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Compliance
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August 15, 2024
San Francisco Unveils Landmark Suit Over 'Deepfake' Porn
The San Francisco city attorney on Thursday launched a suit against the operators of 16 websites that he claims create and distribute nonconsensual, artificial intelligence-generated pornography, also known as "deepfake pornography" or "deepnudes."
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August 15, 2024
BigLaw Gambling Probe Halts Notre Dame Men's Swimming
The University of Notre Dame has suspended its men's swimming program after a Ropes & Gray LLP investigation confirmed reports of widespread gambling in violation of National Collegiate Athletics Association rules, a matter the university's athletics director called "a deeply embedded team culture dismissive of Notre Dame's standards for student-athletes."
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August 15, 2024
DC Circ. Explains Toss Of EPA's Biofuel Exemptions Denial
The Environmental Protection Agency's narrow interpretation of what defines an economic hardship wrongly shut dozens of small oil refineries out of receiving federal renewable fuel blending requirement exemptions, according to a per curiam D.C. Circuit opinion unsealed this week.
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August 15, 2024
Audacy Sale To Soros Won't Be Rubber-Stamped, Cruz Says
The Federal Communications Commission will hold a full commission vote on whether to transfer the licenses tied to Soros Fund Management's acquisition of an ownership interest in radio station owner Audacy Inc. after it emerges from bankruptcy, according to Sen. Ted Cruz, R-Texas.
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August 15, 2024
Pa. Utility Regulator Insists It Can Reject Grid Project
The Pennsylvania Public Utility Commission is urging the Third Circuit to reinstate its denial of a transmission project regional grid operator PJM Interconnection approved, saying the Federal Power Act and PJM's tariff can't be used to override its rejection of a "wasteful and counterproductive project."
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August 15, 2024
SEC Nabs $5.75M Judgment Against Unregistered Broker
A Florida man and his business have agreed to pay the U.S. Securities and Exchange Commission $5.75 million to end claims they operated as unregistered broker-dealers for at least four years.
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August 15, 2024
Realtors Urge 9th Circ. Not To Revive Zillow Antitrust Case
The National Association of Realtors has urged the Ninth Circuit to reject a defunct brokerage platform's appeal in a case over design changes Zillow made to comply with an association rule, saying the rule is optional and that Zillow acted on its own.
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August 15, 2024
6th Circ. Finds Biden Had Power To Fire Former NLRB GC
President Joe Biden lawfully fired former National Labor Relations Board general counsel Peter Robb more than three years ago, the Sixth Circuit ruled, with the appeals court saying removal protections for the agency's top prosecutor would affect the official's accountability to the president.
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August 15, 2024
Pharmacy Can't Dodge Novo Nordisk's Diabetes Drug Suit
A Tennessee federal judge on Thursday declined to throw out a suit by Novo Nordisk Inc. alleging that DCA Pharmacy is selling drugs with the same active ingredient as its Ozempic diabetes medicine without U.S. Food and Drug Administration authorization.
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August 15, 2024
FTC Renews Bid To Toss Meta's Constitutionality Case
The Federal Trade Commission has told a D.C. federal court that a recent U.S. Supreme Court ruling does not support Meta's case raising constitutional challenges to a data privacy order, arguing the case should be tossed.
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August 15, 2024
Alaska, Hawaiian Airlines Extend DOJ Review Deadline, Again
Alaska Air Group Inc. and Hawaiian Airlines disclosed a third extension in as many weeks Thursday for the U.S. Department of Justice to review their proposed $1.9 billion merger before it can close, moves that suggest at least that the DOJ has raised serious concerns about the transaction.
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August 15, 2024
Price-Fixing Claims Against Par Pharma Tossed After Ch. 11
A Connecticut federal judge on Thursday tossed Par Pharmaceutical Cos. Inc. from two price-fixing lawsuits after the defendant and its parent, Endo International PLC, recently filed the Chapter 11 reorganization plans that they said shielded them from the cases.
