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Compliance
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December 11, 2024
Tesla Stockholder Contests $345M Musk Pay Fight Fee In Del.
A Tesla Inc. stockholder has asked to intervene in the Delaware Court of Chancery class derivative case that scuttled CEO Elon Musk's 10-year, $55.6 billion compensation plan, citing objections to court approval of a stock or cash fee award for class attorneys worth $345 million.
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December 11, 2024
NRA Ordered To Reform Policies After NY Misconduct Verdict
A New York judge ordered changes to the National Rifle Association's board structure and organizational policies Wednesday to "prevent future violations of law," following a jury verdict that found widespread financial misconduct and whistleblower retaliation within the gun group.
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December 11, 2024
Justices Won't Block EPA Coal Ash Rule During Court Case
The U.S. Supreme Court on Wednesday rejected a Kentucky electric utility's effort to halt implementation of the U.S. Environmental Protection Agency's rule strengthening federal regulations for the safe management of coal ash.
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December 11, 2024
Wash. Port Asks Justices To Review 9th Circ. CWA Ruling
The Port of Tacoma urged the U.S. Supreme Court on Wednesday to answer what it calls a "longstanding circuit split" over whether private suits seeking to enforce state permit conditions that go beyond the Clean Water Act can proceed in federal court.
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December 11, 2024
Justices Question Affiliates' Liability In $47M TM Judgment
The U.S. Supreme Court on Wednesday questioned why lower courts ordered affiliates of a real estate company to pay a $47 million trademark infringement judgment against it when they were not defendants, with Justice Clarence Thomas asking counsel for the prevailing party why they did not include the affiliates in the case.
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December 11, 2024
DOJ Tells Justices To Preserve Antitrust Probe Into NAR
The U.S. Department of Justice told the U.S. Supreme Court that it made no commitment not to reopen its investigation into the National Association of Realtors as part of its 2020 consent decree with the company, urging the justices to reject the association's bid for a day before the high court.
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December 11, 2024
SEC Sues Disbarred Calif. Atty And Son For Securities Fraud
The U.S. Securities and Exchange Commission has filed a suit against a father-son duo and a broker for allegedly running a Ponzi-like scheme disguised as an investment company for a start-up content streaming app, raising over $17 million from at least 40 investors.
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December 11, 2024
Feds Say TD Bank Worker Helped Launder Drug Money
A former employee of TD Bank NA who worked in Florida has been arrested and charged with assisting in a money laundering scheme that used the Toronto-based financial institution to illicitly send millions of dollars in narcotics proceeds from the United States to Colombia, according to documents filed in federal court.
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December 11, 2024
LA Fitness Fights To End DOJ's Gym Accessibility Suit
LA Fitness urged a California federal judge to toss the U.S. Department of Justice's civil enforcement lawsuit alleging the gym chain failed to accommodate patrons with disabilities at its nearly 700 locations across the country, arguing the lawsuit relies on "isolated" incidents and doesn't show "a pattern and practice."
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December 11, 2024
Mixed 5th Circ. Backs $14M Exxon Texas Air Pollution Fine
A mixed Fifth Circuit on Wednesday backed a $14 million fine against ExxonMobil Corp. over air pollution in southeast Texas, with a per curiam opinion stating the court wouldn't have reheard the case if it had known it would take more than 18 months to issue an opinion.
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December 11, 2024
More Facts Needed In RJ Reynolds Tax Row, Mich. Court Says
More facts are needed on whether part of a $4.9 billion sale of trademarks by R.J. Reynolds to a Japanese company should be taxable in Michigan, a state court said Wednesday, declining to rule immediately.
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December 11, 2024
Cross-Border Criminal Antitrust Trial Will Stay In Houston
A case against a group of defendants accused of using violence to monopolize the cross-border sale of used cars from the U.S. into Central America must stay in Houston, a federal judge ruled this week.
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December 11, 2024
EPA Gives States, Tribes Clearer Path To Water Permit Power
States and Native American tribes have a clearer path to gaining the authority to set water pollution standards that may be even stronger than federal ones under a U.S. Environmental Protection Agency rule finalized Wednesday.
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December 11, 2024
Feds, Illinois Sue East St. Louis For Sewage Pollution
The federal government and state of Illinois sued the city of East St. Louis on Wednesday alleging its failure to operate the city's sewer system in compliance with the law has led to the pollution of local waterways with untreated sewage for years.
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December 11, 2024
Nippon Offers $5K Bonuses To Ease US Steel Deal Concerns
Nippon Steel Corp. has committed to providing $5,000 closing bonuses to employees of U.S. Steel in hopes of easing concerns about the controversial $14.9 billion merger between the two companies, which both the sitting and incoming president have said they oppose.
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December 11, 2024
FCC Allows Full 6 GHz Band For Unlicensed Wireless Devices
The Federal Communications Commission on Wednesday opened two more slices of the 6 gigahertz airwaves to power unlicensed wireless uses ranging from augmented reality to body-worn technologies.
