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Corporate
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November 21, 2024
Citibank Says Bankers Took Info On Its Atty Clients To Rival
Citibank NA on Wednesday accused two of its former bankers of jumping ship to instead work for competitor Bank of Montreal — and with confidential information regarding Citibank law firm and attorney clients, according to a suit filed in California federal court.
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November 21, 2024
Snap Moves To Toss New Mexico's Child 'Sextortion' Suit
Snap Inc. has moved to toss New Mexico's lawsuit accusing it of enabling child sexual exploitation on its instant messaging app, Snapchat, telling a New Mexico state court that the state's attorney general lodged a "sensationalist" lawsuit rife with patently false allegations.
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November 21, 2024
Dorsey's Fintech Co. Beats Investor's Cash App Suit, For Now
Jack Dorsey's Block Inc. convinced a California federal judge Wednesday to toss a securities lawsuit alleging the company painted a rosier-than-reality picture of its Cash App and failed to explain why former U.S. Secretary of the Treasury Larry Summers resigned from its board, but the investor will get a chance to rework the complaint.
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November 21, 2024
SEC Denied Civil Penalties Over Pot Pill Exec's 'Inexperience'
The SEC will score $86,000 in disgorgement and interest from a former executive of C3 International Inc. for falsely claiming the company's cannabis pill was projected to generate millions of dollars in revenue, but the court found the defendant's conduct did not warrant the civil penalty the agency requested.
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November 21, 2024
Social Media MDL Judge Rips State Attys Defying Orders
A California federal magistrate judge overseeing discovery in multidistrict litigation over social media platforms' allegedly addictive designs on Thursday ordered states to provide the names and state bar numbers of agency counsel who have refused to comply with discovery orders, threatening sanctions and asking, "What happened to the rule of law?"
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November 21, 2024
Boehringer Trial Over Zantac's Cancer Link Ends In Mistrial
A California state judge declared a mistrial Thursday, ending a monthslong trial over product liability claims by a bladder cancer survivor who alleges Boehringer Ingelheim Pharmaceuticals Inc. failed to disclose cancer risks associated with the company's Zantac heartburn medication, according to the plaintiff's counsel.
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November 21, 2024
Ex-Google Engineer Ordered To Stop Posting Pixel Secrets
A former Google engineer must immediately cease publishing confidential company information and remove social media posts that reveal Pixel device trade secrets, a Texas federal judge ruled Wednesday, after the tech giant sought an emergency restraining order on allegations its former employee is continuing to "maliciously" leak internal files.
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November 21, 2024
Key Informant Who Recorded Madigan Takes The Stand
A former Chicago alderman who prosecutors have deemed one of their "most significant cooperators in the last several decades" took the stand Thursday afternoon and began what is expected to be multiple days of testimony in the racketeering trial of ex-Illinois House Speaker Michael Madigan, whom he secretly recorded while working with the government.
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November 21, 2024
Tempur Gave UK Co. 'Total Autonomy' Post-Merger, CEO Says
The CEO of a United Kingdom-based mattress company acquired by Tempur Sealy in 2021 told a Houston federal judge Thursday that his new parent company has provided him "total autonomy" since the acquisition.
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November 21, 2024
DOJ Search Fixes Would Remake Google, Break Off Chrome
To give rival search engines a fighting chance against Google's illegal monopoly and its massive data and structural advantages, the Justice Department asked a D.C. federal judge Wednesday for sweeping changes that would divest the Chrome browser, open up Android devices and guarantee access to underlying search data.
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November 21, 2024
Trump Selects Ex-Fla. AG Pam Bondi As New AG Pick
President-elect Donald Trump announced Thursday that he has selected Pam Bondi, a former attorney general of Florida, as his new pick for U.S. attorney general, just hours after former U.S. Rep. Matt Gaetz withdrew his name from consideration amid allegations of sexual misconduct and drug use.
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November 21, 2024
EPA Floats New Draft Framework On Cumulative Impacts
The U.S. Environmental Protection Agency on Thursday further fleshed out exactly what it means when it tells its employees to consider the "cumulative impacts" of pollution on particular communities.
