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Compliance
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November 01, 2024
'Mutant Ape' NFT Developer Avoids Prison For 'Rug Pull'
A 26-year-old French citizen was spared further incarceration on Friday for a $2.9 million scheme to fraudulently market "Mutant Ape Planet" nonfungible tokens to investors, a sentence in large part driven by the uncertainty over the purchasers' loss.
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November 01, 2024
Delta Rips 'Transparent' CrowdStrike Bid To Duck Liability
Delta Air Lines on Friday pressed a Georgia federal court to throw out CrowdStrike's declaratory judgment action against it, arguing that it's merely a "transparent attempt" to avoid the airline's own state court suit blaming the cybersecurity firm for the July outage that crashed millions of computers worldwide.
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November 01, 2024
Meet The Attys Arguing Meta's High Court Disclosure Suit
Both Meta Platforms and its investors are calling in the big guns as two U.S. Supreme Court veterans are set to go head-to-head Wednesday in a case that could limit the types of information corporations are required to disclose to shareholders.
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November 01, 2024
EBay Must Face Punitive Damages For Some Stalking Claims
A Massachusetts federal judge held Friday that a pair of bloggers can pursue punitive damages from eBay Inc. on some of their civil claims over an "extraordinary and troubling" harassment campaign orchestrated by the e-commerce giant's security staffers.
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November 01, 2024
USCIS Moves To Toss Regional Centers' EB-5 Guidance Fight
U.S. Citizenship and Immigration Services has urged a D.C. federal judge to toss a lawsuit alleging that it unlawfully changed the minimum investment period for foreign investors seeking green cards, saying it did not create a legislative rule but merely interpreted one.
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November 01, 2024
Boeing Supplier Should Win Texas Probe Suit, Judge Says
A magistrate judge on Friday recommended a Texas federal judge grant Spirit AeroSystems Inc.'s bid to permanently enjoin a Texas statute requiring businesses to immediately comply with the state's demand to examine business records, saying the statute is unconstitutional.
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November 01, 2024
Real Estate Recap: Election Expectations, EB-5, $50B PE Bet
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including perspectives from real estate leaders ahead of Tuesday's election, takeaways from the Advanced EB-5 Industry Conference in Miami, and two private equity firms' $50 billion bet on data center and energy generation projects.
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November 01, 2024
Elevance Says Flawed Medicare Rating System Cost It $375M
Elevance Health Inc. has hit the Biden administration with a $375 million lawsuit in Texas federal court after the government slashed star ratings for its Medicare Advantage and Part D health plan contracts in the latest of multiple lawsuits by insurance companies challenging the government's rating system.
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November 01, 2024
NJ Man Cops To Russian Scheme To Smuggle US Tech
A dual U.S.-Russian national accused of scheming to smuggle sensitive, American-made technology to further Russia's weapons development pled guilty on Friday to conspiracy charges in New York federal court, according to prosecutors.
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November 01, 2024
DC Circ. Urged To Uphold Veto Of Fla. Dredge Program
A coalition of environmental groups urged the D.C. Circuit on Friday to uphold a lower court ruling depriving Florida of its authority to issue wetland dredge and fill permits under the Clean Water Act, saying regulators must follow the rigorous laws protecting endangered species.
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November 01, 2024
Suit Calls School Lunch Pay Processors Junk Fee 'Bullies'
Three parents filed a proposed class action in New Jersey federal court alleging consumer fraud against a major school lunch payment processor, saying it has misrepresented the purpose of the "junk fees" it charges for electronic transactions that are imposed on families mostly just for profit.
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November 01, 2024
Crypto Co. Gemini Teed Up For CFTC Trial After Appeal Denied
A New York federal judge has denied crypto exchange Gemini's bid to immediately appeal his decision that Gemini could be held liable for alleged misrepresentations to the U.S. Commodity Futures Trading Commission concerning its proposed bitcoin futures contract, sending the case to trial.
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November 01, 2024
Cloud Co. To Pay $300K Over FCC Subsidy Fund Paperwork
Cloud communication company Fuze Inc. is going to be shelling out $300,000 to the Federal Communications Commission for not following certain rules related to Universal Service Fund contributions, the agency said Friday.
