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Compliance
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January 14, 2025
Navy Capital Fund Firm Settles SEC's AML Allegations
Navy Capital Green Management LLC on Tuesday agreed to pay $150,000 to settle allegations from the U.S. Securities and Exchange Commission that the investment adviser made misrepresentations to investors about its anti-money laundering due diligence practices.
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January 14, 2025
New EMTALA Suit in Idaho Seeks To Keep Injunction
An Idaho health system filed a lawsuit Tuesday alleging that Idaho's strict abortion ban conflicts with an emergency stabilization law and is seeking to keep the ban blocked while it prepares to take up the legal battle once fought by the Biden administration.
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January 14, 2025
'Totally A Tactic': Judge Rips Apple For Discovery Delays
The California federal judge presiding over Epic Games' antitrust compliance fight with Apple criticized the tech giant's efforts to withhold tens of thousands of documents under attorney-client privilege, telling Apple's counsel at a hearing Tuesday that "in large part, this is delay ... it's totally a tactic" and "there will be consequences."
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January 14, 2025
GOP Objects To FTC Move To Protect Unionizing Gig Workers
The Democratic-led Federal Trade Commission held its final meeting before President-elect Donald Trump takes office next week, moving to protect unionizing gig workers and examine investor holdings in the single-family-housing market, while the Republican waiting to take the helm said the body should stop announcing new plans.
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January 14, 2025
CFTC To Review Crypto Co.'s Sports Event Contracts
The U.S. Commodity Futures Trading Commission said Tuesday it plans to take a closer look at contracts tied to the outcome of high-profile sporting events trading on digital asset exchange Crypto.com, which self-certified the products in the final days of 2024.
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January 14, 2025
Crypto Co.'s Lax Compliance Enabled Hackers, Suit Says
A proposed class action in California federal court accused digital asset exchange OKX of flouting U.S. laws and allowing criminals to launder stolen funds through its platform, including $725,000 worth of crypto looted from the crypto investor leading the suit.
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January 14, 2025
Prospect Medical Beats Objection To $29M In Ch. 11 Funds
A Texas bankruptcy judge said Tuesday she would allow struggling hospital operator Prospect Medical Holdings Inc. to borrow part of a $100 million financing package that prompted an objection from the company's landlord, saying the money was needed to ensure patients continue to receive care.
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January 14, 2025
Dispute Over Eli Lilly Weight Loss Drug Reignited
Compounding pharmacies have reignited a suit against the U.S. Food and Drug Administration over the removal of a lucrative weight loss drug from the shortage list, with a Texas federal judge ordering both sides to turn in briefing on injunctive relief during a Tuesday hearing.
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January 14, 2025
Texas Porn Law Unlikely To Alter Justices' Free Speech Views
Texas' push before the U.S. Supreme Court for a relaxed standard of judicial review in First Amendment cases is unlikely to come to fruition, as decades of precedent work against the state's law requiring age verification on pornography sites.
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January 14, 2025
Biden Order Outlines Steps For Bolstering AI Infrastructure
President Joe Biden issued an executive order Tuesday that aims to shape the country into an artificial intelligence infrastructure leader by working with the private sector to build data centers.
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January 14, 2025
CDK Cuts Latest Deal In Auto Dealer Data Suit, With App Class
CDK Global LLC inked a new settlement to resolve more claims of monopolizing the market for auto dealership management software, this time with a class of vendors who make apps for dealerships, in a case that had been set for trial Jan. 27 in Wisconsin federal court.
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January 14, 2025
4th Circ. Tosses Constitutional Case Against FINRA
The Fourth Circuit on Tuesday threw out a lawsuit claiming that the Financial Industry Regulatory Authority's in-house disciplinary process is unconstitutional, ruling that it couldn't hear the case until the regulator had finalized its own ruling against the suing broker.
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January 14, 2025
SEC Sues Elon Musk Over Late Twitter Buy-Up Disclosure
Elon Musk violated securities laws by failing to timely disclose his initial buy-up of Twitter stock ahead of his $44 billion acquisition of the company, allowing him to purchase shares at artificially low prices, the U.S. Securities and Exchange Commission alleged in a D.C. federal lawsuit filed Tuesday.