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November 21, 2024
Unions, ACLU Throw Weight Behind EEOC Bostock Guidance
The AFL-CIO, SEIU, American Civil Liberties Union, and several business groups and nonprofits have urged a Texas federal court not to scrap U.S. Equal Employment Opportunity Commission guidance interpreting the U.S. Supreme Court's Bostock decision, arguing the guidelines provide critical advice on preventing workplace harassment.
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November 21, 2024
'Where Were You?': Judge Irked By Feds In $2B Fraud Case
A North Carolina magistrate judge said Thursday he was "appalled" by a system that left a convicted insurance mogul unable to communicate with his attorneys while he sat in a county jail for nearly a week following his guilty plea to a $2 billion fraud and money laundering scheme.
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November 21, 2024
Legal Fee Suit Widens Paragon Tech Control Fight In Del.
A running feud at the top of publicly traded investment company Paragon Technologies Inc. widened Thursday with a former CEO's filing of a Delaware Court of Chancery suit for company-paid legal fees prompted by the ex-CEO's ouster, a board investigation and other recent developments.
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November 21, 2024
Nurse Staffing Exec Can't Trim Fraud Charge In Antitrust Case
A Nevada federal court has refused to dismiss fraud charges against a home healthcare staffing executive accused of fixing nurses' wages and hiding a probe of the scheme when selling the business, and also refused to exclude statements the executive made during an FBI interview.
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November 21, 2024
Dentons Atty Owed No Duty In $54M Currency Deal, Jury Says
A Florida state court jury found Thursday that a former Dentons US LLP attorney didn't intentionally make a false statement or commit malpractice in a failed $54 million dollars-to-bolivares currency swap in which a Venezuelan lawyer lost millions of dollars.
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November 21, 2024
IBM Told Execs 'Discriminate Or Lose Your Job,' Worker Says
IBM rewarded executives for meeting diversity goals and threatened them with punishment for failing to do so, essentially telling them to "discriminate or lose your job," a white male consultant who was terminated alleged in a suit filed in Michigan federal court on Wednesday.
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November 21, 2024
NY Hospital GC Accuses State Of Mishandling Medicaid Funds
The general counsel of Nassau University Medical Center, who is also serving as interim president and CEO, is leading the Long Island hospital into a legal battle with the state of New York over $1 billion in federal Medicaid funds.
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November 21, 2024
Suit Against Mortgage Co. Axed Despite Atty's Bad Faith Claim
A Texas state court judge has dismissed for good an attorney's lawsuit against the mortgage company she formerly worked for in-house, despite a dispute over whether the matter should have ended with or without prejudice.
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November 21, 2024
Senate Approves Honeywell GC For Arizona Judge Seat
The Senate voted 82-12 on Thursday to confirm Sharad H. Desai, a vice president and general counsel for Honeywell International, for a seat on the U.S. District Court for the District of Arizona.
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November 21, 2024
New SEC 'Dealer' Rule Tossed In Win For Hedge Funds, Crypto
A Texas federal judge on Thursday overturned a U.S. Securities and Exchange Commission rule that expanded the definition of "dealer" to include proprietary trading firms, some hedge funds and crypto firms, saying the agency overstepped its authority when it adopted the rule.
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November 21, 2024
SEC Chair Gensler To Step Down When Trump Takes Office
U.S. Securities and Exchange Commission Chair Gary Gensler said Thursday that he will be leaving the agency on Jan. 20, clearing the way for new leadership under an incoming Trump administration that is expected to dismantle Gensler's climate disclosure regulation and open the SEC's door to more crypto-friendly policies.
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November 21, 2024
Gaetz Ends AG Bid, Citing 'Distraction' To Trump Transition
Former U.S. Rep. Matt Gaetz withdrew his name from consideration Thursday as President-elect Donald Trump's nominee for attorney general amid allegations of sexual misconduct and drug use.
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November 21, 2024
CFPB Wraps Rule To Pull Big Payment Apps Into Supervision
The Consumer Financial Protection Bureau said Thursday that it has finalized a measure to bring providers of major digital payment apps under its supervisory umbrella, expanding the reach of its oversight deeper into the technology sector and drawing fresh calls to reverse course.
Expert Analysis
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Series
Circus Arts Make Me A Better Lawyer
Performing circus arts has strengthened my ability to be more thoughtful, confident and grounded, all of which has enhanced my legal practice and allowed me to serve clients in a more meaningful way, says Bailey McGowan at Stinson.
