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October 31, 2024
JPMorgan To Pay $151M To Resolve SEC Disclosure Claims
The U.S. Securities and Exchange Commission announced Thursday that two JPMorgan Chase & Co. affiliates agreed to pay $151 million to resolve five separate enforcement actions over a number of allegations, including making misleading disclosures to investors and failing to make recommendations in the best interest of customers.
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October 31, 2024
Latham Hit With Sanctions In Banc Of California Securities Suit
A California federal judge found Latham & Watkins LLP and its ex-client, former Banc of California CEO Steven A. Sugarman, in civil contempt for "flagrant violations" of a protective order covering discovery produced by investment firm Muddy Waters Capital in a securities fraud class action, according to an order unsealed this week.
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October 31, 2024
Feds: No 'Willfulness' Needed In Texas AG-Tied Investor Case
Federal prosecutors asked a Texas federal judge to reject an attempt by an investor at the center of the failed impeachment of Texas Attorney General Ken Paxton to toss the fraud case, saying Wednesday that "willfulness" isn't needed for a conspiracy to commit wire fraud conviction.
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October 31, 2024
10 Firms Vie To Lead, Consolidate Super Micro Investor Suits
Ten firms have submitted competing bids to lead and consolidate proposed class actions alleging that artificial intelligence server manufacturer Super Micro Computer Inc.'s shares fell roughly 20% after a short seller report accused it of violating its previous settlement with the U.S. Securities and Exchange Commission over accounting improprieties.
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October 31, 2024
IP Forecast: Another Apple Watch Trial Kicks Off In California
Apple and Masimo will face off next week in their long-running feud over whether the tech giant misappropriated Masimo's trade secrets for some of the health-monitoring features used in newer versions of the Apple Watch. Here's a spotlight on that case — plus all the other major intellectual property matters on deck in the coming week.
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October 31, 2024
CVS Unit Exec's Ex-Partner Charged With Insider Trading
The former domestic partner of a top executive at Oak Street Health Inc., a primary care provider network owned by CVS Health Corp., was charged in Philadelphia federal court Thursday with insider trading on advance information about CVS' $10.6 billion deal to buy Oak Street in 2023.
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October 31, 2024
9th Circ. Won't Revive 'Ghost Cattle' Contract Fight With Tyson
The Ninth Circuit said Thursday a rancher who admitted to invoicing Tyson Foods Inc. for nonexistent cattle cannot sue the meat company for allegedly using his name and photograph in marketing materials without giving him a cut of the profits, rejecting the rancher's argument that Tyson had agreed orally to the deal.
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October 31, 2024
Rebar Giant's Economist Rips Rival's 'Narrow' Antitrust Market
Commercial Metals Co.'s expert economist testified in a federal antitrust jury trial Thursday that Pacific Steel Group's theory of the rebar market is "too narrow" by only focusing on California, although he conceded under cross-examination that CMC sold most of its rebar within 500 miles of its since-shuttered California mill.
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October 31, 2024
Masimo Sues Ex-CEO Over 'Unprecedented' $450M Demand
Masimo Corp. has sued its founder in Delaware Chancery Court, seeking a declaration that a $450 million payout triggered in part by the founder's loss of control or his ouster as CEO and chairman is unenforceable, saying the amount is "unprecedented" and shouldn't be paid by shareholders who were simply exercising their voting rights.
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October 31, 2024
Ex-Conn. Utility Execs Must Report To Prison, Judge Orders
The former CEO of the Connecticut Municipal Electric Energy Cooperative and two ex-board members must report to prison by Dec. 4, a federal judge has ordered, after the Second Circuit upheld their convictions over their roles in the theft of hundreds of thousands of dollars.
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October 31, 2024
Instructure Sued In Del. For Books On $4.8B Take-Private Deal
A stockholder of educational technology venture Instructure Holdings LLC has sued the company for records on its $4.8 billion take-private sale to Kohlberg Kravis Roberts & Co. LP, citing concern that Instructure's controller, Thoma Bravo, abandoned another prospect for its own benefit.
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October 31, 2024
Dallas Judge Kicks 2022 Energy Case Out Of Biz Court
A Dallas business court judge sent a multimillion-dollar energy dispute back to state district court this week, marking the first time a Texas Business Court judge has weighed in on whether cases in existence before the court's opening could be litigated in the new venue.
