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Compliance
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October 23, 2024
Billionaire Sued For $25M Over Renewable Fuel Project Costs
Air Products and Chemicals Inc. has slapped Canadian billionaire John Carter Risley with a suit in Delaware federal court seeking to enforce a $25 million personal guarantee after renewable fuels company World Energy, a company Risley has invested in, defaulted on more than $26 million in payments.
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October 23, 2024
Feds Say Conn. Oil Trader's Ailing Brother Deserves Prison Time
A Connecticut businessman who worked with his brother and others to run an oil industry bribery scheme in Brazil should go to prison despite his bladder cancer diagnosis, the government said, arguing incarceration is necessary "to reflect the seriousness of the offense, and to afford adequate deterrence."
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October 23, 2024
Telecom Group Sues To Cancel FTC's 'Click To Cancel' Rule
A major cable and internet industry group and others sued the Federal Trade Commission Wednesday over its new "click to cancel" rule, asking the Fifth Circuit to vacate the regulation one week after it was adopted in a 3-2 commission vote.
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October 23, 2024
FCC To Probe Broadband, Cable And Phone Customer Service
The Federal Communications Commission is looking to find out how well the broadband, video distribution and phone industries are doing when it comes to customer service.
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October 23, 2024
Insurers Slam Mich. No-Fault Ruling As 'Judicial Activism'
A trade group representing Michigan insurers said an appellate court ruling in a medical provider's suit over nonpayment of auto insurance benefits could encourage gamesmanship in no-fault insurance litigation, in a friend-of-the-court brief filed on Tuesday with the state's top court.
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October 23, 2024
Penn State To Pay $1.25M To Resolve FCA Cybersecurity Suit
Pennsylvania State University will pay $1.25 million to settle a False Claims Act suit accusing it of failing to comply with cybersecurity requirements for defense and NASA contracts, the U.S. Department of Justice announced.
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October 23, 2024
American Airlines Fined $50 Million For Disability Violations
American Airlines received a $50 million penalty from the U.S. Department of Transportation Wednesday for "serious violations" of disability laws protecting people in wheelchairs, with the department saying the violations included injuring or mishandling disabled travelers, damaging their wheelchairs or failing to return the devices promptly.
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October 23, 2024
OpenAI Hires Uber Ethics Head As New Compliance Chief
OpenAI Inc. has brought on Uber Technologies Inc.'s chief ethics and compliance officer to head up its compliance department as it works to "build on [its] ongoing efforts to responsibly advance AI," the company said Tuesday.
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October 23, 2024
EPA Can't Restart Crafting Smog Rule, DC Circ. Told
A group of Democratic-led state governments is telling the D.C. Circuit that the Clean Air Act doesn't mandate reconsideration of the U.S. Environmental Protection Agency's 2023 "Good Neighbor" emissions regulation as two steel manufacturers say.
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October 23, 2024
Women's White Collar Org Hits Milestone Amid Steady Growth
Mirroring the fast growth of white collar law since the start of the century, the Women's White Collar Defense Association has announced that in its 25th year, the diversity-focused organization has launched a chapter in its 50th location with an expansion to Virginia.
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October 23, 2024
Roche CEO Says Novo-Catalent Deal Should Be Blocked
The CEO of Swiss pharmaceutical company Roche injected himself into the controversy surrounding Novo Holdings' planned $16.5 billion acquisition of Catalent on Wednesday, stating that he thinks antitrust authorities should block the deal due to its anticompetitive implications.
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October 23, 2024
Ex-SEC Atty, Fintech GC Joins Stradling's Securities Team
Stradling Yocca Carlson & Rauth PC has added a former fintech general counsel and U.S. Securities and Exchange Commission attorney, reinforcing the firm's offerings for companies facing enforcement investigations or grappling with other compliance issues.
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October 23, 2024
Feds Urge High Court To Deny Cig Cos.' Bid To Ax New Rule
The U.S. Food and Drug Administration is asking the U.S. Supreme Court not to grant certiorari to a group of tobacco companies aiming to vacate a rule requiring larger warnings on cigarette boxes, saying the Fifth Circuit rightly found the proposed warnings don't violate the First Amendment's protection against compelled speech.
