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Compliance
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February 13, 2025
9th Circ. Panel Doubts SEC's 'Gag Rule' Violates Free Speech
A Ninth Circuit panel on Thursday appeared to doubt a First Amendment challenge to the U.S. Securities and Exchange Commission's "gag rule" that settling parties cannot deny allegations against them, as each judge noted that the agreements are voluntary.
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February 13, 2025
DeepSeek's Rapid Rise Adds Fuel To AI Policy Push
Chinese startup DeepSeek has made waves globally with an artificial intelligence chatbot app that it claims to have made more efficiently than its competitors, but experts say its quick ascent is likely to accelerate efforts to broadly regulate data privacy and national security risks presented by the emerging technology.
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February 13, 2025
2 Men Cop To Crypto Mining Fraud Conspiracy, Forfeit $400M
A pair of Estonians have pled guilty to wire fraud conspiracy and agreed to forfeit assets worth $400 million in connection with Washington state federal prosecutors' claims that they ran a $577 million cryptocurrency Ponzi scheme, the government said Thursday.
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February 13, 2025
SEC Nets $38M In Judgments Over Cannabis Fraud Claims
A purported marijuana cultivation company and associated entities are on the hook for judgments worth nearly $38 million to settle U.S. Securities and Exchange Commission claims over an alleged Ponzi-like scheme soliciting would-be investors in "nonexistent" grow facilities.
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February 13, 2025
Tesla, Objector Appeal $730M Chancery Board Pay Deal
Tesla Inc. and a stockholder objector have appealed a Delaware Court of Chancery approval of the return of more than $730 million in director stock, option and grant awards to the company that would resolve a suit accusing the electric-car maker's board of raking in "outrageous" compensation packages that cost the company hundreds of millions of dollars.
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February 13, 2025
Apple Pushes DC Circ. To Intervene In Google Remedies Case
Apple has urged the D.C. Circuit to undo a district court order barring the company from intervening in the U.S. Justice Department's remedies case against Google, arguing it moved with all speed to step in when it saw a government proposal "designed to force Apple to develop its own general search engine."
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February 13, 2025
Senate Dems Say FCC Looking To 'Punish' Broadcasters
A trio of Senate Democrats wrote to Republican leaders on the Federal Communications Commission questioning recent agency decisions they said "appear politically motivated and designed to punish, censor or intimidate" broadcasters.
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February 13, 2025
Madigan Verdict Caps Stunning Fall For Powerful Chicago Pol
Former Illinois House Speaker Michael Madigan's conviction Wednesday on bribery and wire fraud charges marked a stunning fall from grace for a man who was the longest-serving legislative leader in the country and who wielded considerable influence in the state and the city of Chicago for decades.
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February 13, 2025
GOP Lawmakers Seek To Vacate CFPB Overdraft Rule
Top U.S. House and Senate Republicans introduced legislation on Thursday to repeal the Consumer Financial Protection Bureau's $5 overdraft fee rule, a move that could help ensure big banks retain more regulatory flexibility to charge higher amounts.
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February 13, 2025
Dem AGs Urge Companies To Keep DEI Programs In Place
A coalition of 16 Democratic state attorneys general told companies Thursday not to immediately scrap programs meant to promote diversity, equity and inclusion within their organizations, saying these initiatives are largely legal despite threats from President Donald Trump's administration.
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February 13, 2025
Boeing, DOJ Want More Time To Rework 737 Max Plea Deal
The U.S. Department of Justice and The Boeing Co. told a Texas federal judge on Thursday that they need another month to rework a plea agreement in the American aerospace giant's 737 Max criminal conspiracy case, saying new senior DOJ officials are still being briefed on a potential new deal.
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February 13, 2025
Walmart Says CFPB Suit Should Wait Amid Agency Chaos
Walmart and fintech company Branch Messenger Inc. asked a Minnesota federal judge to stay the Consumer Financial Protection Bureau's enforcement case over allegedly mandatory deposit accounts for delivery drivers until policymakers untangle the agency's role under the Trump administration.
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February 13, 2025
Judge Extends Restraining Order On USAID Gutting
A D.C. federal judge extended his temporary restraining order barring USAID from placing thousands of employees on administrative leave for another week on Thursday, saying he needed more time to rule on the plaintiff employees unions' preliminary injunction request to stop the agency's overhaul while the case proceeds.