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October 31, 2024
Madigan Ally Set Up Work For Speaker's Fired Aide, Jury Told
An ex-lobbyist on trial alongside former Illinois House Speaker Michael Madigan made arrangements for a political operative that Madigan fired to receive monthly payments while he was unemployed, suggesting he enter into contracts with loyal lobbyists and write up reports on legislators "in case the IRS checks this out," a federal jury heard Thursday.
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October 31, 2024
Judge Says White Worker's Seattle DEI Suit Lacks 'Specifics'
A Washington federal judge hinted Thursday a former municipal employee's suit claiming Seattle's workplace diversity training discriminated against him as a white man might not have enough detail to survive, as the city's attorneys accused the plaintiff of trying to dismantle its racial justice initiative.
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October 31, 2024
2nd Circ. Backs GE's Win In Ex-Exec's Benefits Denial Suit
The Second Circuit affirmed the dismissal Thursday of a former General Electric executive's suit claiming the company should have awarded her pension and stock benefits when it moved her into an independent contractor role, ruling that her claims were filed too late.
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October 31, 2024
Valero To Pay 'Historic' $82M Fine For Bay Area Air Pollution
Valero Refining Co. will pay a record $82 million penalty to settle claims that it failed to report cancer-causing emissions from its Northern California petroleum refinery for nearly two decades, state and Bay Area air pollution regulators announced Thursday, saying nearly all of the fine will fund local community projects.
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October 31, 2024
Meta Users Fight Uphill For Cert., But Advertisers Have A Shot
A California federal judge who was asked to certify two classes in litigation alleging that Facebook parent Meta Platforms monopolized the social media advertising market and misused users' data said Thursday that the users' damage theory wasn't "plausible," but appeared open to the advertisers' claim they suffered the same alleged injury.
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October 31, 2024
What DOJ's New National Security Obsession Means For Attys
The Justice Department’s emerging criminal crackdown on corporate national security violations is putting increased pressure on white collar lawyers to be conversant, if not experts, on opaque, complex and swiftly evolving regulations.
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October 31, 2024
Exxon Entitled To Interest Deduction On Qatar Deal
Exxon Mobil is entitled to an interest expense deduction on payments to Qatar under a natural gas deal, a Texas federal judge ruled, rejecting the U.S. government's classification of an underlying transaction as a royalty rather than a loan.
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October 31, 2024
Abbott, Mead Cleared In Baby Formula Trial
A St. Louis jury cleared Abbott Laboratories and Mead Johnson of liability Thursday in the companies' first joint trial over claims their baby formula causes a serious gut condition in preterm infants.
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October 31, 2024
Monthly Merger Review Snapshot
Kroger and Albertsons endured overlapping trials in cases challenging their planned grocery store megamerger, as the Federal Trade Commission got a major fashion industry deal paused and pushed its bid to block the $4 billion merger of Tempur Sealy and Mattress Firm.
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October 31, 2024
AI Co. Fires CEO As BigLaw Counsel Probe Revenue Issues
Security tech company Evolv Technology, which last week announced it had brought on Debevoise & Plimpton LLP and Cleary Gottlieb Steen & Hamilton LLP as part of an internal investigation into possible revenue inflation, said Wednesday it has ousted its CEO.
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October 31, 2024
6th Circ. Split Over NLRB Remedy In Starbucks Firing Case
The Sixth Circuit was divided Thursday over Starbucks' challenge to a National Labor Relations Board order finding the coffee giant unlawfully fired a worker at a Michigan cafe, with the judges probing the limits of the board's power to remedy unfair labor practices.
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October 31, 2024
SBA Cries Foul On Globetrotters' $10M COVID Grant Suit
The U.S. Small Business Administration has defended its denial of a $10 million COVID-19 relief grant to the Harlem Globetrotters, telling a D.C. federal judge that it had no legal obligation to hand over the money to the basketball entertainment organization.
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October 31, 2024
Lowenstein Sandler Snags Another VC Pro From Boutique
Lowenstein Sandler LLP has added a New York City lawyer from prominent boutique corporate law firm Buhler Duggal & Henry LLP to its emerging companies and venture capital group, the firm announced.
Expert Analysis
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Calif. Bill, NTIA Report Illustrate Open-Model AI Safety Debate
The National Telecommunications and Information Administration’s balanced recommendations for preventing misuse of open artificial intelligence models, contrasted with a more aggressive California bill, demonstrate an evolving regulatory debate about balancing democratic access to this powerful new technology against potential risks to the public, say Stuart Meyer and Fredrick Tsang at Fenwick.
