Analysis

Thomas, Alito: Two Originalists, Two Takes On CFPB Case

By Katie Buehler

U.S. Supreme Court Justices Clarence Thomas and Samuel Alito — often birds of a feather — butted heads Thursday over the original meaning and purpose of the U.S. Constitution's appropriations clause in a decision upholding the Consumer Financial Protection Bureau's unique funding scheme, highlighting what experts describe as the pair's different approaches to originalism.

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9th Circ. Won't Let Alexa Users Revive Voice Data Privacy Row

By Allison Grande

The Ninth Circuit on Thursday refused to reinstate a proposed class action alleging Amazon's Alexa software illegally collects voice data to target users with advertisements, agreeing with the lower court that the e-commerce giant had clearly disclosed the practice and the plaintiffs hadn't shown they were harmed.

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Apple Exec Must Produce All Docs On 27% App Fee Decision

By Dorothy Atkins

A California federal judge presiding over a high-stakes antitrust hearing over Apple's compliance with a court-ordered ban on App Store anti-steering rules ordered a company executive Thursday to hand over all of his communications and notes on Apple's decision to impose a new 27% fee after her injunction.

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$2B Default Recommended For Making Fair Trial 'Impossible'

By Bryan Koenig

Years of lies should put a pair of Chinese electronics companies on the hook for over $2 billion in default judgment, a special master told a California federal judge, adding that their yearslong no-show and disregard of U.S. counsel advice to retain documents have rendered a fair trial "impossible."

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Judge Questions Colo.'s Power Over Out-Of-State Banks

By Thy Vo

A Colorado federal judge on Thursday asked U.S. banking regulators why the state should be able to cap interest rates for loans made to residents by out-of-state financial institutions, questioning why it was "consistent with federalism" to let an individual state have that far of a reach.

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FTC Can't Make Albertsons, Kroger Produce Divestiture Docs

By Ali Sullivan

An administrative law judge on Thursday denied the Federal Trade Commission's "premature" bid to compel Kroger and Albertsons to fork over documents related to negotiations for the companies' expanded divestiture plan amid the commission's in-house challenge to the grocers' merger.

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Stubhub, Attys Face Sanctions Bid Over 'Strategy Of Evasion'

By Bonnie Eslinger

Counsel for consumers seeking StubHub refunds for events canceled or rescheduled due to COVID-19 urged a California federal magistrate judge Thursday to sanction the online ticket platform and its lawyers, saying they've "engaged in a strategy of evasion, denial and distortion" to avoid producing hyperlinked documents despite a court order.

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2nd Circ. Backs Win For Big Banks In Forex-Rigging Suit

By Elliot Weld

The Second Circuit on Thursday backed a ruling in favor of a group of large banks accused of conspiring to manipulate the foreign currency exchange market in euros and dollars, agreeing with a lower court that the plaintiffs hadn't made qualifying transactions or shown how prices were distorted.

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Q&A

Top Linklaters Attys See PE Rebound In Run-Up To Elections

By Al Barbarino

After a subtle uptick in private equity deal values in the first quarter, the global chair of Linklaters LLP's corporate department in New York, George Casey, and one of its top PE dealmakers in London, Alex Woodward, believe the pace of transactions is picking up and the market is primed for a comeback.

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Analysis

Buckle Up: CFPB's High Court Win Will Thaw Frozen Docket

By Jon Hill

The Consumer Financial Protection Bureau is walking away from the U.S. Supreme Court with its funding and rulebook intact, a victory that caps off years of constitutional wrangling over how the agency was set up and will usher in a wave of activity that has financial services attorneys bracing for impact.

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FDIC's Gruenberg Scolded By Senators Over Agency Culture

By Katryna Perera

Federal Deposit Insurance Corp. Chairman Martin Gruenberg on Thursday faced a second round of congressional reprimand from both sides of the political aisle over his agency's workplace misconduct scandal, but Senate Democrats seemed ready to let Gruenberg clean up the mess himself and continue his tenure.

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Senate Passes Bill To Block SEC Crypto Accounting Guidance

By Aislinn Keely

The U.S. Senate voted Thursday to send a bill overturning the U.S. Securities and Exchange Commission's controversial crypto accounting guidance to the president's desk, though without the necessary votes to override the White House's planned veto.

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EPA Doctor Not A Whistleblower For Slamming Lead Plan

By Juan-Carlos Rodriguez

A former U.S. Environmental Protection Agency pediatrician and epidemiologist who publicly criticized the EPA's plan to reduce lead in drinking water as inadequate is not protected by federal whistleblower law, the Federal Circuit said Thursday.

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Justices Say CFPB Is Constitutionally Funded

By Jon Hill

The U.S. Supreme Court ruled Thursday that the Consumer Financial Protection Bureau is constitutionally funded, rejecting a payday lender-backed challenge that threatened to incapacitate the agency and throw a wrench in the Biden administration's financial regulatory agenda.

