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Compliance
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December 09, 2024
High Court Again Weighs Reach Of Federal Fraud Statutes
The U.S. Supreme Court on Monday grappled with the question of whether using deceptive means to induce a business transaction with no contemplation of causing economic loss constitutes mail or wire fraud, the latest challenge in a line of cases that seeks to narrow the reach of federal fraud statutes.
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December 09, 2024
Boeing Supplier Wins Bid To Block Texas Biz Records Inquiry
A Texas federal judge on Monday adopted a magistrate judge's recommendation granting Spirit AeroSystems Inc.'s bid to permanently enjoin a Texas statute requiring businesses to immediately comply with the state's demand to examine business records.
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December 09, 2024
Morgan Stanley Pays SEC $15M Over Theft By Ex-Reps
The U.S. Securities and Exchange Commission announced a $15 million penalty against a Morgan Stanley subsidiary Monday, saying the company failed to put in place procedures that may have earlier caught four former employees who spent years stealing from clients.
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December 09, 2024
Petrobras Calls On Justices To Review Samsung RICO Suit
The American subsidiary of Brazil's state-owned oil company called on the U.S. Supreme Court to unravel the Fifth Circuit's decision blocking its racketeering claim against Samsung Heavy Industries over an alleged $1.6 billion bribery scheme involving drillship contracts.
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December 09, 2024
SocGen Unit To Pay FINRA $950K Over Fingerprinting Lapses
A U.S.-based unit of French financial services company Societe Generale will pay a $950,000 fine to the Financial Industry Regulatory Authority to settle the self-regulatory organization's claims that the firm failed to fingerprint roughly 2,000 current and former employees at certain affiliates as required by law.
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December 09, 2024
RealPage Says DOJ's Ended Multifamily Rental Criminal Probe
RealPage said the U.S. Department of Justice had ended a criminal probe into the multifamily rental housing industry's pricing practices, adding that the algorithmic pricing company was never identified as an investigation target.
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December 09, 2024
What's Next After Boeing 737 Max Deal Snags On DEI Clause
A Texas federal judge's recent rejection of Boeing's plea agreement with the U.S. Department of Justice underscores the increasing vulnerability of corporate and government diversity, equity and inclusion policies, experts say, spelling fresh complications for the embattled American aerospace titan and the legal saga over its 737 Max jets.
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December 09, 2024
10th Circ. Affirms Nix Of Atty's Racing Expense Deductions
The Tenth Circuit affirmed Monday the U.S. Tax Court's determination that a Denver personal injury lawyer shouldn't be allowed to deduct about $300,000 for his car racing-related costs as advertising, despite his claims that his races helped him drum up business.
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December 09, 2024
Judge Eyes Far Less Trial Time In Meta Case Than FTC Wants
The Federal Trade Commission likely has to cram much more trial in much less time than it had planned after a D.C. federal judge suggested Monday that the agency's social media monopolization case against Meta Platforms Inc. can't go much past the first week of June 2025.
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December 09, 2024
LendingTree Pushes FCC Again To Rework Lead Consent Rule
Loan marketer LendingTree is making one more effort to persuade the Federal Communications Commission to trim the scope of its lead generation consent rule in hopes of seeing changes before the regulations take effect in January.
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December 09, 2024
Amazon Says FTC Lacks Authority To Bring Antitrust Case
Amazon has told a Washington federal court that the Federal Trade Commission is overstepping its authority by bringing its antitrust case directly in court without pursuing an in-house case targeting the e-commerce giant's treatment of sellers on its platform.
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December 09, 2024
US Air Withdraws Fight For $139M In Costs After Sabre Deal
US Airways is dropping its demand for $139 million in attorney fees and costs after settling the issue with flight booking giant Sabre, a development poised to conclude the long-running New York federal court case accusing Sabre of monopolizing ticket distribution systems.
