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Corporate
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November 21, 2024
DOJ Urges Chrome, Android Sales In Google Case
The U.S. Department of Justice late Wednesday formally asked a Washington, D.C., federal judge to order a range of steps to end Google's monopolization of general search services and the text ads shown alongside search results, most notably by forcing the company to spin off the Chrome browser.
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November 20, 2024
SEC Cooperators More Likely To See Pay Reprieve In 2024
The U.S. Securities and Exchange Commission's recent emphasis on cooperation seems to have paid off for both the agency and some of the entities it regulates, according to a report released Thursday, which found that more public companies entered into nonmonetary settlements with the SEC in fiscal year 2024 than in any year over the previous decade.
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November 20, 2024
Musk, Ramaswamy Say High Court Rulings OK Federal Cuts
Billionaire Elon Musk and former presidential candidate Vivek Ramaswamy, President-elect Donald Trump's picks to lead a newly created "Department of Government Efficiency," on Wednesday said two recent U.S. Supreme Court rulings will give them the authority to cut off power to regulatory agencies and conduct massive federal layoffs.
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November 20, 2024
Lululemon Execs Hit With Derivative Suit Over DEI Program
Lululemon leadership was hit with a shareholder derivative suit Wednesday claiming they made false statements related to the company's new "Inclusion, Diversity, Equity and Action" program that artificially boosted the company's stock price and also concealed problems with the company's inventory allocation.
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November 20, 2024
9th Circ. Judge Asks How Loper Bright Impacts EPA Fine Case
A Ninth Circuit judge wondered on Wednesday what weight the court should give the Environmental Protection Agency's view in a chemical wholesaler's appeal of an $850,000 fine in light of the U.S. Supreme Court's Loper Bright decision, suggesting the justices might next end agency deference in regulatory interpretation.
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November 20, 2024
Ex-Pharma CEO Demands Legal Fees For SEC Probe
Cancer treatment development company Eagle Pharmaceuticals Inc.'s founder and ex-CEO told Delaware's Chancery Court Wednesday that he is entitled to legal fees he says the company owes him in connection with a U.S. Securities and Exchange Commission probe into the company's accounting practices, saying he continues to incur fees in addition to the $875,000 he has already requested.
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November 20, 2024
5 Charged For 'Scattered Spider' Phishing Hacks, Crypto Theft
California federal prosecutors unveiled a criminal case Wednesday accusing five alleged members of the "Scattered Spider" cybercrime group of using a phishing scheme to access the confidential data of media and technology companies and steal $11 million worth of cryptocurrency from digital wallets.
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November 20, 2024
Wash. Judge Questions Startup's Amazon Antitrust Claims
A Washington federal judge on Wednesday suggested that antitrust claims might not survive in a startup's complaint against Amazon Web Services involving a dispute over higher-speed internet connections in the Middle East that allowed the startup to cater to its customer Epic Games.
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November 20, 2024
'Fat Leonard' To Appeal 15-Year Sentence Over Navy Bribery
A Malaysian defense contractor and ex-fugitive who pled guilty nearly 10 years ago to a bribery scheme that authorities said cost the U.S. Navy over $20 million has indicated in California federal court that he will appeal his 15-year sentence to the Ninth Circuit.
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November 20, 2024
USPTO Unveils Patent Fee Hikes Set To Take Effect In January
The U.S. Patent and Trademark Office on Wednesday released a final rule that will increase many patent-related fees on Jan. 19, recalibrating some proposed hikes that had drawn criticism from attorneys and industry groups while leaving others intact.
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November 20, 2024
Bumble Brass Fumbled App Revamps, Investor Suit Says
Current and former brass of dating app Bumble's parent company face shareholder derivative claims that they projected overconfidence about revamping its app, then saw trading prices crater when Bumble lowered its 2024 growth projections amid the tinkering.
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November 20, 2024
SkyWest Airlines Hit With $2M Verdict In EEOC Harassment Case
A Texas jury found in favor of the Equal Employment Opportunity Commission on Wednesday in a suit that saw SkyWest Airlines accused of sitting idle while an employee experienced persistent sexual harassment, awarding over $2 million in punitive damages for the workplace misconduct in federal court.