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December 11, 2024
Ozy Media Ex-CEO's Atty Seeks More Time Or OK To Quit
An attorney for former Ozy Media Inc. CEO Carlos Watson asked a New York federal judge Wednesday for permission to withdraw from Watson's fraud and identity theft case unless he and other defense counsel can have more time to prepare for sentencing proceedings set to begin Friday.
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December 11, 2024
Conn. Attorney General In Line To Helm National Association
Connecticut Attorney General William Tong is the new president-elect of the National Association of Attorneys General, his office announced and the association confirmed Wednesday.
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December 11, 2024
DC Circ. Lets Pipeline Safety Rule Remain Amid Agency Fix
The D.C. Circuit has agreed to leave in place one of four new safety standards for gas transmission pipelines while the U.S. Department of Transportation works to amend them, after an industry group said not doing so could cause unnecessary repair costs.
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December 11, 2024
Former SEC Unit Chief Joins Gibson Dunn In NY
Gibson Dunn & Crutcher LLP said Monday that a veteran of more than 14 years at the U.S. Securities and Exchange Commission is joining its New York office.
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December 11, 2024
Developer, Feds Ask Justices To Pass On Offshore Wind Case
The federal government and Vineyard Wind 1 LLC are urging the U.S. Supreme Court to reject a Massachusetts group's latest bid to block the large offshore wind farm taking shape in waters off Nantucket and Martha's Vineyard.
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December 11, 2024
CFPB's Chopra Won't Head For Exit Ahead Of Trump's Arrival
Consumer Financial Protection Bureau Director Rohit Chopra signaled Wednesday that he won't leave his post early unless and until the incoming Trump administration fires him next month, indicating that he plans to keep running the agency in the meantime.
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December 11, 2024
Justices' Cold Feet On Nvidia, Meta Leaves Attys Guessing
The U.S. Supreme Court threw out a second securities case on Wednesday by refusing to issue a ruling in a Nvidia Corp. case with no explanation on its change of heart, leaving the defense bar to guess at the court's motivation and its potential implication for the future of high court securities cases.
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December 11, 2024
Albertsons Sues Kroger In Chancery After Blocked Megadeal
Grocery giant Albertsons, in a Wednesday lawsuit in the Delaware Court of Chancery, said Kroger did not put forth its "best efforts" into getting their planned $24.6 billion megamerger cleared while also announcing official plans to nix the deal, moves that came just one day after two judges blocked the proposed acquisition.
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December 10, 2024
Md. Jury Convicts Ex-Biotech Execs On Some Fraud Counts
Two former biotech executives were convicted on some counts Monday following a monthlong Maryland federal court trial in a case alleging they juiced CytoDyn Inc.'s share price by lying to investors about the development of a drug to treat HIV and COVID-19.
Expert Analysis
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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.
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9 Considerations Around Proposed Connected Vehicle Ban
Stakeholders should consider several aspects of the U.S. Department of Commerce's recent proposal to ban U.S. imports and sales of vehicles incorporating certain connectivity components made in China or Russia, including exempted transactions and vehicle hardware imports, say attorneys at Blank Rome.
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Predicting Shareholder Activism Trends In New Trump Admin
While President-elect Donald Trump has promised tax policies, deregulation and lax antitrust enforcement — which all fuel shareholder activism — a closer look at his first administration's track record suggests that his second presidency might be a mixed bag for activist investors and companies alike, say attorneys at Sidley.
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What Trump's 2nd Presidency Could Mean For Crypto Sector
Trump's second term will bring a fundamental shift from the Biden administration's approach to crypto-asset regulation and banking supervision, with the most significant changes likely taking effect in the first two quarters of 2025 and broader policy shifts emerging over the next year, say attorneys at Cahill.
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Putting NYDFS AI Cybersecurity Guidance Into Practice
New guidance from the New York Department of Financial Services explains how financial institutions should assess and mitigate cybersecurity risks associated with artificial intelligence, focusing on four main threats and highlighting how varying environments require specific mitigation measures, say attorneys at Saul Ewing.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Opinion
In Visa Case, DOJ Continues To Misapply The Sherman Act
The recent U.S. Department of Justice debit market monopolization case against Visa fuels concerns that a misguided Biden administration DOJ is inappropriately expanding its interpretation of the Sherman Antitrust Act beyond the demonstrable economic effects that business conduct has on consumers, says Shubha Ghosh at Syracuse University.
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Opinion
Preserving The FCA Is Crucial In Trump's 2nd Term
While the Trump administration may pursue weaker False Claims Act enforcement, it remains an essential tool in safeguarding public funds and maintaining corporate accountability, so now is not the time to undermine ethical behavior, or reduce protections and incentives for whistleblowers, says Adam Pollock at Pollock Cohen.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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Key Legal Considerations After Supply Chain Disruptions
After U.S. supply chain disruptions — like the recent port workers' strike, and Hurricanes Helene and Milton — stakeholders should look to contractual provisions to mitigate losses, and keep in mind that regulators will be watching closely for unfair shipping practices, say attorneys at Holland & Knight.