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August 15, 2024
SEC Defendants Fight Ex-Latham Atty For Whistleblower Docs
A credit reporting agency at the center of a $73 million U.S. Securities and Exchange Commission lawsuit is seeking to force a retired Latham & Watkins LLP partner to hand over his discussions with a pair of SEC whistleblowers, arguing that the attorney's work for the tipsters isn't privileged.
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August 15, 2024
Fla.'s The Villages Exempted From FTC Noncompete Ban
A Florida retirement community's real estate broker will be exempt when the Federal Trade Commission's noncompete ban goes into effect next month, under a limited injunction imposed by a federal judge who recognized the agency's rulemaking powers but said they go too far here.
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August 15, 2024
Interior Department Grants $775M To Plug Oil And Gas Wells
The U.S. Department of the Interior said it's making up to $775 million available for 21 eligible states to plug orphaned oil and gas wells to curb harmful methane leaks and reduce risks to the environment and public health.
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August 15, 2024
Connecticut Watchdog Calls For Action On Utility 'Rate Shock'
A Connecticut consumer rights watchdog agency has asked the state's utility regulator to reverse rate hikes that it recently approved for major energy companies or to take other actions to prevent future "rate shock" for state residents.
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August 15, 2024
Gemini Suit Raises Novel Question On Crypto Law, Court Told
A suit from a consumer advocacy organization claimed Gemini Trust Co.'s user agreement unfairly put the onus on consumers to protect themselves from scams, but the Winklevoss-led crypto exchange said the litigation raises a larger question of whether the federal statute at the heart of the claims applies to cryptocurrencies.
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August 15, 2024
No Harm In SEC Releasing More Info On Breach, Judge Told
A conservative civil liberties group questioned the U.S. Securities and Exchange Commission's claims that releasing additional materials related to its handling of an internal firewall breach would harm the public interest Thursday, telling a D.C. federal judge in court that so much was already out, more sunlight couldn't hurt.
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August 15, 2024
Prof Rips DOJ, VW's 9th Circ. Bid To Shield Jones Day Docs
A Loyola Marymount University professor has urged the Ninth Circuit to shut down the U.S. Department of Justice and Volkswagen AG's relentless "obfuscation" in a long-running dispute over access to confidential Volkswagen documents that were part of a Jones Day investigation into the automaker's 2015 emissions-cheating scandal.
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August 15, 2024
White Collar Partner Duo Joins Duane Morris In NY
Duane Morris has hired two new trial partners in New York who've spent the last 15 years working together as white collar attorneys at Peckar & Abramson.
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August 15, 2024
Colorado, Suncor Back EPA In Denver Refinery Permit Fight
Colorado and Suncor Energy USA Inc. told the Tenth Circuit the U.S. Environmental Protection Agency was right to refuse to object to a series of permit changes state regulators approved for the company's Denver-area oil refinery, as fights over the facility's emissions are heating up.
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August 15, 2024
Trump Seeks To Delay NY Sentencing Until After Election
Donald Trump asked to delay sentencing in his New York hush money case until after the 2024 presidential election, arguing he needs time to potentially appeal if he loses an attempt to erase the felony conviction on the basis of presidential immunity.
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August 15, 2024
Asphalt Co. To Pay $6.5M For Criminal Bid-Rigging Scheme
A Detroit-area asphalt paving company was sentenced Thursday to pay $6.5 million after it pled guilty to participating in a sprawling bid-rigging scheme in Michigan, with federal prosecutors alleging the company's leaders worked with competitors to drive up the price of paving contracts.
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August 15, 2024
Banking Groups Sue To Thwart New Ill. Swipe Fee Restrictions
The nation's largest bank trade association and other industry groups sued Thursday to block Illinois from implementing a new state law that prohibits financial intermediaries from charging so-called swipe fees on the sales tax and tip portions of payment card transactions, arguing it conflicts with federal law and risks broader "chaos."
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August 14, 2024
T-Mobile Hit With $60M Fine Over National Security Risks
The Committee on Foreign Investment in the U.S. fined T-Mobile US Inc. $60 million for alleged national security failures, including failing to prevent the unauthorized access of "certain sensitive data" and to promptly report such incidents, according to news reports Wednesday and the agency's website.
