Compliance

  • September 27, 2024

    SEC Fines Firms, Sues Ex-Reps' Over Cherry-Picking Scheme

    The U.S. Securities and Exchange Commission said Friday that Illinois-based Cetera Investment Advisers LLC and formerly California-based First Allied Advisory Services Inc. have each agreed to pay $200,000 to settle claims that two investment advisers formerly associated with both firms ran separate, multiyear, cherry-picking schemes that harmed investors.

  • September 27, 2024

    Banks Beat Credit Line Disclosure Suit After CFPB Weighs In

    An Illinois federal judge has thrown out a proposed class action accusing two Midwestern banks of failing to provide required repayment disclosures to borrowers, agreeing with the Consumer Financial Protection Bureau that these disclosures aren't actually required for the type of account at issue.

  • September 27, 2024

    Meta's Password Storage Flub Draws €91M Irish Fine

    Ireland's data protection authority has hit Facebook parent company Meta Platforms Inc. with a €91 million ($101.5 million) penalty for allegedly storing users' passwords without encryption or other necessary safeguards, the regulator announced Friday. 

  • September 27, 2024

    Constitution Permits Blocked Anti-Laundering Law, Panel Told

    The U.S. government urged the Eleventh Circuit on Friday to reinstate the Corporate Transparency Act passed in 2021, arguing that the anti-money laundering law is within Congress' powers to regulate economic activity and necessary to have businesses report beneficial ownership to combat crimes like tax evasion and terrorist financing.

  • September 27, 2024

    Ex-CEO To Pay SEC Fine For Pre-SPAC Disclosure Failures

    The U.S. Securities and Exchange Commission announced Friday it has reached a settlement with the former CEO of an electric vehicle battery company who allegedly concealed its supply chain issues ahead of its merger with a blank check company, leading to a nearly 20% drop in the company's share price once the shortage was revealed.

  • September 27, 2024

    UK Man Indicted On $4M 'Hack-To-Trade' Scheme

    New Jersey federal prosecutors announced Friday that a U.K. man has been arrested and is awaiting extradition on charges of hacking into the email accounts of several corporate executives in order to steal nonpublic information that he used to turn a profit of almost $4 million.

  • September 27, 2024

    Disney Wants FuboTV Tying Suit Tossed Before Trial

    Disney told a New York federal judge Thursday that FuboTV in its tying claims against the programming giant still hasn't shown how Disney's bundling practice is out of the ordinary, saying that similar bundles have existed for years and have been cleared by the courts and the Federal Communications Commision.

  • September 27, 2024

    Mango Markets Crypto Cos. Ink $700K Deal Over SEC Claims

    The U.S. Securities and Exchange Commission announced Friday that the business entities behind decentralized cryptocurrency exchange Mango Markets agreed to a nearly $700,000 settlement to resolve alleged registration violations, which the regulator brought after the marketplace was bilked of more than $100 million.

  • September 27, 2024

    Musk Skirts Sanctions In Missed Twitter Deposition, For Now

    A California federal judge on Friday declined to sanction Elon Musk, for now, after he skipped a deposition over his $44 billion Twitter takeover, allowing the parties to resolve the issue and advising them to wait to see if he appears for the deposition that's been rescheduled for this coming Friday.

  • September 27, 2024

    CFTC Fines Futures Firm $650K For Botched Records, Trades

    The Commodity Futures Trading Commission has fined CHS Hedging LLC $650,000 to settle allegations that it did not properly record thousands of calls between associates and customers and failed to obtain customer authorizations before entering trades over a four-year period.

  • September 27, 2024

    Feds Subpoena NYC Mayor's Top Aide, DA Seizes Phone

    A senior aide and confidante of New York City Mayor Eric Adams had her phone and records seized by state prosecutors and was separately subpoenaed by federal agents on Friday, the same day Adams was arraigned on federal corruption charges.

  • September 27, 2024

    2nd Circ. Won't Revive Danimer Investors' 'Greenwashing' Suit

    The Second Circuit on Friday upheld the dismissal of a lawsuit accusing Danimer Scientific Inc. of over-hyping the environmentally friendly nature of a plastics alternative it produced, with the appellate court saying that there was no proof that company executives purposefully misled investors.

  • September 27, 2024

    RealPage Wants DOJ Antitrust Case Moved To Tennessee

    RealPage has asked a North Carolina federal court to transfer the government's antitrust case against it to Tennessee, where private litigation has been playing out over claims the software company helps residential landlords fix rental prices.

