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Consumer Protection
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December 11, 2024
Grocery Store Rulings Back Enforcers' Merger Approach
Federal and state enforcers scored key victories Tuesday with a pair of court rulings blocking the planned $24.6 billion merger between Kroger and Albertsons that largely adopted their allegations about the deal and rejected a proposal to unload nearly 600 stores to save it.
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December 11, 2024
Texas Sues 3M And DuPont Over Forever Chemicals
Texas launched a suit against 3M and DuPont for "misrepresentations and key omissions" the companies made about so-called forever chemicals, telling a state court on Wednesday that the companies lied to the public about the harmful chemicals for over 50 years.
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December 11, 2024
Dems, GOP Agree That China Cyberspying Is A Problem
For all their disagreements, Republicans and Democrats were largely singing the same tune Wednesday afternoon at a Senate hearing on the security of the nation's communications networks — that they're worried, and the government needs to get to work on a solution.
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December 11, 2024
Wyoming Defends Hemp Law At 10th Circ.
Wyoming's hemp law, which imposes new restrictions on hemp-derived THC and bans products with more than 0.3% THC, should continue uninterrupted, the state told the Tenth Circuit, saying the statute is neither unconstitutional nor preempted by federal law.
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December 11, 2024
Ga. Judge Refuses To Reconsider Toss Of Patient Data Suit
A Georgia federal judge has refused to reconsider the dismissal of a proposed class action alleging Piedmont Healthcare Inc. unlawfully shared patients' health data with Facebook via the company's tracking pixel tool.
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December 11, 2024
DOJ Tells Justices To Preserve Antitrust Probe Into NAR
The U.S. Department of Justice told the U.S. Supreme Court that it made no commitment not to reopen its investigation into the National Association of Realtors as part of its 2020 consent decree with the company, urging the justices to reject the association's bid for a day before the high court.
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December 11, 2024
High Court Bar's Future: Haynes Boone's Daniel Geyser
Daniel L. Geyser of Haynes and Boone LLP is an unconventional U.S. Supreme Court advocate in every respect, from the path he forged to become one of the high court's frequent arguers to the way he runs his current practice from more than half a country away from the nation's capital.
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December 11, 2024
Legal Ed Cos. Shared Customers' Data, Suit Claims
Two companies offering continuing legal and professional education content have been hit with a class action in Georgia federal court over allegations that they nonconsensually disclosed customers' identities and video viewing information to Meta Platforms Inc. for its advertisers' use.
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December 11, 2024
LA Fitness Fights To End DOJ's Gym Accessibility Suit
LA Fitness urged a California federal judge to toss the U.S. Department of Justice's civil enforcement lawsuit alleging the gym chain failed to accommodate patrons with disabilities at its nearly 700 locations across the country, arguing the lawsuit relies on "isolated" incidents and doesn't show "a pattern and practice."
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December 11, 2024
Mixed 5th Circ. Backs $14M Exxon Texas Air Pollution Fine
A mixed Fifth Circuit on Wednesday backed a $14 million fine against ExxonMobil Corp. over air pollution in southeast Texas, with a per curiam opinion stating the court wouldn't have reheard the case if it had known it would take more than 18 months to issue an opinion.
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December 11, 2024
Nigerians Impersonated US Brokers For $3M Scam, Feds Say
Three Nigerian nationals were charged on Wednesday with running a nearly $3 million internet investment fraud scheme in which they impersonated legitimate securities brokers and investment advisers, misappropriated the seal of the U.S. Securities and Exchange Commission and stole from at least 28 investors.
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December 11, 2024
Cross-Border Criminal Antitrust Trial Will Stay In Houston
A case against a group of defendants accused of using violence to monopolize the cross-border sale of used cars from the U.S. into Central America must stay in Houston, a federal judge ruled this week.
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December 11, 2024
Class Action Co. Will Reform Biz Practices, DC AG Says
A third-party class action claims filer will change its business practices to boost transparency as part of a settlement with Washington, D.C., enforcers, the state attorney general's office announced Wednesday.
