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Compliance
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November 19, 2024
Ex-OpenSea Staffer Says Insider Trading Verdict Must Fall
A former OpenSea manager accused of insider trading from digital tokens sold on his employer's platform urged the Second Circuit Tuesday to overturn his conviction, saying his ideas about what to feature on his company's website cannot be construed as property.
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November 19, 2024
High Court Urged To Let Courts Scrutinize Agency Rulings
District courts should be allowed to question rather than grant "absolute deference" to the Federal Communications Commission's interpretation of key statutory terms in the Telephone Consumer Protection Act, a chiropractic group contended Monday in calling on the U.S. Supreme Court to revive a junk fax class action.
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November 19, 2024
Dell, Iron Bow To Pay $4.3M To End Army Overcharge Claims
Dell Technologies and Iron Bow Technologies have agreed to collectively pay more than $4.3 million to resolve allegations they orchestrated a scheme to overcharge the U.S. Army by submitting noncompetitive bids for a computing contract, the U.S. Department of Justice announced Tuesday.
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November 19, 2024
11th Circ. Weighs Whether Tornado Cash Sanctions Overreach
An Eleventh Circuit panel on Tuesday dove deep into the mechanisms of cryptocurrency mixing service Tornado Cash as the judges weighed whether government sanctions intended to curb illicit finance on the protocol are permitted under the law.
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November 19, 2024
Calif. Judge Says Crypto DAOs Are Entities That Can Be Sued
A California federal judge has held that decentralized autonomous organizations and their governing members can indeed be sued, refusing to throw out a Golden State cryptocurrency investor's suit against Lido DAO that the judge said presents "several new and important questions" about liability in the crypto world.
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November 19, 2024
10th Circ. Mulls Constitutional Challenge To Securities Orgs
A three-judge panel of the Tenth Circuit on Tuesday heard arguments in a case challenging the constitutionality of the nation's largest securities clearing organizations, with the judges weighing whether they should stop the organizations from acting against a broker-dealer while the case is ongoing.
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November 19, 2024
Online Lenders, Contractor Face Service Members' Fraud Suit
California-based contractor Multitaskr Construction Inc. and several online lending companies were hit with a consumer lawsuit in California federal court alleging they conspired to originate lucrative fraudulent loans for home improvement projects that were never completed.
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November 19, 2024
CFPB's Medical Debt Guidance Faces Industry Injunction Bid
Debt collectors asked a D.C. federal court on Monday to put an immediate hold on recent Consumer Financial Protection Bureau guidance aimed at the medical debt collection market, escalating their challenge to the document ahead of its looming effective date.
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November 19, 2024
Ex-Fed Examiner Cops To Insider Trading, Settles With SEC
A former senior banking supervisor with the Federal Reserve Bank of Richmond pled guilty Tuesday in Virginia federal court to insider trading, the same day he resolved the U.S. Securities and Exchange Commission's claims accusing him of inappropriately trading in shares of New York Community Bancorp and Capital One Financial Corp.
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November 19, 2024
Jury To Decide If Gemini's Bitcoin Statements Were False
A New York federal judge has found that crypto exchange Gemini Trust Co. was the "maker" of alleged misrepresentations to the Commodity Futures Trading Commission about its plans to offer bitcoin futures contracts, but a jury will have to decide if the statements were materially false or misleading.
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November 19, 2024
New Jersey County Sues News Outlets Over Legal Ad Rules
A New Jersey county is suing two Garden State newspapers to change a state law requiring legal notices be published in a print newspaper, contending the requirement will be impossible to meet as news outlets shut down or transition to digital only.
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November 19, 2024
SEC's $196M Win Revived After Judge Fixes 'Scrivener's Error'
A Florida federal judge has granted a $196 million judgment against a group of fraudsters to the U.S. Securities and Exchange Commission after fixing what he called a "scrivener's error" in the original order that caused the Eleventh Circuit to overturn a part of the award in September.
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November 19, 2024
Loper Bright Can't Save DTE Safety Appeal, Mich. Court Says
A Michigan appellate court was not persuaded by an energy company's invocation of the demise of the Chevron agency-deference doctrine, affirming on Monday a safety citation issued to the company after an employee's death and ruling that the state never followed Chevron deference anyway.
