Banking

February 21, 2025
Judge Trims $40M Green Energy Co. Investor Suit

A Tennessee federal judge won't toss a proposed class action claiming that a Chicago green energy outfit and its executives used false promises of extravagant returns to lure investors, but ruled two defendants can escape some of the suit's claims.
February 21, 2025
Payday Lender Says CFPB Uncertainty Should Pause Suit

ACE Cash Express has asked a Texas federal judge to pause a case launched by the Consumer Financial Protection Bureau accusing the payday lender of concealing free repayment plans from struggling borrowers, saying it is unclear how the agency will move forward with the action now that the Trump administration has effectively shut it down.
February 21, 2025
FINRA Fines Merrill Lynch Over Early Sales Of IPO Shares

Merrill Lynch will pay a $275,000 fine to settle the Financial Industry Regulatory Authority claim that, for nearly three years, the firm accepted purchase orders for shares of newly issued stock prior to the opening of secondary market trading in those shares.
February 21, 2025
Judge Questions Trump Administration Fund Freeze Authority

A Rhode Island federal judge on Friday left in place a temporary restraining order blocking a funding freeze by President Donald Trump's administration until the judge can rule on a request by a coalition of states for a preliminary injunction.
February 21, 2025
CFPB's $8 Late Fee Rule On Ropes As Banks Move In For Kill

The U.S. Chamber of Commerce and other trade groups have urged a Texas federal judge to strike down the Consumer Financial Protection Bureau's $8 credit card late fee rule once and for all, saying, among other things, that the CFPB is itself a "veritable issue-spotter of constitutional law violations."
February 21, 2025
Va. Judge Won't Bar DOGE Access To Treasury, OPM Data

A Virginia federal judge on Friday rejected a data privacy watchdog's bid for a preliminary injunction blocking Elon Musk's Department of Government Efficiency from accessing data systems housed in the U.S. Department of the Treasury and the U.S. Office of Personnel Management.
February 21, 2025
First Horizon Says Ex-CEO Is Dropping Claims To Avoid Loss

First Horizon Bank told a Florida federal judge that a former bank CEO cannot drop claims against individual bank directors to shield himself from an inevitable adverse judgment in the suit, which accused the bank and its directors of setting up the CEO as a scapegoat in the legal fallout of attorney Scott Rothstein's $1.2 billion Ponzi scheme.
February 21, 2025
Swizz Beatz Says Suit Over 1MDB Funds Is Time-Barred

Hip-hop artist Swizz Beatz has told a Manhattan federal judge that a suit claiming he received millions of dollars that were stolen in the 1Malaysia Development Berhad fraud scandal should be tossed since it was brought after the six-year statute of limitations.
February 21, 2025
Coinbase Says SEC Will Drop Suit Amid Crypto Policy Shift

Coinbase said Friday the U.S. Securities and Exchange Commission has committed to dropping its enforcement action against the crypto exchange, a move that would see the regulator walk away from one of its flagship crypto suits amid a wider policy shift under the Trump administration.
February 20, 2025
DOJ Says Job Protections For ALJs Are Unconstitutional

The U.S. Department of Justice announced Thursday that it no longer backs long-standing job protections for administrative law judges, saying it has determined that the "multiple layers of removal restrictions" shielding ALJs are unconstitutional because they violate the separation of powers doctrine.
February 20, 2025
New SEC Enforcement Unit Shows Drift From Crypto Focus

The U.S. Securities and Exchange Commission continued its efforts to shift its approach to digital asset enforcement under the Trump administration when it announced Thursday that it replaced the unit responsible for many of its controversial crypto registration suits with a new fraud-focused iteration that will take a broader focus on "cyber and emerging technologies."
February 20, 2025
FDIC Watchdog Will Review Agency Layoffs' Impact

The Federal Deposit Insurance Corp.'s inspector general has indicated that she will review how the agency and the larger banking industry will be impacted by the agency's acting Chairman Travis Hill's recent decision to rescind more than 200 job offers to bank examiners following a presidential executive order.
February 20, 2025
Ex-CFPB Chief Chopra Raps 'Totally Weird' Trump Shutdown

