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Compliance
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December 03, 2024
Former FirstEnergy CEO Rips SEC's 'Belated' Suit Against Him
Former FirstEnergy Corp. chief executive officer Charles Jones slammed the U.S. Securities and Exchange Commission's enforcement action against him over his alleged part in the company's widely publicized bribery scandal relating to its nuclear program, calling the suit "belated" and arguing the agency failed to back up its claims.
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December 03, 2024
Robotics Co. Hit With Investor Suit Over Accounting Errors
Investors in supply chain automation company Symbotic on Tuesday accused executives of hiding faulty accounting processes, prompting financial reporting errors that tanked the company's stock when the issues came to light.
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December 03, 2024
Baker Botts Brings Back Antitrust Atty In DC
Baker Botts LLP welcomed back on Tuesday an antitrust attorney once with the firm who most recently spent time at A&O Sherman.
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December 03, 2024
'Bitcoin Jesus' Calls $48M Tax Dodging Case Unconstitutional
An early Bitcoin investor known as Bitcoin Jesus asked a California federal judge Tuesday to dismiss charges that he dodged approximately $48 million in taxes by filing false tax returns and concealing how much cryptocurrency he owned, arguing that the charges are unconstitutional.
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December 03, 2024
Celsius Founder Cops To Fraud That Sunk $25B Crypto Lender
Celsius Network founder Alex Mashinsky told a Manhattan federal judge Tuesday that he lied when he told the public that the fallen $25 billion crypto lender's tokens were a safe investment, pleading guilty to fraud charges ahead of a January criminal trial.
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December 03, 2024
Former OFAC Official Joins Hughes Hubbard In DC
Hughes Hubbard & Reed LLP has announced that a former lead sanctions investigator and analyst at the Office of Foreign Assets Control has joined the firm's Washington, D.C., office as a partner in its sanctions, export controls and anti-money laundering practice.
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December 03, 2024
McGuireWoods Grows DC Office With White Collar Duo
McGuireWoods LLP said Tuesday that it has hired the leader of litigation boutique McCool Law PLLC, marking the seventh partner with a history at the U.S. Department of Justice to join the firm this year.
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December 03, 2024
Exelon Asks For Corp. AMT To Account For Repairs Deduction
Power companies should be allowed to account for an industry-specific tax deduction on repair costs to determine whether they're subject to the corporate alternative minimum tax, utility giant Exelon said in a comment letter to the U.S. Treasury Department released Tuesday.
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December 03, 2024
Trump Pledges To Block $14.9B US Steel-Nippon Deal
President-elect Donald Trump has reiterated his opposition to the proposed $14.9 billion acquisition of Pennsylvania-based U.S. Steel by Japan's Nippon Steel, pledging on Truth Social to block the deal and virtually extinguishing any remaining glimmers of hope that it can get done.
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December 03, 2024
New DOL Rule Would End Lower Wages For Disabled Workers
The U.S. Department of Labor said Tuesday it will proceed with a rule to end employers' ability to pay workers with disabilities below the federal minimum wage, taking long-awaited action on the issue in the final weeks of President Joe Biden's administration.
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December 03, 2024
CFPB Pitches Plan For Tighter Regulation Of Data Brokers
In a late push before the Biden administration's end, the Consumer Financial Protection Bureau moved Tuesday to clamp down on the so-called data broker industry with a new draft rule that pivots off existing credit reporting protections for consumers.
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December 02, 2024
Philadelphia Accused Of Anti-Asian Liquor Law Enforcement
Groups representing Asian American and Arab American business owners claim the city of Philadelphia and Pennsylvania's Bureau of Liquor Control Enforcement are violating their rights with state and local ordinances cracking down on "stop and go" liquor establishments and convenience stores, which happen to be predominantly owned by racial minorities.
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December 02, 2024
Trial Begins In Trader Joe's Vendor's Fight With Poultry Supplier
Employees of a poultry producer cracked vulgar jokes about the quality of the meat while packaging raw chicken tainted with bone fragments, a Washington-state grocery store vendor told a federal jury on Monday, blaming the meatpacker for the demise of the Chili Lime Chicken Burgers previously made exclusively for Trader Joe's.
