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Compliance
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March 21, 2025
Ex-Cognizant CLO Reconsidering Dismissal Of Paul Weiss
A former Cognizant Technology Solutions Corp. executive facing bribery charges indicated Friday that he may reconsider his decision to fire Paul Weiss Rifkind Wharton & Garrison LLP as his trial counsel, now that President Donald Trump has rescinded an executive order limiting the firm's access to federal buildings and officials.
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March 21, 2025
Consumer Group Doesn't Belong In FERC Fight, Court Told
An energy efficiency aggregator fighting a Federal Energy Regulatory Commission market manipulation case carrying a potential $1 billion price tag says a consumer advocate's concern over a constitutional challenge to the agency's structure can't justify its motion to intervene in the company's lawsuit.
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March 21, 2025
DOJ Ends Glencore Monitorships Under Bribery Deal Early
The U.S. Department of Justice has ended early two monitorships imposed as part of mining giant Glencore's 2022 bribery and market manipulation case settlement, in the wake of President Donald Trump's directive pausing enforcement of the Foreign Corrupt Practices Act.
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March 21, 2025
Treasury Lifts Sanctions Against Crypto Mixer Tornado Cash
The U.S. Department of the Treasury said Friday that it has removed U.S. government sanctions against cryptocurrency mixer Tornado Cash, ending the Biden-era blacklisting after the Fifth Circuit said last year that key code underpinning the service wasn't sanctionable.
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March 21, 2025
CFPB Says Comerica Trying To Forestall Agency Suit
The Consumer Financial Protection Bureau told a Texas federal judge on Friday that Comerica Bank was merely trying to use a lawsuit against the agency to forestall an enforcement action over the bank's handling of a government benefit card program.
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March 21, 2025
Dems Call On Trump To Reinstate Axed FTC Commissioners
A pair of top House Democrats called on President Donald Trump on Friday to reinstate the fired Democratic commissioners of the Federal Trade Commission because their firing was a "clear violation of the law."
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March 21, 2025
Boutique Firm Accuses IRS Of Illegally Enforcing Payroll Tax
A consumer-protection boutique law firm accused the IRS of illegally enforcing payroll taxes while delaying the processing of pandemic-era employee retention tax credits, which the firm claimed would have helped with compliance, according to a complaint in Connecticut federal court.
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March 21, 2025
Ex-UBS North America CEO Agrees To $4.9M FBAR Judgment
The former North American CEO for Swiss bank UBS on Friday agreed to a $4.9 million judgment to end claims that he failed to file timely or accurate foreign bank account reports with the Internal Revenue Service between 2003 and 2013.
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March 21, 2025
Fed Defends Swipe Fee Cap Against Ky. Pizzeria's Challenge
The Federal Reserve Board asked a Kentucky federal judge to uphold its existing cap on debit card swipe fees, defending the regulatory measure's substantive and procedural merits in a suit brought by a family-owned pizza shop operating in the state.
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March 21, 2025
DOJ Seeks To DQ Judge From Perkins Coie's Exec Order Suit
The U.S. Department of Justice moved Friday to disqualify the D.C. federal judge presiding over Perkins Coie LLP's challenge to President Donald Trump's executive order targeting the firm for its diversity-focused hiring efforts and its political representation.
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March 21, 2025
Ga. Law Firm Hit With Telemarketing Calls Class Action
An Illinois man is suing Kaila & Solomon Law Group LLC, which does business as Guardian Law, and marketing company ClicTree LLC in federal court, alleging they violated the Telephone Consumer Protection Act by making unsolicited telemarketing calls to people on the National Do Not Call Registry.
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March 21, 2025
DC Circ. Won't Let Apple Intervene For Google Search Fix Trial
A D.C. Circuit panel on Friday rejected Apple's appeal seeking to participate in the remedy trial for the U.S. Department of Justice's search monopolization case against Google next month.
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March 21, 2025
GC Cheat Sheet: The Hottest Corporate News Of The Week
Cognizant's former chief legal officer, who's facing bribery charges, requested a trial delay after he fired Paul Weiss from his defense team following the Trump administration's suspension of the firm's security clearances. Meanwhile, new findings show that women are still compensated less than men in legal operations roles. These are some of the stories in corporate legal news you may have missed in the past week.
