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Compliance
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November 17, 2024
Trump Names FCC's Carr As New Agency Chair
President-elect Donald Trump has picked Brendan Carr, the senior Republican on the Federal Communications Commission, as the agency's next chair, selecting a former general counsel of the agency and frequent critic of the current administration to lead the telecom regulator.
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November 15, 2024
Big Banks Still Need To Beef Up Controls, Fed Report Says
The Federal Reserve said Friday that even as the banking system has remained "sound and resilient," large banks continue to grapple with governance and controls issues, while regional and small banks have seen increases in outstanding supervisory findings.
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November 15, 2024
Jordan Says DOJ, FTC, CFTC Teed Up Actions Ahead Of Trump
House Judiciary Committee Chairman Jim Jordan, R-Ohio, lambasted three federal departments and their leaders, accusing them of either trying to push out enforcement actions or make last-minute hires during President Joe Biden's final days in office.
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November 15, 2024
Real Estate Recap: Industry Leaders Weigh In
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including President-elect Donald Trump's industry pick for Middle East special envoy, a playbook on commercial real estate distress from BigLaw leaders and one KKR exec's optimism for the end of a two-year real estate slump.
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November 15, 2024
Trump's SDNY Pick A Familiar Face In Wall Street's Legal Wing
Jay Clayton's nomination to be the Manhattan U.S. attorney would seat a highly regarded Wall Street lawyer in one of the top law enforcement jobs in the country, but he may face headwinds over his industry relationships and lack of criminal prosecution experience.
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November 15, 2024
Employment Authority: NLRB Captive Audience Shift's Impact
Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with coverage on the impact of the National Labor Relations Board's decision deeming illegal captive audience meetings and tips employers can follow to curtail workplace friction after the presidential election.
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November 15, 2024
X Sues To Block Calif.'s New Deepfake Political Ads Law
X Corp. filed a lawsuit in California federal court seeking to block a new Golden State law aimed at combating artificial intelligence-generated deepfake political ads, claiming the regulation that takes effect in January is unconstitutional and violates Section 230 of the Communications Decency Act.
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November 15, 2024
SEC-Sanctioned Accounting Firm Sued Over Pre-IPO Work
The former public company accounting firm BF Borgers is facing a California state lawsuit by an ex-client that says it was forced to scuttle its plans for an initial public offering after the U.S. Securities and Exchange Commission accused the firm of being a "sham auditing mill."
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November 15, 2024
Ex-GE Exec's Connection To Forged Docs Is Clear, Feds Say
Prosecutors told a New York federal jury Friday that trial evidence clearly proves a former GE executive knowingly used forged documents to secure a $1.1 billion gas turbine deal in Angola and demanded millions of dollars for his troubles.
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November 15, 2024
Social Media Cos. Must Face Schools' Public Nuisance Claims
Meta Platforms and other social media giants must face most of the public nuisance claims brought by school districts and local government entities in multidistrict litigation alleging the companies designed their platforms to addict children, a California federal judge ruled Friday.
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November 15, 2024
Kroger, Texas Ink $83M Deal Over Opioid Crisis
Texas announced it has agreed to an $83 million settlement with Kroger to resolve the state's claims alleging the groceries and pharmacy chain maintained practices that contributed to the opioid crisis in Texas, apparently as part of a larger $1.37 billion agreement the retailer recently reached with several states.
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November 15, 2024
SEC Says Risky Bond Recommendations Violated Reg BI
A Texas-headquartered broker-dealer has agreed to pay nearly $154,000 to resolve U.S. Securities and Exchange Commission allegations that it improperly recommended risky bonds in violation of the federal investor protection measure known as Regulation Best Interest.
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November 15, 2024
PBMs Denied Breakup Of Combined FTC Insulin Price Trial
The Federal Trade Commission's allegations that pharmacy benefit manager giants Caremark Rx, Express Scripts and OptumRx are artificially inflating insulin prices through unfair rebate schemes will forge ahead as a single case following an in-house agency judge's refusal to break them into separate proceedings.
