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June 18, 2024
Sterling Bank Ex-CEO Won't Face Charges Over Loan Program
The founder and former CEO of Sterling Bank and Trust, who has been investigated in connection with a fraud-plagued loan program, will not face criminal charges from the U.S. Department of Justice, according to Michigan federal court documents filed Monday.
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June 18, 2024
COVID Test Maker Can't Shake All Of $30M Faulty Kit Suit
A New Jersey federal judge won't let California-based laboratory equipment maker Atila Biosystems Inc. out of a suit alleging it sold faulty COVID-19 testing kits, saying Fusion Diagnostic Laboratories LLC has adequately pled a breach of contract claim.
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June 18, 2024
Ogletree Adds Quarles & Brady Litigator In San Diego
Labor and employment firm Ogletree Deakins Nash Smoak & Stewart PC has hired from Quarles & Brady LLP a new shareholder for its San Diego office who has more than a decade of experience.
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June 18, 2024
Korean Airline Can't Get $50M Catering Award Nixed
A California judge has enforced a $50 million arbitral award issued to a catering company following a dispute with South Korea's Asiana Airlines, rejecting an argument that the award couldn't be enforced because the underlying contract was tainted by corruption.
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June 18, 2024
Ex-Paul Hastings Finance Atty Joins A&O Shearman In LA
Allen Overy Shearman Sterling announced that a former Paul Hastings LLP leveraged finance attorney joined its debt finance practice as a Los Angeles-based partner.
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June 18, 2024
Ariz. County Says New Kari Lake Vote Claims Merit Sanctions
Maricopa County officials are slamming former gubernatorial candidate Kari Lake's bid to unravel a Ninth Circuit decision affirming the toss of her lawsuit over Arizona's voting machines, contending that the "fatally flawed" effort warrants sanctions.
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June 18, 2024
San Diego Diocese ReEnters Ch. 11 Over Sex Abuse Claims
The Roman Catholic Diocese of San Diego has reentered Chapter 11 in a California bankruptcy court, saying it is facing more than $100 million in liabilities from more than 450 new sexual abuse claims filed in recent years.
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June 18, 2024
Calif. Staffing Firm Settles DOJ's Noncitizen Bias Claims
A California staffing agency must pay penalties and revise its employment policies as part of a settlement to resolve allegations of discrimination against foreigners by demanding certain types of documents to prove work authorization, the U.S. Department of Justice announced Monday.
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June 18, 2024
9th Circ. Won't Revive Vax Mandate Case Amid Judge DQ Bid
In a nonprecedential opinion, the Ninth Circuit has refused to restore a COVID vaccine mandate suit brought by federal workers and contractors who also sought to disqualify a judge they believed was conflicted, finding the workers lacked standing because they named officials who cannot reinstate them rather than their employers.
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June 18, 2024
HP Escapes 'Novel' 401(k) Suit Over Use Of Forfeited Funds
A California federal judge threw out a proposed class action that accused HP of unlawfully using former workers' forfeited 401(k) funds to satisfy its own contributions, saying nothing in federal benefits law required the company to use the funds to cover plan expenses.
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June 18, 2024
Ex-USC Linebacker Cops To Pandemic Unemployment Fraud
A former linebacker for the University of Southern California football team pled guilty to fraudulently seeking over $1 million in pandemic-era unemployment benefits.
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June 18, 2024
Cancer Test Company DermTech Hits Ch. 11, Seeking Sale
California-based dermatologic test maker DermTech Inc. hit Chapter 11 Tuesday in Delaware and said it would be laying off about 20% of its workforce as it seeks to sell its assets.
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June 18, 2024
Electric Vehicle Startup Fisker Hits Ch. 11 With Sale Plans
Electric vehicle company Fisker Group Inc. has petitioned for Chapter 11 protection in Delaware bankruptcy court with more than $100 million of debt, months after the collapse of a potential partnership with a major automaker imperiled the startup's attempts to raise new financing.
