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Consumer Protection
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December 19, 2024
Chicken Soup Settles $3.1M Pet Food Feud Wth Alphia
Chicken Soup for the Pet Lover's Soul Inc. has settled a Connecticut lawsuit that accused it of breaching a deal with a manufacturer to buy more than 1.3 million pounds of pet food every month between October 2023 and September 2024, state court records show.
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December 19, 2024
Kia Telluride Owners Allege Brake Defect In Proposed Action
Telluride SUV owners told a California federal judge Tuesday Kia America Inc. knowingly sold 2020-2024 models of the vehicles with faulty brakes, putting them at significant risk.
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December 19, 2024
Chemours, DuPont Say New Info Undermines Class Cert.
The Chemours Co. FC LLC and EIDP Inc. are asking a North Carolina federal judge to decertify classes in a consolidated suit alleging that they knew about PFAS leaks into their water systems, saying information that's come to light since the certification disqualifies the named plaintiffs from representing the class and undermines the alleged common proof of their claims.
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December 19, 2024
Tencent Removes 2 Epic Directors Following DOJ Scrutiny
Two Epic Games directors appointed by Tencent Holdings are stepping down from Epic's board after the U.S. Department of Justice said their positions could constitute antitrust law violations, the agency has announced.
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December 19, 2024
Philips CPAP Suits Against SoClean Tossed From MDLs
A Pennsylvania federal judge has tossed two complaints from Philips RS North America against SoClean Inc. from multidistrict litigation stemming from a CPAP machine recall, saying one would disrupt the wrap-up of the MDL surrounding Philips' products, while the other should not have been filed directly into the SoClean MDL.
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December 18, 2024
Split 9th Circ. Backs 46-Month Prison Term For Stock Pumper
A divided Ninth Circuit on Wednesday affirmed a 46-month sentence for a Canadian man convicted of securities fraud in a pump-and-dump scheme involving a cannabis and gaming company, rejecting his argument that the lower court erred by calculating "intended loss" to enhance his sentence, since circuit precedent recognizes both actual and intended losses.
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December 18, 2024
OCC Orders 'Comprehensive' Remedial Action For USAA Bank
The Office of the Comptroller of the Currency on Wednesday hit USAA Federal Savings Bank with curbs on new product additions and membership growth as part of a fresh consent order that follows prior enforcement actions against the military-focused bank.
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December 18, 2024
Acima Says CFPB's 'Baseless' Power-Grab Suit Must Go
Rent-A-Center affiliate Acima has urged a Utah federal judge to throw out a Consumer Financial Protection Bureau lawsuit accusing the lease-to-own fintech company of predatory lending practices, arguing that the agency has an unconstitutional funding mechanism and lacks the authority to regulate lease-to-own businesses, among other things.
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December 18, 2024
Schools Fighting Price-Fixing Suit Face $685M Damages Claim
Students looking to hold a group of elite universities and colleges liable for an allegedly anticompetitive financial aid fixing scheme say they should be allowed to proceed as a class because they'll use common evidence to prove they suffered about $685 million in damages.
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December 18, 2024
Monsanto Protests DNA Damage Argument In PCB Closings
An attorney in a toxic tort against Monsanto drew a sustained objection from the company's defense during closings Wednesday as he attempted to argue that some of the young girls allegedly exposed to PCBs "will give birth to children with altered DNA," as counsel sparred over whether the plaintiffs suffered "generational harm."
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December 18, 2024
Funding Bill Takes In Broadband, Ticketing, Privacy
A congressional spending package that would fund the federal government through March is set to include a slew of bipartisan proposals aimed at digital security, online pricing transparency and rural broadband access.
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December 18, 2024
LA Dodgers Must Face Disabled Fan's ADA Suit
A California federal judge has refused to end a Los Angeles Dodgers gamegoer's negligence suit alleging he fell and hurt himself after being denied permission to bring his cane into the stadium, finding Tuesday that the purported denial exposed the man, who had to use stairs without handrails, to an unreasonable risk of harm.
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December 18, 2024
State AGs, Generic Cos. Fight Over Price-Fixing Trial Order
A contingent of state-level enforcers told a Connecticut federal court there is no need to reconsider prioritizing a sprawling generic drug price-fixing case that involves more than 100 medications over a narrower case the drugmakers are asking to have tried first.