  • September 27, 2024

    Hemp Org., Cheech & Chong Take Aim At New Calif. THC Ban

    A leading hemp industry trade organization has teamed up with the cannabis brand fronted by stoner comedians Cheech and Chong to challenge new emergency regulations in California that ban the sale of hemp products containing the psychoactive cannabinoid THC.

  • September 27, 2024

    Energy Cases To Watch In This US Supreme Court Term

    The new U.S. Supreme Court term could be just as action-packed as the previous term was for the energy industry, as the justices will weigh in on how federal agencies conduct environmental reviews and field petitions over climate change policies and lawsuits. Here's a list of energy-related cases to watch this term.

  • September 27, 2024

    4th Circ. Judge Startled By 'Really Odd' $9M Wage Suit Win

    A Fourth Circuit panel on Friday grappled with the degree of control nurses have over their work and if they automatically become employees by signing a noncompete, as it considered a medical staffing company's bid to overturn a $9 million misclassification suit judgment following a bench trial.

  • September 27, 2024

    FCC Chief Says Chevron's Fall Won't Slow Needed Regs

    Upcoming Federal Communications Commission rules are likely to survive judicial scrutiny even after the Chevron doctrine's demise because the policies are grounded on not only legal analysis but in-depth economic and engineering studies, the agency's chief said Friday.

  • September 27, 2024

    IRS Plans Transition Rules In Basis-Shifting Regs, Atty Says

    The IRS plans to include transition rules in forthcoming proposed regulations that aim to clamp down on abusive tax avoidance practices through complex partnership transactions known as basis shifting, an agency attorney said Friday.

  • September 27, 2024

    EPA Will Review Wood Stove Emissions Rules To Settle Lawsuit

    The U.S. Environmental Protection Agency agreed to revisit its emissions standards for residential wood-burning stoves, resolving 10 states' D.C. federal court lawsuit accusing it of slacking on its obligation to do so.

  • September 27, 2024

    FCC's Latest Subsidy Fees Disputed Again In 5th Circ.

    A free-market litigation group has filed another challenge in the Fifth Circuit to the Federal Communications Commission's quarterly calculation of fees to support an array of telecom subsidy programs.

  • September 27, 2024

    NY Court Won't Transfer DOJ's Live Nation Antitrust Case

    The New York federal judge overseeing the government's antitrust case against Live Nation said Friday he will not transfer the action to Washington, D.C., where a court handled a settlement clearing the concert promotion giant's 2010 purchase of Ticketmaster.

  • September 27, 2024

    Arctic Seal Habitat Nixed By Alaska Federal Judge

    An Alaska federal judge vacated the National Marine Fisheries Service's designation of critical habitat for bearded seals and Arctic ringed seals.

  • September 27, 2024

    GC Cheat Sheet: The Hottest Corporate News Of The Week

    General counsel reported in a recent survey that their median total compensation has increased nearly 25% in the past five years, rising at a higher rate than CEO pay. And U.S. regulators continue to slap financial firms with millions in fines for letting employees use text messages and other forms of unapproved communications to conduct business.

  • September 27, 2024

    FERC Can't Defend Backtrack On Grid Plan, DC Circ. Told

    The Federal Energy Regulatory Commission can't legally justify its about-face on a Southwest Power Pool plan to regionally allocate the costs of some transmission projects within the grid operator's 14-state footprint, the D.C. Circuit heard.

  • September 27, 2024

    OFSI Issues 1st Fine For Breach Of Ukraine-Tied Sanctions

    Britain's sanctions' enforcer has slapped a fine on a concierge company, marking the watchdog's first financial penalty for an alleged breach of the far-reaching financial restrictions imposed following Russia's invasion of Ukraine. 

Expert Analysis

  • What To Know As Children's Privacy Law Rapidly Evolves

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    If your business hasn't been paying attention to growing state and federal efforts to protect children online, now is the time to start — there is no sign of this regulation slowing down, and more aggressive enforcement actions are to be expected in the coming year, says Susan Rohol at Willkie Farr.

  • Weight-Loss Drugs May Spur Next Major Mass Tort

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    With lawsuits concerning Ozempic and similar weight-loss drugs potentially becoming the next major mass tort in the U.S., companies should consider key defense strategies ranging from alternate dispute resolution to enhanced drug safety, say Dino Haloulos and Jarif Khan at Foley & Mansfield.

  • Opinion

    OFAC Sanctions Deserve To Be Challenged Post-Chevron

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    The U.S. Supreme Court's Loper Bright decision opens the door to challenges against the Office of Foreign Assets Control's sanctions regime, the unintended consequences of which raise serious questions about the wisdom of what appears to be a scorched-earth approach, says Solomon Shinerock at Lewis Baach.