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June 17, 2024
NFL Commish Goodell Takes Stand To Deny TV Price Controls
NFL Commissioner Roger Goodell testified Monday in front of a California federal jury considering multibillion-dollar antitrust claims against the league that the NFL does not control the price of DirecTV's Sunday Ticket with any secret deals, insisting instead that the broadcast strategy is shouted "from the mountaintops."
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June 17, 2024
'What Am I Supposed To Do?': Epic-Apple Doc Row Irks Judge
A California federal judge presiding over Epic Games' high-stakes antitrust compliance fight against Apple expressed frustration Monday with the parties' disagreement over the scope of Apple's document production, asking counsel repeatedly "What am I supposed to do?" and "Do I need to get somebody on the stand to explain this?"
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June 17, 2024
Calif. Becomes Last State To Ink Deal Over Blackbaud Breach
Blackbaud Inc. has agreed to pay $6.75 million to resolve data security claims brought by California's attorney general, who was the only one to sit out a nearly $50 million settlement that the software provider reached last year with every other state over a 2020 ransomware attack that affected thousands of its customers.
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June 17, 2024
Excess Insurers May Need To Pay In Kaiser Asbestos Dispute
A policyholder can tap into first-layer excess policies as soon as the primary coverage for that period is exhausted, the California Supreme Court ruled, potentially implicating several first-level excess insurers to contribute to coverage for underlying asbestos exposure claims against Kaiser Cement and Gypsum Corp.
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June 17, 2024
FTC Says Adobe Uses Fee To Trap Consumers In Subscription
Adobe Inc. has for years deceived customers by keeping them in the dark about an early termination fee for its most lucrative subscription plan, making it difficult to cancel and trapping consumers in subscriptions they no longer want, the Federal Trade Commission alleged Monday.
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June 17, 2024
PennyMac 'Shocked' Investors With Post-Libor Fix, Suit Says
PennyMac's mortgage investment arm has been hit in California federal court with a proposed class action accusing it of using last year's discontinuation of Libor to unfairly and unlawfully lock in a lower dividend for some of its preferred stock, stiffing investors out of millions.
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June 17, 2024
USC Allegedly Used 'Junk Science' On Black Kidney Patients
The University of Southern California secretly has been using a "junk science" scoring formula that hurts Black patients' eligibility to receive kidney transplants, according to a putative class action in California federal court.
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June 17, 2024
'Anderson Method' Copyright Claim Gets Cut Ahead Of Trial
A California federal judge has handed Tracy Anderson's former employee Megan Roup a summary judgment win on the celebrity fitness trainer's copyright claim accusing Roup of ripping off her "Tracy Anderson Method" exercise routines, but concluded a jury should decide Anderson's sole remaining breach-of-contract claim in an upcoming November trial.
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June 17, 2024
Ex-CNBC Pundit Caught After Years Of Dodging Fraud Claims
A former frequent CNBC guest who became a fugitive for nearly three years after being accused of defrauding investors has been arrested and faces a seven-count indictment, California federal prosecutors said Monday.
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June 17, 2024
9th Circ. Says Facebook 'Face Signatures' Not Subject To BIPA
The Ninth Circuit sided with Meta Platforms on Monday by declining to revive an Illinois resident's proposed class action accusing Facebook of breaking the state's Biometric Information Privacy Act, ruling that the "face signature" at issue isn't protected by the law because it cannot be used to identify someone.
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June 17, 2024
SEC Alleges Texas Man Offered Virgin Sham $200M 'Lifeline'
Securities regulators sued a venture capitalist and his investment firm in Texas federal court Monday, accusing the firm of making a bogus offer to invest $200 million into Virgin Orbit last year despite having less than $1 in its bank account and causing stock prices to swell before plummeting when the deal collapsed.
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June 17, 2024
SEC Fines Unlicensed Brokers $2.7M In Microcap Stock Case
The U.S. Securities and Exchange Commission ordered two unlicensed brokers, including one from Florida, to collectively pay a $2.7 million fine for allegedly scamming elderly people into buying microcap shares in companies and lying that the stock was being offered to them at a discount.