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November 19, 2024
Trump DOT Pick Puts Highway, Road Rebuilds Back In Focus
President-elect Donald Trump's selection of former Wisconsin congressman Sean Duffy to serve as his secretary of transportation would send a savvy communicator to liaise with Capitol Hill and refocus the federal government's infrastructure investment priorities more on highways, roads and bridges and less on renewables and clean-energy initiatives, experts say.
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November 19, 2024
Alaska Airlines Fights Emergency 9th Circ. Bid To Halt Merger
Alaska Airlines has urged the Ninth Circuit not to grant an emergency motion blocking its $1.9 billion acquisition of Hawaiian Airlines, saying the request was filed by flyers and travel agents "without an emergency" after they waited for four months to try to enjoin the airlines from merging.
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November 19, 2024
AI School Tech Founder Stole $10M From Investors, DOJ Says
The founder of AllHere Education Inc., a startup venture that sold artificial intelligence-powered chatbots to schools, is charged with fleecing investors out of nearly $10 million by lying about the company's revenue and using some of the money to pay for her wedding and a house, New York federal prosecutors announced Tuesday.
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November 19, 2024
EEOC Says SkyWest Left Harassment Questions 'Unasked'
The Equal Employment Opportunity Commission told jurors Tuesday to "look at the questions" SkyWest Airlines didn't ask when an employee told the company she was experiencing persistent sexual harassment and that the company should've responded sooner.
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November 19, 2024
32 State AGs Urge Congress To Back Kids' Online Safety Bill
More than 30 state attorneys general urged federal lawmakers to back bipartisan legislation aimed at bolstering youth safety online, writing a letter Monday encouraging Congress to "act to aid our state-level efforts" which included opening investigations and commencing with litigation against social media companies like TikTok and Meta.
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November 19, 2024
Ill. Makes $1.8M Staffing Antitrust Deal After High Court Input
Illinois Attorney General Kwame Raoul on Tuesday announced a $1.8 million settlement with one of three staffing agencies the state accused of unlawfully agreeing not to poach each other's employees and to offer below-market wages to those assigned to work for a client they shared.
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November 19, 2024
Feds Defend BLM Authority In States' Methane Rule Challenge
The Biden administration has urged a North Dakota federal court to grant it a summary judgment win in five states' lawsuit challenging a new rule aimed at cracking down on natural gas waste, defending the rule's creation as being well within the Bureau of Land Management's statutory authority.
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November 19, 2024
DOJ Effort To Force Google Chrome Sale Draws Criticism
Google's regulatory chief and at least one trade group are blasting a reported push from the U.S. Department of Justice to seek expansive remedies and potentially force a sale of Google Chrome in an ongoing court battle with the tech giant.
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November 19, 2024
Advertisers Fight Google's Arbitration Bid In Ad Tech MDL
A pair of advertisers seeking to represent a class in multidistrict litigation accusing Google of monopolizing key digital ad technology are fighting a bid to push their claims to arbitration, arguing Google's arbitration agreements are unenforceable.
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November 19, 2024
Senators Blast Visa And Mastercard, Promise Action On Fees
A bipartisan group of Senate Judiciary Committee members blasted executives from Visa and Mastercard on Tuesday over swipe fees charged to merchants, promising to rein in what the lawmakers called the companies' monopoly on credit card payments if they do not change their practices.
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November 19, 2024
LA Waterkeeper Sues Union Pacific Over Pollution Controls
The Los Angeles Waterkeeper slapped Union Pacific Railroad Co. with a complaint in California federal court, alleging the company's failure to implement pollution controls at four industrial facilities has led to hazardous discharges of heavy metals and oils into the San Jose Creek, San Gabriel River and other bodies of water.
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November 19, 2024
'Survivor' Winner Needs To Pay $3.3M Tax Bill, Judge Advises
The winner of the "Survivor" television series who evaded taxes on his $1 million in prize money and served time in prison should pay $3.3 million of his civil liabilities, including fraud penalties, a federal magistrate judge said.
