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Compliance
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December 11, 2024
Former SEC Unit Chief Joins Gibson Dunn In NY
Gibson Dunn & Crutcher LLP said Monday that a veteran of more than 14 years at the U.S. Securities and Exchange Commission is joining its New York office.
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December 11, 2024
Developer, Feds Ask Justices To Pass On Offshore Wind Case
The federal government and Vineyard Wind 1 LLC are urging the U.S. Supreme Court to reject a Massachusetts group's latest bid to block the large offshore wind farm taking shape in waters off Nantucket and Martha's Vineyard.
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December 11, 2024
CFPB's Chopra Won't Head For Exit Ahead Of Trump's Arrival
Consumer Financial Protection Bureau Director Rohit Chopra signaled Wednesday that he won't leave his post early unless and until the incoming Trump administration fires him next month, indicating that he plans to keep running the agency in the meantime.
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December 11, 2024
Justices' Cold Feet On Nvidia, Meta Leaves Attys Guessing
The U.S. Supreme Court threw out a second securities case on Wednesday by refusing to issue a ruling in a Nvidia Corp. case with no explanation on its change of heart, leaving the defense bar to guess at the court's motivation and its potential implication for the future of high court securities cases.
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December 11, 2024
Albertsons Sues Kroger In Chancery After Blocked Megadeal
Grocery giant Albertsons, in a Wednesday lawsuit in the Delaware Court of Chancery, said Kroger did not put forth its "best efforts" into getting their planned $24.6 billion megamerger cleared while also announcing official plans to nix the deal, moves that came just one day after two judges blocked the proposed acquisition.
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December 10, 2024
Md. Jury Convicts Ex-Biotech Execs On Some Fraud Counts
Two former biotech executives were convicted on some counts Monday following a monthlong Maryland federal court trial in a case alleging they juiced CytoDyn Inc.'s share price by lying to investors about the development of a drug to treat HIV and COVID-19.
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December 10, 2024
SEC Says Ex-Rep Defrauded Investors With Short-Term Bets
A former registered representative of broker-dealer Western International Securities Inc. has agreed to pay over $2.1 million to end U.S. Securities and Exchange Commission allegations he orchestrated a scheme to defraud retail clients by recommending costly investment strategies, and then covered up their "substantial" losses with phony financial statements.
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December 10, 2024
SEC Outlines Municipal Adviser Exam Process
The U.S. Securities and Exchange Commission's Division of Examinations has issued a risk alert outlining its process for selecting municipal advisers to examine, how advisers can prepare for exams, and the types of information examiners may request.
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December 10, 2024
9th Circ. Upholds $850K Penalty In EPA Fine Suit
The Ninth Circuit on Tuesday upheld a $850,000 penalty against Multistar Industries Inc. for Clean Water Act violations related to chemical storage, saying it agrees with the Environmental Protection Agency's view that the company was not exempt from the rules for storing hazardous materials.
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December 10, 2024
Property Manager At Center Of Gang Claims Sues Colo. AG
A property management company caught up in a national controversy following allegations a Venezuelan gang had taken over some of its buildings in Aurora, Colorado, is suing the state to block probes by the state's attorney general into the company's management of its properties.
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December 10, 2024
Feds Propose Enviro Protections For Monarch Butterfly
The U.S. Fish and Wildlife Service issued a proposed rule on Tuesday that would list the monarch butterfly as a threatened species under the Endangered Species Act and designate 4,395 acres of critical habitat in coastal California.
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December 10, 2024
Kid Climate Activists Ask Justices To Save Twice-Nixed Case
Youth plaintiffs have asked the U.S. Supreme Court to revive their climate change lawsuit against the federal government but said the court should decide a key death penalty case first that involves a similar constitutional question.
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December 10, 2024
FCC Gives Church, Not University, Ill. Low Power FM Station
A Pentecostal church has won a face-off with a Christian university over which one of them would get to build and run a new low power FM station in the northern Chicago suburbs after the Federal Communications Commission compared their applications and heard a complaint.