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SEC Adopts Rules For Uncovering, Reporting Data Breaches

By Jessica Corso

The U.S. Securities and Exchange Commission announced the adoption of cybersecurity rules Thursday that will require investment advisers and broker-dealers to put procedures in place for detecting data breaches and for notifying customers when their personal information may have been compromised.

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FCC Told Rural Aid Can't Lean Too Much On Broadband Maps

By Jared Foretek

Wireless providers are calling out flaws in the Federal Communications Commission's national broadband map, telling the agency to require more certification from providers to verify that they can actually serve areas they say they can before allocating broadband deployment funding.

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Conn. Justices Snatch Debt Collection Practice Of Law Case

By Emily Sawicki

The Connecticut Supreme Court has opted to hear a case that questions whether the state's banking commissioner or its judicial branch has the power to regulate debt collection activities that occur under the purview of law firms, leapfrogging the case over the state's intermediate appellate court and into the state's highest court.

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DC Judge Mulls Dominion's DQ Bid For Pro-Trump Mich. Atty

By Ali Sullivan

Lawyers for Dominion Voting Systems pursuing defamation claims against former Overstock.com CEO Patrick Byrne fought Thursday to disqualify the Michigan attorney representing him, insisting to a D.C. federal judge that disqualification is the most appropriate remedy for the lawyer's leak of Dominion's confidential discovery documents.

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FCC To Pull Phone Co.'s Authorization To Operate In US

By Christopher Cole

The Federal Communications Commission said Thursday it plans to revoke a telecom company's authorization to operate in the U.S. after the business failed to comply with an agreement with federal agencies stemming from a security review.

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Bitcoin ATM Operator Ran Illegal Money Transmitter, Jury Says

By Aislinn Keely

A New York state jury has convicted the operator of a network of bitcoin kiosks that allegedly catered to criminal activity of operating an unlicensed money transmitter and tax fraud, the Manhattan District Attorney's Office said Thursday.

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GM, LG Ink $150M Deal To End Chevy Volt Battery Defect Suit

By Mike Curley

A proposed class of Chevrolet Volt owners asked a Michigan federal court on Thursday to give the go-ahead for a $150 million deal to end claims against General Motors LLC and LG units over alleged battery defects they say make the cars prone to overheating and fires.

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BIC Hit With Class Action Over PFAS-Containing Razors

By Jonathan Capriel

The makers of BIC razors intentionally use so-called forever chemicals in several of their products but failed to mention that to customers, who say they wouldn't have bought the razors if they'd known they were exposing themselves to toxic chemicals.

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BofA Customers Get Final OK For $8M Deal In ACH Fee Suit

By Sydney Price

A North Carolina federal judge has granted final approval to an $8 million settlement for Bank of America customers who claim they were unfairly charged fees for Automated Clearing House transfers.

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Weighted Baby Swaddle 'Inherently Dangerous,' Suit Alleges

By Julie Manganis

A Massachusetts company has been hit with a proposed class action over its allegedly "inherently dangerous" weighted baby blankets and swaddling wraps, a product category suspected in multiple infant deaths and under investigation by the Consumer Product Safety Commission.

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Albertsons Sued Over 'Naturally Flavored' Fruit Bar Labels

By Henrik Nilsson

Albertsons Cos. Inc. was hit with a proposed class action Wednesday in California federal court by a shopper who alleges the grocer falsely labels its breakfast cereal bars as containing natural flavors even though they're made with artificial ingredients derived from petrochemicals.

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Gilead, Teva Want 17 HIV Drug Antitrust Appeals Consolidated

By Matthew Perlman

Gilead Sciences Inc. and Teva Pharmaceuticals are asking the Ninth Circuit to consolidate 17 appeals contesting their win in a case alleging they delayed generic versions of HIV medications, saying the three groups of buyers are raising largely the same issues but refuse to commit to combining their briefs.

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Lessons On Challenging Class Plaintiffs' Expert Testimony

In class actions seeking damages, plaintiffs are increasingly using expert opinions to establish predominance, but several recent rulings from California federal courts shed light on how defendants can respond, say Jennifer Romano and Raija Horstman at Crowell & Moring.

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FTC Noncompete Rule's Impact On Healthcare Nonprofits

Healthcare entities that are nonprofit or tax-exempt and thus outside of the pending Federal Trade Commission noncompete rule's reach should evaluate a number of potential risk factors and impacts, starting by assessing their own status, say Ben Shook and Tania Archer at Moore & Van Allen.

