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Consumer Protection
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January 15, 2025
Feds Sue Southwest Over 'Chronically Delayed Flights'
The U.S. Department of Transportation says Southwest Airlines Co. must pay more than $2.1 million in civil penalties for "chronically delayed flights" in a lawsuit filed in California federal court Wednesday, the same day Frontier Airlines Inc. agreed to pay the government $650,000 to resolve similar allegations.
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January 15, 2025
Incoming FCC Chair Blasts Agency's Salt Typhoon Response
The Federal Communications Commission's incoming chair on Wednesday blasted an as-yet-unreleased agency decision meant to address network vulnerabilities in the wake of the Salt Typhoon cyberattack that he said misreads federal law.
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January 15, 2025
Outgoing FCC Chair Touts 'Wins On The Board'
With less than a week left in office, the chief of the Biden-era Federal Communications Commission on Wednesday highlighted the accomplishments of her tenure, including efforts to connect more Americans and advance space-based communications, but warned that a number of problems ranging from cybersecurity threats to the digital divide persist.
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January 15, 2025
Crypto Co. Kraken's Legal Chief Says He's Stepping Down
The legal head of Kraken announced Wednesday that he is stepping down as chief legal officer and stepping into a senior adviser role that will see him build a global advisory council at the crypto exchange.
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January 15, 2025
Abbott's Toddler Nutrition Drinks Aren't Healthy, Parents Claim
A trio of parents filed a proposed false advertising class action in Illinois federal court Tuesday alleging Abbott Laboratories touts its toddler drinks sold under the Similac brand as nutritionally proper for children ages 12 months to 36 months, even though the products contain added sugar which is harmful to health.
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January 15, 2025
Silvergate's Ex-CFO Fires Back At SEC Accounting Claims
The former chief financial officer of defunct crypto-focused bank Silvergate Capital urged a New York federal judge to toss the U.S. Securities and Exchange Commission's allegations that he concealed the bank's precarious financial position, saying he didn't have anything to gain from hiding Silvergate's financial woes.
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January 15, 2025
Energy Giants Escape NYC's Climate Deception Suit
A New York state judge has dismissed the Big Apple's suit accusing Exxon, BP and Shell of deceiving the public about the climate change effects of their operations, saying the city has failed to allege its consumer protection laws were violated.
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January 15, 2025
FTC Defends Authority To Bring Amazon Antitrust Case
The Federal Trade Commission is pushing back on Amazon's claims that the commission can't bring an antitrust case in federal court without first launching an administrative complaint, telling the Washington federal judge overseeing its case against the e-commerce giant that the Ninth Circuit has already cleared such a move.
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January 15, 2025
FTC Orders Hosting Service GoDaddy To Bolster Data Security
Web-hosting provider GoDaddy has agreed to overhaul its data security practices to resolve the Federal Trade Commission's claims that the company failed to implement adequate measures to safeguard its services against cyberattacks that risked harm to its millions of customers, the commission said Wednesday.
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January 15, 2025
Samsung Slams Epic's Antitrust Suit Over Google Play Store
Samsung moved to end Epic Games' suit alleging it colluded with Google to skirt an impending injunction forcing Google to permit competition with its Play Store by installing an auto blocker feature on Samsung devices, telling a California federal judge Wednesday the feature is a product improvement shielded from antitrust scrutiny.
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January 15, 2025
3M Wants Conn. AG's PFAS Case Paused For 2nd Circ. Appeal
3M has urged a Connecticut Superior Court to stay the state's environmental lawsuit seeking damages for "forever chemical" pollution the company allegedly created, saying the Second Circuit should first review a federal judge's order remanding the case to state court.
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January 15, 2025
Block Pays Regulators $80M Over Cash App AML Compliance
Jack Dorsey's fintech company Block Inc. has reached an $80 million settlement over alleged anti-money laundering compliance failures by its mobile payments platform Cash App, a coalition of state banking regulators announced Wednesday.
