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September 27, 2024
Ex-CEO To Pay SEC Fine For Pre-SPAC Disclosure Failures
The U.S. Securities and Exchange Commission announced Friday it has reached a settlement with the former CEO of an electric vehicle battery company who allegedly concealed its supply chain issues ahead of its merger with a blank check company, leading to a nearly 20% drop in the company's share price once the shortage was revealed.
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September 27, 2024
States Tell Justices They Belong In Asylum Settlement Talks
Five Republican-led states pressed the U.S. Supreme Court to let them participate in the Biden administration's settlement discussions with immigration groups challenging asylum restrictions, arguing their input is necessary to prevent the administration from ceding the policy at the table.
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September 27, 2024
Disney Warns Investor Streaming Suit Could Chill Innovation
Allowing securities litigation over The Walt Disney Co.'s underperforming streaming service to go forward would discourage companies from trying "new, risky business plans," counsel for the entertainment giant told a California federal judge in an attempt to toss the suit Friday.
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September 27, 2024
Musk Skirts Sanctions In Missed Twitter Deposition, For Now
A California federal judge on Friday declined to sanction Elon Musk, for now, after he skipped a deposition over his $44 billion Twitter takeover, allowing the parties to resolve the issue and advising them to wait to see if he appears for the deposition that's been rescheduled for this coming Friday.
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September 27, 2024
Feds Say Crypto 'Godfather' Bribed Cops, Dodged Taxes
California federal prosecutors have accused a cryptocurrency startup founder nicknamed "The Godfather" of extortion, robbery and failing to pay taxes on fraudulent income that he allegedly used for personal luxuries including a Bel Air mansion rental and cosmetic surgery to make his legs longer.
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September 27, 2024
Hemp Org., Cheech & Chong Take Aim At New Calif. THC Ban
A leading hemp industry trade organization has teamed up with the cannabis brand fronted by stoner comedians Cheech and Chong to challenge new emergency regulations in California that ban the sale of hemp products containing the psychoactive cannabinoid THC.
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September 27, 2024
Disney Calls Writer's 'Moana' Copyright Theft Suit Pure Fiction
Lawyers for The Walt Disney Co. urged a California federal judge Friday to throw out an animator and writer's lawsuit alleging the company stole his ideas for the hit movie "Moana," saying there's not a single piece of evidence meriting a jury trial.
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September 27, 2024
Waco Jury Sticks ASUSTeK With $22M Patent Verdict
A Texas federal jury hit Taiwanese computer manufacturer ASUSTeK Computer Inc. with a $22 million judgment on Thursday for infringing patents for a film that redirects natural daylight owned by SVV Technology Innovations Inc., which had asked jurors for nearly $59 million.
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September 27, 2024
Energy Cases To Watch In This US Supreme Court Term
The new U.S. Supreme Court term could be just as action-packed as the previous term was for the energy industry, as the justices will weigh in on how federal agencies conduct environmental reviews and field petitions over climate change policies and lawsuits. Here's a list of energy-related cases to watch this term.
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September 27, 2024
FCC Chief Says Chevron's Fall Won't Slow Needed Regs
Upcoming Federal Communications Commission rules are likely to survive judicial scrutiny even after the Chevron doctrine's demise because the policies are grounded on not only legal analysis but in-depth economic and engineering studies, the agency's chief said Friday.
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September 27, 2024
'Varsity Blues' Suit Flips The Script On 'Victim' USC
The University of Southern California could be forced to reveal unseemly details of its admissions process if it can't beat or settle a $75 million suit filed by a private equity executive who blames the school for his being ensnared in the "Varsity Blues" college admissions scandal, experts told Law360.
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September 27, 2024
Off The Bench: College Sports Dominates Legal Landscape
In this week's Off The Bench, the NCAA and the athletes in the big name, image and likeness settlement try to redo the terms to satisfy the overseeing judge, Reggie Bush says his image has been exploited by his alma mater and the NCAA for years, and the Pac-12 claims that it's being strong-armed by a rival conference for coaxing away its teams.
