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Corporate
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April 25, 2025
Ex-Google Engineer Claims Coercion In AI Trade Secrets Case
A former Google software engineer accused of stealing artificial intelligence trade secrets for Chinese startups has asked a California federal court to suppress statements he made to government investigators, alleging they used forceful tactics during an interrogation and did not read him his Miranda rights.
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April 25, 2025
Chemours Hit With New Derivative Duty Breach, Waste Suit
A Chemours Inc. stockholder launched a new derivative damage suit against 13 former or current top officers and directors in Delaware's Court of Chancery Friday, adding to state and federal court challenges targeting allegedly conflicted and misleading disclosures about revenues and performance in 2022 and 2023.
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April 25, 2025
GC Cheat Sheet: The Hottest Corporate News Of The Week
A former general counsel for Webster Bank received a four-year sentence behind bars after he pled guilty to embezzling $7.4 million. Meanwhile, regulators who oversee data privacy enforcement in California, Colorado and Oregon are pushing for companies to be more responsive and open to investigative inquiries. These are some of the stories in corporate legal news you may have missed in the past week.
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April 25, 2025
Sullivan & Cromwell Adds V&E Shareholder Activism Leaders
Sullivan & Cromwell has added two seasoned corporate governance partners to its New York office, who most recently served as co-chairs of Vinson & Elkins' shareholder activism practice.
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April 25, 2025
Ex-CFO Says CEO Fired Him To Avoid Paying Bonus
A company that produces adhesives and fasteners for the construction industry fired its vice president and chief financial officer to avoid paying him nearly $300,000 in bonuses, according to a contract suit removed to Connecticut federal court.
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April 25, 2025
10th Circ. Backs Spirit Aero's $31M Clawback From Ex-CEO
The Tenth Circuit on Friday backed Spirit AeroSystems Inc.'s decision to claw back $31 million worth of stock awards because a former CEO violated his noncompete agreement with the aircraft structure manufacturer, holding a lower court properly ruled the employment pact was enforceable under Kansas law.
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April 25, 2025
Insulet's $452M Trade Secrets Award Reduced To $59.4M
A $452 million trade secrets jury award for Insulet Corp. has been cut to $59.4 million by a Massachusetts federal judge who said the reduction is necessary to avoid double recovery and to comply with the law, following a trend where courts have reduced large jury awards in trade secret cases.
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April 25, 2025
Atkins Vows SEC Will Pursue 'Common-Sense' Crypto Policy
The U.S. Securities and Exchange Commission's new Chair Paul Atkins told crypto industry experts on Friday that the SEC will work to establish a "fit-for-purpose" framework for digital assets, while industry participants urged a principles-based approach to cover its rapid innovation.
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April 25, 2025
2nd Circ. Rejects Tesla Buyer's Deceptive-Ad Case
The Second Circuit on Friday rejected an appeal from a Tesla buyer who claimed he was misled about his car's self-driving capabilities, ruling that he'd waited too long to bring the proposed class action.
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April 24, 2025
PCMag, Mashable Publisher Latest To Sue OpenAI Over IP
Ziff Davis, the publisher behind digital publications like PCMag, Mashable and Everyday Health, on Thursday became the latest media company to launch a lawsuit accusing OpenAI of ripping off copyrighted content to train its artificial intelligence products.
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April 24, 2025
State Privacy Enforcers Push For Stronger Corporate Dialogue
Regulators responsible for data privacy enforcement in California, Colorado and Oregon are calling on companies to be more responsive and open to investigative inquiries, saying this approach could help achieve better outcomes as these offices move to bring on additional technology experts and fortify collaboration with each other.
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April 24, 2025
Judge Won't Halt Auction Over Unpaid SPAC Finder's Fee
A Florida federal judge denied a cloud company's request to halt an auction of its assets to collect a $2.4 million debt, finding that iCoreConnect failed to show it would likely win claims that PIGI Solutions LLC acted as an unregistered broker-dealer when advising on its merger with a blank check company.
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April 24, 2025
Investor Sues To Halt 'Cheap' VC Buyout Of Fla. Health Co.