Former Consumer Financial Protection Bureau Director Rohit Chopra knocked the Trump administration's efforts to shut down the consumer agency as a bizarre and potentially self-owning policy choice, warning Thursday that it will only hurt businesses and consumers.
February 20, 2025
Fed's Barr Defends Long-Term Debt Mandate For Big Banks

The Federal Reserve's chief bank regulator said Thursday that the country's financial system was "sound and resilient" but warned of increased risks if post-financial crisis reforms aren't maintained and finished, specifically arguing for the implementation of Basel III Endgame rules on liquidity standards and debt requirements.
February 20, 2025
Trump Admin Says CFPB Defunding Suit Guesses At Harms

The Trump administration on Thursday pushed back on a lawsuit alleging it seeks to "defund" the Consumer Financial Protection Bureau, arguing that concerns about access to a consumer complaint database and other information are "baseless speculation" about the agency's future financial decisions that don't justify an injunction.
February 20, 2025
Unions' Downsizing Suit Belongs Before FLRA, Judge Says

A D.C. federal judge denied requests Thursday to block the president from carrying out three federal downsizing initiatives, rejecting unions' argument that their challenge is an exception to the rule that federal union disputes belong before the agency charged with adjudicating them.
February 20, 2025
Feds Say DC Judge Can't Bar 'Hypothetical' Spending Freezes

A Justice Department attorney argued before a D.C. federal judge Thursday that there is no basis to continue blocking the Trump administration from implementing a blanket suspension on federal spending, saying the court cannot bar "hypothetical" future freezes.
February 20, 2025
Wells Fargo, AAA Look To Nix Fraudulent Inducement Suit

Wells Fargo and the American Arbitration Association are urging a California federal judge to nix a proposed class action accusing them of colluding to fraudulently induce consumers into accepting a fundamentally unfair arbitration process, with the bank arguing that the claims must be arbitrated.
February 20, 2025
Unions Demand Insight Into DOGE's Agency Audits

Worker and consumer advocates asked a D.C. federal judge Thursday to make the Department of Government Efficiency detail its probes into three federal agencies, arguing the information is needed to resolve their claims that the new entity's audits violate the public's privacy rights.
February 20, 2025
Trump Executive Order Could Hinder Crypto Rules, SEC Suits

A new executive order giving the White House more power over independent agencies could slow rulemaking and enforcement activity at the U.S. Securities and Exchange Commission and even put a damper on its ability to write rules governing the cryptocurrency industry, legal experts told Law360.
February 20, 2025
JPMorgan Has 'Buyer's Remorse' Over $175M Buy, Javice Says

Frank founder Charlie Javice believed in her student loan company, her lawyer told a Manhattan federal jury Thursday, pushing back against charges that the executive tricked JPMorgan Chase into a $175 million acquisition by claiming the case is about "buyer's remorse."
February 20, 2025
Schwab Antitrust Settlement With Investors Gets Initial OK

A Texas federal judge has granted the first green light to a settlement calling for Charles Schwab Corp. to implement an antitrust compliance program designed by an independent consultant, resolving a class of retail investors' claims they had to pay increased transaction costs for trades following the Schwab-TD Ameritrade merger in 2020.
February 20, 2025
Home Equity Lender Preys On Consumers, Mass. AG Alleges

Home equity investment company Hometap Equity Partners is violating Massachusetts consumer protection laws by offering what amounts to unregulated versions of reverse mortgages to vulnerable consumers, the state's attorney general charged in a lawsuit filed Wednesday in state court.
February 20, 2025
Musk's X Seeks Cash At $44B Valuation, Plus More Rumors

Elon Musk is seeking to raise money for his social media platform X at a $44 billion valuation — the same price he paid to buy the site in 2022 — while BP is considering selling its Castrol lubricants unit for $10 billion and KKR could inject $5 billion into ailing British utility Thames Water. Here, Law360 breaks down the notable deal rumors from the past week.
February 19, 2025
What To Know About Trump's Likely Pick For USPTO Director

Dilworth Paxson LLP partner John Squires is about to be nominated for director of the U.S. Patent and Trademark Office, about half a dozen sources told Law360 on Tuesday. Here's what you need to know about the attorney who made a name for himself at Goldman Sachs.