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January 14, 2025
NAACP Says Ala. Law Banning DEI Is Unconstitutional
An Alabama law banning diversity, equity and inclusion from state schools and college campuses is unconstitutional, according to a Tuesday suit brought by a group of professors, students and the Alabama NAACP against the state's governor and its university system.
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January 14, 2025
John Deere Retailer Shirked OT Pay To Sales Staff, Suit Says
Ag-Pro, the self-described largest retailer of John Deere equipment in North America, was hit with a proposed collective action Monday by a sales employee who alleged the company willfully violated federal law by denying overtime pay to its salespeople.
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January 14, 2025
CSX Fired Railway Safety Whistleblower, Suit Says
A former maintenance manager with CSX Transportation hit the company with a lawsuit in Georgia federal court alleging his complaints about lapses in railway safety were met with "screaming, cussing, and hollering" before his eventual firing last year while he was out on medical leave.
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January 14, 2025
Equifax To Pay $725K For Inaccurate Credit Score Reporting
Equifax Information Services LLC has agreed to a $725,000 settlement with the New York Attorney General's Office to resolve claims that the credit reporting agency inaccurately reported tens of thousands of New Yorkers' credit scores to lenders between March and April 2022, causing inflated costs for loans and other products.
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January 14, 2025
DC Circ. Axes Challenge To Grid Project Perk
A coalition of energy consumers has no standing to challenge the Federal Energy Regulatory Commission's grant of an abandonment incentive to the developer of an Iowa transmission project, a D.C. Circuit panel ruled Tuesday.
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January 14, 2025
Nadine Menendez Trial Might Be Longer Than Ex-Senator's
Prosecutors and attorneys for Nadine Menendez told a Manhattan federal judge that her trial might last longer than that of her husband, former U.S. Sen. Robert Menendez, with the parties still at odds over stipulations about evidence.
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January 14, 2025
Ex-Department Of Commerce Trade Pro Joins King & Spalding
King & Spalding LLP announced Tuesday that it has hired an attorney who formerly served as a U.S. Department of Commerce official and assistant general counsel for the Office of the U.S. Trade Representative to bolster its international trade team.
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January 14, 2025
Ex-Cognizant Execs Seek Update On Elusive Gov't Witness
A vital prosecution witness whose unavailability delayed the highly anticipated 2023 trial of two former Cognizant Technology Solutions Corp. executives on foreign bribery charges in New Jersey federal court might again be missing in action as the new trial date of March 3 approaches, according to court filings.
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January 14, 2025
EPA Warns Of Possible Forever Chemical Risk In Fertilizer
The U.S. Environmental Protection Agency on Tuesday said that forever chemicals present in fertilizers could pose a health risk to people living or working on or near farms, a finding that could result in new regulations.
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January 14, 2025
Mass. AG Says Insulin Makers, Middlemen Colluded On Costs
Insulin makers Eli Lilly, Sanofi and Novo Nordisk conspired with pharmacy benefit managers OptumRX, Express Scripts and CVS Caremark to jack up prices by as much as 1,000%, the Massachusetts attorney general alleged in a suit.
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January 14, 2025
DOJ Accuses PE Giant KKR Of Dropping Merger Disclosures
The Justice Department filed an extraordinary lawsuit Tuesday accusing private equity giant KKR & Co. Inc. of repeatedly flouting its merger notification requirements, "altering" or "systematically omitting" documents on some deals and failing entirely to notify enforcers of at least two, including a $6.9 billion transaction, only for KKR to file its own suit in response.
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January 14, 2025
DOL Finalizes ERISA Voluntary Correction Program Changes
The U.S. Department of Labor's employee benefits arm has finalized changes to a program allowing retirement plan managers to voluntarily self-correct when they fail to forward employee contributions on time or make other transaction errors, according to a notice the agency posted online Tuesday.
Expert Analysis
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Reviewing The High Court's Approach To Free Speech Online
As the U.S. Supreme Court began addressing the interplay between the First Amendment and online social media platforms, its three opinions from last term show the justices adopting a nuanced approach that recognizes that private citizens, public employees and online platforms all have First Amendment rights, say attorneys at Jenner & Block.
