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Compliance
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November 14, 2024
FTC's Holyoak Says New Comment Portal Shows Merger Bias
Federal Trade Commissioner Melissa Holyoak said Thursday the design of a new portal allowing the public to comment on pending deals shows signs of the current leadership's view that all mergers are bad.
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November 14, 2024
Split 5th Circ. Affirms SEC's Kroger Proxy Decision
A divided Fifth Circuit on Thursday rejected a "purely theoretical" challenge brought by conservative shareholders unhappy that the U.S. Securities and Exchange Commission greenlighted the exclusion of a shareholder proposal from Kroger Co.'s 2023 ballot, noting that the case was moot since the company authorized a vote on the proposal anyway.
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November 14, 2024
Red State AGs Sue SEC Over Crypto Policy
A coalition of 18 Republican attorneys general led by Kentucky sued the U.S. Securities and Exchange Commission on Thursday for allegedly treading on the states' authority through a "regulatory landgrab" into the cryptocurrency industry.
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November 14, 2024
Broadband Groups See Ally In Incoming GOP Leader Thune
Telecom industry groups view the Senate's next majority leader, Sen. John Thune, R-S.D., as keenly interested in the sector's needs, but it's not yet clear what his selection could mean for specific critical issues like building out rural internet service and removing barriers to broadband deployment.
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November 14, 2024
NY Gov. Brings Back Manhattan Congestion Pricing Plan
The resurrection of New York City's plan to charge all vehicles a fee for entering Manhattan's busiest corridor demonstrates a mad dash in the final months of the Biden administration to expedite infrastructure projects perceived as political lightning rods before President-elect Donald Trump takes office.
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November 14, 2024
Trump Names Solicitor General, SDNY Picks
President-elect Donald Trump announced on Thursday he is tapping for solicitor general the lawyer who represented him before the U.S. Supreme Court and will name his former chair of the U.S. Securities and Exchange Commission to be U.S. attorney for the Southern District of New York.
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November 14, 2024
EPA Expands List of Solvent Risks, Targets Tire Chem Rules
The U.S. Environmental Protection Agency on Thursday said a chemical commonly used in solvents presents health risks to humans in more ways than had previously been stated, and said it's researching whether to regulate a chemical used in tire production that has been shown to kill salmon.
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November 14, 2024
Dick's Settles New Jersey AG's Suit Over Ammunition Sales
New Jersey and Dick's Sporting Goods Inc. have reached a deal to resolve allegations that the retail chain violated the Garden State's consumer protection laws by selling and shipping large capacity ammunition magazines into the state, New Jersey Attorney General Matthew J. Platkin announced Thursday.
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November 14, 2024
Trump Taps His Criminal Defense Lawyer For Deputy AG
President-elect Donald Trump on Thursday picked his personal defense attorney Todd Blanche to serve as second-in-command at the U.S. Department of Justice as deputy attorney general.
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November 14, 2024
DOJ Deputy Says Biden Stance Led To Fewer Harmful Mergers
The deputy head of the U.S. Department of Justice's Antitrust Division offered a full-throated defense Thursday of the Biden administration's aggressive competition enforcement record, arguing, with a Republican takeover imminent, that "more demanding standards" for transaction remedies prompted real change by merging companies seeking to avoid a merger challenge.
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November 14, 2024
NHTSA Fines Ford $165M, Second-Largest Civil Penalty
The National Highway Traffic Safety Administration on Thursday said it has issued Ford Motor Co. a fine of up to $165 million — the second-largest civil penalty in the agency's history — over the carmaker's failure to recall vehicles promptly.
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November 14, 2024
South Dakota Slams NCAA Over NIL Settlement 'Notice'
South Dakota's attorney general has continued lodging criticism at the NCAA over its handling of a massive lawsuit related to the way student-athletes are compensated, telling a California federal judge the organization has failed to properly notify the state and others of a preliminary $2.78 billion settlement.
