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July 24, 2024
FTC Chair Wary AI Tools Can Be Used For Corporate Collusion
Federal Trade Commission Chair Lina Khan weighed in on a host of topics during a discussion Wednesday at the Ninth Circuit Judicial Conference, expressing concerns about the agency's high legal bills for expert witnesses and describing AI price-setting tools as a potential loophole for collusion.
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July 24, 2024
Solicitor General Warns Against Feds 'Winning At All Costs'
U.S. Solicitor General Elizabeth Prelogar underscored the importance of the federal government ensuring justice is served and not "winning at all costs" during a keynote speech Wednesday at the Ninth Circuit Judicial Conference, defending the DOJ's changed position in a high court case concerning a criminal defendant's right to a jury trial.
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July 24, 2024
PepsiCo, Frito-Lay Sued Over Flamin' Hot Cheetos Origin Story
A retired Frito-Lay executive previously touted as the inventor of Flamin' Hot Cheetos is suing the snack giant and its parent company PepsiCo in California state court for defamation and racial discrimination, claiming there's a "smear campaign" to discredit him that has derailed his motivational speaker career and a planned documentary.
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July 24, 2024
Feds Say They're Shielded From Family Separation Damages
The U.S. Department of Justice told a California federal judge on Wednesday that the federal government was immune from claims brought by families seeking damages for emotional trauma after being separated at the border under the Trump administration.
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July 24, 2024
SF DA Sued By Staffer Fired Over 'Panties' Reply-All Snafu
A San Francisco District Attorney's Office staffer who says he was fired after accidentally sending a risqué reply-all email at work has filed a state court lawsuit accusing his former boss and the county of defamation and standing in the way of his getting future employment.
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July 24, 2024
9th Circ. Wants Migrant's Credibility Reviewed After Atty Trick
A split Ninth Circuit panel has ordered an immigration judge to reconsider a Chinese asylum seeker's credibility, saying Wednesday that they incorrectly deemed her untruthful based on her flustered behavior after a government attorney gave her information that turned out to be false.
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July 24, 2024
Ex-Arena Group CEO Says He's Owed Fees For Dueling Suits
The former CEO of digital publisher The Arena Group is demanding that the company make its contractual payments to him to cover his costs for dueling lawsuits against one another in separate state courts, according to a Wednesday suit in Delaware Chancery Court.
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July 24, 2024
Even With Deal, Athletes Still Fighting For Share Of NCAA Pie
College athletes suing for a cut of NCAA television revenue in Colorado federal court have stressed that they will continue to litigate even if the settlement of a massive class action over name, image and likeness rights in California receives court approval.
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July 24, 2024
Failed Bank, FDIC Continue Fight Over $1.9B Account Claims
A New York bankruptcy judge on Wednesday heard arguments on the Chapter 11 plan of the parent company of the failed Silicon Valley Bank, alongside separate arguments on the fate of $1.9 billion in funds currently in the hands of federal banking regulators.
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July 24, 2024
Fed. Circ. Rejects Challenges To PTAB's Network IP Decisions
The Federal Circuit rejected an internet router-maker's bid to restore testimony that could have flipped two decisions at the Patent Trial and Appeal Board, ruling Wednesday that the court won't revive ideas developed decades ago by a since-bankrupt tech company.
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July 24, 2024
PE Firm Ran $37M Ponzi-Like Cannabis Scheme, SEC Says
A California private equity fund ran a Ponzi-like scheme, using much of $37 million raised from investors to pay other shareholders instead of putting the money into cannabis companies, the U.S. Securities and Exchange Commission told a California federal court this week.
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July 24, 2024
Safeway Gets Early Win In Floor Co.'s SEIU Conspiracy Suit
A floor cleaning company can't pursue its claim that Safeway took part in a civil conspiracy with a Service Employees International Union affiliate to award a contract to a competitor, a California federal judge ruled.
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July 24, 2024
Judge Sets Up 2-Tier Counsel Access In DOJ Live Nation Suit
A New York federal judge on Tuesday set up a two-tiered system for document access in the U.S. Department of Justice's antitrust lawsuit against Live Nation and Ticketmaster, limiting sensitive information from other market participants from Live Nation in-house counsel.