  • Tips For Lenders Offering Texas Home Equity Lines Of Credit

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    As interest in home equity lines of credit increases, lenders seeking to utilize such products in Texas must be aware of state-specific requirements and limitations that can make it challenging to originate open-end lines of credit on homestead property, says Tye McWhorter at Polunsky Beitel.

  • Behind The Delay Of Final HSR Premerger Filing Rules

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    Erin Toomey at Epiq discusses the wait for the final version of the revised Hart-Scott-Rodino premerger filing requirements that were first introduced in June 2023, the factors that might be behind the delay, and how to plan for the potential data-focused rule change

  • Opinion

    After Jarkesy, IRS Must Course-Correct On Captive Insurance

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    The U.S. Supreme Court’s recent Securities and Exchange Commission v. Jarkesy decision has profound implications for other agencies, including the IRS, which must stop ignoring due process and curtailing congressional intent in its policing of captive insurance arrangements, says Peter Dawson at the 831(b) Institute.

  • Congress Quietly Amends FEPA: What Cos. Should Do Now

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    Last week, Congress revised the Foreign Extortion Prevention Act — passed last year to criminalize demand-side foreign bribery — to address inconsistencies and better harmonize the law with the Foreign Corrupt Practices Act, and companies should review their compliance programs accordingly, say Mark Mendelsohn and Benjamin Klein at Paul Weiss.

  • Why FDIC Banks May Want To Consider Fed Membership

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    With the Federal Deposit Insurance Corp. recently ratcheting up bank supervision and proposing idiosyncratic new policies, state-chartered nonmember banks may want to explore the benefits of becoming Federal Reserve members and consider practical steps to make the switch, say Max Bonici and Connor Webb at Venable.

  • Bid Protest Spotlight: Standing, Prejudice, Conflicts

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    In this month's bid protest roundup, Caitlin Crujido at MoFo examines three recent decisions from the U.S. Government Accountability Office concerning whether a would-be protestor was an interested party with standing, whether an agency adequately investigated potential procurement violations and whether a proposed firewall sufficiently addressed an impaired objectivity organizational conflict of interest.

  • Dissecting Treasury's Call For Input On AI In Financial Sector

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    The U.S. Department of the Treasury's request for comments on the potential benefits and challenges AI may pose to the financial services sector, which asks how stakeholders are addressing and mitigating increased fraud risks, reflects the federal government's continued interest in AI's effects across the economy, say attorneys at Hogan Lovells.

  • How Contractors Can Prep For DOD Cybersecurity Rule

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    The proverbial clock is ticking for defense contractors and subcontractors to strengthen their compliance posture in preparation for the rollout of the highly anticipated Cybersecurity Maturity Model Certification program, so those affected should analyze their existing security standards and take proactive steps to fill in any significant gaps, say Beth Waller and Patrick Austin at Woods Rogers.

  • NYSE Delisting May Be The Cost Of FCPA Compliance

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    ABB’s recent decision to delist its U.S. depository receipts from the New York Stock Exchange, coupled with having settled three Foreign Corrupt Practices Act enforcement actions, begs the question of whether the cost of FCPA compliance should factor into a company's decision to remain listed in the U.S., says John Joy at FTI Law.

  • Opinion

    The FTC Needs To Challenge The Novo-Catalent Deal

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    Novo's acquisition of Catalent threatens to substantially lessen competition in the manufacturing and marketing of GLP-1 diabetes and obesity drugs, and the Federal Trade Commission should challenge it under a vertical theory of harm, as it aligns with last year's merger guidelines and the Fifth Circuit decision in Illumina, says attorney David Balto.

  • CFTC Action Highlights Necessity Of Whistleblower Carveouts

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    The U.S. Commodity Futures Trading Commission's novel settlement with a trading firm over allegations of manipulating the market and failing to create contract carveouts for employees to freely communicate with investigators serves as a beacon for further enforcement activity from the CFTC and other regulators, say attorneys at Davis Wright.

  • 5 Tips For Solar Cos. Navigating Big Shifts In US Trade Policy

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    Renewable energy developers can best mitigate new compliance risks from the Office of the U.S. Trade Representative’s increased tariffs on imported solar cells, and simultaneously capitalize on Treasury Department incentives for domestic solar manufacturers, by following five best practices in the changing solar trade landscape, say attorneys at Morgan Lewis.

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