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March 21, 2025
Credit Unions Denied Class Cert. In NY Rate Cut Suit
A trio of Western New York credit unions can't get certification for a class of state court consumer debt judgment holders after a lengthy "abusive and tactical" delay in filing their certification bid in a suit over a state law aimed at decreasing the default interest rate for such judgments, a Manhattan federal judge found.
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March 21, 2025
Idaho Hospital Wins Reprieve From State Abortion Ban
Idaho's near-total abortion ban "must yield" to a federal requirement that doctors provide emergency abortions for pregnant women facing severe injuries, an Idaho federal judge ruled.
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March 20, 2025
Trump Rescinds Paul Weiss Order After Firm Strikes Deal
President Donald Trump on Thursday announced he will rescind an executive order suspending security clearances held by Paul Weiss Rifkind Wharton & Garrison LLP employees after the law firm agreed to not adopt DEI hiring practices and to provide $40 million worth of pro bono services to support administration initiatives.
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March 20, 2025
Musk Gets Summons In Tardy Twitter Stock Disclosure Row
Elon Musk received a court summons last week for a U.S. Securities and Exchange Commission lawsuit accusing the billionaire of failing to timely disclose his purchases of Twitter stock ahead of his $44 billion acquisition in 2022, according to a return of service filed Thursday in D.C. federal court.
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March 20, 2025
OCC Says It Will Stop Examining Banks For Reputation Risk
The Office of the Comptroller of the Currency said Thursday that it will no longer examine banks for reputation risk, adopting a policy change that some Republican lawmakers want to require for all federal banking regulators to help curb so-called debanking.
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March 20, 2025
Nippon Calls Consumer Suit Over US Steel Merger 'Baseless'
Nippon Steel Corp. has urged a California federal court to throw out a consumer suit over its blocked $14.9 billion merger with U.S. Steel Corp., calling it yet another "in a long line of baseless lawsuits" over a merger of public companies that they have "no standing to challenge in the first place."
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March 20, 2025
Iowa Adviser To Pay $15M Over SEC Conflict Claims
An Iowa-based adviser has been ordered to pay $15 million over claims from the U.S. Securities and Exchange Commission that it invested client assets in funds that benefited an affiliated broker-dealer instead of lower-cost alternatives, without disclosing its conflicts of interest.
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March 20, 2025
SEC Steps Back From Crypto Mining In Staff Statement
The U.S. Securities and Exchange Commission's Division of Corporation Finance said Thursday that certain crypto mining activities are beyond the agency's purview, but the commission's lone Democrat warned against interpreting the statement as a "wholesale exemption for mining."
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March 20, 2025
Sequoia Capital Rallies For Musk's $56B Tesla Pay Appeal
Venture capital firm Sequoia Capital Operations on Tuesday asked the Delaware Supreme Court for permission to back Elon Musk's appeal aimed at a Court of Chancery decision that had short-circuited the electric car company's 10-year, $55.6 billion compensation plan for the CEO.
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March 20, 2025
NTSB Says Maryland Didn't Track Risks Of Key Bridge Collapse
The National Transportation Safety Board recommended Thursday that 68 bridges in 19 states be evaluated for risk of collapse in the event of a vessel strike, and found that Maryland officials failed to adequately calculate vulnerabilities in Baltimore's Francis Scott Key Bridge well before its collapse last year.
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March 20, 2025
3 Firms Win Lead Plaintiff Spot In Boeing Chancery Case
Bleichmar Fonti & Auld LLP, Grant & Eisenhofer PA and Scott + Scott Attorneys at Law LLP got the nod Thursday to pursue potentially massive damages in a Delaware Court of Chancery derivative suit on behalf of The Boeing Co. arising from a string of plane crashes and oversight failures.
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March 20, 2025
FTC Asks 8th Circ. To Nix Click-To-Cancel Rule Challenges
The Trump administration's Federal Trade Commission isn't planning an about-face on the "click-to-cancel" rule debuted last year under the Biden administration, at least according to a recent filing asking the Eighth Circuit to dismiss a petition challenging the rule.
Expert Analysis
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Series
Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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Axed ALJ Removal Protections Mark Big Shift For NLRB
A D.C. federal court's recent decision in VHS Acquisition Subsidiary No. 7 v. National Labor Relations Board removed long-standing tenure protections for administrative law judges by finding they must be removable at will by the NLRB, marking a significant shift in the agency's ability to prosecute and adjudicate cases, say attorneys at Proskauer.