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Behind 3rd Circ. Ruling On College Athletes' FLSA Eligibility
The Third Circuit's decision that college athletes are not precluded from bringing a claim under the Fair Labor Standards Act raises key questions about the practical consequences of treating collegiate athletes as employees, such as Title IX equal pay claims and potential eligibility for all employment benefits, say attorneys at Debevoise.
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5 Lessons From Consulting Firm's Successful DOJ Disclosure
The Boston Consulting Group recently received a rare declination of prosecution from the U.S. Department of Justice after self-disclosing a foreign bribery scheme, and the firm’s series of savvy steps after discovering the misconduct provides useful data points for white collar defense attorneys, says Jonathan Porter at Husch Blackwell.
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'Greenhushing': Why Some Cos. Are Keeping Quiet On ESG
A wave of ESG-related litigation and regulations have led some companies to retreat altogether from any public statements about their ESG goals, a trend known as "greenhushing" that was at the center of a recent D.C. court decision involving Coca-Cola, say Gonzalo Mon and Katie Rogers at Kelley Drye.
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Complying With FTC's Final Rule On Sham Online Reviews
The Federal Trade Commission's final rule on deceptive acts and practices in online reviews and testimonials is effective Oct. 21, and some practice tips can help businesses avert noncompliance risks, say Airina Rodrigues and Jonathan Sandler at Brownstein Hyatt.
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Del. Dispatch: Drafting Lessons For Earnout Provisions
The Delaware Court of Chancery's recent decision in Medal v. Beckett Collectibles provides guidance for avoiding ambiguity in provisions relating to the acceleration of earnout payments under specified circumstances, and provisions mandating good faith negotiations before bringing earnout litigation, say attorneys at Fried Frank.
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Mitigating Risk In Net Asset Value Facility Bankruptcies
In times of economic turbulence, parties to bankruptcy proceedings that involve net asset value facilities can mitigate risk by understanding the purpose of the automatic stay, complications it can create for NAV facility lenders and options for relief, say attorneys at Mayer Brown.
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Opinion
A Fuzzy Label With Bite: FTC Must Define Surveillance Pricing
The Federal Trade Commission recently issued orders to eight companies — including Mastercard, McKinsey and Chase — seeking information on "surveillance pricing," but the order doesn't explain the term or make the distinction between legal and illegal practices, leaving any company that uses personalized pricing in the dark, says Chris Wlach at Huge.
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Assessing Algorithmic Versus Generative AI Pricing Tools
A comparison of traditional algorithmic pricing models and those powered by generative artificial intelligence can help regulators and practitioners weigh the pros and cons of relying on large language models to price products or services, say Maxime Cohen at McGill University, and Tim Spittle and Jimmy Royer at Analysis Group.
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Missouri Injunction A Setback For State Anti-ESG Rules
A Missouri federal court’s recent order enjoining the state’s anti-ESG rules comes amid actions by state legislatures to revise or invalidate similar legislation imposing disclosure and consent requirements around environmental, social and governance investing, and could be a blueprint for future challenges, say attorneys at Paul Hastings.
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New Lessons On Managing Earnout Provision Risks
Earnout provisions can be a useful tool for bridging valuation gaps in M&A, particularly in developmental-stage pharmaceutical transactions, but the Delaware Chancery Court’s recent decision in Shareholder Representative Services v. Alexion sheds new light on the inherent risks and best practices for managing them, say attorneys at Cleary.
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Navigating A Potpourri Of Possible Transparency Act Pitfalls
Despite the Financial Crimes Enforcement Network's continued release of guidance for complying with the Corporate Transparency Act, its interpretation remains in flux, making it important for companies to understand potentially problematic areas of ambiguity in the practical application of the law, say attorneys at Sidley.
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Series
After Chevron: Conservation Rule Already Faces Challenges
The Bureau of Land Management's interpretation of land "use" in its Conservation and Landscape Health Rule is contrary to the agency's past practice and other Federal Land Policy and Management Act provisions, leaving the rule exposed in four legal challenges that may carry greater force in the wake of Loper Bright, say Stacey Bosshardt and Stephanie Regenold at Perkins Coie.
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The Risks Of Employee Political Discourse On Social Media
As election season enters its final stretch and employees increasingly engage in political speech on social media, employers should beware the liability risks and consider policies that negotiate the line between employees' rights and the limits on those rights, say Bradford Kelley and James McGehee at Littler.
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A Preview Of AI Priorities Under The Next President
For the first time in a presidential election, both of the leading candidates and their parties have been vocal about artificial intelligence policy, offering clues on the future of regulation as AI continues to advance and congressional action continues to stall, say attorneys at Mintz.