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Consumer Protection
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November 07, 2024
Fed Chair Powell Says He Won't Step Down If Trump Asks
Federal Reserve Chair Jerome Powell said Thursday that he would not step down from his role if President-elect Donald Trump asked him to, doubling down on his commitment to serving out the remaining two years of his appointment leading the central bank.
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November 07, 2024
Pencils Down On Controversial Regs, GOP Rep Tells FCC
The House Commerce Committee's Republican chair called on the Federal Communications Commission to halt any plans for new rules that could pass only along partisan lines, which she says is in keeping with past presidential transitions.
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November 07, 2024
Colo. Says Man Sold $3M In Unregistered Securities
Colorado securities regulators filed a lawsuit in state court alleging a man sold more than $3 million of unregistered securities to investors, many of them friends, students or women he met through dating apps, while withholding important information or misrepresenting the investments.
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November 07, 2024
Navy Federal Inks $95M Settlement Of CFPB Overdraft Claims
Navy Federal Credit Union on Thursday agreed to refund more than $80 million to its members and pay a $15 million civil penalty to the Consumer Financial Protection Bureau to settle allegations that it charged illegal "surprise" overdraft fees.
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November 07, 2024
Eye Drop Maker To Pay $3.6M To Settle Class Claims
A maker of homeopathic eye drops has agreed to pay nearly $3.6 million to settle claims its products are being sold as drugs without U.S. Food and Drug Administration approval and don't meet manufacturing safety standards, according to a preliminary settlement agreement filed Wednesday.
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November 07, 2024
Same PBM Conduct Means Same Insulin Price Trial, FTC Says
Federal Trade Commission staffers want Caremark Rx, Express Scripts and OptumRx kept together in a single in-house case accusing the pharmacy benefit managers of artificially inflating insulin prices through unfair rebate schemes, arguing they are all "accused of violating the same laws by engaging in the same type of conduct."
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November 07, 2024
Attys For Solar Co. Ex-CEO Should Be DQ'd, Plaintiffs Say
The lawyers representing the former CEO of a bankrupt solar energy company should be disqualified, attorneys for the plaintiffs in a suit against him said Wednesday, arguing that the firm had multiple conflicts of interest with its work as in-house counsel for the solar energy company and was intentionally delaying discovery because of its "obvious web of conflicting obligations."
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November 07, 2024
Sirius XM Flags Evidence Of Disruption From FCC Plan
Sirius XM Radio is telling the Federal Communications Commission that Apple, Broadcom, Google and Meta have been too dismissive of its concerns about allowing outdoor use of virtual reality headsets and other very low power devices on the low-7 gigahertz band, urging the commission to protect its service from interference.
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November 07, 2024
Canada's Competition Bureau Seeks Dye & Durham Docs
Canada's Competition Bureau announced Thursday that it obtained a court order to gather information and advance an ongoing investigation into alleged anti-competitive conduct by legal technology company Dye & Durham Ltd., which has been scrutinized over the past year by activist investors and other national regulatory bodies.
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November 07, 2024
Calif. Gov. Lays Groundwork To Fight Trump Policies In Court
California Gov. Gavin Newsom called a special legislative session on Thursday to fund litigation against President-elect Donald Trump's potential erosion of abortion rights, immigration protections and environmental progress, saying lawyers for the blue state have already begun preparing "to challenge in court unconstitutional and unlawful federal policies."
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November 07, 2024
Louisiana Says EPA Usurped State Power In Pollution Row
The state of Louisiana told the Fifth Circuit that the U.S. Environmental Protection Agency has no authority to invalidate a two-year compliance deadline extension the state granted to a neoprene manufacturer, which is being sued by the agency.
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November 07, 2024
Restore Engineer Certification For Broadband Maps, FCC Told
The Federal Communications Commission is thinking about removing a requirement that all submissions to its Broadband Data Collection come certified by a professional engineer, but the Rural Wireless Association thinks that's a mistake.
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November 07, 2024
Ex-GE Affiliate Cleared In Bellwether Chemical Leak Verdict
A Louisiana jury has cleared General Electric Co. and former subsidiary Dresser LLC of liability in a bellwether suit over allegations that they improperly disposed of chemicals that contaminated the Rapides Parish area.
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November 07, 2024
Investors Want Final Approval Of $3.6M Global Payments Deal
Investors asked a Georgia federal judge on Wednesday to give final approval to a $3.6 million deal settling their class action alleging a subsidiary of Atlanta-based Global Payments Inc. "tricked" consumers into signing up for a program that had undisclosed fees.
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November 07, 2024
Former Delaware DOJ Attorney Joins Chancery As Magistrate
Delaware's judiciary announced this week that a former Young Conaway Stargatt & Taylor LLP attorney who also previously worked for the state's Department of Justice has been appointed to serve as a magistrate in the Chancery Court.
