Corporate

  • June 21, 2024

    Under Armour To Pay $434M To End Securities Fraud Claims

    Under Armour Inc. has agreed to shell out $434 million to put to rest claims it inflated stock prices by hiding declining demand for its products, investors announced Friday, reaching a deal just weeks before a jury trial was set to kick off in Maryland federal court.

  • June 21, 2024

    Google Ditches Wiretap Suit Over AI Customer Service Calls

    A California federal judge has tossed, for now, a proposed class action accusing Google LLC of using a "human-like" customer service product powered by generative artificial intelligence to illegally eavesdrop on Verizon users' calls, finding that Google was exempt from liability because it was acting as Verizon's agent.

  • June 21, 2024

    Nike Misled Investors On Sales Strategy, Ore. Class Suit Says

    Nike and two executives were hit with a proposed class action lawsuit in Oregon federal court over securities law violations, with a Florida-based pension fund alleging stock value declined as the shoe corporation continued to mislead investors on the success of a change in sales strategy.

  • June 21, 2024

    Twitter Judge Skeptical Of Musk's Bid To Beat Investor Suit

    A California federal judge considering allegations that Elon Musk misled Twitter investors by falsely tweeting that it had to provide information on its alleged bot problem before he'd proceed with his $44 billion acquisition appeared skeptical Friday of Musk's defense that investors knew he was obligated to close the deal regardless.

  • June 21, 2024

    Intel Investor Says Top Brass Hid Foundry Losses, Problems

    Intel Corp. executives were hit with a shareholder derivative complaint alleging they misled investors as to the actual success of the company's newly created Foundry Services division, according to the suit filed Friday in Delaware federal court.

  • June 21, 2024

    Live Nation Investor Sues Leaders Over DOJ Antitrust Claims

    Live Nation's executives and directors were hit with a shareholder derivative lawsuit Friday in California federal court that seeks damages in the wake of the U.S. Department of Justice's allegations that the company monopolized concert promotion and ticket sales following its 2010 merger with Ticketmaster.

  • June 21, 2024

    Manhattan DA Seeks To Retain Trump Gag Order, Amid Threats

    The Manhattan District Attorney's Office urged a New York state judge Friday to leave in place most restrictions of the gag order preventing Donald Trump from speaking publicly about witnesses, jurors and others tied to his criminal trial, citing a barrage of threats from his supporters in recent months — including "actionable" death threats before and after the verdict.

  • June 21, 2024

    Crypto Vet With FTX Ties Launches Fintech Policy Think Tank

    Former congressional hopeful and cryptocurrency veteran Michelle Bond announced her formation of fintech policy think tank Digital Future, making a return to financial services policy after the recent sentencing of her partner, former FTX executive Ryan Salame, and FTX-linked donations to her 2022 campaign.

  • June 21, 2024

    SEC Bypassed Congress On Climate Regs, Suing States Say

    A coalition of Republican-led states suing the U.S. Securities and Exchange Commission over recently adopted climate disclosure regulations presented their opening pitch for vacating those regulations to the Eighth Circuit on Friday, arguing that Congress has passed on the opportunity to demand climate risk reporting from publicly traded companies.

  • June 21, 2024

    Lockheed Units To Pay $70M To End FCA Cost Inflation Suit

    Sikorsky Support Services Inc. and Derco Aerospace Inc. have agreed to pay $70 million to settle a federal lawsuit alleging that they overcharged the U.S. Navy for spare parts and materials for training aircraft through an illegal subcontracting arrangement, the U.S. Department of Justice announced Friday.

  • June 21, 2024

    Employment Authority: PAGA's Faith At Stake

    Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with coverage on where California's Private Attorneys General Act stands as a proposed ballot measure call for repealing the law two years after the U.S. Supreme Court's decision in Viking River, major takeaways from a pair of recent rulings on the U.S. Equal Employment Opportunity Commission's pregnant worker accommodation and a look at the recent National Labor Relations Board judge's decision finding unlawful certain noncompete agreements.

  • June 21, 2024

    Texas Fines Major Carriers $10.2M For Deceptive Advertising

    Some of the nation's biggest mobile carriers — including AT&T, T-Mobile and Verizon — have inked a $10 million deal with Texas to end the state's probe into what the Lonestar State says are the carriers' "deceptive and misleading" advertising practices.

  • June 21, 2024

    Delaware's Corporate Law Debate Left 'Blood On The Floor'

    Delaware lawmakers have settled, for now, a rare, bitter, national fight over director rights to cede some powers to big stockholders, but the "Moelis" debate has also boosted friction between board and stockholder camps, with one retired law professor saying underlying litigation had left "blood on the floor."

