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Consumer Protection
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July 12, 2024
FCC Warns NY Landowners To Shut Down Pirate Radio
The Federal Communications Commission has warned more than a dozen landowners in metro New York to shut down pirate radio broadcasting from their properties or face fines up to nearly $2.4 million.
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July 12, 2024
Citigroup Wants Racial-Bias Lawsuit Over ATM Fees Tossed
Citigroup has asked a Florida federal judge to dismiss a racial discrimination lawsuit that claims the bank violated federal civil rights laws by waiving ATM fees for customers of minority-owned banks, saying the plaintiffs have failed to plead an injury that is traceable to the alleged misconduct.
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July 12, 2024
Delta Slams Flyers' Facebook Data Sharing Class Action
Delta Air Lines has asked a California federal judge to dump a proposed class action alleging it unlawfully shared customers' sensitive personal data with Meta's Facebook through online tracking tools embedded in its website, saying its contract of carriage clearly discloses its digital advertising practices.
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July 12, 2024
Judge Questions Zuckerberg's Bid To Dodge Liability In MDL
A California federal judge voiced doubt Friday about Meta CEO Mark Zuckerberg's arguments for axing corporate-officer liability claims from multidistrict litigation over the allegedly addictive designs of social media, saying that while many CEOs are hands-off, "it's not clear to me that Mr. Zuckerberg is one of them."
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July 12, 2024
Steris Infringing 'AST' Trademark, Medical Equipment Co. Says
Medical supply company Steris Corp. is allegedly infringing the "AST" trademark of a Washington engineering and medical equipment firm, according to a complaint filed Friday in Washington federal court.
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July 12, 2024
Chancery Tosses Centene Shareholders' Medicaid Fraud Suit
The Delaware Chancery Court on Friday dismissed a Centene stockholder derivative lawsuit seeking damages from company directors and officers over allegations of a multistate Medicaid pharmacy benefit billing fraud scheme that the investors said could result in a $1.25 billion liability for the healthcare giant.
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July 12, 2024
T-Mobile Wins Time To Defend Arb. Award In 'SIM Swap' Suit
T-Mobile USA has won more time to defend an arbitration award it won after a customer claimed that lax security measures caused him to lose nearly $240,000 in cryptocurrency, according to a Florida federal court order.
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July 12, 2024
FINRA's Remote Inspection Pilot Met With Praise, Caution
The Financial Industry Regulatory Authority's new pilot program for remote inspections of broker-dealers has earned praise from attorneys, who say the measures accommodate the reality of remote work routines, but they're waiting to see how the chips fall on questions including the adequacy of the regulator's data security measures.
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July 12, 2024
Biggest Washington Decisions Of 2024: A Midyear Report
The first half of 2024 in Washington courts was punctuated by a fizzled startup's $72 million trial win against The Boeing Co., and Monsanto Co.'s appellate reversal of a $185 million verdict in one of a series of high-profile PCB poisoning cases. Here is a closer look at some of the biggest decisions in Washington state and federal courts in the first half of 2024.
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July 12, 2024
Altice Says Conn. AG's 'Enhancement Fee' Suit Needs Details
Altice USA is asking for a more specific complaint in the state of Connecticut's illegal-fee lawsuit against the cable company, telling a state judge that the initial nine-page complaint is too vague to understand or respond to.
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July 12, 2024
AT&T Reveals Breach Of 'Nearly All' Users' Wireless Records
AT&T disclosed Friday that hackers had downloaded phone call and text message records belonging to "nearly all" the telecom giant's wireless customers at various times between May 2022 and early last year, although the company stressed that the breached data did not include the contents of these communications or appear to be publicly available.
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July 12, 2024
FTC Says Abandoned Novant Deal Moots Lower Court Loss
The Federal Trade Commission is looking to unravel a North Carolina federal judge's order allowing Novant's planned $320 million hospital merger to advance after it subsequently abandoned the deal, telling the Fourth Circuit the appeal is moot and the order should be vacated.
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July 12, 2024
Former City Treasurer Gets 30 Months In $1M Embezzlement
A former city treasurer in Alaska was sentenced to two and a half years in prison after having admitted to tax evasion and fraud in connection with a $1 million embezzlement scheme, according to Alaska federal court documents.
