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Compliance
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February 14, 2025
FTC's Ferguson, PBMs Agree: Nix Leader Removal Safeguards
Federal Trade Commission Chairman Andrew N. Ferguson offered his own support for enabling the president to readily fire independent agency commissioners at the FTC and beyond, a day after pharmacy benefit managers cited the new U.S. Department of Justice policy in their own battle with the FTC.
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February 14, 2025
'Not For Sale': OpenAI Rebuffs Musk's $97.4B Takeover Bid
The board of directors for OpenAI voted unanimously on Friday to reject a $97.4 billion offer from Elon Musk and a consortium of investors to buy the artificial intelligence platform, with the board chair saying in a statement, "OpenAI is not for sale."
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February 14, 2025
SEC Fines Adviser Firm, Ex-Rep Over Fiduciary Duty Claims
The U.S. Securities and Exchange Commission entered into a $225,000 settlement with New York-based registered investment adviser One Oak Capital Management LLC and a former representative to resolve alleged misconduct related to advisory services provided to their retail clients.
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February 14, 2025
SEC Says Crypto Task Force Could Resolve Coinbase Case
The U.S. Securities and Exchange Commission told the Second Circuit that its newly formed cryptocurrency task force effort may lead to a resolution in its enforcement case against Coinbase, warranting a brief delay to the regulator responding to the crypto exchange's bid for appellate review of whether securities laws apply to the transactions on its platform.
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February 14, 2025
Trump Aims To End Limits On President's Power To Fire
President Donald Trump has his sights set on taking down a 90-year-old U.S. Supreme Court ruling that protects certain government officials from being fired, a U.S. Department of Justice letter confirms, and he plans to leverage his prior legal victories to deliver the precedent's death knell and expand presidential power.
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February 14, 2025
Old Permits Irrelevant To Pollution Controls, Texas Justices Say
The Texas Supreme Court said that previous emissions permits have no bearing on the definition of the best available pollution control technology for new projects, weighing in on a Fifth Circuit dispute over a proposed liquefied natural gas terminal in Port Arthur, Texas.
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February 14, 2025
DC Judge Declines To Block New OPM Email System
A D.C. federal judge on Monday declined to temporarily stop the Office of Personnel Management from using a new centralized messaging system that a putative class of federal employees claims is insecure.
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February 14, 2025
Texas Investigates DeepSeek For State Privacy Law Breach
Texas announced an investigation into Chinese AI startup DeepSeek, saying the company has run afoul of state privacy laws and has seemingly stolen Texas citizens' data.
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February 14, 2025
New Delisting Rules Shorten Leash For Distressed Companies
Distressed companies should take heed of new stock exchange rules that are likely to accelerate delistings for stocks that trade below minimum requirements, particularly targeting businesses that rely on reverse stock splits to inflate their share prices, attorneys say.
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February 14, 2025
EPA, Energy Dept. Rush To Fulfill Trump's Appliance Order
The U.S. Environmental Protection Agency and U.S. Department of Energy said they're acting to comply with President Donald Trump's order — delivered via social media post — that they should undo Biden-era appliance efficiency standards.
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February 14, 2025
FCC Could Pull Equipment OKs For New Dahua US Owner
The Federal Communications Commission is threatening to pull authorizations for a Taiwanese network infrastructure company's U.S. subsidiary, saying the company appears to be selling video surveillance products that are restricted as part of the commission's "covered list" of equipment found to pose a national security risk.
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February 14, 2025
NTSB Probes Faulty Helicopter Data In DC Collision
The National Transportation Safety Board said that the U.S. Army Black Hawk helicopter involved in last month's deadly midair collision over the Potomac River may not have heard crucial instructions from air traffic controllers and may have been getting inaccurate readings from the cockpit's altimeters.
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February 14, 2025
House Dems Question Rationale For OSHA Guidance Purge
Democratic members of the House Committee on Education and the Workforce demanded that the U.S. Department of Labor provide details about why certain worker safety documents were removed from the federal government's website, saying some information seems to have been arbitrarily removed because it referenced "diversity" or "gender."
