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Compliance
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November 13, 2024
NC Wetlands Developer Wants 4th Circ. To Revive Projects
A North Carolina landowner has urged the Fourth Circuit to block a new rule defining the scope of the Clean Water Act, arguing that the new rule saddles him with "extraordinary compliance costs" for wetland development projects and goes beyond the law's actual scope.
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November 13, 2024
Insurers Say Hyundai, Kia Should Pay For Combusting Cars
A slew of insurers for owners of certain Hyundai and Kia vehicles are suing the companies in a case removed to California federal court Wednesday, seeking to recoup costs associated with almost a decade of claims for cars that allegedly spontaneously combust and have not been fixed by the manufacturers.
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November 13, 2024
FERC Tells 9th Circ. It Properly Rescinded PG&E Grid Perk
The Federal Energy Regulatory Commission has told the Ninth Circuit it correctly yanked a grid incentive for Pacific Gas & Electric Co. for voluntarily belonging to a regional transmission organization, noting California now mandates the state's major utilities join an RTO.
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November 13, 2024
3rd Circ. Wary Of Easing Cheesesteak Shop Owner's Sentence
Third Circuit judges seemed mostly skeptical of overturning an extension to the prison sentence of a Philadelphia cheesesteak shop owner who admitted to paying employees off the books, saying during oral arguments it was unclear whether the employees should be considered co-conspirators in the tax fraud.
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November 13, 2024
Trump Taps DOJ Critic Matt Gaetz For Attorney General
President-elect Donald Trump on Wednesday nominated Rep. Matt Gaetz to be the next U.S. attorney general, seeking to elevate a close political ally to lead a Justice Department that the Florida lawmaker has sharply criticized and that last year declined to charge him in a sex-trafficking investigation.
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November 13, 2024
EPA Effluent Rule Is Fatally Flawed, 8th Circ. Told
Republican-led states, utilities and industry groups called on the Eighth Circuit to vacate the U.S. Environmental Protection Agency's rule setting new wastewater limitations for coal-fired power plants, saying it is based on economically unavailable technologies in an effort to further the Biden administration's goal of shuttering coal plants.
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November 13, 2024
FTC Antitrust Case Against Meta Is Heading To Trial
A D.C. federal court ruled Wednesday that Meta will have to face trial on the Federal Trade Commission's claims that the Facebook parent company monopolized personal social networking through its acquisitions of Instagram and WhatsApp.
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November 12, 2024
Ex-FDIC Head Urges Banks To 'Push Back' Against Examiners
A former top Trump banking regulator on Tuesday called for bank executives to show "backbone" and push back when they are challenged with bad exam findings from their regulators, urging resistance as an antidote to perceived excesses in bank oversight.
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November 12, 2024
Trump Taps Elon Musk To Head New 'Gov't Efficiency' Dept.
President-elect Donald Trump announced Tuesday that billionaire Elon Musk and former presidential candidate Vivek Ramaswamy will lead a newly created "Department in Government Efficiency" for his administration come January.
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November 12, 2024
DC Circ. Mulls Legality Of Gag Orders On X Corp. Subpoenas
A D.C. Circuit panel grappled Tuesday with the federal government's authority to obtain sweeping nondisclosure orders preventing social media companies from notifying users when their accounts are targeted by subpoenas, with X Corp. arguing that such gag orders are illegal.
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November 12, 2024
Tech Group Seeks Block Of Calif. Social Media Addiction Law
A tech trade group that has contested a rash of new social media laws around the country launched its latest constitutional challenge Tuesday, targeting a recently enacted California law designed to block online platforms from using algorithms to deliver addictive feeds to children without parental consent.
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November 12, 2024
5th Circ. Won't Reopen CFPB Payday Rule Fight
The Fifth Circuit on Tuesday denied a bid from a lender to reopen an industry legal challenge to the Consumer Financial Protection Bureau's payday loan rule that previously foundered at the U.S. Supreme Court, clearing the way for the rule to take effect.
