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Corporate
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December 11, 2024
Feds Say TD Bank Worker Helped Launder Drug Money
A former employee of TD Bank NA who worked in Florida has been arrested and charged with assisting in a money laundering scheme that used the Toronto-based financial institution to illicitly send millions of dollars in narcotics proceeds from the United States to Colombia, according to documents filed in federal court.
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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
More Facts Needed In RJ Reynolds Tax Row, Mich. Court Says
More facts are needed on whether part of a $4.9 billion sale of trademarks by R.J. Reynolds to a Japanese company should be taxable in Michigan, a state court said Wednesday, declining to rule immediately.
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December 11, 2024
WordPress Parent Must Restore WP Engine's Access
A California federal judge issued a preliminary injunction on Tuesday restoring WP Engine's access to WordPress while the web hosting company pursues its antitrust allegations against WordPress parent Automattic and CEO Matthew Mullenweg, claiming it was blocked from the site after refusing to pay millions of dollars to Automattic.
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December 11, 2024
MoFo Adds Group Of 7 Lawyers From Goodwin Procter In NY
Morrison Foerster LLP is expanding its emerging companies and venture capital practice on the East Coast, announcing Wednesday it is bringing in a group of seven lawyers from Goodwin Procter LLP in New York.
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December 11, 2024
Del. Bar Urged To Push Back On Musk's Chancery Criticism
Nearly 100 legal professionals, mainly plaintiffs bar attorneys and law professors, have called on the Delaware State Bar Association to defend the state's chancellor against attacks that tech and social media billionaire Elon Musk launched after a stinging defeat of his nearly $56 billion, multiyear Tesla Inc. package in January.
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December 11, 2024
Ozy Media Ex-CEO's Atty Seeks More Time Or OK To Quit
An attorney for former Ozy Media Inc. CEO Carlos Watson asked a New York federal judge Wednesday for permission to withdraw from Watson's fraud and identity theft case unless he and other defense counsel can have more time to prepare for sentencing proceedings set to begin Friday.
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December 11, 2024
Class Seeks Final OK Of Contentious $147.5M Insurance Deal
A class of insurance policyholders has urged a Connecticut federal judge to give his final blessing to a $147.5 million settlement resolving claims that two insurers overcharged when deducting costs from savings accounts attached to universal life insurance plans.
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December 11, 2024
Justices' Cold Feet On Nvidia, Meta Leaves Attys Guessing
The U.S. Supreme Court threw out a second securities case on Wednesday by refusing to issue a ruling in a Nvidia Corp. case with no explanation on its change of heart, leaving the defense bar to guess at the court's motivation and its potential implication for the future of high court securities cases.
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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
Paul Hastings Says Biz Waived Privilege On Malpractice Docs
Paul Hastings LLP has called on a Los Angeles County Superior Court judge to force GenapSys Inc., known as Redwood Liquidating Co. since its bankruptcy, to turn over documents that it had inadvertently produced in a legal malpractice suit alleging that the law firm improperly drafted board documents that led to the "demise and liquidation" of the genetic-sequencing company.
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December 10, 2024
Bristol-Myers Said To Renege On $450M Milestone Promise
Former security holders of a biotechnology company Bristol-Myers Squibb acquired in 2016 hauled the pharmaceutical giant into Delaware's Court of Chancery on Monday, accusing it of using "patent prosecution sleight of hand" to avoid paying up to $450 million in promised milestone payments related to an autoimmune disorder treatment.
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December 10, 2024
Walgreens Sued For Docs After $107M FCA Deal With DOJ
Walgreens shareholders have sued the company in Delaware seeking to inspect its books and records over its alleged long-running practice of billing government healthcare programs for prescriptions that were not dispensed, arguing Monday "there's more than a credible basis to infer evidence" of wrongdoing by the retailer.
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December 10, 2024
OneTaste Execs Want Sexually Explicit Evidence Out Of Trial
Former OneTaste executives on Tuesday asked a New York federal judge to block prosecutors from showing jurors sexually explicit evidence at their upcoming forced labor conspiracy trial, saying the government is trying to put the sexual wellness company and "orgasmic meditation" on trial.
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December 10, 2024
Arb. Award 'Unjust' Enough To Toss? Ga. Justices Ponder
Justices of Georgia's Supreme Court appeared to agree Tuesday that arbitration of a dispute between a medical provider and its contractor unjustly turned into a one-sided affair, but hesitated to endorse the argument that the issues raised warrant throwing out the arbitrator's $1.75 million award in the contractor's favor.
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December 10, 2024
US Sanctions Chinese Hacker, Employer For Firewall Exploits
A Chinese national is facing federal charges and U.S. sanctions, with prosecutors accusing him of scheming to exploit tens of thousands of firewalls, including those the government noted Tuesday protected sensitive systems of companies that run oil rigs and vital infrastructure.
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December 10, 2024
SEC Outlines Municipal Adviser Exam Process
The U.S. Securities and Exchange Commission's Division of Examinations has issued a risk alert outlining its process for selecting municipal advisers to examine, how advisers can prepare for exams, and the types of information examiners may request.
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December 10, 2024
2nd Circ. Revives Antitrust Suit Over Instagram Algorithm
A split Second Circuit Tuesday revived defunct app Phhhoto Inc.'s claims that Meta Platforms used anticompetitive means, including an algorithm for Instagram to suppress rival content, to squash its business, finding that Phhhoto adequately alleged Meta's fraudulent concealment of an anticompetitive scheme would stretch out the four-year statute of limitations.
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December 10, 2024
2nd Circ. Backs Deloitte's Win In 401(k) Fee Suit
The Second Circuit said a trial court correctly tossed a proposed class action by a group of workers claiming Deloitte saddled its $7.3 billion retirement plan with excessive recordkeeping fees, stating they couldn't overcome concerns that their claims amounted to comparisons of apples to oranges.
