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December 11, 2024
Tesla Stockholder Contests $345M Musk Pay Fight Fee In Del.
A Tesla Inc. stockholder has asked to intervene in the Delaware Court of Chancery class derivative case that scuttled CEO Elon Musk's 10-year, $55.6 billion compensation plan, citing objections to court approval of a stock or cash fee award for class attorneys worth $345 million.
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December 11, 2024
NRA Ordered To Reform Policies After NY Misconduct Verdict
A New York judge ordered changes to the National Rifle Association's board structure and organizational policies Wednesday to "prevent future violations of law," following a jury verdict that found widespread financial misconduct and whistleblower retaliation within the gun group.
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December 11, 2024
Trump Media Fights Stay Of Fla. Suit In Investor Dispute
The company behind Donald Trump's Truth Social platform told a Florida appeals court on Wednesday that a trial court should not have paused its suit against investors in favor of a related dispute in Delaware because the two suits are not substantially similar.
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December 11, 2024
Justices Question Affiliates' Liability In $47M TM Judgment
The U.S. Supreme Court on Wednesday questioned why lower courts ordered affiliates of a real estate company to pay a $47 million trademark infringement judgment against it when they were not defendants, with Justice Clarence Thomas asking counsel for the prevailing party why they did not include the affiliates in the case.
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December 11, 2024
SEC Sues Disbarred Calif. Atty And Son For Securities Fraud
The U.S. Securities and Exchange Commission has filed a suit against a father-son duo and a broker for allegedly running a Ponzi-like scheme disguised as an investment company for a start-up content streaming app, raising over $17 million from at least 40 investors.
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December 11, 2024
Google Targeted New Parents For Layoffs, Calif. Suit Says
Google was sued in California state court Wednesday by a former training manager who says the tech giant chose her and six colleagues for layoffs last year because of their decisions to take parental leave.
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December 11, 2024
Character.AI Encouraged Child To Kill His Parents, Suit Says
Two minors and their parents sued Character.AI, its founders and Google in Texas federal court, alleging the "dangerous" technology exposed the children to hypersexualized and violent content, with a chatbot character even encouraging one of the kids to kill his parents because they limited his screen time.
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December 11, 2024
High Court Bar's Future: Haynes Boone's Daniel Geyser
Daniel L. Geyser of Haynes and Boone LLP is an unconventional U.S. Supreme Court advocate in every respect, from the path he forged to become one of the high court's frequent arguers to the way he runs his current practice from more than half a country away from the nation's capital.
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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
Former SEC Unit Chief Joins Gibson Dunn In NY
Gibson Dunn & Crutcher LLP said Monday that a veteran of more than 14 years at the U.S. Securities and Exchange Commission is joining its New York office.
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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
ConEd Escapes Fired In-House Atty's Gender, Age Bias Suit
A New York federal judge tossed an attorney's suit claiming she was fired by Con Edison out of age and gender animus after complaining that her boss unfairly criticized her, ruling she failed to show that her identity rather than her yearslong performance issues got her canned.
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December 11, 2024
CFPB's Chopra Won't Head For Exit Ahead Of Trump's Arrival
Consumer Financial Protection Bureau Director Rohit Chopra signaled Wednesday that he won't leave his post early unless and until the incoming Trump administration fires him next month, indicating that he plans to keep running the agency in the meantime.
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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.
Expert Analysis
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Building US-Japan Relationships In The M&A Market
The prospect of U.S.-Japanese mergers and acquisitions presents stronger competition to U.S. investors in the global M&A markets, while also opening up an additional exit route for sellers looking to offload strategic assets, says Nick Wall at A&O Shearman.
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.
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From Concept To Capital: 5 Stages Of Evolving IP Needs
Companies must understand the shifting intellectual property needs throughout an organization’s life cycle in order to protect innovation, which can be done by fortifying the IP portfolio, expanding and leveraging IP assets, and more, says Keegan Caldwell at Caldwell Law.