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November 12, 2024
Trump Pick To Lead EPA Is Loyal, Would Learn On The Job
President-elect Donald Trump prioritized loyalty and a demonstrated ability to carry out his priorities with his announcement that he intends to nominate a former congressman from New York state to lead the U.S. Environmental Protection Agency.
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November 12, 2024
Big Tech Litigant's Latest Suit Vs. Google Tossed
A Florida federal judge has granted Google's motion to dismiss a patent infringement and antitrust suit from web development company Greenflight targeting the search giant's reverse phone number lookup, ruling that the plaintiff's phone lookup service appearing low on Google's search results doesn't amount to standing to sue.
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November 12, 2024
FTC Doubts It Overstepped On Editing Meta Decree
The FTC spent its morning mulling whether it overstepped in trying to modify a 2020 consent decree with Facebook to impose new restrictions on the social media titan now known as Meta after finding that the company hadn't been keeping its data privacy promises.
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November 12, 2024
SkyWest Had 'Lewd, Crude' Work Environment, Jury Hears
SkyWest Airlines enabled a workplace that was hostile to women, a jury heard during opening arguments Tuesday, driving a woman who worked at the company to consider suicide in the face of unrelenting sexual assault jokes and supervisors who didn't take her concerns seriously.
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November 12, 2024
Visa To Fight Market Definition In DOJ Antitrust Case
Attorneys for Visa told a New York federal judge on Tuesday that the company plans to argue the U.S. Department of Justice's debit card monopolization case should be tossed because it ignores a key payment method and attacks legitimate contracts.
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November 12, 2024
Fed Bans Ex-Bank Leaders Over Alleged COVID Relief Fraud
The Federal Reserve Board of Governors announced Tuesday that it has prohibited two former top brass with Nano Banc from future participation in the banking industry, alleging they fraudulently obtained loans and grants through the federal CARES Act.
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November 12, 2024
Comerica Sues CFPB To Stop 'Ultra Vires' Benefits Card Probe
Comerica Bank has sued the Consumer Financial Protection Bureau in a Texas federal court, accusing it of carrying out an overreaching and unlawful investigation into the bank's handling of a government program for distributing federal benefits via debit cards.
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November 12, 2024
SEC Quietly Shelves Private Fund Rules After 5th Circ. Loss
The U.S. Securities and Exchange Commission has formally withdrawn rules that would have increased agency oversight of hedge funds and private equity funds after declining to appeal a Fifth Circuit decision that vacated the rules, which would have required fund advisers to disclose detailed information about their operations.
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November 12, 2024
Split DC Circ. Says White House Can't Issue NEPA Regs
A divided D.C. Circuit determined Tuesday that the White House Council on Environmental Quality lacks the authority to issue legally binding regulations implementing the National Environmental Policy Act, finding there is no statutory language showing Congress empowered it to do so.
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November 12, 2024
Huawei Urges Judge To Toss US IP Theft, Fraud Charges
China's Huawei Technologies and its affiliates have asked a Brooklyn federal judge to dismiss the majority of a criminal indictment, slamming allegations that it tried to steal intellectual property from U.S. rivals and deceived banks and the U.S. government about its business dealings with sanctioned countries.
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November 12, 2024
Ex-ComEd Exec Asked If Madigan Hires Truly An 'Exchange'
Defense attorneys got their chance Tuesday to grill an ex-Commonwealth Edison executive who testified the utility hired people who did little to no work at the behest of former Illinois House Speaker Michael Madigan, asking if it truly traded those jobs for Madigan's action on ComEd legislation or if the company was just building goodwill with a key decision-maker.
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November 12, 2024
SEC, SolarWinds Walk Away From Settlement Talks
Settlement negotiations between the U.S. Securities and Exchange Commission and software developer SolarWinds Corp. reached an impasse Tuesday, with the parties telling a New York federal judge that they did not feel it was worthwhile to continue discussing a possible end to the novel enforcement action.
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November 12, 2024
Elanco Pays $15M SEC Fine To Settle Sales Incentive Claims
Elanco Animal Health Inc. has agreed to pay a $15 million fine to resolve U.S. Securities and Exchange Commission allegations that it deceptively juiced revenues with distributor sales incentives between 2019 and 2020, the regulator announced Tuesday.
