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Compliance
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October 15, 2024
Meta Limits But Can't Shake Social Media Addiction MDL
A California federal judge on Tuesday refused to ax sprawling multidistrict litigation accusing Meta Platforms Inc. and other social media giants of designing their platforms to addict children, finding that a broad tech liability shield required claims pressed by dozens of state attorneys general to be narrowed but not tossed.
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October 15, 2024
Conn. Trader Pilfered $4.1M From Struggling Firm, SEC Says
A Greenwich, Conn.-based investment adviser stole more than $4.1 million from a pair of investment funds he managed to help prop up his family's "expensive lifestyle" and counter his personal financial woes, including several tax liens and foreclosure attempts on his home, the U.S. Securities and Exchange Commission has alleged.
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October 15, 2024
DOT Fines Lufthansa $4M For Barring 128 Jews From Flight
German airline Lufthansa has agreed to pay a record $4 million fine for refusing to let 128 Jewish passengers board a connecting flight after a few passengers allegedly failed to follow crew instructions, the largest-ever fine against an airline for civil rights violations, the U.S. Department of Transportation announced Tuesday.
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October 15, 2024
In Pivot, 5th Circ. Gives CFPB Extension In Exam Policy Case
The Consumer Financial Protection Bureau can take an extra two weeks to file a brief with the Fifth Circuit in its closely watched appeal of a ruling that struck down the agency's anti-bias examination policies, the circuit court has decided.
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October 15, 2024
SafeMoon Execs Can't Beat Fraud Charges Now, Feds Say
The crypto executives behind the alleged SafeMoon fraud can't claim their conduct was beyond the reach of U.S. courts at this stage of litigation, federal prosecutors said in a brief that pushed back on the executives' bid to dismiss the indictment.
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October 15, 2024
New Cybersecurity Rules Threaten Defense Industrial Base
The Pentagon's stringent new cybersecurity rule for its contractors threatens to drive away companies that may struggle with the added costs of compliance, while exacerbating concerns about an already-shrinking defense industrial base.
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October 15, 2024
Standing Rock Sioux Ask Court To Shut Down Dakota Pipeline
The Standing Rock Sioux Tribe is asking a federal court to block a Texas-based energy company from continuing to operate the Dakota Access Pipeline, arguing its latest emergency response plan fails to include a realistic calculation of a worst-case scenario liquid discharge.
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October 15, 2024
Patent Co. Drops IP Suits To Go After Carriers In Antitrust Cases
Patent-holding company VoIP-Pal.com announced Monday that it will refocus its legal efforts on antitrust litigation targeting the big three telecommunications carriers, days after dropping recently filed patent suits against Verizon and T-Mobile.
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October 15, 2024
SEC Says Robot Co.'s AI Caretaker Was Mostly A Dummy
The U.S. Securities and Exchange Commission sued a robotics and artificial intelligence startup and its founder in Florida federal court Tuesday, accusing them of misleading investors about the company's ability to develop an AI-infused hologram and a robot to help families with childcare and other tasks.
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October 15, 2024
No New Trial For Bid-Rigging, Price-Fixing Concrete Bros.
A Georgia federal judge refused Tuesday to grant a new trial to a pair of brothers convicted in July for their role in a scheme fixing prices, rigging bids and carving up the coastal Georgia ready-mix concrete market, finding no jury confusion in witness testimony about antitrust compliance training.
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October 15, 2024
Gamers End Challenge Of Microsoft's $69B Activision Deal
Microsoft reached an agreement ending a challenge from a group of gamers targeting its $69 billion deal for Activision Blizzard as a merger challenge from the Federal Trade Commission remains pending at the Ninth Circuit.
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October 15, 2024
Realtors Ask High Court To Quash DOJ Antitrust Probe
The National Association of Realtors has petitioned the U.S. Supreme Court for review of a ruling that would allow the U.S. Department of Justice's Antitrust Division to reopen an investigation into the trade group's rules and policies after an earlier settlement.
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October 15, 2024
Hedge Fund Urges Justices To Hear Swing-Trade Case
The U.S. Supreme Court has been asked by a hedge fund facing insider trading allegations to address "significant and recurring issues" that allowed a 1-800-Flowers.com shareholder to proceed with his derivative lawsuit despite failing to prove that the company was harmed in any way by the fund's short-swing trades.
