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Compliance
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November 15, 2024
SEC Says Risky Bond Recommendations Violated Reg BI
A Texas-headquartered broker-dealer has agreed to pay nearly $154,000 to resolve U.S. Securities and Exchange Commission allegations that it improperly recommended risky bonds in violation of the federal investor protection measure known as Regulation Best Interest.
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November 15, 2024
PBMs Denied Breakup Of Combined FTC Insulin Price Trial
The Federal Trade Commission's allegations that pharmacy benefit manager giants Caremark Rx, Express Scripts and OptumRx are artificially inflating insulin prices through unfair rebate schemes will forge ahead as a single case following an in-house agency judge's refusal to break them into separate proceedings.
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November 15, 2024
Convicted TV Guru Trudeau, FTC Strike Deal In 21-Year Case
An Illinois federal judge on Friday approved and offered high praise for a consent order negotiated by the Federal Trade Commission and weight-loss guru Kevin Trudeau, saying they did a "spectacularly good job" laying out the plan for Trudeau to pay the remaining $8 million he owes in the 21-year-old fraud case.
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November 15, 2024
EPA Watchdog Flags Drinking Water Cybersecurity Risks
The U.S. Environmental Protection Agency's internal watchdog is sounding the alarm about cybersecurity weaknesses in the nation's drinking water systems, and said there are problems with the plans for reporting and coordinating responses to attacks.
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November 15, 2024
Kalshi Fires Back At CFTC's 'Futile' Election Betting Appeal
The Commodity Futures Trading Commission is attempting to "rewrite" its governing statute by claiming that placing bets on the outcome of elections is a form of prohibited gaming, trading platform KalshiEx LLC told the D.C. Circuit on Friday as it fought to continue listing election contracts in the future.
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November 15, 2024
GOP Sens. Decry 'Lack Of Urgency' On FDIC Misconduct
Six Republican senators wrote a letter to the Federal Deposit Insurance Corp. Inspector General Jennifer L. Fain asking for a briefing on the FDIC's progress investigating claims of widespread misconduct at the agency, asserting there has been "a shocking lack of urgency."
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November 15, 2024
GAO Says EPA Must Act On Waste Sites' Climate Risks
Nearly 70% of the nation's hazardous waste treatment, storage and disposal facilities are vulnerable to climate change impacts such as flooding, wildfires, storm surge and sea level rise, and the U.S. Environmental Protection Agency needs to be more proactive, a new federal report says.
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November 15, 2024
California Blames Travelers For Rot Remediation Policy Deceit
In a case with potentially untold financial consequences, California district attorneys are blaming Travelers in state court for trying to attract customers by offering coverage for fungi and rot remediation for years without adequately disclosing stringent exclusions to state policyholders, in violation of state code.
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November 15, 2024
FERC Ignored Calif. Hydro Permitting Mischief, DC Circ. Told
The Federal Energy Regulatory Commission turned a blind eye to clear evidence that California's water board gamed the permitting process in concluding that the state agency didn't waive its Clean Water Act permitting authority over two hydroelectric dams, the D.C. Circuit heard this week.
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November 15, 2024
GM's Cruise Accepts $500K Criminal Fine Over Robotaxi Crash
Cruise LLC, the autonomous vehicles subsidiary of General Motors Co., has agreed to pay $500,000 in criminal fines to end claims that it made false statements to federal highway investigators by omitting that one of its vehicles dragged a pedestrian over 20 feet, according to an announcement by federal prosecutors.
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November 15, 2024
Political Fundraiser Avoids Jail In LA 'Casino Loyale' Probe
A former political fundraiser was sentenced by a California federal judge Friday to one year of home detention for facilitating a bribe to former Los Angeles City Councilman José Huizar, the latest in a string of recent sentences handed out to cooperating witnesses in the FBI's "Casino Loyale" probe.
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November 15, 2024
Paxton Says Texas Porn Site Law 'Modest' Way To End 'Crisis'
Texas Attorney General Ken Paxton told the U.S. Supreme Court on Friday that a state law requiring visitors to prove their age before accessing content on certain adult-oriented websites is tailored in the most "modest" way possible to address a "public health crisis."
