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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
IP Forecast: PTAB To Hear Pfizer Fight Over COVID-19 Patents
Pfizer heads to an administrative board at the U.S. Patent and Trademark Office next week to argue Moderna should not have been issued patents covering "a basic idea" like using mRNA to fight the COVID-19 virus. Here's a spotlight on that case — plus all the other major intellectual property matters on deck in the coming week.
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December 05, 2024
Man Cops To $3.5M 'Cryptojacking' Scam Against Cloud Cos.
A Nebraska man admitted on Thursday to running a so-called "cryptojacking" scheme to defraud two cloud computing services out of $3.5 million of resources that were used to mine $1 million in cryptocurrency, according to the U.S. Department of Justice.
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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
'Texas Two-Step,' Exec Bonus Bankruptcy Bills Reintroduced
Lawmakers in the U.S. Senate this week renewed efforts to pass two bankruptcy bills that would bolster rights for employees and crack down on the controversial use of so-called Texas two-step bankruptcies.
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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 06, 2024
FINRA Fines Firm $900K Over SPAC Underwriting Fee Issues
The Financial Industry Regulatory Authority has fined New York-based LifeSci Capital LLC nearly $1 million over claims that it received and failed to disclose unfair and unreasonable fees for an initial public offering it underwrote.
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December 05, 2024
Chinese Bank Faces New Suit Alleging Reinsurance Fraud
Another group of insurers has accused one of China's largest banks of participating in a "multi-billion-dollar fraud" in the reinsurance market, telling a New York federal court Thursday that the bank, including its New York branch, has refused to honor over $890 million worth of letters of credit.
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December 05, 2024
Sports Collectibles Exec Gets 51 Months For Investment Fraud
The owner of a Las Vegas sports memorabilia company was sentenced to four years and three months in prison Wednesday after pleading guilty to lying to investors as part of a fraud scheme that prosecutors said funded a lavish lifestyle.
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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
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
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.
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December 05, 2024
Reed Smith Hires Linklaters Finance Attys In NY
Two former Linklaters LLP attorneys have jumped to Reed Smith LLP's financial industry group, bringing their backgrounds in structured finance matters to the New York office, the firm announced Wednesday.
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December 05, 2024
Combs Demands Court Inquiry Into Copied Jail Notes
Sean "Diddy" Combs urged a Manhattan federal judge to hold a special hearing and consider dismissing his sex-trafficking indictment after staff at the Metropolitan Detention Center photographed his allegedly privileged, handwritten notes during a sweep of the prison and sent them to prosecutors, who he says used the information to argue against bail.
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December 05, 2024
Medical Pot Group Sues NY Over New $20M Licensing Fee
The New York Medical Cannabis Industry Association Inc. is suing the state's cannabis regulators, saying a new $20 million fee to convert operators' licenses from medical to adult use is an unconstitutional and punitive tax aimed at keeping them out of the adult-use market.
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December 04, 2024
Withers IP Partners Hop To Sullivan & Worcester
Sullivan & Worcester LLP has said the Boston firm picked up a team of five intellectual property lawyers, including two partners, from Withers who have expertise in filing patents and working on deals for biotech startups.
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December 04, 2024
SEC Scores $13M Default Judgment In Data Co. Insider Action
China-based cloud analytics company Gridsum Inc. and its CEO have been ordered to give the U.S. Securities and Exchange Commission nearly $13 million after failing to respond to the regulator's claims that they funneled investor money out of the company to the relatives of executives.
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December 04, 2024
Live Nation Shields Legal Strategy Emails From DOJ Scrutiny
A Manhattan federal judge rejected the U.S. Department of Justice's bid to see emails between Live Nation Entertainment Inc. lawyers and counsel for arena operator Oak View Group, holding Wednesday that these communications discussed a joint legal strategy for the government's antitrust investigation.
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December 04, 2024
Senate Confirms Judges To NY's Central, Northern Districts
The Senate confirmed two judges on Wednesday for the Northern District of New York, one of whom is a former member of the U.S. House of Representatives.
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December 04, 2024
PCAOB Boots Audit Firm, Partners Over Altered Documents
The Public Company Accounting Oversight Board has imposed $465,000 in total fines against Raines & Fischer LLP and three of its partners, permanently revoking the firm's registration and barring the partners after they allegedly altered audit documents prior to an inspection of the firm.
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December 04, 2024
Guo Trustee Balks At Boies Schiller's Clawback Transfer Bid
The Chapter 11 trustee overseeing Chinese exile Miles Guo's bankruptcy in Connecticut says Boies Schiller Flexner LLP should not be allowed to move a nearly $654,000 clawback action from bankruptcy court to district court, suggesting a bankruptcy judge is better poised to consider his asset recovery theories.