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February 13, 2025
SafeMoon CEO's Trial Not Delayed By Crypto Policy Shifts
A Brooklyn federal judge has declined to delay the late March start to a trial for the CEO of bankrupt cryptocurrency asset company SafeMoon LLC despite the executive's arguments that recent crypto policy shifts could cut the securities fraud charge from the counts against him.
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February 13, 2025
Trump Reciprocal Tariff Plan Could Spur Supply 'Nightmares'
The U.S. will explore imposing reciprocal tariffs that equal rates levied by other countries importing American products, President Donald Trump announced Thursday, a move some experts worry will lead to "compliance nightmares" and COVID-level disruptions to supply chains.
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February 13, 2025
Maryland Judge Blocks Trump's Orders On Trans Healthcare
A Maryland federal judge on Thursday temporarily blocked the Trump administration from restricting gender-affirming care for people under the age of 19 and required the administration to keep in place federal funding for healthcare providers that provide transgender care.
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February 13, 2025
Profs Back Hotel Guests In 3rd Circ. Algorithmic Pricing Case
A group of academics has joined antimonopoly groups to support hotel guests accusing several Atlantic City casino hotels of using shared software to fix room rates in their Third Circuit fight to revive their suit.
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February 13, 2025
Mass. Auto Telematics Data Law Not Preempted, Judge Says
A Boston federal judge's dismissal of an auto industry group's challenge to a Massachusetts vehicle telematics data law centered on a limited interpretation of the statute's reach and the lack of a clear conflict with federal laws, according to an order unsealed Thursday explaining the decision.
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February 13, 2025
EPA Boss Says Biden Admin Wrongly Ceded Control Of $20B
The U.S. Environmental Protection Agency's new leader said Thursday that $20 billion Congress appropriated for an EPA grant program had been inappropriately transferred outside the agency and is lacking adequate supervision — a claim disputed by a Biden-era official.
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February 13, 2025
EPA Asks 5th Circ. To Pause State Ozone Plan Decision
The U.S. Environmental Protection Agency asked the Fifth Circuit to hold off on deciding whether it was allowed to deny three states' plans to comply with federal ozone standards to give the Trump administration time to evaluate the rule at the center of the litigation.
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February 13, 2025
Compliance Group Of The Year: Sidley
Sidley Austin LLP's regulatory and enforcement lawyers helped various financial services firms settle out of the U.S. Securities and Exchange Commission's off-channel communications enforcement sweep with relatively minimal fines, earning them a place as one of the 2024 Law360 Compliance Groups of the Year.
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February 13, 2025
Musk Says He'll Drop OpenAI Bid If It Scraps 'For Profit' Plans
Elon Musk has hit back at OpenAI's claim that his $97.375 billion takeover bid is improper, noting if the ChatGPT maker agrees to nix plans to become a for-profit business, his offer will be dropped.
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February 13, 2025
SDNY US Atty Resigns, Alleging Trump-Adams 'Quid Pro Quo'
Danielle R. Sassoon, the interim U.S. attorney for the Southern District of New York, resigned Thursday after she refused an order by U.S. Department of Justice officials to drop the federal corruption charges against New York City Mayor Eric Adams and expressed concern the move was part of an improper quid pro quo with President Donald Trump.
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February 13, 2025
GOP Rep. Moves To Nix SEC's Enhanced Fund Disclosures
A Republican congressman has introduced a resolution that would repeal a recently adopted U.S. Securities and Exchange Commission regulation requiring more detailed and frequent disclosures from mutual funds.
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February 13, 2025
Tribe Can't Revisit $16M Ovintiv Settlement, Feds, Utah Say
The U.S. government and Utah urged a federal judge to reject a tribe's bid to challenge a $16 million Clean Air Act consent decree with Ovintiv USA Inc., arguing that its comments on the settlement were already considered and rejected.
Expert Analysis
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Expect A Big Shake Up At The EEOC Under 2nd Trump Admin
During President-elect Donald Trump’s second term, the U.S. Equal Employment Opportunity Commission is likely to significantly shift its focus and priorities, especially where workplace DEI initiatives, immigration enforcement, LGBTQ+ rights and pregnancy protections are concerned, say attorneys at Stoel Rives.