A Florida health business investor sued its founder, its CEO, a venture capitalist firm and others over negligent misrepresentation in connection to a proposed buyout, alleging a proxy statement omitted conflicts of interest and included deceptive financial data in order to justify the company's "cheap" acquisition.
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April 24, 2025
Starbucks Sued Over Human Rights Abuses On Coffee Farms
The supply chain for Starbucks' Brazilian coffee is rife with slavery-like conditions and child labor, coffee plantation workers have said in a lawsuit, alleging they were forced to work for suppliers of the global coffee chain under "debt bondage" and threats of violence.
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April 24, 2025
Ex-OpenAI Workers, Nobel Laureates Back Musk OpenAI Fight
A group of former OpenAI employees and artificial intelligence experts, including some Nobel laureates, have urged the California and Delaware attorneys general to block OpenAI's move to take the company private, arguing that the attorneys general "have both the authority and duty to protect OpenAI's charitable trust and purpose."
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April 24, 2025
FINRA Says 5th Amendment Doesn't Apply In Adviser's Case
The Financial Industry Regulatory Authority has urged a Washington, D.C., federal court to toss a financial adviser's Fifth Amendment challenge against the self-regulating watchdog of brokers, arguing it is not subject to constitutional requirements when carrying out its self-regulatory responsibilities.
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April 24, 2025
ServiceNow To Give Enforcers More Time On $2.85B AI Deal
ServiceNow said it plans to give enforcers more time to review a planned deal to expand its artificial intelligence offerings through the $2.85 billion purchase of fellow California-based software company Moveworks.
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April 24, 2025
Ex-CEO Of Trump-Tied SPAC Reaches Deal With SEC
The former CEO of the special purpose acquisition company that took President Donald Trump's social media platform public has reached a deal to end a U.S. Securities and Exchange Commission case accusing him of failing to timely alert investors to the prospective deal.
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April 24, 2025
Biz Court Questions What Ties TikTok To NC In Addiction Case
A North Carolina business judge grappled Thursday with the limits of personal jurisdiction in the internet age in the state's case alleging TikTok addicts young users, questioning whether a digital app is different from a physical good regarding where a lawsuit can be filed.
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April 24, 2025
GE Investors' $362.5M Deal Gets Final OK, Attys Get $70M
A New York federal judge on Thursday gave final approval to a $362.5 million deal and awarded attorneys from Kessler Topaz Meltzer & Check LLP and Grant & Eisenhofer PA nearly $70 million in attorney fees for their work in a class action that accused General Electric Co. of fraudulently concealing cash flow problems.
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April 24, 2025
Ex-OneTaste Execs Ask Justices To Nix 'Stolen' Docs
Former OneTaste executives facing forced-labor conspiracy charges asked the U.S. Supreme Court on Thursday to bar allegedly stolen and attorney-client privileged documents from being used at a May trial, saying corporate legal communications are broadly at risk.
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April 24, 2025
AI Patents Face Eligibility Hurdles After 1st Fed. Circ. Case
The Federal Circuit's first-ever patent eligibility decision involving machine learning made clear that using artificial intelligence technology to make a task faster or more efficient is not sufficient, while leaving uncertainty about what type of technical improvements would pass muster, attorneys say.
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April 24, 2025
Apple, Google, Roblox Duck Game Addiction Suit, For Now
An Illinois federal judge Wednesday dismissed Apple, Google and Roblox from a parent's proposed class action accusing multiple video game developers and platforms of peddling their addictive wares to children, saying the allegations lack specificity, but left open the possibility of amending the complaint.
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April 24, 2025
8th Circ. Quizzes SEC About Fate Of Climate Regs
The U.S. Securities and Exchange Commission has been ordered by the Eighth Circuit to say whether it plans to withdraw or rewrite corporate climate disclosure rules that it is no longer defending in court, with the litigation surrounding the rules being put on hold at the request of several blue states until the agency discloses next steps.
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April 24, 2025
Dragonchain Suit Dropped Amid SEC's Crypto Reg Revisit
The U.S. Securities and Exchange Commission has agreed to end its suit accusing blockchain platform Dragonchain and its founder of selling unregistered securities to thousands of investors, citing the Trump administration's push to clarify regulations surrounding digital assets like cryptocurrency.
