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Compliance
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November 19, 2024
FDIC's Gruenberg To Exit On Eve Of Trump's Inauguration
The Federal Deposit Insurance Corp.'s embattled chairman, Martin Gruenberg, said Tuesday that he will step down and retire from the agency before President-elect Donald Trump takes office, clearing the way for a new, likely Republican leader at the deposit insurer.
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November 19, 2024
Treasury Finalizes Partnership Tax Credit 'Direct Pay' Regs
The U.S. Treasury Department finalized regulations Tuesday to make it easier for tax-exempt entities that co-own development projects to qualify for a direct cash payment of clean energy tax credits by electing out of their partnership tax status.
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November 18, 2024
SEC Says Calif. Atty, His Wife Stole $2.2M To Buy House
The U.S. Securities and Exchange Commission on Monday accused a Los Angeles-area attorney of scheming to control publicly traded penny stock companies and then stealing $2.2 million from one of those companies to buy a home with his wife, according to a complaint filed in California federal court.
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November 18, 2024
5th Circ. Indicates DOT Airline Fees Rule May Need Reworking
A pair of Fifth Circuit judges signaled Monday that the U.S. Department of Transportation may have to rework its rule requiring airlines to more clearly disclose add-on fees upfront, suggesting that it might be too costly for airlines to comply with the mandate and consumers would be overloaded with information.
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November 18, 2024
Trump Taps Fox Host Sean Duffy For Transportation Secretary
President-elect Donald Trump announced Monday he will nominate former Wisconsin congressman and Fox Business host Sean Duffy to serve as head of the U.S. Department of Transportation.
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November 18, 2024
Judge Won't Release Kraken To Appeal Order In SEC Suit
A California federal judge on Monday refused to let the operator of the cryptocurrency exchange Kraken make an immediate appeal of his order denying its motion to dismiss a suit brought by the U.S. Securities and Exchange Commission, saying it would only delay resolution of the case.
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November 18, 2024
Justices Urged To Pass On 3rd Circ. CFPB Loan Trust Case
The Consumer Financial Protection Bureau has asked the U.S. Supreme Court to deny an appeal by a group of student loan trusts fighting an enforcement action by the agency, arguing that industry concerns about the Third Circuit case are overblown and unavailing.
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November 18, 2024
Industry Group Wants Trump-Era SEC Proxy Rules Reinstated
The National Association of Manufacturers has urged the D.C. Circuit to reverse a ruling that struck down a U.S. Securities and Exchange Commission regulation on proxy voting, arguing the ruling severely limits the agency's regulatory power without any statutory backing.
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November 18, 2024
AECOM Calls FCA Suit Alleging False Army Billing 'Meritless'
AECOM has pushed to end a False Claims Act suit alleging that it falsely billed the U.S. Army on a $1.9 billion support deal, saying the whistleblower who filed the suit hadn't shown that his remaining allegations were material to the government.
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November 18, 2024
Ex-Crypto CEO Bribe Case Unsealed As Firm Inks $10M Deal
The former CEO of a cryptocurrency mining company tried to bribe Japanese government officials to be able to open a resort in the country, according to an indictment unsealed Monday alongside the company's $10 million deferred prosecution agreement.
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November 18, 2024
StraightPath Execs Must Face $386M IPO Fraud Charges
A New York federal judge denied a bid Monday by three principals of Florida-based private equity firm StraightPath Venture Partners to dismiss an indictment accusing them of raising $386 million by defrauding over 2,000 investors through false promises about purchases of pre-IPO shares in private companies.
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November 18, 2024
Live Nation Says Ticket Buyers Must Arbitrate Antitrust Suit
Live Nation moved to arbitrate a proposed consumer antitrust class action alleging it monopolizes concert promotions and secondary ticketing services for major venues, arguing in New York federal court Friday the customers agreed to arbitrate any dispute each time they logged in to their accounts or accepted secondary ticket transfers.
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November 18, 2024
Trump DOE Pick Signals Funding Flux For Clean Energy Cos.