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December 02, 2024
Judge Isn't Seeing 'Good Faith' Compliance In Probiotic Feud
A Maryland federal judge said Monday that a drug company is, yet again, failing to make "good faith substantial compliance" with the terms of an injunction that followed a $15 million jury verdict in a dispute over a proprietary probiotic formula.
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December 02, 2024
Metropolitan Commercial Bank Aided Voyager Fraud, Suit Says
Voyager Digital's former bank, Metropolitan Commercial Bank, has been hit with a 53-count complaint in New York federal court alleging it was complicit in bad behavior by the now-defunct crypto lender and should be on the hook for repaying platform users.
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December 02, 2024
Government Mole Faces Tough Cross From Madigan's Atty
An attorney for former Illinois House Speaker Michael Madigan got his chance Monday to question the ex-Chicago alderman who recorded his client while cooperating with the government, pushing him to admit that Madigan never explicitly conditioned his support on legal business for his law firm or told the alderman to vote against developers who didn't hire him for tax work.
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December 02, 2024
SEC, Ill. Lender Reach $4M Deal Over Failure To Register
An Illinois convertible note dealer and its president have agreed to pay the U.S. Securities and Exchange Commission over $3.9 million to resolve claims they violated registration provisions of the federal securities laws while lending to penny stock issuers.
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December 02, 2024
DC Circ. Asked To Spike 'Dangerous' NEPA Regulatons Ruling
Environmental groups are asking the D.C. Circuit to overturn a panel's "demonstrably dangerous" ruling that the White House Council on Environmental Quality lacks the authority to issue legally binding regulations implementing the National Environmental Policy Act.
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December 02, 2024
SEC Crypto Cases To Face Review Under Trump
President-elect Donald Trump's promises of a friendlier approach to the digital asset industry means a review is coming for the U.S. Securities and Exchange Commission's controversial crypto suits, but experts agreed that this doesn't mean enforcement actions in the space will grind to a halt.
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December 02, 2024
Investor Alleges Medical Device Co. Misled On FDA Clearance
The executives and directors of dialysis equipment company Outset Medical Inc. have been hit with a shareholder derivative suit in California federal court alleging they allowed the company to market its product without proper clearance from the U.S. Food and Drug Administration.
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December 02, 2024
Newsom Wants $25M For Expected Legal Fights With Trump
California Gov. Gavin Newsom announced Monday that he wants up to $25 million for litigation and legal fights he foresees with the administration of President-elect Donald Trump, kicking off the first day of a special session the state Legislature held at the governor's request after Trump's win.
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December 02, 2024
Meta Can't Dodge $25M Fine For Wash. Election Ads
Facebook parent company Meta must pay $25 million in fines for repeatedly running afoul of Washington state's political advertising transparency law, a state appellate panel ruled Monday, finding the technology giant's free speech rights were not violated by being forced to comply with the law.
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December 02, 2024
Bipartisan Bill Calls For AI Studies From Financial Regulators
Leaders of the U.S. House Financial Services Committee want to codify their commitment to regulating and cultivating the use of artificial intelligence in the financial services industry with legislation introduced Monday that directs financial and housing regulators to produce reports on the use of AI in their respective sectors.
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December 02, 2024
Bank, Payment Processor Look To Sink Chargeback Fee Suit
Esquire Bank NA and a payment processor it sponsors have asked a New York federal judge to toss all but one of an online merchant's proposed class action claims over a fee provision in their contract, arguing as a mediation date looms that most of the merchant's claims are either duplicative or inapplicable.
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December 02, 2024
Consulting Firm Says Insurer On Hook For $7.6M Deal
A consulting firm told an Illinois federal court that its insurer must reimburse it for a $7.6 million settlement with the U.S. Department of Justice relating to a lawsuit accusing the firm of allowing personal information to be compromised, maintaining that the litigation fell within its policy's scope.
Expert Analysis
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Why K-Cup Claims Landed Keurig In Hot Water With SEC
The U.S. Securities and Exchange Commission's recent settlement with Keurig Dr. Pepper for making incomplete statements regarding the recyclability of K-cup pods highlights the importance of comprehensive corporate disclosures, particularly with respect to ESG matters, say attorneys at BCLP.