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September 27, 2024
LA Plane Parts Maker Hits Ch. 11 With At Least $10M In Debt
A California-based aircraft parts maker, Skylock Industries, filed for bankruptcy reporting between $10 million to $50 million in both assets and liability as it faces litigation alleging that it owes half a million dollars in past-due rent, as well as a lawsuit seeking to collect a finder's fee on a $9 million loan.
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September 27, 2024
Calif. Atty's Fee Bid Against LegalMatch Denied At Appeal
A California state appeals court has affirmed a trial court ruling denying a Torrance-based lawyer's bid for $940,000 in attorney fees in his suit against attorney referral service LegalMatch.
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September 27, 2024
Cooley Accused Of Hiding Fraud From Startup Investors
A former board member of a dry-cleaning delivery startup has alleged in New Jersey federal court that Cooley LLP and its attorneys deliberately kept investors in the dark about fraud claims against the startup's chief executive.
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September 27, 2024
Ault Disruptive To Dissolve After Failing To Ink SPAC Deal
Blank check company Ault Disruptive Technologies Corp. said on Friday that it plans to dissolve and liquidate because it will not be able to complete an initial business combination before Dec. 20.
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September 26, 2024
1st Circ. Won't Disturb Ex-DraftKings Exec's Noncompete
The First Circuit on Thursday rejected an appeal from a former DraftKings executive looking to undo his noncompete contract, ruling that Massachusetts law — not California law — applies to his agreement with his Boston-based former employer and that an injunction barring him from competing with DraftKings stands.
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September 26, 2024
Nestlé Customers Win Class Cert. In Child Labor Labeling Suit
A California federal judge on Thursday granted class certification in litigation alleging Nestle USA misleads the public with "sustainably sourced" chocolate labels when its cocoa is produced through child labor and deforestation, rejecting the company's contention that classes can't be lumped together for different labels on different products.
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September 26, 2024
NCAA, Athletes Make Tweaks To $2.78B NIL Settlement
The National Collegiate Athletic Association and the athletes suing over the organization's name, image and likeness compensation rules on Thursday presented some clarifications to their proposed $2.78 billion antitrust settlement after a California federal judge took issue with some of the deal's terms.
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September 26, 2024
Cognizant's Level Of Indian H-1B Workers 'Unusual,' Jury Told
A Howard University professor testifying as an expert for a class of former Congizant Technologies employees alleging the company has a bias in favor of Indian workers told a California federal jury Thursday the fact that 99% of Cognizant's H-1B visa workers are from India is "unusual" and demonstrates a "cultural preference."
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September 26, 2024
Attys Worry OpenAI IP Row Will Drag On Amid AI Policy Push
A BigLaw attorney and consumer advocates found common ground during the seventh annual Berkeley Law AI Institute on Thursday expressing concerns that courts won't timely adjudicate copyright claims against OpenAI and others, while an FTC attorney noted the commission is already enforcing the Federal Trade Act against companies for over-hyping their AI.
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September 26, 2024
Legal Pros Grapple With Best Use Of AI As Clients Divide
BigLaw attorneys and in-house counsel speaking at the annual Berkeley Law AI Institute on Thursday talked about how they've recently grappled with using the tools known as artificial intelligence in representing clients, saying some clients have either demanded or prohibited attorneys from using the tools, and others have taken seemingly contradictory positions.
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September 26, 2024
General Mills Seeks To Ax Suit Claiming Cocoa Puffs Has Lead
General Mills urged a California federal court to toss a proposed consumer class action claiming its Cocoa Puffs cereal contains undisclosed and high levels of lead, saying the suit is based on a "flawed and implausible theory" that doesn't show lead is present in the cereal at unsafe levels.
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September 26, 2024
County, Deputy Exit Calif. Cannabis Raid Case For Now
With a ruling Friday, a California county and a sheriff's deputy have escaped — for now — claims they unlawfully searched a man's home and seized 60 pounds of marijuana, but still pending are claims of excessive force by means of a bean bag round shot at the plaintiff.
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September 26, 2024
Infighting Plagues SF Leaders With High Court Args Imminent
San Francisco has forged ahead with its effort to convince the U.S. Supreme Court that a federal Clean Water Act permit is too vague for it to comply with, even as a dispute over whether to drop the case has broken out between city leaders.