Expert Analysis
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How To Avoid Liability When Using Cookie Consent Managers
As companies attempt to comply with consumer protection laws by implementing cookie consent managers on their websites, they must be wary of separate legal risks that can stem from implementing or using these tools incorrectly, says Ian Cohen at LOKKER.
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How NLRB Memo Balances Schools' Labor, Privacy Concerns
Natale DiNatale at Robinson & Cole highlights the recent National Labor Relations Board advice memorandum that aims to help colleges reconcile competing obligations under the National Labor Relations Act and the Family Educational Rights and Privacy Act as university students flock toward unionization.
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Kubient Case Shows SEC's Willingness To Charge Directors
The U.S. Securities and Exchange Commission's recent fraud charges against Kubient's former CEO, chief financial officer and audit committee chair signal a willingness to be more aggressive against officers and directors, underscoring the need for companies to ensure that they have appropriate channels to gather, investigate and document employee concerns, say attorneys at Jenner & Block.
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$200M RTX Deal Underscores Need For M&A Due Diligence
RTX's settlement with regulators for violating defense export regulations offers valuable compliance lessons, showcasing the perils of insufficient due diligence during mergers and acquisitions transactions along with the need to ensure remediation measures are fully implemented following noncompliance, say Thad McBride and Faith Dibble at Bass Berry.
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Basel Endgame Rules: A Change Is Coming
The Federal Reserve Board's recently announced recalibration of the Basel endgame proposal begins a critical chapter in the evolution of not only the safety and soundness of U.S. banks, but also of banks' abilities to lend and support American businesses and consumers, say attorneys at Davis Wright.
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Proposed Legislation May Crack Down On Online Drug Ads
A bill recently proposed in Congress could serve as a sea change in how the U.S. Food and Drug Administration regulates drug-related speech, with significant trickle-down effects on various corners of not only the drug industry but also on consumers and providers themselves, say Dominick DiSabatino and Arushi Pandya at Sheppard Mullin.
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What PCOAB's Broadened Liability Rule Means For Auditors
The U.S. Securities and Exchange Commission’s recent vote agreeing to lower the Public Company Accounting Oversight Board's liability standard, allowing the board to charge individual auditors whose mere negligence leads firms into PCOAB violations, may erode inspection cooperation, shrink the talent pool and have anticompetitive outcomes, say attorneys at BakerHostetler.
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Employer Tips For PUMP Act Compliance As Law Turns 2
Enacted in December 2022, the Providing Urgent Maternal Protections for Nursing Mothers Act requires employers to provide reasonable break time and a private space for employees to express breast milk, but some companies may still be struggling with how to comply, say attorneys at Alston & Bird.
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4 Takeaways From The FDIC's Proposed Recordkeeping Rule
The Federal Deposit Insurance Corp.'s new proposed rule would impose recordkeeping and other compliance requirements on custodial deposit accounts with transactional features, and practitioners should be aware of four important factors, including who is affected and who is exempt, say attorneys at Covington.
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Series
Round-Canopy Parachuting Makes Me A Better Lawyer
Similar to the practice of law, jumping from an in-flight airplane with nothing but training and a few yards of parachute silk is a demanding and stressful endeavor, and the experience has bolstered my legal practice by enhancing my focus, teamwork skills and sense of perspective, says Thomas Salerno at Stinson.
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Dealmaker Lessons From CFIUS' New Enforcement Webpage
The Committee on Foreign Investment in the United States’ recently launched webpage, which details the actions — and inactions — that led to enforcement activity, provides important insights for dealmakers about filing requirements, mitigation commitments and the cost of noncompliance, say attorneys at Dechert.
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SEC Settlement Holds Important Pay-To-Play Lessons
The U.S. Securities and Exchange Commission’s recent fine of an investment adviser, whose new hire made a campaign contribution within a crucial lookback period, is a seasonable reminder for public fund managers to ensure their processes thoroughly screen all associates for even minor violations of the SEC’s strict pay-to-play rule, say attorneys at Lowenstein Sandler.
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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.