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Crypto Cos. Add New Play In Their Offense Against SEC
Consensys and Crypto.com have adopted a novel strategy of preempting U.S. Securities and Exchange Commission enforcement actions by moving to crypto-friendly Texas and filing declaratory lawsuits challenging the SEC's jurisdiction to regulate crypto-assets — an aggressive approach that may pay off, say attorneys at Herrick Feinstein.
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Recent Listeria Outbreaks Hold Key Compliance Lessons
Listeria outbreaks in ready-to-eat foods from Boar's Head and other companies, and the U.S. Department of Agriculture and U.S. Food and Drug Administration responses to these outbreaks, should be closely evaluated from an overall compliance and risk management perspective by food manufacturers, retailers and industry investors, say attorneys at Kirkland.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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Advising Employers As AI Meets DEI And Discrimination
Excerpt from Practical Guidance
Though companies can use artificial intelligence tools to develop more diverse and inclusive workforces, counsel should also prepare employers for how AI can stymie these efforts, provoke discrimination claims and complicate resulting litigation, says Emily Schifter at Troutman Pepper.
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How AstraZeneca Ruling Could Change Dosage Patent Claims
If affirmed on appeal, the rationale employed by the Delaware federal court in Wyeth v. AstraZeneca to find "unit dosage"-related patent claims invalid could lead to a significant paradigm shift in how active-ingredient-focused patent applications are drafted and litigated, say Matthew Zapadka and John Schneible at Arnall Golden.
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What Cos. Can Learn from Water Microplastics Class Actions
Class actions against companies whose bottled spring water allegedly contains microplastics, challenging claims such as "natural" and "100% spring water," seem to be drying up — but these cases serve as a good reminder to other businesses to review regulatory standards, and carefully vet plaintiff allegations at the outset, say attorneys at Keller and Heckman.
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$3B TD Bank AML Settlement Is A Wake-Up Call For All Banks
TD Bank’s historic settlement over anti-money laundering violations, resulting in over $3 billion in penalties, reminds banks of all shapes and sizes why they need to take financial crime compliance seriously, and highlights three areas that may be especially vulnerable to enforcement, says Jack Harrington at Bradley Arant.
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What Trump Presidency May Mean For Climate Reporting
While the Trump administration will likely take a hands-off approach to climate-related disclosures and rescind regulations promulgated under the Biden administration, state and international ESG laws mean the private sector may not reverse course on such disclosures, say attorneys at Seyfarth.
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SEC Action Indicates Continued Focus On ESG Disclosures
The U.S. Securities and Exchange Commission's recently settled enforcement action against Invesco Advisers provides a road map for how regulatory agencies will continue to focus on ESG-related disclosures going forward, and underscores a focus on greenwashing, say attorneys at V&E.
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Unpacking The CFPB's Personal Financial Data Final Rule
The Consumer Financial Protection Bureau's personal financial data rights rule includes several important changes from the proposed rule, and hundreds of pages of supplementary information that provide important insights into the manner in which the bureau will enforce the final rule, say attorneys at Sidley.
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The Bar Needs More Clarity On The Discovery Objection Rule
Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.
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What's Next For The CFTC After The Election
While much of the U.S. Commodity Futures Trading Commission's enforcement actions in line with its traditional priorities will continue as usual in the near term, postelection leadership changes at the CFTC and new congressional priorities may alter the commission's regulatory framework in 2025 and beyond — particularly its oversight of crypto, say attorneys at WilmerHale.
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Del. Dispatch: Clarifying Charter Amendment Vote Obligations
The Delaware Court of Chancery recently held in Gunderson v. The Trade Desk that only a majority stockholder vote is needed to approve a company's proposed reincorporation from Delaware to Nevada through a corporate conversion, which bodes well for other companies also considering leaving the First State, say attorneys at Fried Frank.
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What's Still Up In The Air After Ruling On Calif. Climate Laws
A California federal court's recent ruling on challenges to California's sweeping climate disclosure laws resolved some issues, but allows litigation over the constitutionality of the laws to continue, and leaves many important questions on what entities will need to do to comply with the laws unanswered, say attorneys at Paul Hastings.