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Series
In The CFPB Playbook: No Lazy, Hazy Days Of Summer
The Consumer Financial Protection Bureau is headed for a brisk fall season, on the heels of a heated summer, which included the U.S. Supreme Court's ruling that the CFPB funding structure is constitutional, and in advance of the November election, says Eamonn Moran at Holland & Knight.
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FTC Focus: How Scrutiny Of PBMs And Insulin May Play Out
Should Express Scripts' recent judicial challenge to the Federal Trade Commission succeed, any new targets could add litigation and choice of forum to their playbooks, and potential FTC court action on insulin could be forced to parallel venues as the issues between the commission and PBMs evolve, say attorneys at Proskauer.
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Opinion
AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.
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A Class Action Trend Tests Limit Of Courts' Equity Powers
A troubling trend has developed in federal class action litigation as some counsel and judges attempt to push injunctive relief classes under Rule 23(b)(2) of the Federal Rules of Civil Procedure beyond the traditional limits of federal courts' equitable powers, say attorneys at Jones Day.
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Antitrust Issues To Watch Amid Google Ad Tech Trial
Regardless of the outcome of the U.S. Department of Justice's advertising technology antitrust suit against Google in Virginia federal court, matters ranging from market definition to unified pricing will likely have far-reaching implications for the digital advertising industry, competition and innovation, say attorneys at Holland & Knight.
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Key Takeaways From DOJ's New Corp. Compliance Guidance
The U.S. Department of Justice’s updated guidance to federal prosecutors on evaluating corporate compliance programs addresses how entities manage new technology-related risks and expands on preexisting policies, providing key insights for companies about increasing regulatory expectations, say attorneys at Debevoise.
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What To Know About Latest Calif. Auto-Renewal Law Update
While businesses have about nine months to prepare before the recently passed amendment to California's automatic renewal law takes effect, it’s not too early to begin working on compliance efforts, including sign-up flow reviews, record retention updates and marketing language revisions, say Gonzalo Mon and Beth Chun at Kelley Drye.
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How Lucia, Jarkesy Could Affect Grocery Merger Challenge
While the Federal Trade Commission is taking a dual federal court and administrative tribunal approach to block Kroger's merger with Alberstons, Kroger's long-shot unconstitutionality claims could potentially lead to a reevaluation of the FTC's reliance on administrative processes in complex merger cases, say attorneys at Saul Ewing.
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Kubient Case Shows SEC's Willingness To Charge Directors
The U.S. Securities and Exchange Commission's recent fraud charges against Kubient's former CEO, chief financial officer and audit committee chair signal a willingness to be more aggressive against officers and directors, underscoring the need for companies to ensure that they have appropriate channels to gather, investigate and document employee concerns, say attorneys at Jenner & Block.
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$200M RTX Deal Underscores Need For M&A Due Diligence
RTX's settlement with regulators for violating defense export regulations offers valuable compliance lessons, showcasing the perils of insufficient due diligence during mergers and acquisitions transactions along with the need to ensure remediation measures are fully implemented following noncompliance, say Thad McBride and Faith Dibble at Bass Berry.
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3 Coverage Tips As 2nd Circ. 'Swipes Left' On Tinder Claim
The Second Circuit's recent opinion in Match Group v. Beazley Underwriting, overturning Tinder's victory on its insurer's motion to dismiss a coverage action, reinforces three best practices policyholders purchasing claims-made coverage should adhere to in order to avoid late-notice defenses, say Lynda Bennett and Alexander Corson at Lowenstein Sandler.
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What PCOAB's Broadened Liability Rule Means For Auditors
The U.S. Securities and Exchange Commission’s recent vote agreeing to lower the Public Company Accounting Oversight Board's liability standard, allowing the board to charge individual auditors whose mere negligence leads firms into PCOAB violations, may erode inspection cooperation, shrink the talent pool and have anticompetitive outcomes, say attorneys at BakerHostetler.