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December 10, 2024
Utah Counties' Narrow NEPA Test Meets High Court Critics
Utah counties looking to narrow courts' ability to review federal agencies' environmental analyses of proposed projects hit roadblocks Tuesday from skeptical U.S. Supreme Court justices and the U.S. Department of Justice, who said the proposed limits go too far.
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December 10, 2024
FinCEN Says CTA Still Constitutional In Post-Injunction Alert
The Financial Crimes Enforcement Network has alerted companies that they do not currently need to file so-called beneficial ownership information with the agency after a federal judge's nationwide preliminary injunction blocking the Corporate Transparency Act, though the bureau maintained that the law calling for such information is constitutional.
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December 10, 2024
Split 9th Circ. Won't Revive Tesla Worker's Whistleblower Suit
A split Ninth Circuit refused to revive a terminated Tesla worker's Sarbanes-Oxley whistleblower claim alleging he was retaliated against for reporting unlawful activity, ruling on Tuesday the worker is precluded from re-litigating in district court whether he engaged in protected activity, since an arbitrator already decided that he did not.
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December 10, 2024
Trump Taps Ferguson As FTC Chief, Kressin Atty To GOP Seat
President-elect Donald Trump named current Federal Trade Commission member Andrew N. Ferguson to be its next chair Tuesday night while also picking Kressin Meador Powers LLC partner Mark Meador, a former deputy chief counsel to Sen. Mike Lee, R-Utah, to round out the FTC as its third Republican member.
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December 10, 2024
4th Circ. Casts Doubt On Broker's FINRA Challenge
A Fourth Circuit panel wondered Tuesday whether it was too soon to hear one North Carolina broker's constitutional challenge against the Financial Industry Regulatory Authority, with the circuit judges pointing out that FINRA's case against the broker was not yet over.
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December 10, 2024
FTC's Holyoak Says Chair OK With Some Cartels
Federal Trade Commissioner Melissa Holyoak said Lina Khan, the agency's current chair, is suggesting enforcers ignore anticompetitive activity if it's not being committed by what she considers "dominant firms."
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December 10, 2024
FCC Cracks Down Again On Failures To Block Robocalls
The Federal Communications Commission will consider tougher compliance rules to ensure voice service providers take part in efforts to cut robocalls, also saying Tuesday that more than 2,400 providers could face enforcement action for failing to meet existing filing requirements.
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December 10, 2024
AGs Urge FCC To Remove 'Pain' From Customer Service Calls
A coalition of state attorneys general called Tuesday for the Federal Communications Commission to take some of the "pain" out of customer service calls in FCC-regulated industries from internet and voice calls to broadcast satellite.
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December 10, 2024
NC Addiction Clinic To Pay $825K To End Medicaid Fraud Suit
An addiction treatment and behavioral health clinic based in Raleigh will pay $825,000 to settle claims that it billed the North Carolina Medicaid program for medically unnecessary drug tests and treatment support programs, the state Attorney General's Office announced Tuesday.
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December 10, 2024
SEC Says Xtreme Fighting CEO And GC Defrauded Investors
The U.S. Securities and Exchange Commission has accused Xtreme Fighting Championships and CEO Steven Smith of defrauding investors by selling millions of dollars of stock in the martial arts organization without disclosing the involvement of Smith or its criminally charged general counsel, according to a Florida federal lawsuit.
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December 10, 2024
Crypto Groups Rally Against Reappointing SEC's Crenshaw
Cryptocurrency industry groups are pushing back on a potential second term for U.S. Securities and Exchange Commissioner Caroline Crenshaw with an online ad campaign and letters to lawmakers ahead of a Senate Banking Committee vote Wednesday on the Democrat's confirmation.
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December 10, 2024
ESPN, Fox Blast DOJ 'Formalistic Distinction' In Fubo Case
ESPN, Fox and Warner Bros. Discovery pressed the Second Circuit to upend a lower court injunction against their sports-only streaming service, taking particular aim at U.S. Department of Justice arguments asserting the sports giants can't claim they have a right to refuse dealing with rivals after joining forces.