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November 15, 2024
Texas Judge Won't Halt CFPB Small-Biz Rule As Banks Appeal
A Texas federal judge has declined to stay the compliance date of the Consumer Financial Protection Bureau's small-business lending data collection rule while a coalition of bank trade groups appeals his decision to uphold the rule's data collection requirements, saying no circumstances justify such "extraordinary relief."
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November 15, 2024
SEC's Top Cop Says Election Hasn't Slowed Enforcers Down
The U.S. Securities and Exchange Commission's enforcement attorneys continue to work with "urgency" in the waning months of the Biden administration, the acting leader of the enforcement division said Friday at an event where he also spoke about a shuttered task force and the agency's approach to pursuing cases involving cybersecurity breaches.
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November 15, 2024
Hedge Fund Group Urges Trump To Reject 'Punitive' Policies
A leading industry group representing hedge funds and other alternative asset managers is urging President-elect Donald Trump to abandon "punitive" economic policies and instead propose tax and regulatory relief, including business-friendly priorities at the U.S. Securities and Exchange Commission.
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November 15, 2024
FERC Can't Justify Pipeline Project Extension, DC Circ. Told
The Federal Energy Regulatory Commission's ability to extend pipeline construction deadlines simply cannot be applied to a wholesale revision of a proposed southern spur of the Mountain Valley Pipeline, opponents of the project told the D.C. Circuit Thursday.
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November 15, 2024
Texas Judge Strikes Down DOL Overtime Rule
The U.S. Department of Labor lacked the authority to raise the salary threshold for a Fair Labor Standards Act overtime exemption, a Texas federal judge ruled Friday, striking down a hotly contested rule that has been in effect since July.
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November 15, 2024
Investor Drops Stock Pumping Suit Against UPS
One of several investors suing shipping and logistics giant UPS in recent months over a share price tumble caused by disappointing earnings numbers this summer said Thursday that he plans to drop his claims against the company.
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November 15, 2024
Oil Terminal Co. Offers $2M To End Falsified-Inspection Claims
A Gulf Oil successor has offered to pay the state of Connecticut $2 million to settle accusations the company failed to secure new construction permits and spent years fabricating and falsifying inspection reports for existing bulk gasoline terminal tanks along New Haven Harbor in Long Island Sound, court filings show.
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November 15, 2024
GC Cheat Sheet: The Hottest Corporate News Of The Week
In moves that will affect general counsel, President-elect Donald Trump this week announced his choices to fill several key legal positions, including attorney general, deputy attorney general, solicitor general, chief White House counsel, and the U.S. attorney for the Southern District of New York. Meanwhile, the National Labor Relations Board told companies to stop ordering employees to attend anti-union meetings.
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November 15, 2024
Teva Defends Mifepristone Antitrust Case Against Corcept
Teva Pharmaceuticals has asked a California federal judge to reject a bid to dismiss its lawsuit against the maker of a brand-name drug used to treat a rare cortisol disorder, contending its complaint plausibly alleges an illegal scheme to suppress generic competition.
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November 15, 2024
Chinese Self-Driving Startup Pony Revs Up $180M IPO
Chinese autonomous-driver technology provider Pony AI Inc. has launched plans for an estimated $180 million initial public offering, represented by Davis Polk & Wardwell LLP and underwriters' counsel Cleary Gottlieb Steen & Hamilton LLP, marking the latest self-driving startup to seek U.S. capital in order to fund its growth ambitions.
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November 15, 2024
Former ADA Notches Bias Win Against Georgia Prosecutor
A federal judge cast aside the "incredulous" defenses of a Georgia district attorney accused of denying a female attorney a promotion, finding her liable for sex discrimination after previously hitting the DA with a default order for her attempts to dodge being deposed.
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November 15, 2024
Visa Says European Commission Investigating 'Acquirer' Fees
Visa is telling investors that European competition regulators are looking into its merchant fees, disclosing in its annual report this week that the European Commission has been investigating it since August.
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November 14, 2024
Trump Picks ND Gov. To Lead Interior Dept.