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Unpacking CFPB's Unwieldy Buy Now, Pay Later Guidance
Both the Consumer Financial Protection Bureau's recent interpretive rule regarding buy now, pay later transactions, and its FAQ guidance, place providers in murky waters with the unenviable position of attempting to place a square, closed-end product in a round, regulatory framework meant for open-end products, say attorneys at Troutman Pepper.
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2nd Circ. Halkbank Ruling Shifts Foreign Immunity Landscape
Following the Second Circuit’s recent common law immunity ruling in U.S. v. Halkbank, foreign state-owned banks, wealth funds and other entities now must seriously consider the risk of criminal liability for commercial activity that violates U.S. laws, say attorneys at Debevoise.
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9 Considerations Around Proposed Connected Vehicle Ban
Stakeholders should consider several aspects of the U.S. Department of Commerce's recent proposal to ban U.S. imports and sales of vehicles incorporating certain connectivity components made in China or Russia, including exempted transactions and vehicle hardware imports, say attorneys at Blank Rome.
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Predicting Shareholder Activism Trends In New Trump Admin
While President-elect Donald Trump has promised tax policies, deregulation and lax antitrust enforcement — which all fuel shareholder activism — a closer look at his first administration's track record suggests that his second presidency might be a mixed bag for activist investors and companies alike, say attorneys at Sidley.
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What Trump's 2nd Presidency Could Mean For Crypto Sector
Trump's second term will bring a fundamental shift from the Biden administration's approach to crypto-asset regulation and banking supervision, with the most significant changes likely taking effect in the first two quarters of 2025 and broader policy shifts emerging over the next year, say attorneys at Cahill.
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Putting NYDFS AI Cybersecurity Guidance Into Practice
New guidance from the New York Department of Financial Services explains how financial institutions should assess and mitigate cybersecurity risks associated with artificial intelligence, focusing on four main threats and highlighting how varying environments require specific mitigation measures, say attorneys at Saul Ewing.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Opinion
In Visa Case, DOJ Continues To Misapply The Sherman Act
The recent U.S. Department of Justice debit market monopolization case against Visa fuels concerns that a misguided Biden administration DOJ is inappropriately expanding its interpretation of the Sherman Antitrust Act beyond the demonstrable economic effects that business conduct has on consumers, says Shubha Ghosh at Syracuse University.
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Opinion
Preserving The FCA Is Crucial In Trump's 2nd Term
While the Trump administration may pursue weaker False Claims Act enforcement, it remains an essential tool in safeguarding public funds and maintaining corporate accountability, so now is not the time to undermine ethical behavior, or reduce protections and incentives for whistleblowers, says Adam Pollock at Pollock Cohen.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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Key Legal Considerations After Supply Chain Disruptions
After U.S. supply chain disruptions — like the recent port workers' strike, and Hurricanes Helene and Milton — stakeholders should look to contractual provisions to mitigate losses, and keep in mind that regulators will be watching closely for unfair shipping practices, say attorneys at Holland & Knight.
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Dissecting New Circuit Split Over SEC's Proxy Adviser Rule
The Sixth Circuit recently upheld the U.S. Securities and Exchange Commission's partial rescission of enhanced conflict-of-interest disclosure requirements for proxy voting advice businesses, creating a circuit split over broader questions concerning the standard for assessing the legality of agency actions in general, say attorneys at Cahill Gordon.
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Federal Salary History Ban's Reach Is Limited
Though a newly effective Office of Personnel Management rule takes important steps by banning federal employers from considering job applicants' nonfederal salary histories, the rule's narrow applicability and overconfidence in the existing system's fairness will likely not end persistent pay inequities, says Margaret House at Kalijarvi Chuzi.
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Call For Input Shows How Banks, Fintechs Can Address Risks
A recent request for information by federal banking regulators suggests that watchdogs are zeroing in on the bank-fintech partnerships they have long perceived as risky to consumers, but analyzing the publication can help companies anticipate regulators’ chief concerns and take steps to avoid becoming enforcement targets, say attorneys at K&L Gates.