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November 15, 2024
Convicted TV Guru Trudeau, FTC Strike Deal In 21-Year Case
An Illinois federal judge on Friday approved and offered high praise for a consent order negotiated by the Federal Trade Commission and weight-loss guru Kevin Trudeau, saying they did a "spectacularly good job" laying out the plan for Trudeau to pay the remaining $8 million he owes in the 21-year-old fraud case.
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November 15, 2024
EPA Watchdog Flags Drinking Water Cybersecurity Risks
The U.S. Environmental Protection Agency's internal watchdog is sounding the alarm about cybersecurity weaknesses in the nation's drinking water systems, and said there are problems with the plans for reporting and coordinating responses to attacks.
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November 15, 2024
Kalshi Fires Back At CFTC's 'Futile' Election Betting Appeal
The Commodity Futures Trading Commission is attempting to "rewrite" its governing statute by claiming that placing bets on the outcome of elections is a form of prohibited gaming, trading platform KalshiEx LLC told the D.C. Circuit on Friday as it fought to continue listing election contracts in the future.
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November 15, 2024
GOP Sens. Decry 'Lack Of Urgency' On FDIC Misconduct
Six Republican senators wrote a letter to the Federal Deposit Insurance Corp. Inspector General Jennifer L. Fain asking for a briefing on the FDIC's progress investigating claims of widespread misconduct at the agency, asserting there has been "a shocking lack of urgency."
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November 15, 2024
GAO Says EPA Must Act On Waste Sites' Climate Risks
Nearly 70% of the nation's hazardous waste treatment, storage and disposal facilities are vulnerable to climate change impacts such as flooding, wildfires, storm surge and sea level rise, and the U.S. Environmental Protection Agency needs to be more proactive, a new federal report says.
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November 15, 2024
California Blames Travelers For Rot Remediation Policy Deceit
In a case with potentially untold financial consequences, California district attorneys are blaming Travelers in state court for trying to attract customers by offering coverage for fungi and rot remediation for years without adequately disclosing stringent exclusions to state policyholders, in violation of state code.
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November 15, 2024
FERC Ignored Calif. Hydro Permitting Mischief, DC Circ. Told
The Federal Energy Regulatory Commission turned a blind eye to clear evidence that California's water board gamed the permitting process in concluding that the state agency didn't waive its Clean Water Act permitting authority over two hydroelectric dams, the D.C. Circuit heard this week.
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November 15, 2024
GM's Cruise Accepts $500K Criminal Fine Over Robotaxi Crash
Cruise LLC, the autonomous vehicles subsidiary of General Motors Co., has agreed to pay $500,000 in criminal fines to end claims that it made false statements to federal highway investigators by omitting that one of its vehicles dragged a pedestrian over 20 feet, according to an announcement by federal prosecutors.
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November 15, 2024
Political Fundraiser Avoids Jail In LA 'Casino Loyale' Probe
A former political fundraiser was sentenced by a California federal judge Friday to one year of home detention for facilitating a bribe to former Los Angeles City Councilman José Huizar, the latest in a string of recent sentences handed out to cooperating witnesses in the FBI's "Casino Loyale" probe.
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November 15, 2024
Paxton Says Texas Porn Site Law 'Modest' Way To End 'Crisis'
Texas Attorney General Ken Paxton told the U.S. Supreme Court on Friday that a state law requiring visitors to prove their age before accessing content on certain adult-oriented websites is tailored in the most "modest" way possible to address a "public health crisis."
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November 15, 2024
Texas Judge Won't Halt CFPB Small-Biz Rule As Banks Appeal
A Texas federal judge has declined to stay the compliance date of the Consumer Financial Protection Bureau's small-business lending data collection rule while a coalition of bank trade groups appeals his decision to uphold the rule's data collection requirements, saying no circumstances justify such "extraordinary relief."
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November 15, 2024
SEC's Top Cop Says Election Hasn't Slowed Enforcers Down
The U.S. Securities and Exchange Commission's enforcement attorneys continue to work with "urgency" in the waning months of the Biden administration, the acting leader of the enforcement division said Friday at an event where he also spoke about a shuttered task force and the agency's approach to pursuing cases involving cybersecurity breaches.
