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Compliance
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December 05, 2024
Trump Taps Musk Ally David Sacks As 'AI & Crypto Czar'
President-elect Donald Trump announced Thursday that he has selected David O. Sacks, a tech investor who worked alongside Elon Musk and entrepreneur Peter Thiel in the early days of PayPal, to be the newly created "White House AI & Crypto Czar."
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December 05, 2024
Rocket Mortgage Sues HUD, Hits Back At DOJ Race Bias Suit
Rocket Mortgage, the largest U.S. mortgage lender, has punched back against housing discrimination claims brought by the U.S. government, countersuing in Colorado federal court to challenge what it argues are "conflicting and irreconcilable" mandates at play.
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December 05, 2024
Frontier Pays $3.5M To End Calif. AG's Illegal Dumping Probe
The California subsidiary of telecom company Frontier Communications will pay $3.5 million to end an investigation into the improper disposal of batteries, aerosol cans and other hazardous waste at warehouses and field service facilities dating back to 2008, the Golden State's attorney general announced Thursday.
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December 05, 2024
CFTC Flags AI Compliance Obligations In New Advisory
The Commodity Futures Trading Commission on Thursday issued a staff advisory outlining its registrants' compliance obligations under the Commodity Exchange Act regarding the myriad of ways they may be using artificial intelligence, with the agency's chair painting the guidance as a first step ahead of potential policies.
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December 05, 2024
Apple To Appeal Epic's Atty-Client Privilege Challenge Win
Apple and Epic Games told a California federal judge Thursday that they've agreed on a protocol for a special master to re-review 57,000 documents that Apple claims are attorney-client privileged in their antitrust fight, while Apple added that it plans to appeal his finding that its privilege assertions over a sample were overbroad.
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December 05, 2024
Freddie Mac Beats Suit Over Payoff Statement Fees, For Now
A Washington federal judge has tentatively let Freddie Mac off the hook in borrowers' proposed class action alleging loan servicer Nationstar Mortgage illegally charged fees for payoff statements, ruling Thursday that Freddie Mac can't be liable for conduct it didn't authorize — even if it did own one loan at issue.
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December 05, 2024
SEC Says Binance's Platform Is 'Integral' To Securities Claims
The U.S. Securities and Exchange Commission told a Washington, D.C., federal judge that crypto exchange Binance can't escape amended claims that it failed to register with the securities regulator because the platform is "integral" to crypto issuers' alleged promises to increase the value of their tokens.
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December 05, 2024
Gov't Efficiency Push Is A 'New Day,' House Speaker Says
House Speaker Mike Johnson, R-La., spoke excitedly Thursday about the new government efficiency operation helmed by billionaire Elon Musk and former presidential candidate Vivek Ramaswamy and touted the budding bipartisan lineup of a congressional caucus that will work with it.
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December 06, 2024
FINRA Fines Firm $900K Over SPAC Underwriting Fee Issues
The Financial Industry Regulatory Authority has fined New York-based LifeSci Capital LLC nearly $1 million over claims that it received and failed to disclose unfair and unreasonable fees for an initial public offering it underwrote.
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December 05, 2024
First Citizens Accused Of $3M High-Yield Bait-And-Switch
First Citizens Bank & Trust Company faces claims from an agritourism nonprofit and its registered agent that they invested $3 million with the bank expecting a competitive rate of return before finding those funds were actually in products yielding a much lower interest rate.
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December 05, 2024
Ohio Court Affirms Nix Of Bid To Double $42M Property Value
An effort to nearly double the $42 million taxable value of a property to its recent sale price was correctly dismissed, an Ohio state appeals court said, upholding a state law barring complaints based on the untimeliness of a sale.
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December 05, 2024
3rd Circ. Unsure Pa. Regulator Had Right To Deny Project
Third Circuit judges appeared wary on Thursday of the Pennsylvania Public Utility Commission's argument that its take on the necessity of a transmission project trumps a federal agency's determination, at one point questioning how any such project could be completed if the court accepted its argument.
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December 05, 2024
Pain Management Clinic Fined $1.19 Million for HIPAA Breach
The U.S. Department of Health and Human Services has fined a Florida pain management clinic $1.19 million for alleged HIPAA violations involving a former contractor that impermissibly accessed the clinic's electronic record system.