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January 15, 2025
Symetra Life Policyholders Seek $32.5M Settlement Approval
A proposed class of Symetra policyholders asked a Washington federal court to preliminarily approve a $32.5 million deal to resolve a suit alleging that the insurer overcharged them for life insurance, saying the 11-state settlement would cover the owners of 43,000 policies.
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January 15, 2025
Tenants Want Yardi Rent-Fixing Suits Combined
Renters have urged a federal court in Washington state to consolidate two other cases with their proposed class action, which claims that multifamily building owners schemed to use a real estate management software company's product to inflate rental prices.
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January 15, 2025
Noncompete Ban Has A Defender In Wings If Trump FTC Won't
Entrepreneurs group Small Business Majority wants the Fifth and Eleventh circuits to let it intervene to defend the Federal Trade Commission's currently blocked noncompetes ban if FTC Republicans stop arguing for the rule as expected once they take power.
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January 15, 2025
9th Circ. Open To Reviving Robinhood Suit Over $2.1B IPO
Judges on a Ninth Circuit panel appeared open Wednesday to reviving a proposed securities class action alleging Robinhood hid how a "meme stock" and cryptocurrency trading frenzy had impacted its outlook ahead of its $2.1 billion initial public offering, saying the lower court may have applied the wrong standard in tossing the case.
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January 15, 2025
Justices Struggle With Tech Advances In Texas Porn Law Row
Several U.S. Supreme Court justices on Wednesday focused on how a decadesold brick-and-mortar precedent applies to a Texas law requiring age verification on porn websites while struggling to reconcile technological advancements with First Amendment protections.
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January 15, 2025
Judge OKs More Fees In Calif. Debt Relief Firm's Bankruptcy
A California bankruptcy judge has tentatively approved an additional $2.1 million in professional fees in the bankruptcy case of a troubled debt relief firm, despite the amount of professional fees already exceeding the amount paid out to creditors so far.
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January 15, 2025
FCC Warns Convincing Mortgage Lender Scam Afoot
The Federal Communications Commission is putting the word out about a new scheme aimed at tricking people into thinking their homes will be foreclosed on unless they make emergency payments into an account controlled by the scammers.
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January 15, 2025
Amex GBT Blasts Bid To Block $570M Travel Services Deal
American Express Global Business Travel Inc. told a New York federal court Tuesday that the U.S. Department of Justice case seeking to block its planned $570 million purchase of CWT Holdings LLC ignores the competitive landscape of the corporate travel management industry.
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January 15, 2025
Mass. Justices Bolster Local Enforcement Of Tobacco Laws
Massachusetts' highest court ruled Wednesday that local public health officials do not have to go to court to fine businesses caught violating the state's tobacco laws, including restrictions on the sale of flavored products.
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January 15, 2025
FTC Brings Right-To-Repair Suit Against John Deere
The Federal Trade Commission slapped John Deere with a repair monopoly lawsuit in Illinois federal court Wednesday, adding to proposed class actions alleging the company illegally withholds access to needed repair tools from farmers, even in the face of mounting public pressure.
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January 15, 2025
Atrium Health Accused Of Giving Patient Data To Google
Atrium Health installed trackers in its mobile app and website to collect patients' data without their consent and then shared that personal information with Google and Facebook for targeted advertising, according to a proposed class action in North Carolina Business Court.
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January 14, 2025
Wells Fargo Fights To Drop Officers From Investors' Bias Suit
Wells Fargo & Co. urged a California federal judge Tuesday to free three executives from a derivative lawsuit filed by shareholders claiming the bank's leadership failed to address the company's discriminatory lending and hiring practices, saying there are no allegations that explain why a presuit demand to the board would have been futile.
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January 14, 2025
OCC Fines Ex-Wells Fargo Execs $18.5M For Sales Practices
The Office of the Comptroller of the Currency said Tuesday that it has fined three former Wells Fargo executives a total of $18.5 million for their alleged roles in the banking giant's fake accounts scandal, capping off contested enforcement proceedings against them.