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December 11, 2024
FCC Eases Some Credit Rules For Rural Broadband Funds
The Federal Communications Commission on Wednesday changed letter of credit requirements for broadband subsidy programs in order to make it easier for rural providers to access capital.
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December 11, 2024
Nippon Offers $5K Bonuses To Ease US Steel Deal Concerns
Nippon Steel Corp. has committed to providing $5,000 closing bonuses to employees of U.S. Steel in hopes of easing concerns about the controversial $14.9 billion merger between the two companies, which both the sitting and incoming president have said they oppose.
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December 11, 2024
Toyota Must Face 'Parasitic Drain' Claims, Ga. Judge Says
A proposed class action alleging that Toyota's RAV4 SUV suffers from a known defect that drains the car's battery while shut off was largely preserved Wednesday by a Georgia federal judge, who declined to dismiss all but one of the claims against the manufacturer.
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December 11, 2024
FCC Allows Full 6 GHz Band For Unlicensed Wireless Devices
The Federal Communications Commission on Wednesday opened two more slices of the 6 gigahertz airwaves to power unlicensed wireless uses ranging from augmented reality to body-worn technologies.
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December 11, 2024
3M Gets Georgia Man's $850M PFAS Remediation Bid Denied
A Georgia federal judge has shut down a proposed injunction requiring 3M Co. and other companies to pay $850 million for remediation of water sources in Dalton contaminated with per- and polyfluoroalkyl substances, saying the named plaintiff doesn't have standing to call for the remediation.
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December 11, 2024
CORRECTED: Jury Finds Poultry Co. Owes $10.5M For Bony Chicken
Pilgrim's Pride owes Washington-based grocery vendor Innovative Solutions Inc. $10.5 million for consumer protection and negligence claims, a federal jury said Wednesday, capping off a weeklong trial in which Innovative accused the poultry producer of selling it bony chicken that ultimately ruined a chicken burger deal with Trader Joe's. Correction: An earlier version of the story misstated the verdict amount. The error has been corrected.
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December 11, 2024
CFPB's Chopra Won't Head For Exit Ahead Of Trump's Arrival
Consumer Financial Protection Bureau Director Rohit Chopra signaled Wednesday that he won't leave his post early unless and until the incoming Trump administration fires him next month, indicating that he plans to keep running the agency in the meantime.
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December 11, 2024
Albertsons Sues Kroger In Chancery After Blocked Megadeal
Grocery giant Albertsons, in a Wednesday lawsuit in the Delaware Court of Chancery, said Kroger did not put forth its "best efforts" into getting their planned $24.6 billion megamerger cleared while also announcing official plans to nix the deal, moves that came just one day after two judges blocked the proposed acquisition.
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December 10, 2024
Major Food Cos. Push 'Addictive' Foods On Kids, Suit Says
The Kraft Heinz Co., Nestle USA, General Mills and other major food companies are putting profits above all else by making highly addictive ultra-processed foods and aggressively marketing the products to children, leading to skyrocketing levels of chronic disease, according to a lawsuit filed Tuesday in Philadelphia court.
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December 10, 2024
Feds Tell Justices To Stay Out Of Climate Change Tort Fights
U.S. Solicitor General Elizabeth Prelogar on Tuesday urged the U.S. Supreme Court not to weigh in on climate change torts filed against fossil fuel companies, arguing in a pair of briefs that the state court cases aren't the correct vehicles for resolving the issues, at least not yet.
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December 10, 2024
Robinhood Seeks Arb. For Remaining Meme Stock MDL Suits
Stock trading platform Robinhood urged a Florida federal court to send to arbitration the seven remaining individual suits brought against it as part of a multidistrict litigation over the platform's decision to freeze trading in certain so-called meme stocks amid a social-media fueled run on shares of those issuers.
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December 10, 2024
SEC Says Ex-Rep Defrauded Investors With Short-Term Bets
A former registered representative of broker-dealer Western International Securities Inc. has agreed to pay over $2.1 million to end U.S. Securities and Exchange Commission allegations he orchestrated a scheme to defraud retail clients by recommending costly investment strategies, and then covered up their "substantial" losses with phony financial statements.