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July 12, 2024
Apple, Amazon Fight Over Class Terms In £500M Price Claim
A consumer advocate clashed in a London tribunal on Friday with Apple and Amazon over the terms of her £500 million ($649 million) class action that accuses them of inking a secret deal to limit independent sales of Apple's products.
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July 12, 2024
DraftKings' Voided NBA Bets Spark Lawsuit In Fed. Court
An Indiana man claiming he was cheated out of a $150,000 payday has sued DraftKings over its decision to void bets on an October NBA game, with the online betting giant moving the proposed class action to federal court this week.
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July 12, 2024
Ex-Magellan Execs Waive Conflicts Over Past Shared Counsel
Two former Magellan Diagnostics executives charged with conspiring to hide defects in the company's lead testing devices agreed on Friday to waive any potential conflict created by their prior joint representation by a Donnelly Conroy & Gelhaar LLP attorney.
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July 11, 2024
Sens. Say AI Fuels Need For Data Privacy Law But Fail To Act
Members of a key U.S. Senate committee Thursday largely agreed that companies' growing efforts to amass private information to fuel artificial intelligence technologies are accelerating the need for a federal data privacy framework, but they failed to make progress on a bipartisan proposal opposed by the committee's top Republican.
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July 11, 2024
Sens. Pitch COPIED Act To Fight AI-Content, Empower Artists
A bipartisan group of U.S. senators introduced legislation dubbed the COPIED Act on Thursday to fight the growth of AI-generated "deepfakes," proposing a framework that would give journalists and artists control over their work via a watermarking process and allow them to sue those who use their work without permission.
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July 11, 2024
TikTok's Bid For Users' Device Data Found Overbroad
A California federal magistrate judge overseeing discovery in multidistrict litigation over claims that social media is addictive denied TikTok's request Thursday for "full" forensic images of all personal devices bellwether plaintiffs used to access its platform, telling defense counsel that he's concerned about the "overbreadth" of the request and privacy issues.
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July 11, 2024
Tempur Sealy, Mattress Firm Blast FTC's Merger Challenge
Tempur Sealy and Mattress Firm fired back at the Federal Trade Commission's bid to block a proposed merger between the mattress companies, contending in separate filings that the FTC's ambiguous allegations require tossing the agency's administrative complaint.
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July 11, 2024
Kroger Asks To Delay At Least Part Of FTC Challenge
Kroger and Albertsons are asking an administrative law judge from the Federal Trade Commission to pause the evidentiary portion of the agency's in-house case against the supermarket giants' merger, saying the companies are facing too many overlapping cases in different venues to adequately prepare and present their case.
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July 11, 2024
Disney Beats Suit Over Post-Pandemic Park Pass Restrictions
A Florida federal judge Thursday tossed a lawsuit accusing Disney World of cheating customers who held pricey "Platinum" passes for its Sunshine State parks by imposing new restrictions on their use after the pandemic hit, saying the two women who sued could have canceled their passes and received a refund.
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July 11, 2024
Apple Ducks iPhone Web App Antitrust Suit, For Now
Consumers will have to rejigger their proposed antitrust class action alleging Apple anticompetitively prevents iPhones from running web-based apps that don't need to be downloaded, after a California federal judge said Thursday that they've failed to show a conspiracy or connect the dots from company rules to customer injury.
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July 11, 2024
Customers Want Domino's Kept In BIPA Voiceprint Suit
Domino's Pizza customers told an Illinois federal judge Wednesday that the chain's corporate parent should face their lawsuit over the state's biometric privacy law, saying Domino's can't shield itself given the "unusually high degree of control" it has over the subsidiaries that ultimately own the restaurants they ordered from.
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July 11, 2024
7th Circ. Revives CFPB's Lender Redlining Suit
The Consumer Financial Protection Bureau should be allowed to pursue claims that a mortgage lender illegally disparaged majority-Black neighborhoods, the Seventh Circuit said Thursday, finding the agency was empowered to enforce violations against prospective borrowers.
Expert Analysis
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Key FCC Enforcement Issues In AT&T Location Data Appeal
AT&T’s decision to challenge a $57 million fine from the Federal Communications Commission for its alleged treatment of customer location information highlights interesting and fundamental issues about the constitutionality of FCC enforcement, say Patrick O’Donnell and Jason Neal at HWG.