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July 24, 2024
Intelsat Insider Trading Claims Don't Connect, 9th Circ. Rules
The Ninth Circuit on Wednesday affirmed a lower court's dismissal of claims accusing satellite company Intelsat stakeholders of insider trading, saying the suing hedge funds did not properly plead that the shareholders possessed material nonpublic information at the time of their trades.
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July 24, 2024
IPhone Users Push For Apple Docs On Korea, EU App Stores
Plaintiffs in the ongoing App Store antitrust suit are accusing Apple of stonewalling their effort to obtain documents detailing procompetitive changes the company made to the online marketplace in South Korea and Europe, saying the tech giant won't turn over the information because it'd undermine Apple's core defense.
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July 24, 2024
TikTok Can't Nix Trade Secrets Row By Worker's Ex-Employer
A California federal judge on Tuesday denied TikTok's motion to toss a trade secrets suit by Beijing Meishe relating to copyrighted source code for video editing, finding Meishe plausibly alleged it found a "striking similarity" between the two companies' object codes after one of its employees quit and joined TikTok.
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July 24, 2024
GOP States Still Can't Intervene In Wash. Abortion Pill Suit
The Ninth Circuit rejected a bid by Idaho and other Republican-led states to intervene in Washington's lawsuit seeking to expand access to the abortion pill mifepristone, ruling Wednesday the states lacked standing and only speculated about how they were injured.
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July 24, 2024
Nixon Peabody Adds Veteran GC With IP, Korean Biz Focus
The longtime general counsel of the Korea Trade-Investment Promotion Agency's Los Angeles office has joined Nixon Peabody LLP, continuing the firm's recent growth of its intellectual property team on the West Coast.
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July 24, 2024
ICE Contractor Hit With Class Action Over Family Separations
A father and son who were separated for six years under the Trump administration's policy of "zero tolerance" for unlawful border crossings have brought a proposed class action against the private contractor responsible for transporting children, seeking to make it pay for the emotional trauma families have endured.
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July 24, 2024
Insurers Get Hyundai, Kia Engine Claim Suits Remanded
A California federal court has remanded to state court four suits by insurers claiming that Hyundai and Kia are on the hook for 829 engine failure and engine fire claims totaling over $7.7 million in damages, saying the automakers' snap removals violated the forum defendant rule.
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July 24, 2024
Vintage Wine Estates Hits Ch. 11 With Intent To Sell Assets
Vintage Wine Estates, which owns 30 wine brands in California, Oregon and Washington, filed for Chapter 11 protection Wednesday with a plan to sell its assets after post-pandemic wine demand dropped.
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July 23, 2024
Cooperator In Cannabis Bank Fraud Case Dodges Prison
A U.K. national who testified against two businessmen accused of fooling banks into processing federally illicit transactions worth $150 million for California cannabis delivery company Eaze Technologies Inc. on Tuesday was spared from serving any time in prison.
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July 23, 2024
Microsoft Calls FTC Price Hike Claims 'Misleading' At 9th Circ
Microsoft pushed back against the Federal Trade Commission's contention that an increase in the company's gaming subscription pricing is evidence of the anticompetitive effects of the software giant's $68.7 billion acquisition of game developer Activision Blizzard Inc., calling the commission out for trying to "reinvent" its case against the merger on appeal to the Ninth Circuit.
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July 23, 2024
9th Circ. Denies Woman's Derivative US Citizenship Claim
A Mexican woman facing deportation cannot claim to be a U.S. citizen despite her mother's naturalization, a split Ninth Circuit ruled Tuesday, saying her father's voluntary acknowledgment of paternity thwarted her citizenship claim.
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July 23, 2024
Sonos Tells Fed. Circ. 100K Patents At Risk If Google Prevails
Wireless audio brand Sonos has warned the Federal Circuit that a federal judge's decision to scrap its jury win in a $32.5 million patent case against Google means that "about 100,000 patents are vulnerable."
Expert Analysis
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Breaking Down DOJ's Individual Self-Disclosure Pilot Program
The U.S. Department of Justice’s recently announced pilot program aims to incentivize individuals to voluntarily self-disclose corporate misconduct they were personally involved in, complementing a new whistleblower pilot program for individuals not involved in misconduct as well as the government's broader corporate enforcement approach, say attorneys at Paul Weiss.