President-elect Donald Trump tapping oilfield services executive Chris Wright as U.S. energy secretary underscores the frostier federal reception that awaits clean energy companies, but experts say the industry shouldn't cede the playing field to fossil fuels just yet.
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November 18, 2024
Brokerage Startup Defends Suit Over NAR Listing Rules
A residential brokerage startup defended its antitrust lawsuit from dismissal motions filed by the National Association of Realtors and multiple brokerages, arguing in Utah federal court that it has standing to bring its suit "as an excluded competitor" and that it's not required to make specific claims about the roles of the defendants in the alleged antitrust conspiracy.
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November 18, 2024
Dems Probe Treasury On Effects Of Crypto Mixer Sanctions
A group of House Democrats pressed the U.S. Department of the Treasury on Monday to provide information on how effective its sanctions regime against cryptocurrency mixing services has been at detecting and curbing illicit finance.
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November 18, 2024
SEC Sued Over FINRA's One-Day Bond Reporting Timeline
The U.S. Securities and Exchange Commission has been hit with a lawsuit seeking to overturn a newly adopted rule that will require brokerage firms to report bond transactions more quickly, with the suing organization previously claiming there was no evidence justifying a need for such a change.
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November 18, 2024
Chancery Consolidates 2 Musk, Derivative Damage Suits
Delaware's chancellor on Monday combined two class suits that separately targeted Elon Musk's massive sales of Tesla Inc. stock and alleged diversions of Tesla talent to Musk's spun-off artificial intelligence venture, while ordering coordination with a suit seeking damages arising from alleged insider trading in late 2022.
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November 18, 2024
Texas Appeals Court Finds Telecom Laws Violate Gift Rules
A state appellate court handed dozens of Texas cities a clean-sweep victory in their fight against statewide bargains for telecommunications providers, finding Friday a state law dealing with the fees municipalities can charge telecom companies runs counter to the Texas Constitution.
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November 18, 2024
DC Circ. Skeptical Of Conn. LPTV Station's Market Claim
A panel of D.C. Circuit judges wondered Monday how a Connecticut television licensee's challenge to the way the government determines which stations qualify for small-market protections squared with the text of the statute, as the Federal Communications Commission argued that the law's clear text dooms the station's bid to base eligibility on census data rather than Nielsen Media Research market data.
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November 18, 2024
Treasury Finalizes Tougher Foreign Investment Law Penalties
The Treasury Department on Monday finalized a rule sharpening its enforcement authority to stop or demand additional information regarding foreign-investment deals that the U.S. deems potential threats to national security.
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November 18, 2024
5th Circ. Eyes Procedure In 1st NLRB Constitutionality Cases
The Fifth Circuit appears poised to punt — for now — on the issue of the National Labor Relations Board's constitutionality after a panel questioned on Monday whether SpaceX and Amazon have valid challenges to "effective" denials of their efforts to thwart prosecution for alleged labor violations.
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November 18, 2024
General Mills Plant 'Haunted' By Racist Past, Workers Say
A group of Georgia General Mills plant workers who said their workplace was run by a clique of neo-Confederate racists fought back Monday against the company's bid to toss the suit, arguing the plant remains "haunted" by a legacy of white supremacist leadership.
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November 18, 2024
EPA Has No Choice But To Rethink Smog Rule, DC Circ. Told
U.S. Steel Corp. told the D.C. Circuit that the U.S. Environmental Protection Agency was obligated to reconsider its so-called "good neighbor" smog emissions rule after it was partially invalidated by a court, arguing the agency's own brief confirms that its refusal to do so was improper.
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November 18, 2024
Mo. Tax Commission Upholds Storage Facility's $7.4M Value
A Missouri storage facility was properly valued at $7.4 million because the real estate company that owned the facility failed to prove the value should be lowered to $2.7 million, the state tax commission said.
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November 18, 2024
Former GE Exec Guilty Of Faking Docs In $1.1B Power Deal
A Manhattan federal jury on Monday convicted a former GE Power executive of using forged documents, then taking a $5 million kickback, in what federal prosecutors called a corrupt effort to close a $1.1 billion energy deal in Angola.