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December 05, 2024
Utah Defends Effort To Wrest Land From Feds At High Court
Utah told the U.S. Supreme Court on Wednesday that its proposed lawsuit accusing the government of unconstitutionally hoarding and profiting from public lands in the state belongs before the justices and that the government's recent response strengthens its case.
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December 05, 2024
Sens. Urge DOD To Beef Up Telecom Security After Cyberattack
The U.S. Department of Defense may not be doing enough to protect unclassified information from being intercepted by foreign spies, a bipartisan pair of U.S. senators have said.
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December 05, 2024
Charter Settles For $1.1M After FCC Emergency Alert Probe
Charter has agreed to pay $1.1 million to end an investigation by the Federal Communications Commission into whether the cable giant failed to properly keep emergency alert devices online during an FCC test of the system last fall.
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December 05, 2024
McKinsey Unit To Pay $123M Over South Africa Bribe Scheme
The African unit of consulting giant McKinsey & Co. will pay about $123 million to resolve a U.S. Department of Justice investigation into an alleged scheme to bribe South African government officials for contracts with state-owned companies.
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December 05, 2024
Carriers Must Shield Networks From Attacks, FCC Chair Says
The head of the Federal Communications Commission called Thursday for "urgent action" from U.S. telecom carriers to protect their networks in the wake of the recent Salt Typhoon cyberattack, and said the agency could soon rule that telecoms are affirmatively required under law to try to prevent such intrusions.
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December 05, 2024
FDA Warns 115 Retailers Over Unauthorized E-Cigarettes
The U.S. Food and Drug Administration has issued warning letters to 115 retailers across the country for selling unauthorized e-cigarettes that appeal to youths, the agency said Thursday.
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December 05, 2024
IPlace Bid To Cut Former CEO's Legal Fees Nixed In Chancery
A former CEO and director of global recruiting company iPlace USA Inc. won a Delaware Court of Chancery order Thursday obliging the company to pay his legal fee advancements for defense against the company's federal suit seeking, in part, recovery of the official's compensation while building a competing venture.
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December 05, 2024
Barclays GC To Join A&O Shearman Cyber Team
A&O Shearman has tapped the current general counsel for Barclays Execution Services to co-head its global cybersecurity team, the firm announced Thursday, with the lawyer set to make the jump early next year.
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December 05, 2024
DEI Provision Dooms Boeing's 737 Max Plea Deal
A Texas federal judge on Thursday rejected Boeing's plea agreement in its 737 Max criminal conspiracy case, finding flaws in how the U.S. Department of Justice intended to use race and diversity to select an independent compliance monitor to oversee Boeing, and how the court was cut out of that process.
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December 05, 2024
Holland & Knight Gets In On Trade Laterals With Export Expert
Holland & Knight LLP announced Wednesday it was bringing aboard a new international trade partner at its Tysons Corner, Virginina, office, part of a recent flurry of hiring in the practice area as firms seek out expertise on export controls and other trade issues in the weeks following the 2024 presidential election.
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December 04, 2024
Trump Taps Ex-Sen. Loeffler For SBA, Fiserv CEO For SSA
President-elect Donald Trump has nominated former Sen. Kelly Loeffler, a Republican from Georgia, to lead the Small Business Administration and Fiserv Inc. CEO Frank Bisignano to serve as Social Security Administration commissioner, according to announcements made Wednesday.
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December 04, 2024
Rep. Hill Vows To Tackle Crypto 'De-Banking' In Next Congress
Lawmakers on both sides of the aisle plan to investigate alleged government efforts to cut off cryptocurrency businesses from the traditional banking system, Rep. French Hill, R-Ark., said Wednesday during a House Financial Services Committee hearing that also saw its retiring chair feted with a celebration of bow ties.
Expert Analysis
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EPA's New Lead Pipe Rule Leaves Key Questions Unanswered
The U.S. Environmental Protection Agency's recently released update to its Lead and Copper Rule is a major step forward in the elimination of lead from drinking water systems, but it lacks meaningful guidance on alternative materials, jurisdictional concerns, cost allocation and other topics, say attorneys at Foley Hoag.