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December 09, 2024
Pilots Ignored Alert Before Flight That Killed Atty, NTSB Says
The pilots of a small aircraft that made an emergency landing at a Connecticut airport that resulted in the death of a prominent D.C. attorney went ahead with the flight despite a "no-go" warning message flashing in the cockpit, according to the National Transportation Safety Board's accident investigation report.
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December 09, 2024
DC Circ. Unsure Of Wading Into FERC Grid Plan Fight
D.C. Circuit judges appeared reluctant on Monday to entertain the legality of the Federal Energy Regulatory Commission's 2023 rejection of a grid operator's plan to manage certain transmission project costs, given that the agency later approved related projects in May.
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December 09, 2024
Congress Set To Let FCC Borrow $3B For 'Rip And Replace'
Lawmakers are considering funding a $3.08 billion shortfall in the program to rid U.S. networks of Chinese-made equipment by letting the Federal Communications Commission borrow the money from the U.S. Department of the Treasury, repaid with spectrum auctions.
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December 09, 2024
CFPB Gets Final OK For $950K Student Lender Settlement
A New York federal judge has granted final approval to a $950,000 settlement reached between the Consumer Financial Protection Bureau and an online private student lender and its venture capital backer over claims that they duped borrowers into taking out loans for coding school and other vocational programs with false claims about their educational "return-on-investment."
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December 09, 2024
EPA Finalizes Bans On Two Carcinogenic Chemicals
The U.S. Environmental Protection Agency issued a pair of final rules on Monday banning all uses of trichloroethylene and all consumer uses of perchloroethylene, which are cancer-causing chemical solvents used in brake cleaner and adhesive products.
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December 09, 2024
Ill. Congresswoman Denies Undue Influence From Madigan
U.S. Rep. Nikki Budzinski was called to the witness stand Monday in the racketeering trial of former Illinois House Speaker Michael Madigan, where she testified that while she received multiple job recommendations from Madigan as a former senior aide to Illinois Gov. J.B. Pritzker, those candidates were only hired if they were qualified.
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December 09, 2024
SEC's Trading And Markets Director Zhu To Leave Agency
Haoxiang Zhu is stepping down as head of the U.S. Securities and Exchange Commission's Division of Trading and Markets, the agency announced Monday, leaving the group that oversees orderliness of U.S. markets as leadership continues to change at regulatory bodies following President-elect Donald Trump's election victory.
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December 09, 2024
NC Attorney General Cans Counterclaims In HCA Hospital Suit
North Carolina Attorney General Josh Stein has immunity from counterclaims brought by HCA Healthcare in an enforcement suit centered on the for-profit health network's actions since purchasing an Asheville hospital five years ago, a state Business Court judge has ruled.
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December 09, 2024
Auto Parts Co., EEOC Strike Deal In Sex Harassment Suit
An auto parts company will pay $35,000 to end a U.S. Equal Employment Opportunity Commission suit alleging it ignored a female worker's claims that she was sexually assaulted at a plant and eventually fired her, the agency said Monday.
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December 09, 2024
Ga. Attys Urge Companies To Develop Generative AI Policies
Companies need to develop policies mitigating the effects of generative artificial intelligence as the tool is already impacting contracts and other aspects of business across nearly every industry, attorneys said Monday at a State Bar of Georgia panel.
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December 09, 2024
TikTok Seeks Halt On Sale-Or-Ban Law For High Court Appeal
TikTok Inc. and its users are pressing the D.C. Circuit to put on hold the implementation of a law that is set to bar the platform from the U.S. market next month while they appeal a ruling backing the measure to the U.S. Supreme Court.
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December 09, 2024
Judge Axes $33M Suit Challenging Feds' Wildfire Response
An Oregon federal judge has dismissed a suit by two lumber companies claiming that the U.S. Forest Service failed to properly fight a wildfire in the Willamette National Forest, holding that the agency's decisions are shielded under the Federal Tort Claims Act.