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December 04, 2024
NY Judge Says ICE Must Open Files Over 'No Release' Policy
A New York federal judge has ordered the U.S. government to produce files on eight noncitizens that the New York Civil Liberties Union says show the government is breaking its promise to stop preventing people suspected of civil immigration offenses from posting bail.
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December 04, 2024
Building Contractor Agrees To End No-Hire Pacts
Guardian Service Industries Inc. has agreed to stop enforcing no-hire agreements in its contracts that prevent building owners and managers from hiring the service contractor's employees after pressure from the Federal Trade Commission and state enforcers.
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December 04, 2024
Rep. Raskin's Judiciary Hopes Rise After Nadler Drops Out
Rep. Jamie Raskin of Maryland is one step closer to becoming the top Democrat on the House Judiciary Committee, after New York Rep. Jerry Nadler dropped his bid for the job on Wednesday.
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December 04, 2024
Chase Will Settle Calif. Atty's Mortgage Rate-Lock Suit
JPMorgan Chase Bank NA has reached a tentative, individual settlement with an attorney suing it for allegedly gouging him and other borrowers with sham mortgage rate-lock deals, heading off a potential class action.
Expert Analysis
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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How Courts' Differing Views On Standing Affect PFAS Claims
Two recent opinions from New York federal courts — in Lurenz v. Coca-Cola, and Winans v. Ornua Foods North America — illustrate how pivotal the differing views on standing held by different courts will be for product liability litigation involving per- and polyfluoroalkyl substances, particularly consumer claims, say attorneys at Hollingsworth.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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2nd Circ. Case Reinforces Need For Advance Notice Bylaws
The Second Circuit's recent decision in Nano Dimension v. Murchinson illustrates that Section 13(d) of the Exchange Act is a square peg for a round hole, and that advance notice bylaws are far better at protecting against undisclosed coordination among activist shareholders, say attorneys at Morgan Lewis.
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Motion To Transfer Venue Considerations For FCA Cases
Several recent decisions highlight the importance for practitioners of analyzing as early as possible whether a False Claims Act case warrants a change of venue, and understanding how courts weigh certain factors for defendants versus whistleblowers, say Ellen London at London & Stout, and Li Yu and Corey Lipton at DiCello Levitt.
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Series
Teaching Scuba Diving Makes Me A Better Lawyer
As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.
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SolarWinds Ruling Offers Cyber Incident Response Takeaways
The New York federal court's dismissal of all charges related to the 2019 Sunburst cyberattack is a devastating blow to the U.S. Securities and Exchange Commission's cybersecurity case against SolarWinds, but the well-reasoned opinion provides valuable lessons that may improve companies' defensive posture in the wake of a major cybersecurity incident, say attorneys at Troutman Pepper.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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PE Firms Should Prepare For Increased False Claims Scrutiny
The impact private equity firms may have over medical decisions and care is increasingly attracting potential liability under the False Claims Act and attention from states and the federal government, so investors should follow best practices including conducting due diligence both before and after acquisitions, say attorneys at K&L Gates.
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NY Tax Talk: Triggers For Tax On Software-As-A-Service
Recent decisions by New York’s Tax Appeals Tribunal and Division of Tax Appeals, finding that services bundled with prewritten software were tangible property, provide insight into the features and customer interactions that render such products subject to New York sales tax, say Elizabeth Cha and Madison Ball at Eversheds Sutherland.
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Series
After Chevron: ERISA Challenges To Watch
The end of Chevron deference makes the outcome of Employee Retirement Income Security Act regulatory challenges more uncertain as courts become final arbiters of pending lawsuits about ESG investments, the definition of a fiduciary, unallocated pension forfeitures and discrimination in healthcare plans, says Evelyn Haralampu at Burns & Levinson.
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Menendez Corruption Ruling Highlights Attorney Proffer Risks
The recent admission of slides used in a preindictment presentation as evidence during U.S. Sen. Bob Menendez’s corruption trial highlights the potential pitfalls of using visual aids in attorney proffers, and the increasing importance of making disclaimers regarding information presented at the outset of proffers, say Carrie Cohen and Savanna Leak at MoFo.
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What's In NYDFS Guidance On Use Of AI In Insurance
Matthew Gaul and Shlomo Potesky at Willkie summarize the New York Department of Financial Services' recently adopted circular letter on the use of artificial intelligence in insurance underwriting and pricing, and highlight the material changes made to it in response to comments on the draft circular letter.
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2nd Circ. Ruling May Limit Discovery In Int'l Arbitration
The Second Circuit's recent Webuild v. WSP decision, affirming a discovery order's nullification in arbitration between Webuild and the government of Panama, demonstrates courts' unwillingness to find that arbitral tribunals in investor-state cases fall within the scope of the discovery statute, say attorneys at Cleary.