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Litigation Inspiration: Attys Can Be Heroic Like Olympians
Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.
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What To Know As CFPB Late Fee Rule Hangs In Limbo
Though the Consumer Financial Protection Bureau's final credit card late fee rule faces an uncertain future due to litigation involving injunctions, emergency petitions and now a venue dispute, card issuers must understand how to navigate the interim period and what to do if the rule takes effect, say attorneys at Steptoe.
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A Deep Dive Into The Evolving World Of ESG Ratings
Attorneys at Mintz discuss the salience of environmental, social and governance ratings in corporate circles in recent years, and consider certain methodologies underlying their calculation for professionals, as well as issues concerning the ESG ratings and products themselves.
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What TikTok's Race Against The Clock Teaches Chinese Firms
The Biden administration's recent divestiture deadline on TikTok parent ByteDance provides useful information for other China-based companies looking to do business in the U.S., including the need to keep products for each market separate and implement firewalls at the design stage, says Richard Lomuscio at Stinson.
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Updated Federal Rules Can Improve Product Liability MDLs
The recent amendment of a federal evidence rule regarding expert testimony and the proposal of a civil rule on managing early discovery in multidistrict legislation hold great promise for promoting the uniform and efficient processes that high-stakes product liability cases particularly need, say Alan Klein and William Heaston at Duane Morris.
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Lean Into The 'Great Restoration' To Retain Legal Talent
As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.
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Unlocking Blockchain Opportunities Amid Legal Uncertainty
Dozens of laws and legal precedents will come into the fore as Web3, metaverse and non-fungible tokens gain momentum, so organizations need to design their programs with a broader view of potential exposures — and opportunities, say Teresa Goody Guillén and Robert Musiala at BakerHostetler and Steve McNew at FTI Consulting.
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4 Ways Businesses Can Address Threat Of Mass Arbitration
Attorneys at DLA Piper examine the rise of mass arbitration in light of JAMS' new procedures and guidelines, and provide four steps e-commerce businesses can take when revising their dispute resolution provisions to maximize the chances those revisions will be held enforceable.
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The Uncertain Scope Of The First Financial Fair Access Laws
With Florida and Tennessee soon to roll out laws banning financial institutions from making decisions based on customer traits like political affiliation, national financial services providers should consider how broadly worded “fair access” laws from these and other conservative-leaning states may place new obligations on their business operations, say attorneys at Sullivan & Cromwell.
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Live Nation May Shake It Off In A Long Game With The DOJ
Don't expect a swift resolution in the U.S. Department of Justice's case against Live Nation, but a long litigation, with the company likely to represent itself as the creator of a competitive ecosystem, and the government faced with explaining how the ticketing giant formed under its watch, say Thomas Kliebhan and Taylor Hixon at GRSM50.
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Boeing Saga Underscores Need For Ethical Corporate Culture
In the wake of recent allegations about Boeing’s safety culture, and amid the U.S. Department of Justice’s new whistleblower incentives, business leaders should reinvigorate their emphasis on compliance by making clear that long-term profitability requires ethical business practices, says Maxwell Carr-Howard at Dentons.
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Debate Over CFPB Definition Of Credit Is Just Beginning
The Consumer Financial Protection Bureau has recently worked to expand the meaning of credit, so anyone operating on the edges of the credit markets, or even those who assumed they were safely outside the scope of this regulatory perimeter, should pay close attention as legal challenges to broad interpretations of the definition unfold, says John Coleman at Orrick.
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Why Jurors Balk At 'I Don't Recall' — And How To Respond
Jurors often react negatively to a witness who responds “I don’t remember” because they tend to hold erroneous beliefs about the nature of human memory, but attorneys can adopt a few strategies to mitigate the impact of these biases, say Steve Wood and Ava Hernández at Courtroom Sciences.
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How Federal And State Microfiber Pollution Policy Is Evolving
Growing efforts to address synthetic microfiber pollution may create compliance and litigation issues for businesses in the textile and apparel industries, so companies should track developing federal and state legislation and regulation in this space, and should consider associated greenwashing risks, says Arie Feltman-Frank at Jenner & Block.