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October 15, 2024
Motley Rice May Avoid DQ In Boston Opioid Case, Judge Hints
A Massachusetts federal judge on Tuesday appeared skeptical of a bid by pharmacy benefit manager OptumRX to disqualify Motley Rice LLC from representing the city of Boston in a lawsuit over the company's alleged role in the opioid crisis.
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October 15, 2024
Wash. Hospital Wants Spinal Surgeon Scandal Suit Tossed
A healthcare system in Washington state has urged a federal judge to throw out the government's civil lawsuit alleging it perpetuated a doctor's scheme to earn millions of dollars from unnecessary surgeries, accusing prosecutors of "second-guessing" the organization's legitimate processes for hiring physicians and addressing internal complaints.
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October 15, 2024
$5M Alcoa Unit Deal Ends EPA's Smelter Foul-Air Suit
A Washington federal judge on Tuesday approved an Alcoa Corp. subsidiary's $5.25 million settlement with the federal government over the alleged release of illegal levels of pollutants at a now-shuttered Washington aluminum smelting plant.
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October 15, 2024
EPA Says GHG Power Plant Rule Is In 'Heartland' Of Authority
The U.S. Environmental Protection Agency is urging the D.C. Circuit to approve its plan to control greenhouse gas emissions from power plants, saying its prescribed methods for controlling releases are legally sound, effective, reliable and reasonably affordable for the facilities that must implement them.
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October 15, 2024
No 'Third Bite' For Ex-Lender's FDIC Suit, Judge Rules
A D.C. federal judge has tossed a lawsuit from a former small business financier contesting the constitutionality of a Federal Deposit Insurance Corp. enforcement action against him, saying the plaintiff has already twice litigated and lost the case in Rhode Island.
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October 15, 2024
Aurora Cannabis Gets First Nod For $8M Investor Suit Deal
Aurora Cannabis Inc.'s $8.05 million settlement with a proposed class of investors who accused it of orchestrating a $21.7 million "round-trip sale" to keep its stock prices high got a U.S. magistrate judge's initial sign-off along with an order pausing the parties' dispute while the deal is reviewed.
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October 15, 2024
Walmart, Execs Settle Chancery Opioid Suit For $123M
Walmart and its directors and officers have agreed to a $123 million deal to end a stockholder class derivative lawsuit in Delaware's Court of Chancery that accused the nationwide retailer of multiyear opioid prescription oversight failures, potentially resolving class claims dating to early 2020.
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October 15, 2024
SD Calls Foul On NCAA For Moving NIL Suit From State Court
The state of South Dakota and its flagship universities on Tuesday asked that their suit challenging the NCAA's $2.78 billion settlement over name, image and likeness compensation be moved back to state court, claiming the NCAA "does not come within a country mile" of proving that it should have been removed to federal court.
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October 15, 2024
Feds Cut Whistleblowers Out Of Kickback Deal, Court Told
Whistleblowers who accused a medical device company of a kickback scheme said Tuesday that the government left them out to dry when it settled False Claims Act claims with surgeons for $3.3 million and refused to share any of it with them.
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October 15, 2024
Coinbase Ally Seeks To Compel SEC To Fulfill Info Request
A research consultancy working with crypto exchange Coinbase said Tuesday that it plans to seek a quick win in its case to compel internal documents from the U.S. Securities and Exchange Commission after the agency allegedly said it would restart its review of the requests three years from now.
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October 15, 2024
FERC Can't Pass On LNG Pipeline Review, DC Circ. Told
The Federal Energy Regulatory Commission shirked its legal obligations when, through inaction, it effectively greenlit the expansion of a liquefied natural gas terminal in Puerto Rico, environmental and community groups told the D.C. Circuit on Friday.
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October 15, 2024
Polsinelli Adds Merck Legal Director To Energy Group In Philly
An attorney who specializes in representing energy and utility clients and has experience as in-house counsel has left Merck, where she was a legal director for nearly three years, to become the first new lateral shareholder to join Polsinelli's Philadelphia office since the firm opened its doors there in August.