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December 09, 2024
Anti-China Bias Tainted ADI Trade Secrets Case, 1st Circ. Told
A former Analog Devices Inc. microchip engineer convicted of pilfering valuable design schematics to launch a competing business has told the First Circuit the government singled him out for prosecution due to his Chinese ethnicity and investigators' hopes he would turn out to be a foreign spy.
Expert Analysis
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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Peeling Back The Layers Of SEC's Equity Trading Reforms
The U.S. Securities and Exchange Commission's recently adopted amendments lowering the tick sizes for stock trading and reducing access fee caps will benefit investors and necessitate broad systems changes — if they can first survive judicial challenges, say attorneys at Sidley.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Insights On NLRB General Counsel's New 'Stay-Or-Pay' Memo
Attorneys at Davis Wright discuss the National Labor Relations Board general counsel's new memorandum on employer “stay-or-pay” policies and noncompete agreements, and explain key takeaways concerning the proposed financial remedies, prosecution framework and more.
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Bristol-Myers Win Offers Lessons For Debt Security Holders
A New York federal judge's recent dismissal of a $6.4 billion lawsuit against Bristol-Myers Squibb, due to plaintiff UMB Bank's lack of standing, serves as an important reminder to debt security holders to obtain depositary proxies before pursuing litigation, say attorneys at Milbank.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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CFPB School Lunch Focus Could Expand E-Payment Scrutiny
The Consumer Financial Protection Bureau's recent spotlight on payment processing systems used to add funds to school lunch accounts shows its continued ambitions to further expand its supervisory power in the payments industry, all the way down to the school lunch market, says Tom Witherspoon at Stinson.
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How Project 2025 Could Upend Federal ESG Policies
If implemented, Project 2025, the Heritage Foundation's policy playbook for a Republican presidential administration, would likely seek to deploy antitrust law to target ESG initiatives, limit pension fund managers' focus to pecuniary factors and spell doom for the U.S. Securities and Exchange Commission's climate rule, say attorneys at Mintz.
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Opinion
Rental Price-Fixing Suit Against RealPage Doesn't Add Up
Recent government antitrust litigation against RealPage, alleging that the software company's algorithm for setting rental prices amounts to price-fixing, has failed to allege an actual conspiracy, and is an example of regulatory overreach that should be reined in, says Andrew Ketterer at Ketterer & Ketterer.
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Navigating FEMA Grant Program For Slope Fixes After Storms
In the aftermath of Hurricanes Helene and Milton, it is critical for governments, businesses and individuals to understand the legal requirements of the Federal Emergency Management Agency's grant programs to obtain funding for crucial repairs — including restoration of damaged infrastructure caused by landslides and slope failures, says Charles Schexnaildre at Baker Donelson.
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Compliance Pointers For Amended Pa. Data Breach Law
Recent updates to the Pennsylvania Breach of Personal Information Notification Act include a requirement that organizations alert the state's attorney general of certain consumer data breach notifications, and several incident response and cybersecurity considerations will be necessary to ensure compliance, say Matthew Meade and Laura Decker at Eckert Seamans.
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Smith's New Trump Indictment Is Case Study In Superseding
Special counsel Jack Smith’s recently revised Jan. 6 charges against former President Donald Trump provide lessons for prosecutors on how to effectively draft superseding indictments in order to buttress or streamline their case, as necessary, says Jessica Roth at Cardozo Law School.
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Opinion
FDIC's Foray Into Index Fund Rules Risks Regulatory Chaos
A proposed Federal Deposit Insurance Corp. rule concerning control over passive index fund investments in banks is outside the agency's remit, clashes with an existing Federal Reserve process and would inhibit competition in the index fund sector, says J.W. Verret at George Mason University.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Ga. Fintech Bank Charter Could Reshape Payments Industry
Georgia’s recent granting of a special banking charter to transaction processor Fiserv, allowing the fintech company to access major card payment networks without a traditional bank as intermediary, could spark a restructuring of the national payments infrastructure and open new possibilities for businesses and consumers, says Jessica Cino at Krevolin & Horst.