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11th Circ. TCPA Ruling Signals Erosion Of Judicial Deference
The U.S. Court of Appeals for the Eleventh Circuit recently came to the rescue of the lead generation industry, striking down new regulations that were set to go into effect on Jan. 27, a decision consistent with federal courts' recent willingness to review administrative decisions, say attorneys at Troutman.
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The Syria Sanctions Dilemma Facing Trump Administration
Parties looking to engage in transactions involving Syria will be watching the expiration of General License 24 in July, when the Trump administration will need to decide whether to make significant changes to the Syrian sanctions program and reconsider the de facto government's status as a foreign terrorist organization, says Charlie Lyons at Ferrari & Associates.
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How Southern Calif. Fires Can Affect National, Local Pricing
The fire-related California state of emergency declared last month in Los Angeles and Ventura counties triggered laws around price-gouging and pricing restrictions that affect not just individuals and businesses in the state, but also nationwide, meaning sellers should be mindful of how price changes are discussed and rolled out, say attorneys at Proskauer.
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Inside The Uncertainty Surrounding CFPB's Overdraft Rule
The Consumer Financial Protection Bureau's overhaul of overdraft fee regulation hangs in limbo as the industry watches to see whether new leadership will repeal the rule, allow it to stay in place, or wait for congressional action or the courts to drive its demise, say attorneys at Alston & Bird.
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How Private Securities Suits Complement SEC Enforcement
U.S. Securities and Exchange Commission enforcement is vital to the healthy functioning of markets, but government enforcement alone is not enough to ensure meaningful monetary recoveries for investor losses due to securities law violations, say attorneys at Bernstein Litowitz.
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The Case For Compliance During The Trump Administration
Given the Trump administration’s shifting white collar enforcement priorities, C-suite executives may have the natural instinct to pare back compliance initiatives, but there are several good reasons for companies to at least stay the course on their compliance programs, if not enhance them, say attorneys at Riley Safer.
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Opinion
Undoing An American Ideal Of Fairness
President Donald Trump’s orders attacking birthright citizenship, civil rights education, and diversity, equity and inclusion programs threaten hard-won constitutional civil rights protections and decades of efforts to undo bias in the law — undermining what Chief Justice Earl Warren called "our American ideal of fairness," says Reuben Guttman at Guttman Buschner.
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Dispelling 10 Myths About Health Provider-Based Compliance
Congress appears intent on requiring hospitals to submit provider-based attestations for all off-campus outpatient hospital locations, so now is the time for hospitals to prepare for this change by understanding common misconceptions about provider-based status and proactively correct noncompliance, say attorneys at McDermott.
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Employer Tips For Wise Use Of Workers' Biometrics And Tech
Excerpt from Practical Guidance
Employers that collect employee biometric data and operate bring-your-own-device policies, which respectively offer better corporate security and more flexibility for workers, should prioritize certain best practices to protect the privacy and rights of employees and safeguard sensitive internal information, says Douglas Yang at Sheppard Mullin.
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How Trump EPA Could Fix Carbon Combustion Residuals Rule
The Trump administration is likely targeting the recently adopted carbon combustion residual rule, especially since it imposes very stringent, detailed and expedited requirements on coal power plants — but even if the rule is not vacated entirely, there are measures that could greatly reduce its regulatory burden, says Stephen Jones at Post & Schell.
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CFPB Small Biz Study Brings Fair Lending Considerations
The Consumer Financial Protection Bureau's recent report highlighting potential racial discrimination in small business lending may not result in more aggressive enforcement under the Trump administration — but lenders can expect state regulators, private plaintiffs and advocacy groups to step up their own efforts, say attorneys at Husch Blackwell.
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Expect To Feel Aftershocks Of Chopra's CFPB Shake-Up
Publications released by Consumer Financial Protection Bureau personnel in the last days of the Biden administration outline former Director Rohit Chopra's long-term vision for aggressive state-level enforcement of federal consumer financial laws, opening the doors for states to launch investigations and pursue actions, say attorneys at Hudson Cook.
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Corp. Transparency Act's Future Under Treasury's Bessent
The Corporate Transparency Act’s ultimate fate faced uncertain terms at the end of 2024, but new U.S. Department of the Treasury Secretary Scott Bessent's statements and actions so far demonstrate that he does not intend to ignore the law, though he may attempt to make modifications, say attorneys at Taylor English.