Expert Analysis
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Manufacturers Should Pay Attention To 'Right-To-Repair' Laws
Oregon’s recently passed "right-to-repair" statute highlights that the R2R movement is not going away, and that manufacturers of all kinds need to be paying attention to the evolving list of R2R statutes in various states and consider participating in the process, says Courtney Sarnow at Culhane.
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Opinion
Viral Deepfakes Of Taylor Swift Highlight Need For Regulation
As the nation grapples with addressing risk from artificial intelligence use, the recent circulation of AI-generated pornographic images of Taylor Swift on the social platform X highlights the need for federal legislation to protect nonconsenting subjects of deepfake pornography, say Nicole Brenner and Susie Ruiz-Lichter at Squire Patton.
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New Federal Bill Would Drastically Alter Privacy Landscape
While the recently introduced American Privacy Rights Act would eliminate the burdensome patchwork of state regulations, the proposed federal privacy law would also significantly expand compliance obligations and liability exposure for companies, especially those that rely on artificial intelligence or biometric technologies, says David Oberly at Baker Donelson.
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Social Media Free Speech Issues Are Trending At High Court
The U.S. Supreme Court's recent decision examining what constitutes state action on social media can be viewed in conjunction with oral arguments in two other cases to indicate that the court sees a need for more clarity regarding how social media usage implicates the First Amendment, say attorneys at Kean Miller.
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PE-Healthcare Mergers Should Prepare For Challenges
State and federal regulators are increasingly imposing new requirements on healthcare transactions involving private equity partners, with mergers that would have drawn little scrutiny a few years ago now requiring a multijurisdictional risk analysis during the deal formation process, say attorneys at Stinson.
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Don't Use The Same Template For Every Client Alert
As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.
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Drafting Calif. Cannabis Management Services Agreements
Meital Manzuri and Alexis Lazzeri at Manzuri Law explore the ways in which management services agreements function in the California commercial cannabis industry, and highlight a few specific terms and conditions that are crucial when drafting these agreements.
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Series
Walking With My Dog Makes Me A Better Lawyer
Thanks to my dog Birdie, I've learned that carving out an activity different from the practice of law — like daily outdoor walks that allow you to interact with new people — can contribute to professional success by boosting creativity and mental acuity, as well as expanding your social network, says Sarah Petrie at the Massachusetts Attorney General’s Office.
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What Calif. Eviction Ruling Means For Defaulting Borrowers
A California appellate court's recent decision in Homeward Opportunities v. Taptelis found that a defaulting borrower could not delay foreclosure with an improperly served notice of pendency of action, but leaves open a possibility for borrowers to delay eviction proceedings merely by filing lawsuits, say Anne Beehler and Krystal Anderson at Holland & Knight.
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Key Issues Raised By Colorado's Brain Data Privacy Bill
Colorado recently became the first state to provide consumer privacy protections for data generated from a person's brain waves, and despite the bill’s ambiguity and open questions introduced, the new law has helped turn the spotlight on neurodata, says Sara Pullen Guercio at Alston & Bird.
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Birkin Bag Case Carries Competition Lessons For Retailers
A recently proposed antitrust class action alleging that Hermès violated federal and California law when selling its iconic Birkin and Kelly handbags highlights some issues that other brands and retailers should consider, particularly given a prevailing landscape that seems to prioritize antitrust scrutiny, say attorneys at Holland & Knight.
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Think Like A Lawyer: Follow The Iron Rule Of Trial Logic
Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.
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Court Clerk Error Is No Excuse For A Missed Deadline
Two recent Virginia Court of Appeals decisions in which clerical errors led to untimely filings illustrate that court clerks can be wrong about filing deadlines or the date an order was entered, underscoring the importance of doing one's own research on filing requirements, says Juli Porto at Blankingship & Keith.
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Circuit Split Brews Over Who's A Securities Seller Under Act
A Securities Act section that creates private liability for the sale of an unregistered security is rapidly becoming a favored statute for plaintiffs to wield against participants in both the digital asset and traditional securities markets, but the circuit courts have diverged on who may be held liable for these violations, say Jeffrey L. Steinfeld and Daniel Aronsohn at Winston & Strawn.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.