Expert Analysis
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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California's AI Safety Bill Veto: The Path Forward
California Gov. Gavin Newsom's veto of a bill that sought to impose stringent regulations on advanced artificial intelligence model development has sparked a renewed debate on how best to balance innovation with safety in the rapidly evolving AI landscape, say Bobby Malhotra and Carson Swope at Winston & Strawn.
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Staying Off The CFPB's Financial Services Offender Registry
The Consumer Financial Protection Bureau's soon-to-launch registry of financial services companies that have faced public enforcement orders is designed to ratchet up long-term scrutiny of entities that could become repeat offenders, so companies should take their new compliance and filing requirements seriously, say Andrea Mitchell and Chris Napier at Mitchell Sandler.
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New TCPA Rule Faces Uncertain Future Post-Loper Bright
The Federal Communications Commission's new rule aiming to eliminate lead generators' use of unlawful robocalls is now in doubt with the U.S. Supreme Court's Loper Bright decision, and the Eleventh Circuit's Insurance Marketing Coalition v. FCC is poised to be a test case of the agency's ability to enforce the Telephone Consumer Protection Act post-Chevron, say attorneys at Baker McKenzie.
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To Report Or Not To Report Others' Export Control Violations
A recent Bureau of Industry and Security enforcement policy change grants cooperation credit to those that report violations of the Export Administration Regulations committed by others, but the benefits of doing so must be weighed against significant drawbacks, including the costs of preparing and submitting a report, says Megan Lew at Cravath.
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Earned Wage Access Laws Form A Prickly Policy Patchwork
Conflicting earned wage access laws across the country, including the Consumer Financial Protection Bureau's recently issued rule, mean providers must adopt a proactive compliance approach and adjust business models where needed, say attorneys at Sheppard Mullin.
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What FDIC Expansion Of Change In Bank Control Could Mean
A recent Federal Deposit Insurance Corp. proposal pertaining to the Change in Bank Control Act has the potential to create uncertainty around investments by mutual fund complexes in banking organizations, which represent a stable source of capital for the banking industry, say attorneys at Sullivan & Cromwell.
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HSR Amendments Intensify Merger Filing Burdens, Data Risk
The antitrust agencies' long-awaited changes to premerger notification rules under the Hart-Scott-Rodino Act stand to significantly increase the time and cost involved in preparing an initial HSR notification, and will require more proactive attention to data issues, says Andrew Szwez at FTI Technology.
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Deadline Extension Highlights PFAS Reporting Complexities
The U.S. Environmental Protection Agency's recent extension of reporting and recordkeeping timelines for per- and polyfluoroalkyl substances under the Toxic Substances Control Act offers relief to the regulated community, but the unprecedented volume of data required means that businesses must remain diligent in their data collection efforts, say attorneys at Alston & Bird.
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6th Circ. Preemption Ruling Adds Uncertainty For Car Cos.
Automakers and their suppliers need uniformity under the law to create sufficient scale and viable markets — but the Sixth Circuit's recent decision in Fenner v. General Motors creates more uncertainty around the question of when state law consumer claims related to violations of federal vehicle emissions and fuel economy standards are preempted, say attorneys at Sidley.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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How Biden Admin Has Used Antitrust Tools, And What's Next
The last four years have been marked by an aggressive whole-of-government approach to antitrust enforcement using a broad range of tools, and may result in lasting change regardless of the upcoming presidential election result, say attorneys at Norton Rose.
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Cos. Face Increasing Risk From Environmental Citizen Suits
Environmental citizen suits stepping in to fill the regulatory vacuum concerning consumer goods waste may soon become more common, and the evolving procedural landscape and changes to environmental law may contribute to companies' increased exposure, say J. Michael Showalter and Bradley Rochlen at ArentFox Schiff.
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How BIS' Rule Seeks To Encourage More Voluntary Disclosure
Updated incentives, penalties and enforcement resources in the Bureau of Industry and Security's recently published final rule revising the Export Administration Regulations should help companies decide how to implement export control compliance programs and whether to disclose possible violations, say attorneys at Freshfields.