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Navigating DOJ's Patchwork Whistleblower Regime
In the past few months, the U.S. Department of Justice and several individual U.S. attorney’s offices have issued different pilot programs aimed at incentivizing individuals to blow the whistle on misconduct, but this piecemeal approach may create confusion and suboptimal outcomes, say attorneys at BakerHostetler.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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A Look At Similarities Between SOX And SEC's Cyber Rule
Just as the Sarbanes-Oxley Act paved the way for greater transparency and accountability in financial reporting, the SEC's cybersecurity rule is doing much the same for cybersecurity, ensuring that companies are resilient in the face of growing cyber threats, says Padraic O'Reilly at CyberSaint.
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What To Expect Next From Federal Health Tech Regulation
Healthcare organizations should pay close attention to federal health information technology regulators' recent guidance concerning barriers to accessing electronic health information, which signals that more enforcement in this area is likely forthcoming, say attorneys at Ropes & Gray.
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In SF Water Case, Justices Signal How Loper May Be Applied
Skeptical questions from U.S. Supreme Court justices during oral argument in San Francisco v. U.S. Environmental Protection Agency offer hints of how the court intends to apply limits on agency regulatory autonomy established last term in Loper Bright, says Karen Cullinane at Goldberg Segalla.
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DOD Cybersecurity Rule Will Burden And Benefit Contractors
The U.S. Department of Defense’s cybersecurity certification program, finalized in October, will pose tricky and expensive challenges for contractors, given its many requirements and the scarcity of third-party assessors who can provide certification, but companies may ultimately benefit from a narrower pool of competitors, say attorneys at Miles & Stockbridge.
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5 Areas Congress May Investigate After GOP Election Wins
With Republicans poised to take control of Congress in addition to the executive branch next year, private companies can expect an unprecedented uptick in congressional investigations focused on five key areas, including cryptocurrency and healthcare, say attorneys at Cahill Gordon.
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Philly's Algorithmic Rent Ban Furthers Antitrust Policy Trends
A Philadelphia bill banning the use of algorithmic software to set rent prices and manage occupancy rates is indicative of growing scrutiny of this technology, and reflects broader policy trends of adapting traditional antitrust principles to respond to new technology, say attorneys at Ballard Spahr.
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Key Territory-Split Licensing Lessons For Life Sciences Cos.
Territory-split deals can allow life sciences companies to maximize products' potential across a range of geographic areas, but these deals also present unique challenges requiring highly bespoke structures that can make or break the value of an asset, say attorneys at Covington.
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Trump's 2nd Term May Be A Boost To Banking Industry
President-elect Donald Trump's personnel appointments could be instrumental in reshaping the financial regulatory landscape during his second administration, likely allowing for greater merger activity and halting or undoing some of the Biden administration's more restrictive financial services policies, say attorneys at Debevoise.
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Loper Bright Offers New Materiality Defense To FCA Liability
The U.S. Supreme Court's decision in Loper Bight Enterprises v. Raimondo, ending Chevron deference, may have created a new defense to False Claims Act liability by providing the opportunity to argue that a given regulation is not material to the government's payment decision, says Tanner Cook at Husch Blackwell.
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Why K-Cup Claims Landed Keurig In Hot Water With SEC
The U.S. Securities and Exchange Commission's recent settlement with Keurig Dr. Pepper for making incomplete statements regarding the recyclability of K-cup pods highlights the importance of comprehensive corporate disclosures, particularly with respect to ESG matters, say attorneys at BCLP.
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Unpacking CFPB's Unwieldy Buy Now, Pay Later Guidance
Both the Consumer Financial Protection Bureau's recent interpretive rule regarding buy now, pay later transactions, and its FAQ guidance, place providers in murky waters with the unenviable position of attempting to place a square, closed-end product in a round, regulatory framework meant for open-end products, say attorneys at Troutman Pepper.
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2nd Circ. Halkbank Ruling Shifts Foreign Immunity Landscape
Following the Second Circuit’s recent common law immunity ruling in U.S. v. Halkbank, foreign state-owned banks, wealth funds and other entities now must seriously consider the risk of criminal liability for commercial activity that violates U.S. laws, say attorneys at Debevoise.