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December 18, 2024
DOJ Wants Misconduct Allegations Hushed In Used Car Case
The U.S. Department of Justice wants to bar defendants accused of violently controlling the cross-border transport of American used cars into Central America from raising accusations of misconduct by nonwitness law enforcement officers to the jury without prior approval from the Texas federal judge overseeing the case.
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December 18, 2024
11th Circ. Doubtful Of FCC's Marketing Consent Clampdown
Eleventh Circuit judges appeared skeptical Wednesday of the Federal Communications Commission's legal justification for a marketing rule that requires selecting businesses on an individual basis through comparison shopping sites before the businesses can reach out to consumers.
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December 18, 2024
Judge Wants To Know If Colo. Kroger Merger Fight Is Moot
A Colorado state judge wants to know whether two recent decisions blocking the proposed $24.6 billion merger of The Kroger Co. and Albertsons Cos. Inc. has mooted Attorney General Phillip J. Weiser's challenge to the transaction, according to a briefing plan approved Tuesday.
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December 18, 2024
Family Dollar Sues Supplier Over Cable That Burned Buyer
Family Dollar Services LLC is suing one of its suppliers, alleging that it sold the retail chain a faulty lightning charger cord that malfunctioned and burned a minor who was using it.
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December 18, 2024
CVS Fueled Opioid Epidemic In Rush For Profits, Feds Say
The U.S. Department of Justice unveiled a suit Wednesday accusing CVS, the nation's largest pharmacy chain, of knowingly filling invalid prescriptions for powerful opioids and ignoring internal pleas from its pharmacists as it allegedly put profits over safety.
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December 18, 2024
Conn. AG Can't Close Courtroom In Ghost Gun Hearing
A Connecticut state judge won't close the courtroom for a damages hearing in a suit by the state against an online shop selling so-called ghost gun kits, saying the public's interest in the facts of the case outweighs the state's concerns about an undercover investigator's safety.
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December 18, 2024
FTC Wants Express Scripts' Defamation Suit Tossed
The Federal Trade Commission told a Missouri federal court that Express Scripts Inc. has no basis to challenge an interim agency report that only offered "qualified conclusions" from an ongoing study about how pharmacy benefit managers affect prescription drug prices.
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December 18, 2024
Congress Passes $3B Funding For FCC's 'Rip And Replace'
The U.S. Senate cleared legislation Wednesday to fully fund the Federal Communications Commission's "rip and replace" telecom security program to the tune of $3.08 billion as part of a sweeping defense spending authorization.
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December 18, 2024
Mobile Game Co. Can Arbitrate False Advertising Claims
A Manhattan federal judge said mobile game maker Papaya Gaming can arbitrate claims it misleadingly represents that users can compete with other live people, ruling that the terms of use contained valid arbitration clauses.
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December 18, 2024
RJ Reynolds Asks Justices To Toss Forum Shopping Argument
R.J. Reynolds Vapor Co. is urging the U.S. Supreme Court to reject the U.S. Food and Drug Administration's argument that the vape company engaged in forum shopping when it challenged denial of one of its applications in the Fifth Circuit, saying its Texas- and Mississippi-based co-petitioners make the Fifth Circuit the proper venue.
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December 18, 2024
Connecticut AG Gets Remand Of 'Forever Chemicals' Suit
A Connecticut federal judge has shipped one of the state's PFAS "forever chemicals" lawsuits back to state court, siding with the state attorney general's argument that the case targeted pollution from consumer products and civilian industrial sources that were not "inextricably commingled" with chemicals produced to military specifications.
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December 18, 2024
Hagens Berman Says Apple, Amazon Doc Demand Is Off Base
Hagens Berman Sobol Shapiro LLP is firing back against Apple and Amazon's bid to force the turnover of texts and emails with a client who disappeared from a putative class action against the tech giants, calling the spat an opportunistic attack "based on a fiction."
Expert Analysis
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5 Ways To Confront Courtroom Technology Challenges
Recent cybersecurity incidents highlight the vulnerabilities of our reliance on digital infrastructure, meaning attorneys must be prepared to navigate technological obstacles inside the courtroom, including those related to data security, presentation hardware, video playback and more, says Adam Bloomberg at IMS Legal Strategies.