Expert Analysis

Rethinking Litigation Risk And What It Really Means To Win

Attorneys have a tendency to overestimate litigation risk before summary judgment and underestimate risk after it, but an eight-stage litigation framework can clarify risk at different points and help litigators reassess what true success looks like in any particular case, says Joshua Libling at Arcadia Finance.
Takeaways From SEC's Registered Investment Cos. Risk Alert

The U.S. Securities and Exchange Commission's Division of Examinations' recent risk alert pertaining to registered investment companies provides a high-level overview of its risk-based approach to selecting RICs for examination — a potential hint that the division is investigating some of the covered topics, say attorneys at Simpson Thacher.
Roundup

Banking Brief: State Law Recaps From Each Quarter Of 2024

In this Expert Analysis series, throughout 2024 attorneys provided quarterly recaps discussing the biggest developments in banking regulation, litigation and policymaking in various states, including New York, California and Illinois.
How DOGE's Bite Can Live Up To Its Bark

All signs suggest that the Department of Government Efficiency will be an important part of the new Trump administration, with ample tools at its disposal to effectuate change, particularly with an attentive Republican-controlled Congress, say attorneys at K&L Gates.
Small Biz Caught In Corporate Transparency Act Crossfire

Despite compliance being put on hold due to a nationwide preliminary injunction, small businesses have been caught in the middle of the legal battle over the Corporate Transparency Act — and confusion over the law's requirements could result in major penalties, say attorneys at Snell & Wilmer.
5 Notable Information Security Events In 2024

B. Stephanie Siegmann at Hinckley Allen discusses 2024's largest and most destructive data breaches seen yet, ranging from ransomware disrupting U.S. healthcare systems on a massive scale, to tensions increasing between the U.S. and China over cyberespionage and the control of U.S. data.
Roundup

Texas Banking Brief

In this Expert Analysis series, attorneys provide quarterly recaps discussing the biggest developments in Texas banking regulation and policymaking.
Series

Playing Rugby Makes Me A Better Lawyer

My experience playing rugby, including a near-fatal accident, has influenced my legal practice on a professional, organizational and personal level by showing me the importance of maintaining empathy, fostering team empowerment and embracing the art of preparation, says James Gillenwater at Greenberg Traurig.
What Broker-Dealers Must Know Before Selling Bitcoin ETPs

Interest in bitcoin exchange-traded products is already high, and only expected to grow in light of the incoming Trump administration's pro-crypto stance, but broker-dealers must still consider numerous regulatory requirements before recommending a bitcoin ETP to a client, say Frank Weigand and Justine Woods at Cahill Gordon.
Series

Texas Banking Brief: All The Notable Legal Updates In Q4

The fourth quarter of 2024 brought noteworthy developments to the Texas financial services sector, particularly a new state artificial intelligence bill and a Consumer Financial Protection Bureau rule that will affect an outsize number of Texas community banks, says Tyler George at Naman Howell.
Cyber Disclosure Is A Mainstay In 2025 SEC Exam Priorities

Despite a new administration and a new U.S. Securities and Exchange Commission chair incoming, the SEC's 2025 examination priorities signal that cybersecurity disclosures and risk management practices will remain important due to the growing threat of cyberattacks, says Anjali Das at Wilson Elser.
Opinion

No, Litigation Funders Are Not 'Fleeing' The District Of Del.

A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.
Series

Calif. Banking Brief: All The Notable Legal Updates In Q4

Douglas Thompson at Snell & Wilmer highlights a number of recent and pending issues, actions and potentially pivotal federal regulatory and legislative developments on deck that will affect California banks and financial institutions.
5 E-Discovery Predictions For 2025 And Beyond

In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.
What's Ahead As Transparency Act Comes To A Crossroads

Synthesizing the contrasting federal district and appellate court rulings on the Corporate Transparency Act’s validity reveals several main areas of debate that will likely remain at issue as challenges to the law continue winding through the courts, say attorneys at Farella Braun.