Expert Analysis
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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Tracking The Uncertainty Of The FTC's Negative Option Rule
The fate of the Federal Trade Commission's final rule requiring businesses that utilize negative options to provide consumers with a simple cancellation method remains in limbo as it faces multiple legal challenges and the threat of possible congressional action looms, say attorneys at Manatt.
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Antitrust in Retail: Handbag Ruling Won't Go Out Of Fashion
Although a New York federal court’s recent decision to enjoin a proposed $8.5 billion merger between the owners of Michael Kors and Coach applied noncontroversial antitrust interpretations, several notable aspects of the opinion stand out as likely candidates for further discussion in future merger litigation, say attorneys at Holland & Knight.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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SEC Prioritized Enforcement Sweeps As Cases Slowed In '24
Following three consecutive years of increasing activity, fiscal year 2024 marked the lowest number of cases the U.S. Securities and Exchange Commission has brought since Gary Gensler assumed office in April 2021, buttressed by some familiar enforcement sweeps, say attorneys at Covington.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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Key Takeaways From FDA's Latest Social Media Warnings
The U.S. Food and Drug Administration's latest untitled letter concerning a drug company's social media promotion provides lessons for how companies should navigate risk presentation, FDA labeling requirements and superiority claims, say attorneys at Sheppard Mullin.
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2 Cases Show DAOs May Face Increasing Legal Scrutiny
Two ongoing cases that recently survived motions to dismiss in California federal courts concerning Compound DAO and Lido DAO threaten to expand the potential liability for activity attributed to decentralized autonomous organizations — and to indirectly create liability for their participants, say attorneys at Cahill Gordon.
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Expect More State Scrutiny Of PE In Healthcare M&A
While a California bill that called for increased antitrust scrutiny of many healthcare private equity transactions was recently vetoed by the governor, state legislatures are likely to continue introducing similar laws, particularly if the Trump administration eases federal enforcement, say attorneys at Morgan Lewis.
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How CFIUS' Updated Framework Affects Global Investors
The recent change to the monitoring and enforcement regulations governing the Committee on Foreign Investment in the United States will broaden administrative practices around nonnotified transaction investigations, increase the scope of information demands from the committee and accelerate its ability to impose mitigation on parties, say attorneys at Simpson Thacher.
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Service Providers Must Mitigate 'Secondary Target' Risks
A lawsuit recently filed in an Illinois federal court against marketing agency Publicis over its work for opioid manufacturers highlights an uptick in litigation against professional service providers hired by clients that engaged in alleged misconduct — so potential targets of such suits should be sure to conduct proper risk analysis and mitigation, say attorneys at Dechert.
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5 Ways SEC's Crypto Approach Could Change Under Trump
Given the Trump campaign's procrypto stance, the U.S. Securities and Exchange Commission could take a number of different approaches to crypto policy in the next administration, including pausing registration-only enforcement actions and proposing tailored rules that take into account the differences between crypto-assets and traditional securities, say attorneys at WilmerHale.
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Opinion
FTC Actions In Oil Cases Go Against Its Own Rulemaking
Two recent Federal Trade Commission actions concerning the oil and gas industry appear to defy its own merger guidelines, with allegations that fall far short of the commission's own standard — raising serious questions about the agency's current approach, say attorneys at Clifford Chance.
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Series
Flying Makes Me A Better Lawyer
Achieving my childhood dream of flying airplanes made me a better lawyer — and a better person — because it taught me I can conquer difficult goals when I leave my comfort zone, focus on the demands of the moment and commit to honing my skills, says Ivy Cadle at Baker Donelson.
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9th Circ.'s High Bar May Limit Keyword Confusion TM Claims
A recent Ninth Circuit ruling that a law firm did not infringe upon a competitor’s trademarks by paying Google to promote its website when users searched for the rival’s name signals that plaintiffs likely can no longer win infringement suits by claiming competitive keyword advertising confuses internet-savvy consumers, say attorneys at Mitchell Silberberg.