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Businesses Should Take Their AI Contracts Off Auto-Renew

When subscribing to artificial intelligence tools — or to any technology in a highly competitive and legally thorny market — companies should push back on automatic renewal contract clauses for reasons including litigation and regulatory risk, and competition, says Chris Wlach at Huge Inc.

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Trump Hush Money Case Offers Master Class In Trial Strategy

The New York criminal hush money trial of former President Donald Trump typifies some of the greatest challenges that lawyers face in crafting persuasive presentations, providing lessons on how to handle bad facts, craft a simple story that withstands attack, and cross-examine with that story in mind, says Luke Andrews at Poole Huffman.

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Exploring An Alternative Model Of Litigation Finance

A new model of litigation finance, most aptly described as insurance-backed litigation funding, differs from traditional funding in two key ways, and the process of securing it involves three primary steps, say Bob Koneck, Christopher Le Neve Foster and Richard Butters at Atlantic Global Risk LLC.

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BCLP Sues St. Louis Over City Taxes On Partners' Income

By Kevin Penton

Bryan Cave Leighton Paisner LLP is suing St. Louis, Missouri, after the Midwestern city accused the firm of being delinquent on nearly $275,000 in earnings taxes, contending the municipality unlawfully taxed partners who don't live in the city, according to its court filing.

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Calif. Bar Halts Plans To Develop New Bar Exam

By Ryan Boysen

The State Bar of California has shelved a plan to develop its own online bar exam, a shift that could save the cash-strapped organization up to $4 million per year, but drew opposition from law school deans concerned about its ambitious rollout timeline.

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'That Is A Lie!' Trump Atty Assails Cohen In Fraud Trial Cross

By Frank G. Runyeon and Stewart Bishop

Donald Trump's lawyer lashed out at central prosecution witness Michael Cohen on Thursday during a second day of cross-examination in New York state's criminal fraud case, attacking his credibility and key testimony linking Trump to crimes.

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Coverage Recap: Day 14 Of Trump's NY Hush Money Trial

By Stewart Bishop

Law360 reporters are providing live updates from the Manhattan criminal courthouse as Donald Trump goes on trial for allegedly falsifying business records related to hush money payments ahead of the 2016 election. Here's a recap from Thursday, day 14 of the trial.

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Democrats Prod Justice Thomas on RV Loan, Tax Treatment

By Anna Scott Farrell

Two Senate Democrats have asked U.S. Supreme Court Justice Clarence Thomas' attorney to respond to what they called a failure to answer their questions about the justice's $267,000 loan from a healthcare industry executive to finance a luxury recreational vehicle, saying the loan treatment could have violated federal tax laws.

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Investigate Pro-Gaza Reddit Post, GOP Pols Tell USPTO

By Andrew Karpan

An anonymous Reddit post purportedly from a patent examiner confessing "mixed feelings" about issuing a patent to an Israeli defense contractor, citing the country's ongoing bombardment of Gaza, has attracted the attention of Republicans in Congress and the director of the U.S. Patent and Trademark Office herself.

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Senate Confirms South Dakota State Judge To Federal Bench

By Courtney Bublé

The Senate voted 90-4 on Thursday to confirm Judge Camela C. Theeler to the District of South Dakota.

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Menendez Bribery Case Criminalizes Gifts, Jury Told

By Carla Baranauckas

Prosecutors are trying to criminalize friendship, gifts and advocacy, the counsel for one of U.S. Sen. Robert Menendez's co-defendants said Thursday in an opening statement in the corruption trial in Manhattan federal court.

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Judge Calls Out 'Cancel Culture' In Prof's Suit Against Penn

By P.J. D'Annunzio

A Pennsylvania federal judge said University of Pennsylvania leaders embraced "cancel culture" when they chastised an anthropology professor for handling remains from the 1985 MOVE house bombing in Philadelphia, allowing the professor's defamation case against the school to move forward.

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Roche Freedman Gets Split Ruling On Witnesses In Atty's Suit

By Andrea Keckley

A New York federal judge has issued a split decision on witness testimony in a dispute over the litigation boutique formerly called Roche Freedman.

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11th Circ. Tries To Untangle Aftermath Of Judge's Early Exit

By Ivan Moreno

An Eleventh Circuit panel on Thursday quizzed attorneys for rival breeders of disease-resistant shrimp about whether a $10 million trade-secrets jury verdict should be overturned after a federal magistrate judge presided over the trial's ending because a federal district judge had to catch a flight, with one of the panel judges saying the parties had been put "in a very difficult position."

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6th Circ. Still Won't Rethink Sanctions Against Trump Attys

By Henrik Nilsson

The Sixth Circuit on Thursday once again denied a bid from former Trump campaign lawyer Sidney Powell and other attorneys to reconsider sanctions issued against them after they challenged the 2020 presidential election results in Michigan, holding that the attorneys must seek permission for future filings given their history of "meritless motions."

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