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December 10, 2024
Tekion Accuses CDK Of Blocking Rival Dealership Software
Tekion Corp. accused CDK Global LLC of monopolizing the market for auto dealership management software by holding its customers' data "hostage" to prevent them from switching to competing platforms.
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December 10, 2024
FinCEN Says CTA Still Constitutional In Post-Injunction Alert
The Financial Crimes Enforcement Network has alerted companies that they do not currently need to file so-called beneficial ownership information with the agency after a federal judge's nationwide preliminary injunction blocking the Corporate Transparency Act, though the bureau maintained that the law calling for such information is constitutional.
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December 10, 2024
Split 9th Circ. Won't Revive Tesla Worker's Whistleblower Suit
A split Ninth Circuit refused to revive a terminated Tesla worker's Sarbanes-Oxley whistleblower claim alleging he was retaliated against for reporting unlawful activity, ruling on Tuesday the worker is precluded from re-litigating in district court whether he engaged in protected activity, since an arbitrator already decided that he did not.
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December 10, 2024
Trump Taps Ferguson As FTC Chief, Kressin Atty To GOP Seat
President-elect Donald Trump named current Federal Trade Commission member Andrew N. Ferguson to be its next chair Tuesday night while also picking Kressin Meador Powers LLC partner Mark Meador, a former deputy chief counsel to Sen. Mike Lee, R-Utah, to round out the FTC as its third Republican member.
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December 10, 2024
FTC's Holyoak Says Chair OK With Some Cartels
Federal Trade Commissioner Melissa Holyoak said Lina Khan, the agency's current chair, is suggesting enforcers ignore anticompetitive activity if it's not being committed by what she considers "dominant firms."
Expert Analysis
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How White Collar Defense Attys Can Use Summary Witnesses
Few criminal defense attorneys have successfully utilized summary witnesses in the past, but several recent success stories show that it can be a worthwhile trial tactic to help juries understand the complex decision-making at issue, says Jonathan Porter at Husch Blackwell.
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Opinion
6 Changes I Would Make If I Ran A Law School
Reuben Guttman at Guttman Buschner identifies several key issues plaguing law schools and discusses potential solutions, such as opting out of the rankings game and mandating courses in basic writing skills.
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The Current State Of Play Around Corporate Transparency Act
Although a Texas court preliminarily enjoined enforcement of the Corporate Transparency Act and paused an impending Dec. 31 reporting deadline, multiple states have similar requirements, so companies should continue to monitor compliance obligations regardless of the CTA's constitutionality, say attorneys at Simpson Thacher.
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Predictions For Trump Antitrust Enforcement Of Life Sciences
Key life sciences antitrust issues of the past two administrations may indicate the direction of enforcement during President-elect Donald Trump's second term, including in areas such as drug prices, killer acquisitions and merger remedies, say attorneys at Ropes & Gray.
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From Football To Pickleball, Sports Investing Evolved In 2024
The NFL's decision to allow private-equity investments in football franchises capped off a transformative year in U.S. sports that also included landmark PE transactions in emerging sports ranging from women's soccer to pickleball, say attorneys at Weil.
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Using Data To Inform Corporate Disclosure Decisions
With today’s market volatility and regulatory factors requiring public companies to confront competing transparency and protection demands, incorporating stock price reaction analysis of company-specific news into the controller's role could be beneficial for disclosure determinations, say Liz Dunshee at Fredrikson & Byron and Nessim Mezrahi at SAR.
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Best Practices For AI Disclosures In Insurance Applications
As businesses integrate AI into their operations, insurers are starting to develop targeted questions to assess the associated risks, but ambiguities in the application forms can create challenges for businesses applying for insurance, say attorneys at Hunton.
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How White Collar Attys Can Use Mythic Archetypes At Trial
A careful reading of a classic screenwriting guide shows that fairy tales and white collar trials actually have a lot in common, and defense attorneys would do well to tell a hero’s journey at trial, relying on universal character archetypes to connect with the jury, says Jack Sharman at Lightfoot Franklin.
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How CFPB Rule Would Affect Data Brokers And Beyond
The Consumer Financial Protection Bureau recently proposed a rule that would not only expand data broker oversight by classifying many as consumer reporting agencies, but would also impose new limitations on companies seeking to obtain information from them, potentially requiring such entities to alter their business models, say attorneys at Orrick.
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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Reviewing 2024's State Consumer Privacy Law Enforcement
While we are still in the infancy of state consumer privacy laws, a review of enforcement activity this year suggests substantial overlaps in regulatory priorities across the most active states and gives insight into the likely paths of future enforcement, says Thomas Nolan at Quinn Emanuel.
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Opinion
Antitrust Posturing Against Algorithmic AI Should End
President-elect Donald Trump needs to rein in the federal government's antitrust crusade against algorithmic AI, sending the message that antitrust enforcement must be grounded in evidence and real harm, says attorney David Balto, a former Federal Trade Commission assistant director of policy and evaluation.
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Risk Disclosure Issue Remains After Justices Nix Meta Case
After full briefing and argument, the U.S. Supreme Court recently dismissed Facebook v. Amalgamated Bank as improvidently granted, leaving courts with the tricky endeavor of determining when the failure to disclose a past event in an Item 105 risk disclosure is materially misleading, say attorneys at Lowenstein Sandler.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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Netflix Dispute May Alter 'Source' In TM Fair-Use Analysis
The Ninth Circuit’s upcoming decision in Hara v. Netflix, about what it means to be source-identifying, could change how the Rogers defense protects expressive works that utilize trademarks in a creative fashion, says Sara Gold at Gold IP.