five9 Inc. and two of its executives face claims they misrepresented that the company was on track for healthy revenue growth, only to hurt investors by reversing course nine weeks later when they slashed Five9's financial guidance for the year.
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December 05, 2024
Apple To Appeal Epic's Atty-Client Privilege Challenge Win
Apple and Epic Games told a California federal judge Thursday that they've agreed on a protocol for a special master to re-review 57,000 documents that Apple claims are attorney-client privileged in their antitrust fight, while Apple added that it plans to appeal his finding that its privilege assertions over a sample were overbroad.
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December 05, 2024
Investors Sue Pegasystems In Corporate Espionage Case
Business software developer Pegasystems Inc. has been hit with allegations that it misled an asset management firm by concealing its use of illegal and unethical tactics to misappropriate competitor Appian Corp.'s trade secrets, which led to a since-overturned $2 billion Virginia state court judgment for unjust enrichment.
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December 05, 2024
SolarEdge's CEO, CFO Can't Escape Securities Lawsuit
A New York federal judge ruled Wednesday that a proposed securities class action accusing SolarEdge Technologies Inc. of misrepresenting the demand for its solar energy products in Europe will go on against two of the company's top executives, saying investors adequately pled the executives knowingly misrepresented distributors' inventory levels.
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December 05, 2024
Judge Recommends Axing Some Claims In X Severance Suit
A Delaware federal judge on Thursday recommended pruning of a 14-count suit filed by six former Twitter employees accusing the company now known as X and Elon Musk of contract breaches and other claims in connection with Musk's takeover of the social media giant in 2022.
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December 05, 2024
SEC Says Binance's Platform Is 'Integral' To Securities Claims
The U.S. Securities and Exchange Commission told a Washington, D.C., federal judge that crypto exchange Binance can't escape amended claims that it failed to register with the securities regulator because the platform is "integral" to crypto issuers' alleged promises to increase the value of their tokens.
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December 05, 2024
Kraft Heinz, Ex-Worker Settle 'Miami Vice' Costume Firing Suit
The Kraft Heinz Co. has settled a free speech lawsuit by a terminated white manager and school board candidate accused of jeopardizing the company's reputation by wearing blackface before his employment during a Halloween attempt to look like the character Ricardo Tubbs from the television show "Miami Vice."
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December 05, 2024
Abbott Accused Of 'Last-Ditch Effort' To Halt Formula Suit
Investors accusing Abbott Laboratories leaders of concealing known safety issues related to recalled infant formula urged an Illinois federal judge to reject the company's bid to stay the case because it belatedly formed a special litigation committee to investigate the allegations two years into the litigation.
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December 05, 2024
Tesla Can't 'Pretend' Dismissal Was Stay Order, 9th Circ. Says
A Ninth Circuit panel on Thursday doubted Tesla's arguments that a California federal court had jurisdictional authority to enforce its arbitration win against an ex-Tesla engineer's defamation claims, with one judge noting that Tesla asked to dismiss the engineer's case and it can't now "pretend" the dismissal was a stay order.
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December 05, 2024
FTX Clawback Deal With Ex-Alameda Co-CEO Gets Court Nod
A Delaware bankruptcy judge has approved a deal to settle clawback claims by FTX against former Alameda Research Ltd. executive John Samuel Trabucco, who agreed to hand over two San Francisco apartments purchased in 2021 for $8.7 million and a 53-foot yacht bought in 2022 for $2.5 million.
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December 05, 2024
Basketball Fan's Race Bias Suit Tossed Over Delays
A Colorado federal judge on Wednesday dismissed without prejudice a basketball fan's lawsuit claiming employees of the Denver Nuggets racially profiled him during a game, finding it was the appropriate course after the man's lawyer repeatedly failed to follow through on the case.
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December 05, 2024
McKinsey Unit To Pay $123M Over South Africa Bribe Scheme
The African unit of consulting giant McKinsey & Co. will pay about $123 million to resolve a U.S. Department of Justice investigation into an alleged scheme to bribe South African government officials for contracts with state-owned companies.
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December 05, 2024
IPlace Bid To Cut Former CEO's Legal Fees Nixed In Chancery
A former CEO and director of global recruiting company iPlace USA Inc. won a Delaware Court of Chancery order Thursday obliging the company to pay his legal fee advancements for defense against the company's federal suit seeking, in part, recovery of the official's compensation while building a competing venture.
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December 05, 2024
Barclays GC To Join A&O Shearman Cyber Team
A&O Shearman has tapped the current general counsel for Barclays Execution Services to co-head its global cybersecurity team, the firm announced Thursday, with the lawyer set to make the jump early next year.
Expert Analysis
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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.
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9 Liability Management Tips As Debt Maturity Cliff Looms
As the debt maturity cliff swiftly approaches in this challenging environment, attorneys at Winston & Strawn highlight the top considerations for boards of directors and finance professionals to think about when structuring and executing liability management transactions, including reviewing capital structure, evaluating debt covenants, and more.