Expert Analysis
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Series
Glassblowing Makes Me A Better Lawyer
I never expected that glassblowing would strongly influence my work as an attorney, but it has taught me the importance of building a solid foundation for your work, learning from others and committing to a lifetime of practice, says Margaret House at Kalijarvi Chuzi.
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Best Practices For Chemical Transparency In Supply Chains
A flurry of new and forthcoming regulations in different jurisdictions that require disclosure of potentially hazardous substances used in companies' products and processes will require businesses to take proactive steps to build chemical transparency into their supply chains, and engage robustly and systematically with vendors, says Jillian Stacy at Enhesa.
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Money, Money, Money: Limiting White Collar Wealth Evidence
As courts increasingly recognize that allowing unfettered evidence of wealth could prejudice a jury against a defendant, white collar defense counsel should consider several avenues for excluding visual evidence of a lavish lifestyle at trial, says Jonathan Porter at Husch Blackwell.
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Opinion
Flawed Fintiv Rule Should Be Deemed Overreach In Tech Suit
A pending federal lawsuit over the U.S. Patent and Trademark Office's unilateral changes to key elements of the America Invents Act, Apple v. Vidal, could shift the balance of power between Congress and federal agencies, as it could justify future instances of unelected officials unilaterally changing laws, say Patrick Leahy and Bob Goodlatte.
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How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.
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Emerging Trends In ESG-Focused Securities Litigation
Based on a combination of shareholder pressure, increasing regulatory scrutiny and proposed rulemaking, there has been a proliferation of litigation over public company disclosures and actions regarding environmental, social, and governance factors — and the overall volume of such class actions will likely increase in the coming years, say attorneys at Mintz.
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5 Steps To Navigating State Laws On Healthcare Transactions
As more states pass legislation requiring healthcare-transaction notice, private equity investors and other deal parties should evaluate the new laws and consider ways to mitigate their effects, say Carol Loepere and Nicole Aiken-Shaban at Reed Smith.
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Firms Must Rethink How They Train New Lawyers In AI Age
As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.
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High Court's BofA Ruling Leaves State Preemption Questions
A recent U.S. Supreme Court decision in Cantero v. Bank of America sheds light on whether certain state banking regulations apply to federally chartered banks, but a circuit split could still force the Supreme Court to take a more direct position, says Brett Garver at Moritt Hock.
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Think Like A Lawyer: Always Be Closing
When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.
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How A Bumblebee Got Under Calif. Wildlife Regulator's Bonnet
A California bumblebee's listing as an endangered species could lead to a regulatory quagmire as California Department of Fish and Wildlife permits now routinely include survey requirements for the bee, but the regulator has yet to determine what the species needs for conservation, says David Smith at Manatt.
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Rare Robinson-Patman Ruling Exhibits Key Antitrust Risk
A rare federal court decision under the Robinson-Patman Act, which prohibits certain kinds of price discrimination, highlights the antitrust risks faced by certain suppliers and is likely to be cited by future plaintiffs and enforcement officials calling for renewed scrutiny of pricing and discounting practices, say attorneys at Baker McKenzie.
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Deciphering SEC Disgorgement 4 Years After Liu
Since the U.S. Supreme Court’s 2020 decision in Liu v. U.S. Securities and Exchange Commission to preserve SEC disgorgement with limits, courts have continued to rule largely in the agency’s favor, but a recent circuit split over the National Defense Authorization Act's import may create hurdles for the SEC, say attorneys at Ropes & Gray.
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Wiretap Use In Cartel Probes Likely To Remain An Exception
Although the U.S. Department of Justice's Antitrust Division has recently signaled interest in wiretaps, the use of this technology to capture evidence of antitrust conspiracies and pursue monopolization as a criminal matter has been rare historically, and is likely to remain so, say Carsten Reichel and Will Conway at DLA Piper.
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Opinion
California Has A Duty To Curtail Frivolous CIPA Suits
As plaintiffs increasingly file class actions against companies for their use of website tracking cookies and pixels, the Legislature should consider four options to amend the California Invasion of Privacy Act and restore the balance between consumer privacy and business operational interests, say Steven Stransky and Jennifer Adler at Thompson Hine and Glenn Lammi at the Washington Legal Foundation.