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February 14, 2025
Corporate Transparency Act Vital For Nat'l Security, Circs. Told
A nationwide registry of beneficial ownership information is critical to U.S. foreign policy and national security goals, which makes a law aimed at creating one, the Corporate Transparency Act, a valid exercise of congressional authority, groups told the Fourth and Fifth circuits.
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February 14, 2025
Judge Needs Time To Mull Block On DOGE's Agency Audits
A Washington, D.C., federal judge said he plans to rule "promptly" on a request by worker and consumer advocates to stop the Department of Government Efficiency from accessing three federal agencies' data but couldn't say when following a wide-ranging hearing on the bid.
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February 14, 2025
Ford Hit With $2.5B Punitive Verdict In Truck Roof Deaths Suit
A Georgia federal jury hit Ford Motor Co. with a $2.5 billion punitive damages verdict a day after jurors found the automaker liable for the wrongful death of a couple who died in a rollover wreck of their Ford F-250 Super Duty pickup.
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February 14, 2025
Drug Costs, State Laws Fuel Push For Fed. Action On PBMs
Skyrocketing prescription drug costs and a proliferation of state laws are driving renewed calls from employers and benefit plan administrators for Congress to enact federal legislation changing how pharmacy benefit managers do business, experts say.
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February 14, 2025
Feds Hit With Brady Claims As Implant Kickback Trial Looms
Two defendants nearing trial on medical device kickback claims say Boston federal prosecutors are begrudgingly sharing mountains of exculpatory materials they should have provided years ago.
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February 14, 2025
8 Things Attys Should Know About Conn.'s $55B Budget
Connecticut Gov. Ned Lamont's two-year budget for the years 2026 and 2027 includes drug price limits, an expansion of the state's unfair trade practices act, key changes to hospital ownership laws and slots for 13 new judges.
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February 14, 2025
Enviro Groups Back EPA On Challenged PFAS Superfund Rule
Conservation groups are urging the D.C. Circuit to deny a string of industry challenges to the U.S. Environmental Protection Agency's decision to designate two "forever chemicals" as hazardous substances under the federal government's Superfund law, arguing that they have no merit.
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February 14, 2025
Judge Upholds Pay-For-Delay Ban Law, But Only In Calif.
A California federal judge has upheld part of a new state law that the Association for Accessible Medicines alleged unlawfully restricted "reverse payment" settlements between makers of brand-name and generic drugs, finding that the law's attempt to regulate deals outside of California runs afoul of the Constitution, but is otherwise valid.
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February 14, 2025
'New Facts' Improper In Penny Stock Action, 2nd Circ. Told
A Connecticut federal judge violated controlling case law and the constitutional rights of a penny stock CEO when imposing a judgment in a U.S. Securities & Exchange Commission enforcement action, defense counsel told the Second Circuit, arguing that the SEC admitted post-trial that it could not find any victims of the allegedly false public statements at issue.
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February 14, 2025
Fla. Crypto Operator Gets 2 Years In Prison For Wire Fraud
A Florida federal judge sentenced a U.S. Air Force veteran and software developer to more than two years in prison on a wire fraud charge for soliciting more than $1 million from investors to pay for a cryptocurrency offering but using the funds to fuel a gambling addiction.
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February 14, 2025
Judges Suggest Withdrawal Was Optional In Dam Permit Spat
D.C. Circuit judges Friday pressed a California water district on whether it was partly to blame for delays in recertifying two hydroelectric dams, suggesting it voluntarily agreed to the state board's requests that it refile the applications in order to avoid the Clean Water Act's certification time limit.
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February 14, 2025
Judge Allows Grower's 4th Amendment Claim In Hemp Crop Suit
A California federal judge has partially reconsidered her prior order denying Kern County and its police officers' bid to dismiss claims by a hemp grower alleging they wrongly bulldozed 500 acres of crops, allowing the company's Fourth Amendment excessive destruction claim to proceed, but dismissing its due process claims.
Expert Analysis
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It Starts With Training: Anti-Harassment After 'It Ends With Us'
Actress Blake Lively's recent sexual harassment and retaliation allegations against her "It Ends With Us" co-star, director and producer, Justin Baldoni, should remind employers of their legal obligations to implement trainings, policies and other measures to prevent sexual harassment in the workplace, say attorneys at Morrison Cohen.