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November 01, 2024
5th Circ. Punts On Bid To Stay CFPB Small Biz Rule
The Fifth Circuit said it won't immediately start tolling compliance deadlines for the Consumer Financial Protection Bureau's small business lending data collection rule and will reserve judgment on whether to stay the rule pending an appeal by the bank trade groups challenging it.
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November 01, 2024
DC Circ. Questions Enviro Groups On Renewable Fuels Rules
Judges on the D.C. Circuit on Friday morning pressed attorneys for environmental groups challenging the U.S. Environmental Protection Agency's 2023-2025 renewable fuel standards, questioning their claims that the federal government didn't do enough to assess the standards' potential impacts on water quality and certain species.
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November 01, 2024
CFPB Inks Deal With Townstone Over Redlining Claims
The Consumer Financial Protection Bureau informed an Illinois federal court on Friday that it has reached a settlement with Townstone Financial resolving its redlining claims against the mortgage lender.
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November 01, 2024
FEMA Finalizes Rule Allowing Monthly NFIP Bill Payments
National Flood Insurance Program policyholders will be able to pay their premiums on a monthly basis starting next year, under a rule finalized Friday that is meant to incentivize greater and continued participation in the nation's largest provider of flood insurance.
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November 01, 2024
2nd Circ. Won't Revive Warner Bros. Discovery Merger Suit
The Second Circuit refused Friday to resurrect a putative shareholder class action over the $43 billion tie-up that created Warner Bros. Discovery Inc., saying pre-merger documents adequately informed investors about streaming subscriber numbers and planned business strategies for the combined media giant.
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November 01, 2024
Crypto Co. CoinShares Appoints Citadel Alumna As GC
Crypto investment company CoinShares International Ltd. has appointed an alumna of Sidley Austin LLP and investment firm Citadel to serve as group general counsel, the company announced.
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November 01, 2024
Colo. To Boost Services To End Feds' ADA Discrimination Suit
Colorado has agreed to implement new housing and support practices to ensure adults with physical disabilities have adequate help to leave nursing facilities and receive services in their own homes, as part of a settlement announced Friday to end a U.S. Department of Justice lawsuit.
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November 01, 2024
CFPB Fines VyStar $1.5M For 'Botched' Web Platform Rollout
The Consumer Financial Protection Bureau has fined VyStar Credit Union $1.5 million for an alleged "botched" rollout of a new online banking platform that made it hard for members to perform basic banking functions for weeks, with some features unavailable for more than six months.
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November 01, 2024
Medisca Inks $22M FCA Deal Over Ingredient Pricing Scheme
Pharmaceutical chemical supplier Medisca Inc. has agreed to pay $21.75 million to resolve allegations it created false and inflated average wholesale prices for ingredients used in compound prescriptions sold to pharmacies that increased reimbursement and caused federal healthcare programs to pay more for them, the U.S. Department of Justice announced on Friday.
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November 01, 2024
Treasury Expands Foreign Land Transaction Authority
The U.S. Department of the Treasury announced Friday that it has added 59 new military installations to the list of those over which it has jurisdiction to review any nearby real estate transactions involving foreign citizens.
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November 01, 2024
Del. Chancellor To Issue Musk Pay Suit Ruling By Year's End
Delaware's chancellor said she'll issue a final ruling by the end of the year in the lawsuit challenging Tesla CEO Elon Musk's multibillion-dollar stock-based compensation plan, stating it's taking longer than expected to determine whether to allow a post-verdict stockholder vote to resurrect the pay package.
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November 01, 2024
Blockchain Gaming Co. Immutable Says SEC May Bring Suit
Blockchain gaming firm Immutable said Friday that the U.S. Securities and Exchange Commission is considering bringing an enforcement action after the firm received notice of the regulator's scrutiny on an "accelerated timeline" ahead of the U.S. election.
Expert Analysis
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Basics Of Collective Bargaining Law In Principle And Practice
Excerpt from Practical Guidance
Rebecca Bernhard and Jennifer Service at Barnes & Thornburg discuss the nuts and bolts of what the National Labor Relations Act requires of employers during collective bargaining, and translate these obligations into practical steps that will help companies prepare for, and succeed during, the negotiation process.
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Mich. Whistleblower Ruling Expands Retaliation Remedies
The Michigan Supreme Court's recent Occupational Health and Safety Act decision in Stegall v. Resource Technology is important because it increases the potential exposure for defendants in public policy retaliation cases, providing plaintiffs with additional claims, say Aaron Burrell and Timothy Howlett at Dickinson Wright.