President-elect Donald Trump announced Thursday evening that he has chosen North Dakota Gov. Doug Burgum to lead the U.S. Department of the Interior, a Republican who has been a staunch supporter of the fossil fuel industry.
Expert Analysis
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Lessons For Municipalities Facing Cyberattacks
With municipal IT teams facing the daunting task of keeping agencies operational while safeguarding sensitive government data, including residents' and employees' personally identifiable information, there are steps a municipality can take to guard against a major cyberattack, say attorneys at Pillsbury.
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How DOJ's Visa Debit Monopolization Suit May Unfold
The U.S. Department of Justice's recently filed Section 2 monopolization suit against Visa offers several scenarios for a vigorous case and is likely to reveal some of the challenges faced by antitrust plaintiffs following the U.S. Supreme Court's split 2018 American Express decision, say attorneys at Mintz.
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8 Phrases Employers May Hear This Election Season
From sentiments about the First Amendment to questions about political paraphernalia, attorneys at Venable discuss several scenarios related to politics and voting that may arise in the workplace as election season comes to a head, and share guidance for handling each.
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New Export Control Guidance Raises The Stakes For Banks
Recent guidance from the Bureau of Industry and Security alerts banks that they could be liable for facilitating export control violations, the latest example of regulators articulating the expectation that both financial institutions and corporations serve as gatekeepers to mitigate crime and aid enforcement efforts, say attorneys at Freshfields.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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Fluoride Ruling Charts Path To Bypass EPA Risk Evaluations
A California federal court's recent ruling in Food and Water Watch v. U.S. Environmental Protection Agency, ordering the agency to address the public health risks of fluoridated drinking water, establishes a road map for other citizen petitioners to bypass the EPA's formal risk evaluation process, say attorneys at Wiley.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Don't Phone A Friend: Disclosing Friendships With Executives
The U.S. Securities and Exchange Commission's recent settlement against a former Church & Dwight chairman for violating proxy disclosure rules by neglecting to disclose his friendship with an executive officer amid a CEO search illustrates the perils of relying solely on responses to questionnaires circulated to boards, say attorneys at BCLP.
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Planning For Cyber Incident Reporting Requirements In Sports
Attorneys at Wiley discuss the proposed rules under the Cybersecurity Incident Reporting for Critical Infrastructure Act that would impose extensive reporting requirements on professional and collegiate athletic organizations, universities and sports venues, including defining a covered entity and analyzing the types of events that would trigger reporting.
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Why Diversity Jurisdiction Poses Investment Fund Hurdles
Federal courts' continued application of the exacting rules of diversity jurisdiction presents particular challenges for investment funds, and in the absence of any near-term reform, those who manage such funds should take action to avoid diversity jurisdiction pitfalls, say attorneys at Sher Tremonte.
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The Ups And Downs Of SEC's Now-Dissolved ESG Task Force
The U.S. Securities and Exchange Commission's Climate and ESG Enforcement Task Force, which was quietly disbanded sometime over the summer, was marked by three years of resistance from some stakeholders to ESG regulation, a mixed record in the courts and several successful enforcement actions, say attorneys at Crowell & Moring.
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FDIC Guidance Puts Next-Gen ATMs In Regulatory Spotlight
The boring existence of ATMs is changing thanks to the emergence of new-age interactive teller machines, prompting the Federal Deposit Insurance Corp. to sound off in a potentially influential August letter to branches on which services might need regulatory approval, says Thomas Walker at Jones Walker.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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Understanding New ACH Network Anti-Fraud Rules
Many of the National Automated Clearing House Association’s recent amendments to ACH network risk management rules went into effect this month, so financial institutions and corporations must review and update their internal policies as needed, says Aisha Hall at Taft.
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Useful Product Doctrine May Not Shield Against PFAS Liability
Courts have recognized that companies transferring hazardous recycled materials can defeat liability under environmental laws by showing they were selling a useful product — but new laws in California and elsewhere restricting the sale of per- and polyfluoroalkyl substances may change the legal landscape, says Kyle Girouard at Dickinson Wright.