Expert Analysis
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Reassessing Lease Provisions To Account For ESG Initiatives
As companies seek to build ESG considerations into their businesses, it's crucial to understand how such initiatives can quickly become significant enough to compel reassessment of lease agreement provisions, and how best to modify leases accordingly, say Julian Freeman and Gabe Pitassi at Cox Castle.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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Integrating ESG Into Risk Management Programs
Amid increasing regulations and reporting requirements for corporate sustainability in the European Union and the U.S., companies might consider how to incorporate environmental, social and governance factors into more formalized risk management, say directors at Alvarez & Marsal.
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Exploring Practical Employer Alternatives To Noncompetes
With the Federal Trade Commission likely to appeal a federal court’s recent rejection of its noncompete ban, and more states limiting the enforceability of these agreements, employers should consider back-to-basics methods for protecting their business interests and safeguarding sensitive information, says Brendan Horgan at FordHarrison.
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How Increased Sanctions Scrutiny Is Affecting Debt Markets
U.S. sanctions and export control regulators have recently taken several steps that broaden financial sector oversight, and banks, lenders and borrowers must adapt their syndication and risk assessment processes in different ways or risk incurring substantial penalties, say Cristina Brayton-Lewis and Kerrick Seay at White & Case.
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What The SEC Liquidity Risk Management Amendments Entail
Fund managers should be cognizant of the U.S. Security and Exchange Commission's recent changes to certain reporting requirements and guidance related to open-end fund liquidity risk management programs, and update their filing systems if need be, says Rachael Schwartz at Sullivan & Worcester.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.
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Avoid Getting Burned By Agencies' Solar Financing Spotlight
Recently coordinated reports and advisories from the U.S. Department of the Treasury, the Consumer Financial Protection Bureau and the Federal Trade Commission maximize the spotlight on the consumer solar financing market and highlight pitfalls for lenders to avoid in this burgeoning field, says Mercedes Tunstall at Cadwalader.
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Service Agreement Lessons From July's Global Tech Outage
The worldwide outages recently caused by Crowdstrike Holdings' misconfigured software update highlight the need to evaluate potential IT vendors, negotiate certain service agreement terms, and review existing agreements and diligence forms to help prevent future disruptions and mitigate the fallout should one occur, say attorneys at WilmerHale.
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Vertex Suit Highlights Issues For Pharma Fertility Support
Vertex Pharmaceuticals' recent lawsuit challenging the U.S. Department of Health and Human Services' interpretation of the Anti-Kickback Statute is influenced by a number of reproductive rights and health equity issues that the Office of Inspector General should address more concretely, including in vitro fertilization and fertility preservation programs, says Mary Kohler at Kohler Health Law.
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Calif. Bill, NTIA Report Illustrate Open-Model AI Safety Debate
The National Telecommunications and Information Administration’s balanced recommendations for preventing misuse of open artificial intelligence models, contrasted with a more aggressive California bill, demonstrate an evolving regulatory debate about balancing democratic access to this powerful new technology against potential risks to the public, say Stuart Meyer and Fredrick Tsang at Fenwick.
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5 Lessons From Consulting Firm's Successful DOJ Disclosure
The Boston Consulting Group recently received a rare declination of prosecution from the U.S. Department of Justice after self-disclosing a foreign bribery scheme, and the firm’s series of savvy steps after discovering the misconduct provides useful data points for white collar defense attorneys, says Jonathan Porter at Husch Blackwell.
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What To Know About Ill. Employment Law Changes
Illinois employers should review their policies in light of a number of recent changes to state employment law, including amendments to the state’s Human Rights Act and modifications to the Day and Temporary Labor Services Act, say attorneys at Kilpatrick.
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'Greenhushing': Why Some Cos. Are Keeping Quiet On ESG
A wave of ESG-related litigation and regulations have led some companies to retreat altogether from any public statements about their ESG goals, a trend known as "greenhushing" that was at the center of a recent D.C. court decision involving Coca-Cola, say Gonzalo Mon and Katie Rogers at Kelley Drye.
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Complying With FTC's Final Rule On Sham Online Reviews
The Federal Trade Commission's final rule on deceptive acts and practices in online reviews and testimonials is effective Oct. 21, and some practice tips can help businesses avert noncompliance risks, say Airina Rodrigues and Jonathan Sandler at Brownstein Hyatt.