Expert Analysis
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Rethinking Clawback Policies For 2025 Compensation Season
The start of a new year presents an opportunity for companies to reassess their executive compensation clawback policies, and while mandatory Dodd-Frank clawbacks are necessary, discretionary policies can offer companies greater flexibility to address misconduct, protect their reputations and align with shareholder priorities, say attorneys at Debevoise.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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Federal Embrace Of Crypto Regs Won't Lower State Hurdles
Even if the incoming presidential administration and next Congress focus on creating clearer federal regulatory frameworks for the cryptocurrency sector, companies bringing digital asset products and services to the market will still face significant state-level barriers, say attorneys at Mayer Brown.
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SEC Prioritized Enforcement Sweeps As Cases Slowed In '24
Following three consecutive years of increasing activity, fiscal year 2024 marked the lowest number of cases the U.S. Securities and Exchange Commission has brought since Gary Gensler assumed office in April 2021, buttressed by some familiar enforcement sweeps, say attorneys at Covington.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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2 Cases Show DAOs May Face Increasing Legal Scrutiny
Two ongoing cases that recently survived motions to dismiss in California federal courts concerning Compound DAO and Lido DAO threaten to expand the potential liability for activity attributed to decentralized autonomous organizations — and to indirectly create liability for their participants, say attorneys at Cahill Gordon.
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The Fashion Industry Should Prep Now For State PFAS Bans
New York and California have each passed legislation regulating PFAS in apparel and other textiles, so retailers should consult with manufacturers and suppliers and obtain the requisite certification documents as soon as possible to avoid disruptions in supply chains, say attorneys at Venable.
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Expect More State Scrutiny Of PE In Healthcare M&A
While a California bill that called for increased antitrust scrutiny of many healthcare private equity transactions was recently vetoed by the governor, state legislatures are likely to continue introducing similar laws, particularly if the Trump administration eases federal enforcement, say attorneys at Morgan Lewis.
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7 Ways To Prepare For An I-9 Audit Or Immigration Raid
Because immigration enforcement is likely to surge under the upcoming Trump administration, employers should take steps to ensure their staff is trained in employment eligibility verification requirements and what to do in the event of an Immigration and Customs Enforcement I-9 audit or workplace raid, say attorneys at Littler.
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Unpacking Arguments From High Court's Rural Hospital Case
During oral arguments in Advocate v. Becerra, the U.S. Supreme Court justices focused questions on the meaning of being "entitled to" supplementary security income assistance, and there's reason for optimism that the likely split decision will break in favor of hospitals, say attorneys at King & Spalding.
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California Supreme Court's Year In Review
Attorneys at Horvitz & Levy highlight notable decisions on major questions from the California Supreme Court's last term, including voter initiatives, hostile work environment and the economic loss rule.
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3 Changes Community Banks Should Expect Under Trump
A second Trump administration promises a sea change for regional and community banks, including shifts in the regulatory environment, Community Reinvestment Act rules and the M&A landscape, say attorneys at Manatt.
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DC Circ. Decision Opens Door To NEPA Regulation Litigation
A recent D.C. Circuit decision in Marin Audubon Society v. Federal Aviation Administration could open the door to more litigation over the White House Council on Environmental Quality's National Environmental Policy Act regulations, and could affect how many agencies conduct and interpret environmental assessments, say attorneys at ArentFox Schiff.
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What Lawyers Can Learn From High School AI Suit
A pending Massachusetts lawsuit regarding artificial intelligence use in an academic setting underscores the need for attorneys to educate themselves on AI technology and tools that affect their clients so they can advise on establishing clear expectations and limits around the permissible use of AI, say attorneys at Hinckley Allen.
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Navigating 4th Circ.'s Antitrust Burden In Hybrid Relationships
The U.S. Supreme Court recently declined to review the Fourth Circuit's Brewbaker decision, a holding that heightens the burden on antitrust prosecutors when the target companies have a hybrid horizontal-vertical relationship, but diverges from other circuits, say attorneys at Troutman Pepper.