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November 14, 2024
Gaetz's Slim Legal Resume Raises Concerns Over AG Role
Having never served as a prosecutor and with minimal experience practicing law, Matt Gaetz would have the thinnest legal resume of any attorney general in recent history and would face a steep learning curve, including daunting leadership challenges, if he were to take up the reins of the U.S. Department of Justice, experts say.
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November 14, 2024
Australia Bill Seeks To Expand Rules On Reporting Ownership
Australia's government wants to fight tax avoidance by making owners of equity derivatives disclose significant owners to regulators and investors, expanding access to that information and giving securities regulators new powers to issue freezing orders for noncompliance, the Australian Treasury said Thursday.
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November 14, 2024
BCLP Brings On SEC Enforcement Atty In Atlanta
Bryan Cave Leighton Paisner LLP's newest addition in Atlanta is an experienced enforcement attorney who spent time with both the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.
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November 14, 2024
Ex-Worker Says Johnson & Johnson Fired Her For Disabilities
Johnson & Johnson was sued in Georgia federal court Wednesday by a former employee who said she was discriminated against for her disabilities, then fired for failing to relocate to New Jersey despite an agreement allowing her to work remotely from any East Coast location.
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November 14, 2024
'We'll Leave It To Others': SEC's Gensler Hints At Exit
U.S. Securities and Exchange Commission Chair Gary Gensler gave a lengthy speech Thursday about his legacy and what remains to be done on regulations related to investors' climate, artificial intelligence and crypto concerns.
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November 14, 2024
ADM Compliance Head To Depart Amid Co. Accounting Woes
Archer-Daniels-Midland's head of compliance will leave the food and animal nutrition company, a spokesperson has confirmed, in a year that has seen the company grappling with regulatory probes into its accounting practices and related investor litigation.
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November 14, 2024
Capri, Tapestry Kill $8.5B Handbag Deal Amid FTC Battle
Capri Holdings Ltd. and Tapestry Inc. have called off their $8.5 billion merger following an extended regulatory battle with the Federal Trade Commission, with the companies mutually agreeing to terminate the deal because it is "unlikely" to obtain the regulatory approvals needed to close on time, Capri said Thursday.
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November 14, 2024
EU Clears Consortium's €2.2B Bid For Cybersecurity Biz
The European Commission said Thursday that it has cleared the approximately €2.2 billion ($2.4 billion) acquisition of French cybersecurity firm Exclusive Networks by its biggest shareholder Permira and U.S. private equity firm Clayton Dubilier & Rice.
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November 13, 2024
Trump's Card Rate Cap Idea Could See Red State Pushback
In a glimpse of potential future fault lines between red-state officials and the next Trump administration, West Virginia's top state attorney on Wednesday suggested litigation could be on the table if the White House bucks regulatory restraint to push ideas like capping credit card interest rates.
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November 13, 2024
Tempur Sealy Has 'Keys' To Merger, Mattress Firm CEO Says
Mattress Firm's CEO told a Houston judge Wednesday that he has not had any involvement in Tempur Sealy's post-acquisition agreements with mattress suppliers, testifying that Tempur's board chairman and CEO is the one "driving" the deal.
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November 13, 2024
Damages Limited In AGs' Generic Drug Price-Fixing Case
A Connecticut federal judge has nixed some claims against Sandoz Inc. and other generic-drug makers in a massive antitrust and unfair trade practices case filed by state attorneys general, finding that a handful of the enforcers cannot seek damages on behalf of their allegedly injured citizens.
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November 13, 2024
Republic Bank's 'Dysfunction' Enabled Its Failure, FDIC Says
The former Republic First Bank failed because of its inability to hold certain debt securities, its insufficient liquidity and an ineffective board and management team, according to a post-mortem review issued Wednesday by the Federal Deposit Insurance Corp.'s watchdog.
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November 13, 2024
Wash. Attys Expect Gov. And AG Will Keep Them Busy
Despite President-elect Donald Trump's anticipated de-emphasis of regulatory enforcement, Washington state antitrust and consumer protection attorneys are still expecting plenty of work in the coming years, as the new Democratic governor-attorney general duo are expected to step up local enforcement.
Expert Analysis
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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.
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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.