  • June 21, 2024

    Meta's Child Porn Defense 'Disingenuous,' MDL Judge Says

    A California federal judge appeared skeptical Friday of Meta's bid to cut child pornography possession allegations from sprawling multidistrict litigation over social media platforms' allegedly addictive designs, telling defense counsel that Meta's claim it didn't know about the illegal content on its platforms is "a bit disingenuous."

  • June 21, 2024

    Treasury Unveils Rules Curtailing Outbound Tech Investments

    The U.S. Department of the Treasury on Friday proposed rules to implement President Joe Biden's executive order aimed at restricting American investments in certain technologies that China is developing, including artificial intelligence systems, that are deemed threats to national security.

  • June 21, 2024

    9th Circ. Axes 2 Symetra Structured Deal Recipient Classes

    The Ninth Circuit on Thursday scrapped two classes in a lawsuit accusing an insurance conglomerate of wrongfully inducing personal injury settlement recipients to give up their rights to periodic payments in exchange for a discounted immediate lump sum payment, saying individual issues will predominate over common issues.

  • June 21, 2024

    Ex-CEO Found Liable For $1 Now Seeks Atty Fees For Del. Suit

    The ex-CEO of a biopharma company who was found liable in 2021 for breaching his fiduciary duties but ordered to pay just $1 in damages after Delaware's Court of Chancery found that no real harm had been done is now suing for his attorney's fees and court costs.

  • June 21, 2024

    Aramark Sued In Wash. For Alleged Pay Transparency Lapses

    Aramark has been accused of violating Washington state's pay transparency law by failing to give full pay ranges in job postings, according to a proposed class action the food services giant removed to Washington federal court on Thursday.

  • June 21, 2024

    DOJ Backs Antitrust Case Against Zillow, Realtors At 9th Circ.

    The U.S. Department of Justice has urged the Ninth Circuit to revive antitrust claims from a defunct brokerage platform against Zillow and the National Association of Realtors based on design changes Zillow made to comply with association rules.

  • June 21, 2024

    Cathay Pacific Pilots Land $16.65M Deal In 7-Year Wage Fight

    A group of 110 Cathay Pacific Airways Ltd. pilots will receive $16.65 million to settle a seven-year wage case alleging that the airline violated Golden State labor laws governing meal and rest periods, overtime and reserve duty pay, according to a preliminary motion for approval filed Thursday in California federal court.

  • June 21, 2024

    Uber, Lyft Can't Dodge Suit Via Arbitration, Calif. Tells Justices

    California has urged the U.S. Supreme Court not to revive bids from Uber and Lyft to arbitrate allegations they unlawfully misclassified drivers as independent contractors, saying it's "commonly understood" that private parties' arbitration agreements have no bearing on whether state officials can sue for state law violations.

  • June 21, 2024

    Costco Sued Over PFAS In Kirkland Brand Baby Wipes

    Costco is facing a proposed class action over its fragrance-free "natural" baby wipes, which consumers claim are made with toxic levels of forever chemicals, rendering them unsafe for use on children.

  • June 21, 2024

    Off The Bench: ACC-FSU Rematch, Supreme Win For Fla. Tribe

    In this week's Off The Bench, the next round of venue tug-of-war begins between the Atlantic Coast Conference and Florida State University, the U.S. Supreme Court hands Florida and the Seminole Tribe a lucrative gaming win, and Roger Goodell and Jerry Jones defend the NFL's handling of its Sunday Ticket package.

  • June 21, 2024

    American Airlines Can't Shake ESG Retirement Class Action

    A Texas federal judge won't free American Airlines from a class action claiming its pilots' $26 billion retirement plan focused too heavily on environmental and social factors, ruling the airline's failure to push investment managers to abandon the strategy buttresses the plaintiffs' case that American endorsed it.

  • June 21, 2024

    Former CEO Wins Unpaid Benefits Suit Against Credit Union

    A Connecticut federal judge granted a win to a former CEO claiming a credit union refused to fully pay out his retirement benefits after he was abruptly fired over his Parkinson's disease diagnosis, saying he put forward enough detail to connect his termination with his disability.

Expert Analysis

  • 3 Lessons From Family Dollar's Record $41.7M Guilty Plea

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    Family Dollar's recent plea deal in connection with a rodent infestation at one of its distribution facilities — resulting in the largest ever monetary criminal penalty in a food safety case — offers key takeaways for those practicing in the interconnected fields of compliance, internal investigations and white collar defense, says Jonathan Porter at Husch Blackwell.

  • This Earth Day, Consider How Your Firm Can Go Greener

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    As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.