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Preparing For Stricter Anti-Boycott Enforcement Under Trump
Given the complexity of U.S. anti-boycott regulations and the likelihood of stepped-up enforcement under the new administration, companies should consider adopting risk-based anti-boycott compliance programs that include training employees to recognize and assess potential boycott requests, and to report them expeditiously when necessary, say attorneys at Debevoise.
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Opinion
New DOJ Leaders Should Curb Ill-Conceived Prosecutions
First-of-their-kind cases have seemingly led to a string of overly aggressive prosecutions in recent years, so newly sworn-in leaders of the U.S. Department of Justice should consider creating reporting channels to stop unwise prosecutions before they snowball, says Jonathan Porter at Husch Blackwell.
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Tips For Pharma-Biotech Overlap Reporting In New HSR Form
While there’s no secret recipe for reporting overlaps to the Federal Trade Commission in the new Hart-Scott-Rodino Act form, there are several layers of considerations for all pharma-biotech companies and counsel to reflect on internally before reporting on any deal, say attorneys at A&O Shearman.
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Complying With Calif. Price-Gouging Law After LA Fires
The recent tragic Los Angeles fires have brought attention to the state's sometimes controversial price-gouging protections, and every California business should keep the law's requirements in mind, despite the debate over whether these statutes help consumers, say attorneys at Cooley.
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Opinion
Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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How Cos. Can Use Data Clean Rooms To Address Privacy
Implementing comprehensive administrative controls, security processes and vendor management systems are vital steps for businesses leveraging data clean rooms for privacy compliance, especially given the Federal Trade Commission's warnings of complicated user privacy implications, say attorneys at Troutman.
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What Day 1 Bondi Memos Mean For Corporate Compliance
After Attorney General Pam Bondi’s flurry of memos last week declaring new enforcement priorities on issues ranging from foreign bribery to diversity initiatives, companies must base their compliance programs on an understanding of their own core values and principles, says Hui Chen at CDE Advisors.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.
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SEC Motion Response Could Reveal New Crypto Approach
Cumberland DRW recently filed to dismiss the U.S. Securities and Exchange Commission’s enforcement action against it for the unlawful purchase and sale of digital asset securities, and the agency's response should unveil whether, and to what extent, the Trump administration will relax the federal government’s stance on digital asset regulation, say attorneys at O'Melveny.
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Steel Cases Test Executive Authority, Judicial Scope
Lawsuits challenging former President Joe Biden’s order blocking the merger of Japan's Nippon Steel and U.S. Steel may shape how future administrations wield presidential authority over foreign investment in the name of national security, says Hdeel Abdelhady at MassPoint Legal.
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5 Things For Private Employers To Do After Trump's DEI Order
Following President Donald Trump's recent executive order pushing the private sector to narrow, and even end, diversity, equity and inclusion initiatives, employers should ensure DEI efforts align with their organization's mission and goals, are legally compliant, and are effectively communicated to stakeholders, say attorneys at Mintz.
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3 Ways Trump Can Nix SEC's Climate Disclosure Rules
Given President Donald Trump's campaign statements and agency appointments, it's likely that his administration will try to annul the U.S. Securities and Exchange Commission's climate disclosure rules, but his options for doing so present unique opportunities and challenges, with varying levels of permanence and impact, say attorneys at DLA Piper.
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A Compliance Update For Credit Card Reward Partnerships
While the Consumer Financial Protection Bureau's interest in credit card rewards programs could fade under the new administration, a recent circular focusing on both issuers and their merchant partners means that co-brand credit card partnerships with banks could be subject to increased scrutiny ahead, say attorneys at Goodwin.
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Perspectives
Accountant-Owned Law Firms Could Blur Ethical Lines
KPMG’s recent application to open a legal practice in Arizona represents the first overture by an accounting firm to take advantage of the state’s relaxed law firm ownership rules, but enforcing and supervising the practice of law by nonattorneys could prove particularly challenging, says Seth Laver at Goldberg Segalla.