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November 06, 2024
Trump's SEC Expected To See 'Dramatic' Enforcement Change
Former President Donald Trump's reelection means a notable shift in the types of cases the U.S. Securities and Exchange Commission is expected to bring, attorneys said Wednesday at a Washington, D.C., conference, while the agency's current top enforcer vowed business as usual for now as it carries on with its well over 1,500 investigations.
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November 06, 2024
FTC Pushes For Amazon Docs In Antitrust Case
The Federal Trade Commission on Tuesday urged a federal court in Seattle to make Amazon hand over documents in the agency's monopolization case against the e-commerce giant, saying its discovery requests aren't unduly burdensome given the breadth of Amazon's alleged anticompetitive conduct.
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November 06, 2024
FTC Slams AI-Enabled Review Site Over 'Inflated' Ratings
Consumer review platform Sitejabber has agreed to stop misrepresenting that its content comes from individuals who have already received the rated product in order to resolve the Federal Trade Commission's claims that this conduct led to the inflation of average metrics on its site, the agency said Wednesday.
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November 06, 2024
Intel Accused Of Touting 'Defective' Raptor Lake Processors
Intel has continued to promote the purported speed and performance of its "defective" 13th and 14th generation desktop processors, which go by the code name Raptor Lake, according to a proposed class action filed Tuesday in California federal court.
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November 06, 2024
Danone Beats Suit Alleging Microplastics In Evian, For Now
An Illinois federal judge on Tuesday granted Danone Waters of America's request to dismiss a putative class action accusing the Evian-maker of violating Illinois and California state consumer fraud statutes by labeling its spring water as "natural" even though the product contains microplastics, finding the claims are preempted by federal law.
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November 06, 2024
FTX Exec Looks To Avoid Prison For 'Smallest Share' Of Crime
Former FTX technology chief Zixiao "Gary" Wang on Wednesday asked a Manhattan federal judge not to give him prison time for his part in the $11.2 billion fraud case, calling himself "the one who stands convicted of the smallest share of misconduct" among former CEO Sam Bankman-Fried's lieutenants.
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November 06, 2024
LGBcoin Trustee Can't Get SEC Subpoena Stayed Amid Appeal
A hedge fund manager associated with the political-meme-inspired digital asset LGBcoin can't get an administrative subpoena from the U.S. Securities and Exchange Commission stayed while he seeks an appeal, a Miami federal judge has decided.
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November 06, 2024
Nike False Ad Claims In StockX TM Fight Must Go, Judge Told
Online resale marketplace StockX has asked a New York federal judge to end Nike's counterfeiting and false advertising claims, saying that StockX has actually prevented the sale of millions of suspected counterfeits and that "Nike strains credulity when it claims StockX is a willful counterfeiter."
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November 06, 2024
Natera Declared 'War' On Guardant, Jury Told At Trial's Start
Guardant on Wednesday told a California federal jury during opening statements in its false advertising lawsuit that rival Natera saw Guardant's competing colorectal cancer detection test as "an existential threat" and declared "war" while Natera maintained that its ads to doctors comparing the tests were meant "to educate, not deceive."
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November 06, 2024
SEC Moves To Ax Key Defenses In Kraken Crypto Fraud Row
The U.S. Securities and Exchange Commission has urged a California federal court to ax three of crypto exchange Kraken's defenses in a case alleging it violated securities laws by offering crypto assets without proper registration, arguing that the court has already rejected Kraken's claims that the agency lacks authority to bring the case and that existing law is too vague.
Expert Analysis
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DOJ Must Overcome Hurdles In RealPage Antitrust Case
The U.S. Department of Justice's recent claims that RealPage's pricing software violates the Sherman Act mark a creative, and apparently contradictory, shift in the agency's approach to algorithmic price-fixing that will face several key challenges, say attorneys at Clifford Chance.
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What To Know About CFPB Stance On Confidentiality Terms
A recent circular from the Consumer Financial Protection Bureau represents a growing effort across government agencies to address overbroad confidentiality agreements, and gives employers insight into the bureau's perspective on the issue as it relates to the Consumer Financial Protection Act, say Holly Williamson and Elizabeth King at Hunton.
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Opinion
3rd. Circ. Got It Right On Cancer Warning Claims Preemption
The Third Circuit's recent, eminently sensible ruling in a failure-to-warn case against Roundup manufacturer Monsanto, holding that the Federal Insecticide, Fungicide and Rodenticide Act preempts state law claims, provides a road map that other courts should adopt, says Lawrence Ebner at the Atlantic Legal Foundation.
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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Finding Coverage For Online Retail Privacy Class Actions
Following recent court rulings interpreting state invasion of privacy and electronic surveillance statutes triggering a surge in the filing of privacy class actions against online retailers, companies should examine their various insurance policies, including E&O and D&O, for defense coverage of these claims, says Alison Gaske at Gilbert LLP.
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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.