Expert Analysis
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Comparing Antitrust Outlooks Amid Google Remedy Review
As the U.S. Justice Department mulls potential structural remedies after winning its recent case against Google, increased global scrutiny of Big Tech leaves ex post and ex ante antitrust approaches ripe for evaluation, say Nishant Chadha at the Indian School of Business and Manisha Goel at Pomona College.
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Website Accessibility Ruling Leaves Circuit Split Unresolved
A New York federal court's recent decision in Mejia v. High Brew Coffee, holding that stand-alone websites are not "public accommodations" subject to the Americans with Disabilities Act, further complicates a long-running circuit split on this question — even as courts are burdened with thousands of similar lawsuits, say attorneys at Mandelbaum Barrett.
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SEC Rulemaking Radar: The View From Election Day
The U.S. Securities and Exchange Commission seems poised to tackle many of the remaining items on its most recent Regulatory Flexibility Agenda by early 2025, despite the presidential election and the potential for a new chair to be nominated soon, say attorneys at Goodwin.
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Why Secured Lenders Must Mind The Gap In UCC Searches
If not adequately addressed, the Uniform Commercial Code filing indexing gap can interfere with a lender's expected lien priority, but taking appropriate preclosing actions and properly timing searches can eliminate this risk, says Robert Wonneberger at Barclay Damon.
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What FTC's 'Bitcoin ATM' Report Tells Us About Crypto Scams
The Federal Trade Commission's recent insights into bitcoin ATM scams highlight the technical evolution of fraudsters, the application of old scams to new technology, and the persistent financial impact on victims, say attorneys at DLA Piper.
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What New Int'l Treaty Means For Global AI Regulation
Lawyers at Bird & Bird consider how global artificial intelligence regulation will be affected by the first international AI treaty recently signed by the U.S., EU and U.K., as well as its implications for business and several issues that stakeholders should be aware of.
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How The Presidential Election Will Affect Workplace AI Regs
The U.S. has so far adopted a light-handed approach to regulating artificial intelligence in the labor and employment area, but the presidential election is unlikely to have as dramatic of an effect on AI regulations as it may on other labor and employment matters, say attorneys at Littler.
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A Look At Grewal's Record-Breaking Legacy After SEC Exit
Gurbir Grewal resigned as director of the U.S. Securities and Exchange Commission's Division of Enforcement last month after more than three years on the job, leaving behind a legacy marked by record numbers of penalties and enforcement actions, as well as mixed results in aggressive lawsuits against major crypto players, say attorneys at Debevoise.
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Striking A Balance Between AI Use And Attorney Well-Being
As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.
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6 Steps To Ready Defense Contractors For Cybersecurity Rule
Following the U.S. Department of Defense's final rule establishing the Cybersecurity Maturity Model Certification program in federal regulations, Sandeep Kathuria at Ice Miller provides a refresher on CMMC and identifies best practices for defense contractors awaiting full implementation of CMMC.
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Takeaways From The IRS' Crypto Doc Summons Win
A recent First Circuit decision holding that taxpayers do not have a Fourth Amendment reasonable expectation of privacy in cryptocurrency transaction records should prompt both taxpayers and exchanges to take stock of past transactions and future plans, say attorneys at BakerHostetler.
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A Novel Expansion Of Alien Tort Statute In 9th Circ.
The Ninth Circuit's Doe v. Cisco rehearing denial allows a new invocation of the Alien Tort Statute to proceed, which could capture the U.S. Supreme Court's attention, and has potentially dramatic consequences for U.S. companies doing business with foreign governments, say attorneys at Ropes & Gray.
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Empathy In Mediation Offers A Soft Landing For Disputes
Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.
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A Look At The Increased Scrutiny Of Cash Sweep Programs
Financial industry regulators have increasingly probed the adequacy of so-called cash sweep disclosures and policies, underscoring the heightened risk faced by investment advisers and broker-dealers, as well as the importance of adequately disclosing material conflicts of interest, say attorneys at Dechert.
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Series
Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.