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Series
In The CFPB Playbook: A Sprint To The Finish Line
The fourth quarter of 2024 was an impressive demonstration of the Consumer Financial Protection Bureau's ability to regulate, enforce and supervise, even on borrowed time following the election results, and we should expect the current bureau to run nonstop until Jan. 20, say attorneys at Covington.
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3 Factors Affecting Retail M&A Deals In 2025
Retailers considering mergers and acquisitions this year face an evolving antitrust environment, including a new administration under President-elect Donald Trump, revised merger guidelines and a precedent set last year by a canceled $8.5 billion handbag merger, say attorneys at DLA Piper.
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What FARA Enforcement In 2024 Reveals For The Year Ahead
A number of developments, from indictments to legislation, shaped the Foreign Agents Registration Act enforcement landscape last year, and following the U.S. Department of Justice's recently released long-awaited proposed amendments to the law, 2025 shows no signs of slowing down, says Tessa Capeloto at Wiley.
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How New Fraud Enforcement Tool Affects Gov't Contractors
Government contractors will likely face greater scrutiny under the recently enacted Administrative False Claims Act, which broadens federal agencies' authority to pursue low-dollar fraud claims, but contractors may also find the act makes settlement of such claims easier to negotiate, say attorneys at Wiley.
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How Trump Admin May Approach AI In The Workplace
Key indicators suggest that the incoming Trump administration will adopt a deregulatory approach to artificial intelligence, allowing states to fill the void, so it is critical that employers pay close attention to developing legal authority concerning AI tools, say attorneys at Littler.
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Predicting What's Next For SEC By Looking At Past Dissents
While Paul Atkins' nomination to be the next chair of the U.S. Securities and Exchange Commission has taken center stage, an analysis of Republican Commissioners Hester Peirce and Mark Uyeda's past votes and dissents provides a preview of where enforcement may shift in the new administration, say attorneys at Gibson Dunn.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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Searching For Insight On Requested Google Chrome Remedy
The potential for Google to divest its Chrome browser — a remedy requested by the Justice Department following a D.C. federal court’s finding the company is a monopolist — has drawn both criticism and endorsement, but legal precedent likely supports the former, say attorneys at Ballard Spahr.
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Consultants Should Be Aware Of DOJ's Potential New Reach
The U.S. Department of Justice's recent first-of-its-kind settlement with McKinsey & Co. indicates not only the DOJ's more aggressive stance toward businesses' potential criminal wrongdoings, but also the benefits of self-disclosure and cooperation when wrongdoing becomes apparent, says Dom Caamano at Kibler Fowler.
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Lessons Learned From 2024's Top FMLA Decisions
Last year's major litigation related to the Family and Medical Leave Act underscores why it is critical for employers to understand the basics of when leave and accommodations are required, say attorneys at Dechert.
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New Year, New Risks: 8 Top Cyber Issues For Finance In 2025
As financial institutions forge ahead in 2025, they must strike a delicate balance between embracing technological innovation and guarding against its darker threats, which this year could include everything from supply chain vulnerabilities to deepfakes, say attorneys at Baker Donelson.
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5th Circ.'s Nasdaq Ruling Another Piece In DEI Policy Puzzle
The Fifth Circuit's recent en banc opinion vacating Nasdaq's board diversity listing rule wades into the hotly debated topic of diversity, equity and inclusion initiatives at a time when many public companies are navigating the attention that DEI commitments are drawing from activists and shareholders, say attorneys at Debevoise.
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Lessons Learned From 2024's Top ADA Decisions
Last year's major litigation related to the Americans with Disabilities Act highlights that when dealing with accommodation requests, employers must communicate clearly, appreciate context and remain flexible in addressing needs, say attorneys at Dechert.
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A Guide To Significant 2024 Data Broker Legal Developments
2024 saw notable developments in U.S. data broker regulation and enforcement, and this momentum will likely carry into 2025, despite hypothetical efforts to the contrary under the new administration, say attorneys at Frankfurt Kurnit.