Expert Analysis
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Carbon Offset Case A Win For CFTC Enviro Fraud Task Force
An Illinois federal court's decision in Commodity Futures Trading Commission v. Ikkurty — earning the CFTC a sizeable monetary award that will likely incentivize similar enforcement pursuit — shows the impact of the commission's Environmental Fraud Task Force, say attorneys at Steptoe.
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RealPage Suit Shows Growing Algorithm, AI Pricing Scrutiny
The U.S. Department of Justice's suit against RealPage for helping fix rental rates, filed last week, demonstrates how the use of algorithmic and artificial intelligence tools to assist with pricing decisions is drawing increasing scrutiny and action across government agencies, and specifically at the Federal Trade Commission and the DOJ, say Andre Geverola and Leah Harrell at Arnold & Porter.
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Whistleblowers Must Note 5 Key Differences Of DOJ Program
The U.S. Department of Justice’s recently unveiled whistleblower awards program diverges in key ways from similar programs at other agencies, and individuals must weigh these differences and look first to programs with stronger, proven protections before blowing the whistle, say Stephen Kohn and Geoff Schweller at Kohn Kohn.
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The Licensure Landscape For Psychedelics Manufacturers
As the need for bulk manufacturing of psychedelic substances grows, organizations aiming to support clinical trials or become commercial suppliers must navigate a rigorous and multifaceted journey to obtaining a license from the U.S. Drug Enforcement Administration, say Kimberly Chew at Husch Blackwell and Jaime Dwight at Promega Corp.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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CrowdStrike Incident Highlights Third-Party Risk For Banks
The global business disruptions caused by CrowdStrike's faulty software update last month serves as a reminder that banks should assess operational and compliance risks associated with third-party service providers and create resiliency plans extending down to fourth- and fifth-level providers, says Craig Landrum at Jones Walker.
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Calif. Ruling Clarifying Paystub Compliance Is Win For Cos.
In rare good news for California employers, the state Supreme Court recently clarified that workers couldn’t win extra penalties in wage and hour cases by claiming their employer intentionally violated state paystub law if the employer believed it had complied in good faith, say Drei Munar and Kirk Hornbeck at Hunton.
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Considering Noncompete Strategies After Blocked FTC Ban
A Texas district court's recent decision in Ryan v. Federal Trade Commission to set aside the new FTC rule banning noncompetes does away with some immediate compliance obligations, but employers should still review strategies, attend to changes to state laws and monitor ongoing challenges, say attorneys at Baker McKenzie.
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Open Questions 3 Years After 2nd Circ.'s Fugitive Ruling
The Second Circuit’s 2021 decision in U.S. v. Bescond, holding that a French resident indicted abroad did not meet the legal definition of a fugitive, deepened a circuit split on the fugitive disentitlement doctrine, and courts continue to grapple with the doctrine’s reach and applicability, say attorneys at Lankler Siffert.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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How DOJ May Change FARA Exemption In Forthcoming Rule
Any day now, the U.S. Department of Justice is expected to issue proposed revisions to the Foreign Agents Registration Act regulations, and signs suggest that it will likely narrow one of FARA's broadest exemptions, which may compound public confusion about the law's requirements, says Murad Hussain at Arnold & Porter.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Key Concerns To Confront In FDIC Brokered Deposit Proposal
Banks and fintech companies should note several fundamental issues with the Federal Deposit Insurance Corp.'s recent proposal to widen how it classifies brokered deposits, an attempt to limit prudential risk that could expose the industry and underbanked consumers who rely on bank-fintech apps to widespread unintended consequences, say attorneys at Gibson Dunn.
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What To Expect From Evolving Wash. Development Plans
The current round of periodic updates to Washington counties' growth and development plans will need to address new requirements from recent legislation, and will also likely bring changes that should please property owners and developers, says Jami Balint at Seyfarth.
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Crypto Gatekeepers May Be The Next Front Of Enforcement
Lawyers and other professionals who advise cryptocurrency companies should beware regulators' increasing focus on gatekeeper accountability, and should take several measures to fulfill their ethical and legal obligations, including implementing a robust vetting mechanism when representing crypto clients, say Temidayo Aganga-Williams and Xinchen Li at Selendy Gay.