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The State Law Landscape After Justices' Social Media Ruling
Following the U.S. Supreme Court’s recent NetChoice ruling on social media platforms’ First Amendment rights, it’s still unclear if state content moderation laws are constitutional, leaving online operators to face a patchwork of regulation, and the potential for the issue to return to the high court, say attorneys at Crowell & Moring.
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Navigating New Enforcement Scrutiny Of 'AI Washing'
The U.S. Securities and Exchange Commission's recent lawsuit against Joonko Diversity, its first public AI-focused enforcement action against a private company, underscores the importance of applying the same internal legal and compliance rigor to AI-related claims as other market-facing statements, say attorneys at Fried Frank.
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What's Next For Federal Preemption In Financial Services
The Office of the Comptroller of the Currency's review of its preemption interpretations and growing pressure from state regulators signal potential changes ahead for preemption in U.S. financial services, and the path forward will likely involve a reevaluation of the entire framework, say attorneys at Clark Hill.
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Employer Arbitration Lessons From Calif. Consumer Ruling
Although a California state appeals court’s recent arbitration ruling in Mahram v. Kroger involved a consumer transaction, the finding that the arbitration agreement at issue did not apply to a third-party beneficiary could influence how employment arbitration agreements are interpreted, says Sander van der Heide at CDF Labor Law.
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Unpacking Jurisdiction Issues In 3rd Circ. Arbitration Ruling
The Third Circuit's recent ruling in George v. Rushmore Service Center could be interpreted to establish three principles regarding district courts' jurisdiction to enter arbitration-related orders under the Federal Arbitration Act, two of which may lead to confusion, says David Cinotti at Pashman Stein.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.
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'Pig Butchering': The Scam That Exploits Crypto Confusion
Certain red flags can tip off banks to possible "pig-butchering," and with the scam's increasing popularity, financial institutions need to take action to monitor entry points into the crypto space, detect suspicious activity and provide a necessary backstop to protect customers, say Brandon Essig and Mary Parrish McCracken at Lightfoot Franklin.
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Opinion
Agencies Should Reward Corporate Cyber Victim Cooperation
The increased regulatory scrutiny on corporate victims of cyberattacks — exemplified by the U.S. Securities and Exchange Commission's case against SolarWinds — should be replaced with a new model that provides adequate incentives for companies to come forward proactively and collaborate with law enforcement, say attorneys at McDermott.
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How Transaction Lookbacks Can Guide Fintech Companies
As transaction lookbacks continue to be a key focus of enforcement actions, newer financial institutions like fintech companies should know they can benefit from proactively investigating their potential failure to identify suspicious activity, creating a compliance road map and building trust with regulators in the process, say attorneys at Jenner & Block.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.
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Opinion
CFPB's AI Stance Backslides On Innovation Issues
The Consumer Financial Protection Bureau's recent response to a Treasury Department's request for information about artificial intelligence in the financial services sector uses alarmist rhetoric about the technology's risks, ceding an opportunity to help shape this important discussion, says Mike Silver at Husch Blackwell.
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How Ripple Final Judgment Fits In Broader Crypto Landscape
The Southern District of New York's recent $125 million civil penalty levied in U.S. Securities and Exchange Commission v. Ripple will have a broad impact on the crypto industry as it was the first to hold that blind sales of digital assets are not securities, even if deemed securities in other circumstances, say attorneys at BakerHostetler.
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5 Tips To Succeed In A Master Of Laws Program And Beyond
As lawyers and recent law school graduates begin their Master of Laws coursework across the country, they should keep a few pointers in mind to get the most out of their programs and kick-start successful careers in their practice areas, says Kelley Miller at Reed Smith.
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The Bank Preemption Ripple Effects After Cantero, Flagstar
The importance of federal preemption for financial institutions will only increase as technology-driven innovations evolve, which is why the U.S. Supreme Court's recent decision in Cantero v. Bank of America and vacatur of Kivett v. Flagstar Bank have real modern-day significance for national banks, say attorneys at WilmerHale.