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October 23, 2024
Mercedes, Staffing Firm Failed To Pay OT, Ex-Worker Says
Mercedes-Benz and a staffing agency failed to pay a former employee at all for the hours she worked over 40 per week, let alone at the federally mandated time-and-a-half rate, she said in a suit filed in Georgia federal court.
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October 23, 2024
CFPB Says Goldman, Apple To Pay $89.8M Over Card Program
The Consumer Financial Protection Bureau said Wednesday that it has ordered Goldman Sachs and Apple to pay more than $89 million for alleged violations tied to their Apple-branded credit card partnership, including claims of mishandled customer disputes, misleading marketing and wrongful charges.
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October 22, 2024
Texas Firm 'Tortured' Barratry Case, Appeals Court Hears
A Texas law firm accused of ambulance chasing told a state appeals court that the opposition had "tortured" the case, saying during oral arguments Tuesday that Bandas Law Firm PC pursued the case merely as an extortion racket.
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October 22, 2024
Fraud Detector Inks $500K Deal In Webster Bank Breach Probe
A fraud detection vendor servicing Webster Bank NA will pay $500,000 to settle an investigation into a data breach that exposed the personal information of nearly 158,000 Connecticut residents, the state attorney general's office has announced.
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October 22, 2024
UFC Fighters Win Initial OK On $375M Wage Suppression Deal
A Nevada federal judge on Tuesday gave his blessing to a $375 million settlement resolving a group of former UFC fighters' claims that the organization for years underpaid match participants, the fighters' counsel confirmed.
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October 22, 2024
Ex-Yale Student Wants Full Acquittal Record Sent To DHS
An expelled Yale University student on Tuesday urged the Second Circuit to quickly vacate orders barring him from giving the U.S. Department of Homeland Security an unredacted transcript that resulted in his acquittal of sex crimes, saying a delay could seal his deportation and thus his execution by the Taliban.
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October 22, 2024
Wis. Voting Portal Fails Data Security Test, Suit Says
A pair of Wisconsin voters are pushing to stop the state from continuing to use an online voter registration system that they claim lacks adequate data security measures, including safeguards to prevent the dissemination of fraudulent absentee ballots, according to a lawsuit filed.
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October 22, 2024
Activist Short Seller's Associate To Pay $1.8M In SEC Fraud Suit
The U.S. Securities and Exchange Commission announced Tuesday that an associate of Andrew Left, founder of popular trading advice website Citron Research, has agreed to pay more than $1.8 million to resolve allegations that he negligently took part in a scheme to defraud readers through two trading recommendations.
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October 22, 2024
Ex-Google GC Must Be Investigated By Calif. Bar, Groups Say
A trio of groups led by the American Economic Liberties Project on Tuesday pressed the State Bar of California to investigate former Google general counsel Kent Walker for "coaching" the company to "engage in widespread and illegal destruction of records relevant to multiple ongoing federal trials."
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October 22, 2024
Walmart Pays $7.5M To End Hazardous Waste Disposal Suit
Walmart Inc. has agreed to pay $7.5 million to settle a lawsuit brought by the state of California and district attorneys of several counties who alleged the retail giant improperly disposed of hazardous and medical wastes from its locations to municipal landfills, Attorney General Rob Bonta announced on Tuesday.
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October 22, 2024
Supervisor Could've Prevented Electrician's Death, Widow Says
The widow of a man who was electrocuted told a Texas appeals court during oral arguments Tuesday that it wouldn't matter if there was a supervisor looking over the deceased man's shoulder, claiming the question never came up because there wasn't a qualified supervisor on site.
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October 22, 2024
Calif. Official Cops To Taking Bribes For $10M In Contracts
A member of the Orange County Board of Supervisors has admitted to steering $10 million worth of COVID-19 relief funds to a charity affiliated with his daughter in exchange for more than $500,000 in bribes, California federal prosecutors announced Tuesday.
Expert Analysis
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The Regulatory Headwinds Facing Lab-Developed Tests
Though the U.S. Food and Drug Administration's final rule regarding regulation of laboratory-developed tests outlines a four-year plan for ending enforcement discretion, and though this rule is currently being challenged in courts, manufacturers should heed compliance opportunities immediately as enforcement actions are already on the horizon, say attorneys at Kirkland & Ellis.