Expert Analysis
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What's In Colorado's 1st-Of-Its-Kind Neural Privacy Law
Colorado recently became the first U.S. state to directly regulate neurotechnology with new legislation amending the Colorado Privacy Act to specifically protect biological and neural data, offering an example of how lawmakers can tackle the perceived regulation gaps in this area, say attorneys at Goodwin.
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7 Takeaways For Companies After Justices' Bribery Ruling
The U.S. Supreme Court’s Snyder v. U.S. decision this summer, holding that a federal law does not criminalize after-the-fact gratuities made to public officials, raises some key considerations for companies that engage with state, local and tribal governments, say attorneys at BakerHostetler.
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Why Now Is The Time For Law Firms To Hire Lateral Partners
Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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Reassessing Lease Provisions To Account For ESG Initiatives
As companies seek to build ESG considerations into their businesses, it's crucial to understand how such initiatives can quickly become significant enough to compel reassessment of lease agreement provisions, and how best to modify leases accordingly, say Julian Freeman and Gabe Pitassi at Cox Castle.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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Integrating ESG Into Risk Management Programs
Amid increasing regulations and reporting requirements for corporate sustainability in the European Union and the U.S., companies might consider how to incorporate environmental, social and governance factors into more formalized risk management, say directors at Alvarez & Marsal.
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Exploring Practical Employer Alternatives To Noncompetes
With the Federal Trade Commission likely to appeal a federal court’s recent rejection of its noncompete ban, and more states limiting the enforceability of these agreements, employers should consider back-to-basics methods for protecting their business interests and safeguarding sensitive information, says Brendan Horgan at FordHarrison.
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How Increased Sanctions Scrutiny Is Affecting Debt Markets
U.S. sanctions and export control regulators have recently taken several steps that broaden financial sector oversight, and banks, lenders and borrowers must adapt their syndication and risk assessment processes in different ways or risk incurring substantial penalties, say Cristina Brayton-Lewis and Kerrick Seay at White & Case.
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What The SEC Liquidity Risk Management Amendments Entail
Fund managers should be cognizant of the U.S. Security and Exchange Commission's recent changes to certain reporting requirements and guidance related to open-end fund liquidity risk management programs, and update their filing systems if need be, says Rachael Schwartz at Sullivan & Worcester.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.
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Avoid Getting Burned By Agencies' Solar Financing Spotlight
Recently coordinated reports and advisories from the U.S. Department of the Treasury, the Consumer Financial Protection Bureau and the Federal Trade Commission maximize the spotlight on the consumer solar financing market and highlight pitfalls for lenders to avoid in this burgeoning field, says Mercedes Tunstall at Cadwalader.
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Service Agreement Lessons From July's Global Tech Outage
The worldwide outages recently caused by Crowdstrike Holdings' misconfigured software update highlight the need to evaluate potential IT vendors, negotiate certain service agreement terms, and review existing agreements and diligence forms to help prevent future disruptions and mitigate the fallout should one occur, say attorneys at WilmerHale.
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Vertex Suit Highlights Issues For Pharma Fertility Support
Vertex Pharmaceuticals' recent lawsuit challenging the U.S. Department of Health and Human Services' interpretation of the Anti-Kickback Statute is influenced by a number of reproductive rights and health equity issues that the Office of Inspector General should address more concretely, including in vitro fertilization and fertility preservation programs, says Mary Kohler at Kohler Health Law.
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Calif. Bill, NTIA Report Illustrate Open-Model AI Safety Debate
The National Telecommunications and Information Administration’s balanced recommendations for preventing misuse of open artificial intelligence models, contrasted with a more aggressive California bill, demonstrate an evolving regulatory debate about balancing democratic access to this powerful new technology against potential risks to the public, say Stuart Meyer and Fredrick Tsang at Fenwick.
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5 Lessons From Consulting Firm's Successful DOJ Disclosure
The Boston Consulting Group recently received a rare declination of prosecution from the U.S. Department of Justice after self-disclosing a foreign bribery scheme, and the firm’s series of savvy steps after discovering the misconduct provides useful data points for white collar defense attorneys, says Jonathan Porter at Husch Blackwell.