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What VC Fund Settlement Means For DEI Grant Programs
An unexpected settlement in American Alliance for Equal Rights v. Fearless Fund, based on specific details of an Atlanta venture capital fund's challenged minority grant program, leaves the legal landscape wide open for organizations with similar programs supporting diversity, equity and inclusion to chart a path forward, say attorneys at Moore & Van Allen.
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Opinion
A Fuzzy Label With Bite: FTC Must Define Surveillance Pricing
The Federal Trade Commission recently issued orders to eight companies — including Mastercard, McKinsey and Chase — seeking information on "surveillance pricing," but the order doesn't explain the term or make the distinction between legal and illegal practices, leaving any company that uses personalized pricing in the dark, says Chris Wlach at Huge.
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Opinion
CMS' New 'Breakthrough' Device Policy Shows Little Promise
The Centers for Medicare & Medicaid Services’ recent procedural notice outlining a new Medicare coverage pathway for breakthrough medical devices will, at best, be a failed experiment and, at worst, result in Medicare beneficiaries denied access to innovative treatments, say attorneys at King & Spalding.
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Assessing Algorithmic Versus Generative AI Pricing Tools
A comparison of traditional algorithmic pricing models and those powered by generative artificial intelligence can help regulators and practitioners weigh the pros and cons of relying on large language models to price products or services, say Maxime Cohen at McGill University, and Tim Spittle and Jimmy Royer at Analysis Group.
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Missouri Injunction A Setback For State Anti-ESG Rules
A Missouri federal court’s recent order enjoining the state’s anti-ESG rules comes amid actions by state legislatures to revise or invalidate similar legislation imposing disclosure and consent requirements around environmental, social and governance investing, and could be a blueprint for future challenges, say attorneys at Paul Hastings.
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An Overview Of New Export Controls On Advanced Tech
With a new rule that took effect this month, the U.S. Department of Commerce's Bureau of Industry and Security continues to expand export controls on advanced technologies, including semiconductor, additive manufacturing and quantum computing, in coordination with international partners, say attorneys at Arnold & Porter.
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Nuclear Waste Storage Questions Justices May Soon Address
The petition for the U.S. Supreme Court to review U.S. Nuclear Regulatory Commission v. Texas stands out for a number of reasons — including a deepening circuit split regarding the NRC's nuclear waste storage authority under the Atomic Energy Act, and broader administrative law implications, say attorneys at MoloLamken.
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How States Are Approaching AI Workplace Discrimination
As legislators across the U.S. have begun addressing algorithmic discrimination in the workplace, attorneys at Reed Smith provide an overview of the status, applicability and provisions of 13 state and local bills.
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Navigating A Potpourri Of Possible Transparency Act Pitfalls
Despite the Financial Crimes Enforcement Network's continued release of guidance for complying with the Corporate Transparency Act, its interpretation remains in flux, making it important for companies to understand potentially problematic areas of ambiguity in the practical application of the law, say attorneys at Sidley.
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Series
After Chevron: Conservation Rule Already Faces Challenges
The Bureau of Land Management's interpretation of land "use" in its Conservation and Landscape Health Rule is contrary to the agency's past practice and other Federal Land Policy and Management Act provisions, leaving the rule exposed in four legal challenges that may carry greater force in the wake of Loper Bright, say Stacey Bosshardt and Stephanie Regenold at Perkins Coie.
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A Preview Of AI Priorities Under The Next President
For the first time in a presidential election, both of the leading candidates and their parties have been vocal about artificial intelligence policy, offering clues on the future of regulation as AI continues to advance and congressional action continues to stall, say attorneys at Mintz.
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Opinion
Big Oil Climate Ruling Sets Dangerous Liability Precedent
The recent Maryland court dismissal of Baltimore's case seeking to hold BP responsible for climate damage mischaracterized the city's injuries as divorced from the conduct that caused them, and could allow companies that conceal the dangers of their products to escape liability, says Randall Abate at George Washington University Law School.
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DOJ Must Overcome Hurdles In RealPage Antitrust Case
The U.S. Department of Justice's recent claims that RealPage's pricing software violates the Sherman Act mark a creative, and apparently contradictory, shift in the agency's approach to algorithmic price-fixing that will face several key challenges, say attorneys at Clifford Chance.