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3 High Court Rulings May Shape Health Org. Litigation Tactics
Three separate decisions from the U.S. Supreme Court's most recent term — Loper Bright, Corner Post and Jarkesy — will likely strengthen healthcare organizations' ability to affirmatively sue executive agencies to challenge regulations governing operations and enforcement actions, say attorneys at McDermott.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Why DOJ's Whistleblower Program May Have Limited Impact
The U.S. Department of Justice’s new whistleblower pilot program aims to incentivize individuals to report corporate misconduct, but the program's effectiveness may be undercut by its differences from other federal agencies’ whistleblower programs and its interplay with other DOJ policies, say attorneys at Milbank.
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CFPB's Earned Wage Access Rule Marks Regulatory Shift
The Consumer Financial Protection Bureau's newly issued interpretive rule on earned wage access products, classifying them as extensions of credit, marks a significant shift in their regulatory landscape and raises some important questions regarding potential fringe cases and legal challenges, say Erin Bryan and Courina Yulisa at Dorsey & Whitney.
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How Calif. Justices' Prop 22 Ruling Affects The Gig Industry
The California Supreme Court's recent upholding of Proposition 22 clarifies that Uber, Lyft, DoorDash and other companies in the gig industry can legally classify their drivers as independent contractors, but it falls short of concluding some important regulatory battles in the state, says Mark Spring at CDF Labor.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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How Corner Post Affects Enviro Laws' Statutes Of Limitations
The U.S. Supreme Court's recent ruling in Corner Post v. Federal Reserve Board has helped to alter the fundamental underpinnings of administrative law — and its plaintiff-centric approach may have implications for some specific environmental laws' statutes of limitations, say Chris Leason and Liam Martin at Gallagher and Kennedy.
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How Gov't AI Protections May Affect Contractors' Data Rights
The U.S. Senate’s proposed National Defense Authorization Act for 2025, which includes provisions to maintain the government's data rights when contracting for artificial intelligence, should prompt contractors to examine how to protect their own rights when the current data rights framework is applied to AI, say Tyler Evans and Caitlin Conroy at Steptoe.
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Jarkesy May Thwart Consumer Agencies' Civil Penalty Power
The U.S. Supreme Court's ruling in U.S. Securities and Exchange Commission v. Jarkesy not only implicates future SEC administrative adjudications, but those of other agencies that operate similarly — and may stymie regulators' efforts to levy civil monetary penalties in a range of consumer protection enforcement actions, say attorneys at Holland & Knight.
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Considerations As State AGs Step Up Privacy Enforcement
As new state privacy laws take effect, businesses are facing an increasingly complex patchwork of compliance obligations and risk of scrutiny by attorneys general, but companies can gain a competitive edge by building consumer trust and staying ahead of regulatory trends, say Ann-Marie Luciano and Meghan Stoppel at Cozen O’Connor.
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Lessons From Recent SEC Cyber Enforcement Actions
The recent guidance by the SEC's Division of Corporation Finance is helpful to any company facing a cybersecurity threat, but just as instructive are the warnings raised by the SEC's recent enforcement actions against SolarWinds, R.R. Donnelley and Intercontinental Exchange, say attorneys at O'Melveny.
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2nd Circ. Ruling Reaffirms Short-Swing Claims Have Standing
The Second Circuit's recent ruling in Packer v. Raging Capital reversing the dismissal of a shareholder's Section 16(b) derivative suit seeking to recover short-swing profits for lack of constitutional standing settles the uncertainty of the district court's decision, which could have undercut Congress' intent in crafting Section 16(b) in the first place, say attorneys at Simpson Thacher.
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Viral Layoffs: How Cos. Can Avoid Bad Social Media Exposure
A recent trend of employees using social media to document their experiences with layoffs and disciplinary actions in the workplace should prompt employers to take additional precautions to avoid former workers' negative viral reviews when deciding how, when and what to communicate to employees, say Scott McIntyre and Chrissy Kennedy at BakerHostetler.