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Series
Illinois Banking Brief: All The Notable Legal Updates In Q4
While the last quarter of 2024 didn't bring any notable state financial legislation, Illinois banks did see developments in the challenge to the Interchange Fee Prohibition Act, and received some awaited guidance on credit line disclosures and bank-fintech relationships, say attorneys at Dykema.
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7 Ways 2nd Trump Administration May Affect Partner Hiring
President-elect Donald Trump's return to the White House will likely have a number of downstream effects on partner hiring in the legal industry, from accelerated hiring timelines to increased vetting of prospective employees, say recruiters at Macrae.
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How Trump 2.0 May Change Business In Latin America
Companies in Latin America should expect to face more trade restrictions, tighter economic sanctions and enhanced corruption risks, as the incoming administration shifts focus to certain non-U.S. actors, most notably China, says Matteson Ellis at Miller & Chevalier.
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E-Discovery Quarterly: Rulings On Custodian Selection
Several recent rulings make clear that the proportionality of additional proposed custodians will depend on whether the custodians have unique relevant documents, and producing parties should consider whether information already in the record will show that they have relevant documents that otherwise might not be produced, say attorneys at Sidley.
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Impact Of Successful Challenges To SEC's Rulemaking Ability
In 2024, the U.S. Securities and Exchange Commission faced significant legal challenges to its aggressive rulemaking agenda as several of its rules were vacated by the Fifth Circuit, which could hinder the SEC's ability to enact rules extending beyond express statutory authority in the future, say attorneys at Debevoise.
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Takeaways From DOJ, FTC End To Collaboration Guidelines
The Federal Trade Commission's and U.S. Department of Justice's recent decision to withdraw the guidelines for collaborations among competitors may reflect a desire for clearer parameters by emphasizing case law on specific ventures, but it also carries the potential to chill some future collaboration, say attorneys at Patterson Belknap.
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5 Privacy Law Trends That Will Continue In 2025
While preparing privacy programs for the year, companies should keep in mind several developments from 2024 that will carry over — namely, in the realm of artificial intelligence, passive data collection, combining data from multiple sources, privacy program expectations and managing vendors, say attorneys at Sheppard Mullin.
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Justices Seem Focused On NEPA's Limits In Utah Rail Case
After last month's oral argument at the U.S. Supreme Court in Seven County Infrastructure Coalition v. Eagle County, Colorado, the court appears poised to forcefully reiterate that the National Environmental Policy Act requires federal agencies to review only those environmental impacts within their control, say attorneys at Perkins Coie.
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A Look At PCAOB's Record-Breaking Enforcement In 2024
The Public Company Accounting Oversight Board in 2024 brought more enforcement actions against auditors and imposed increasingly higher monetary penalties, showing that it was not afraid to exercise its power to fine and reprimand firms, a trend that will likely continue in 2025, say attorneys at Briglia Hundley.
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Complying With Seasonal Product Labeling Requirements
Though the holiday season is in the rearview, many seasonal alcohol products remain in the market, and producers should ensure that their labels comply with the Alcohol and Tobacco Tax and Trade Bureau's additional requirements for such products, say attorneys at McDermott.
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The OIG Report: Preparing For Oversight In 2025
Across sectors, Office of Inspector General work plans and challenge reports for 2025 provide a trove of information on the issues and industries that will likely be the focus of government oversight in the year to come, says Diana Shaw at Wiley.
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What To Expect In Higher Ed Enforcement Under Trump
Colleges and universities should prepare for shifting priorities, as President-elect Donald Trump is likely to focus less on antitrust cases and more on foreign relations policy, while congressional oversight of higher education continues to increase, say attorneys at Steptoe.
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Series
NY Banking Brief: All The Notable Legal Updates In Q4
In 2024's final quarter, the New York State Department of Financial Services published guidance on mitigating the rising cybersecurity risks of artificial intelligence and remote technology workers with North Korean ties, and the state attorney general launched an antitrust investigation into Capital One's proposed Discover merger, say attorneys at Haynes Boone.
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Series
Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.