Expert Analysis
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In Memoriam: The Modern Administrative State
On June 28, the modern administrative state, where courts deferred to agency interpretations of ambiguous statutes, died when the U.S. Supreme Court overruled its previous decision in Chevron v. Natural Resources Defense Council — but it is survived by many cases decided under the Chevron framework, say Joseph Schaeffer and Jessica Deyoe at Babst Calland.
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Preparing For CFPB 'Junk Fee' Push Into Mortgage Industry
As the Consumer Financial Protection Bureau considers expanding its "junk fee" initiative into mortgage closing costs, mortgage lenders and third parties must develop plans now that anticipate potential rulemaking or enforcement activity in this space, say attorneys at Morgan Lewis.
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How High Court Approached Time Limit On Reg Challenges
The U.S. Supreme Court's decision in Corner Post v. Federal Reserve Board effectively gives new entities their own personal statute of limitations to challenge rules and regulations, and Justice Brett Kavanaugh's concurrence may portend the court's view that those entities do not need to be directly regulated, say attorneys at Snell & Wilmer.
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First-Of-Its-Kind Chancery Ruling Will Aid SPAC Defendants
The Delaware Chancery Court's first full dismissal of claims challenging a special purpose acquisition company transaction under the entire fairness doctrine in the recent Hennessy Capital Acquisition Stockholder Litigation establishes useful precedent to abate the flood of SPAC litigation, say Lisa Bugni and Benjamin Lee at King & Spalding.
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Series
After Chevron: FTC's 'Unfair Competition' Actions In Jeopardy
While the U.S. Supreme Court's decision ending Chevron deference will have limited effect on the Federal Trade Commission's merger guidelines, administrative enforcement actions and commission decisions on appeal, it could restrict the agency's expansive take on its rulemaking authority and threaten the noncompete ban, say attorneys at Baker Botts.
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Expect The Unexpected: Contracts For Underground Projects
Recent challenges encountered by the Mountain Valley Pipeline project underscore the importance of drafting contracts for underground construction to account for unexpected site conditions, associated risks and compliance with applicable laws, say Jill Jaffe and Brenda Lin at Nossaman.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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Supreme Court's ALJ Ruling Carries Implications Beyond SEC
In its recent Jarkesy opinion, the U.S. Supreme Court limited the types of cases that can be tried before the U.S. Securities and Exchange Commission's in-house administrative law judges, setting the stage for challenges to the constitutionality of ALJs across other agencies, say Robert Robertson and Kimberley Church at Dechert.
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Opinion
A Tale Of 2 Trump Cases: The Rule Of Law Is A Live Issue
The U.S. Supreme Court’s decision this week in Trump v. U.S., holding that former President Donald Trump has broad immunity from prosecution, undercuts the rule of law, while the former president’s New York hush money conviction vindicates it in eight key ways, says David Postel at Henein Hutchison.
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Series
NC Banking Brief: All The Notable Legal Updates In Q2
After federal banking agencies last quarter released a supplemental final rule updating the Community Reinvestment Act, North Carolina banks involved in community development should consider how the new rule might open up opportunities for investment and services that can benefit underserved areas, says Adam Goldblatt at Michael Best.
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Series
Boxing Makes Me A Better Lawyer
Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.
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The Often Overlooked NY Foreclosure Notice Requirements
As multifamily real estate defaults mount, New York foreclosing parties should be aware of pitfalls and perils that can await the litigant who is not prepared to ensure adherence with tenant notice requirements under the Real Property Actions and Proceedings Law, say Christopher Gorman and John Muldoon at Rosenberg & Estis.
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Opinion
Industry Self-Regulation Will Shine Post-Chevron
The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.
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Justices' Bribery Ruling: A Corrupt Act Isn't Necessarily Illegal
In its Snyder v. U.S. decision last week, the U.S. Supreme Court held that a bribery law does not criminalize gratuities, continuing a trend of narrowing federal anti-corruption laws and scrutinizing public corruption prosecutions that go beyond obvious quid pro quo schemes, say Carrie Cohen and Christine Wong at MoFo.
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3 Ways Agencies Will Keep Making Law After Chevron
The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.