Expert Analysis
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Home Depot Ruling Tolls Death Knell For 'Silent Cyber'
The Sixth Circuit's recent ruling that Home Depot's insurers did not have to cover costs from a data breach hammered one more nail in the coffin of silent cyber, where coverage is sought under standard property or commercial general liability policies that were not intended to insure cyberattack claims, say attorneys at Zelle.
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Series
Improv Makes Me A Better Lawyer
Improv keeps me grounded and connected to what matters most, including in my legal career where it has helped me to maintain a balance between being analytical, precise and professional, and creative, authentic and open-minded, says Justine Gottshall at InfoLawGroup.
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How BigLaw Executive Orders May Affect Smaller Firms
Because of the types of cases they take on, solo practitioners, small law firms and public interest attorneys may find themselves more dramatically affected by the collective impact of recent government action involving the legal industry than even the BigLaw firms named in the executive orders, says Reuben Guttman at Guttman Buschner.
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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2 Del. Rulings Reinforce Proof Needed For Records Demands
Two recent Delaware Court of Chancery decisions involving Amazon and Paramount Global illustrate the significance of the credible basis standard on books and records requests, underscoring that stockholders seeking to investigate wrongdoing must come forward with actual evidence of misconduct — not mere allegations, say attorneys at Cleary.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.
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Key Takeaways From The 2025 Spring Antitrust Meeting
Leadership changes, shifting priorities and evolving enforcement tools dominated the conversation at the recent American Bar Association Spring Antitrust Meeting, as panelists explored competition policy under a second Trump administration, agency discretion under the 2023 merger guidelines and new frontiers in conduct enforcement, say attorneys at Freshfields.
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Tariffs And FCA Create Perfect Storm For Importers
The Trump administration's aggressive tariff policies pose a high risk to certain importation practices that are particularly likely to trigger False Claims Act enforcement, say attorneys at Jeffer Mangels.
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How Tariffs May Affect Proxy Contests This Season
While global tariffs imposed by the Trump administration will certainly chill at least some activity this proxy season, and make defending contests significantly easier, there will likely be many new activist investments once there is more economic certainty, meaning more proxy fights this fall, say attorneys at Sidley.
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Running A Compliant DEI Program After EEOC, DOJ Guidance
Following recent guidance from the U.S. Equal Employment Opportunity Commission and the U.S. Department of Justice that operationalized the Trump administration's focus on ending so-called illegal DEI, employers don't need to eliminate DEI programs, but they must ensure that protected characteristics are not considered in employment decisions, say attorneys at Holland & Knight.
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A Closer Look At New NYSE, Nasdaq Listing Rule Changes
The U.S. Securities and Exchange Commission has recently approved changes to the New York Stock Exchange's and the Nasdaq's listing rules on reverse stock splits, minimum share price requirements and required liquidity for initial listings, meaning listed companies facing delisting will have fewer means to regain compliance, say attorneys at Cahill Gordon.
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Series
Law School's Missed Lessons: Be An Indispensable Associate
While law school teaches you to research, write and think critically, it often overlooks the professional skills you will need to make yourself an essential team player when transitioning from a summer to full-time associate, say attorneys at Stinson.
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6 Principles For De-Risking In This Era Of Uncertainty
Companies can emerge from the current period of disruptive transformation stronger than ever by embracing strategies that enable them to methodically evaluate risk, adapt to change without losing purpose, focus on customer value and find competitive advantages amid uncertainty, says David McVeigh at Axiom.
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What 2nd Trump Admin Means For Ship Pollution Compliance
As the second Trump administration's civil and criminal enforcement policies take shape, the maritime industry must ensure it complies with both national and international obligations to prevent oil pollution from seagoing vessels — with preventive efforts and voluntary disclosures being some of the best options for mitigating risk, say attorneys at Holland & Knight.
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23andMe Case Highlights Privacy Complexities In Ch. 11
Attorneys at Pryor Cashman discuss the interplay between a sale of personally identifiable information and bankruptcy law in light of genetics and health company 23andMe's recent filing for Chapter 11 relief.