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Cos. Must Prepare For Calif. Legislation That Would Ban PFAS
Pending California legislation that would ban the sale or distribution of new products containing intentionally added per- and polyfluoroalkyl substances could affect thousands of businesses — and given the bill's expected passage, and its draconian enforcement regime, companies must act now to prepare for it, say attorneys at Alston & Bird.
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How To Prepare As Employee Data Reporting Deadlines Near
As filing deadlines approach, government contractors and private companies alike should familiarize themselves with recent changes to federal and California employee data reporting requirements and think strategically about registration of affirmative action plans to minimize the risk of being audited, say Christopher Durham and Zev Grumet-Morris at Duane Morris.
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What Have We Learned In The Year Since Warhol?
In the almost year since the U.S. Supreme Court decided Andy Warhol Foundation v. Goldsmith, which was widely seen as potentially chilling to creative endeavors, seven subsequent decisions — while illuminating to some extent — do not indicate any trend toward a radical departure from prior precedents in fair use cases, says Jose Sariego at Bilzin Sumberg.
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Sorting Circuit Split On Foreign Arbitration Treaty's Authority
A circuit court split over whether the New York Convention supersedes state law barring arbitration in certain disputes — a frequent issue in insurance matters — has left lower courts to rely on conflicting decisions, but the doctrine of self-executing treaties makes it clear that the convention overrules state law, says Gary Shaw at Pillsbury.
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Surveying Legislative Trends As States Rush To Regulate AI
With Congress unlikely to pass comprehensive artificial intelligence legislation any time soon, just four months into 2024, nearly every state has introduced legislation aimed at the development and use of AI on subjects from algorithmic discrimination risk to generative AI disclosures, say David Kappos and Sasha Rosenthal-Larrea at Cravath.
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Patent Lessons From 8 Federal Circuit Reversals In March
A number of Federal Circuit patent decisions last month reversed or vacated underlying rulings, providing guidance regarding the definiteness of a claim that include multiple limitations of different scopes, the importance of adequate jury instruction, the proper scope of the precedent, and more, say Denise De Mory and Li Guo at Bunsow De Mory.
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First 10b5-1 Insider Trading Case Raises Compliance Issues
The ongoing case against former Ontrak CEO Terren Peizer is the U.S. Department of Justice's first insider trading prosecution based primarily on the filing of 10b5-1 plans, and has important takeaways for attorneys reviewing corporate policies on the possession of material nonpublic information, say attorneys at Cadwalader.
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Calif. Housing Overhaul May Increase Pressure On Landlords
Two recently enacted California laws signal new protections and legal benefits for tenants, but also elevate landlords' financial exposure at a time when they are already facing multiple other hardships, says Laya Dogmetchi at Much Shelist.
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Series
Whitewater Kayaking Makes Me A Better Lawyer
Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.
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Navigating Kentucky's New Consumer Privacy Law
On April 4, Kentucky passed a new law that imposes obligations on affected businesses relating to the collection, use and sale of personal data — and those operating within the state must prepare for a new regulatory landscape governing the handling of consumer data, say Risa Boerner and Martha Vázquez at Fisher Phillips.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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The Shifting Landscape Of Physician Disciplinary Proceedings
Though hospitals have historically been able to terminate doctors' medical staff privileges without fear of court interference, recent case law has demonstrated that the tides are turning, especially when there is evidence of unlawful motivations, say Dylan Newton and Michael Horn at Archer & Greiner.
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Oracle Ruling Underscores Trend Of Mootness Fee Denials
The Delaware Chancery Court’s recent refusal to make tech giant Oracle shoulder $5 million of plaintiff shareholders' attorney fees illustrates a trend of courts raising the standard for granting the mootness fee awards once ubiquitous in post-merger derivative disputes, say attorneys at Troutman Pepper.
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Cos. Should Mind Website Tech As CIPA Suits Keep Piling Up
Businesses should continue evaluating their use of website technologies and other data-gathering software and review the disclosures in their privacy policies, amid an increase so far in 2024 of class actions alleging violations of the California Invasion of Privacy Act's pen register and trap-and-trace provisions, say attorneys at Sheppard Mullin.