  • Opinion

    Anti-DEI Complaints Filed With EEOC Carry No Legal Weight

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    Recently filed complaints against several companies' diversity, equity and inclusion programs alleging unlawful discrimination against white people do not require a response from the U.S. Equal Employment Opportunity Commission, and should not stop employers from rooting out ongoing discriminatory practices, says former EEOC general counsel David Lopez.

  • New Proposal Signals Sharper Enforcement Focus At CFIUS

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    Last week's proposed rule aimed at broadening the Committee on Foreign Investment in the United States' enforcement authority over foreign investments and increasing penalties for violations signals that CFIUS intends to continue expanding its aggressive monitoring of national security issues, say attorneys at Kirkland.

  • Oracle Ruling Underscores Trend Of Mootness Fee Denials

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    The Delaware Chancery Court’s recent refusal to make tech giant Oracle shoulder $5 million of plaintiff shareholders' attorney fees illustrates a trend of courts raising the standard for granting the mootness fee awards once ubiquitous in post-merger derivative disputes, say attorneys at Troutman Pepper.

  • Traversing The Web Of Nonjudicial Grievance Mechanisms

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    Attorneys at Covington provide an overview of how companies can best align their environmental and human rights compliance with "hard-law" requirements like the EU's recently approved Corporate Sustainability Due Diligence Directive while also navigating the complex global network of existing nonjudicial grievance mechanisms.

  • Questions Persist After Ruling Skirts $925M TCPA Award Issue

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    After an Oregon federal court's recent Wakefield v. ViSalus ruling that the doctrine of constitutional avoidance precluded it from deciding whether a $925 million Telephone Consumer Protection Act damages award was constitutionally sound, further guidance is needed on when statutory damages violate due process, says Michael Klotz at O'Melveny.

  • An NYDFS-Regulated Bank's Guide To Proper Internal Audits

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    As certification deadlines for compliance with the New York State Department of Financial Services’ transaction monitoring and cybersecurity regulations loom, lawyers should remember that the NYDFS offers no leeway for best efforts — and should ensure robust auditing and recordkeeping processes for clients, say attorneys at Arnall Golden.

  • Opinion

    Post-Moelis Del. Corp. Law Proposal Would Hurt Stockholders

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    The proposed Delaware General Corporation Law amendment in response to the Court of Chancery's recent opinion in West Palm Beach Firefighters' Pension Fund v. Moelis would upend the foundational principle of corporate law holding that directors govern corporations in the interest of stockholders — and the potential harm would be substantial, say attorneys at Block & Leviton.

  • Exploring Patent Trends In Aerospace Electrification

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    As blue-chip companies lead the charge to power large-scale commercial airplanes with electricity, and startups advance the trend on a regional scale, patent applications directed at improving energy storage and electric motor efficiency are on the rise, say attorneys at Finnegan.

  • Blocked JetBlue-Spirit Deal Illustrates New Antitrust Approach

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    The U.S. Department of Justice’s recent successful block of a merger between JetBlue Airways and Spirit Airlines demonstrates antitrust enforcers’ updated and disparate approach to out-of-market benefits versus out-of-market harms, say Lisa Rumin and Anthony Ferrara at McDermott.

  • Back Labels In False Ad Cases Get Some Clarity In 9th Circ.

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    Courts in the Ninth Circuit have recently delivered a series of wins to advertisers, making clear that any ambiguity on the front of a product's package can be resolved by reference to the back label — which guarantees defendants a powerful tool to combat deceptive labeling claims, say attorneys at Patterson Belknap.

  • At 'SEC Speaks,' A Focus On Rebuilding Trust Amid Criticism

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    At the Practising Law Institute's SEC Speaks conference last week, U.S. Securities and Exchange Commission leadership highlighted efforts to rebuild and restore trust in the U.S. capital markets by addressing investor concerns through regulatory measures and enforcement actions, emphasizing the need for cooperation from market participants, say attorneys at Perkins Coie.

  • The Pros And Cons Of NIST's Proposed March-In Framework

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    Recent comments for and against the National Institute of Standards and Technology’s proposed guidance on march-in rights — which permit the government to seize federally funded patents — highlight how the framework may promote competition, but could also pose a risk to contractors and universities, say Nick Lee and Paul Ragusa at Baker Botts.

  • Comparing Corporate Law In Delaware, Texas And Nevada

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    With Elon Musk's recent decision to reincorporate his companies outside of Delaware, and with more businesses increasingly considering Nevada and Texas as corporate homes, attorneys at Baker Botts look at each jurisdiction's foundation of corporate law, and how the differences can make each more or less appealing based on a corporation's needs.

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