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November 20, 2024
Nike Accused Of 'Smear Campaign' Over $60M Trademark Suit
A Los Angeles-based company that made customized sneakers for celebrities and athletes hit back Tuesday at Nike's $60 million trademark suit, saying that despite the companies' previous collaborations, Nike is now making knowing false claims in a "smear campaign" to crush its business.
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November 20, 2024
Xerox Faces Investor Suit Over 'Reinvention' Strategy
Business technology company Xerox Inc. has been hit with a proposed shareholder class action in New York federal court alleging the company's stockholders were harmed by a "reinvention" strategy it introduced in 2023 that yielded lower sales and revenue.
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November 20, 2024
Advance Notice Bylaw Measures Fuel Chancery Battle
Arguing that recent corporate advance notice bylaws have resulted in "real, actual harm" to stockholders of Owings Corning and The AES Corp., attorneys for shareholders of both urged a Delaware vice chancellor on Wednesday to reject calls to dismiss challenges to the measures.
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November 20, 2024
Scotts Miracle-Gro Leaders Sued Over Post-Pandemic Glut
Executives, directors and an heir to the CEO of consumer gardening giant The Scotts Miracle-Gro Co. face a shareholder derivative action alleging the company flooded its sales channels with post-pandemic excess inventory as it struggled to avoid defaulting on its debt.
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November 20, 2024
Burger King Franchisee Escapes BIPA Coverage Counterclaim
An Illinois federal judge has axed an AIG subsidiary's counterclaim in a Burger King franchisee's lawsuit seeking coverage for an underlying case accusing it of violating Illinois' biometric privacy law, concluding that the counterclaim is redundant and "adds nothing that will not be decided through resolution of the motions for summary judgment."
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November 20, 2024
PBMs Sue To Block FTC's In-House Insulin Pricing Case
Caremark Rx, Express Scripts and OptumRx have lodged a constitutional challenge of the Federal Trade Commission's in-house case accusing the pharmacy benefits managers of artificially inflating insulin prices through unfair rebate schemes.
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November 20, 2024
Hinshaw Brings On Ex-JPMorgan Counsel From Ballard Spahr
A Ballard Spahr LLP attorney and former in-house counsel for JPMorgan Chase & Co. has joined Hinshaw & Culbertson LLP as a partner in the firm's consumer financial services practice group in New York, where he will advise banks, lenders and fintechs on state and federal regulations, compliance matters and litigation.
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November 20, 2024
Archegos Founder Gets 18 Years For Massive Market Fraud
Bill Hwang, the founder of collapsed hedge fund Archegos, was sentenced Wednesday to 18 years in prison after he was convicted of lying to banks in order to secure billions of dollars in loans used to manipulate the market.
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November 20, 2024
Cleary Hires Milbank Atty For Capital Markets Team
Cleary Gottlieb Steen & Hamilton LLP announced the addition of a former Milbank LLP transactional attorney to its New York office on Wednesday, saying she will be an asset for its capital markets clients.
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November 20, 2024
Atty From Telecom Biz Joins IP Firm Panitch Schwarze
Panitch Schwarze Belisario & Nadel LLP has hired an attorney with extensive in-house experience in the tech industry to help enhance the intellectual property services it offers to its clients.
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November 20, 2024
Sidley-Guided Lifeway Rejects Second Danone Buyout
Lifeway Foods Inc. said Wednesday that its board has rejected a Nov. 15 revised offer from Danone North America PBC to buy the remainder of Lifeway for $27 per share, or roughly $306 million.
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November 20, 2024
TGI Fridays Gets OK On Bid Process As It Seeks Out Buyers
A Texas bankruptcy judge on Wednesday approved TGI Fridays' procedures for contacting and selecting prospective buyers for its assets after the struggling restaurant chain said it was in discussions with at least 21 potential bidders.
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November 20, 2024
Walgreens Wins Sanctions Over Depo With 300 Objections
An Illinois federal judge on Wednesday ruled Walgreens can recover the costs of a contentious deposition in a dispute with an electronics company, saying the witness "possessed virtually no knowledge" of the matters laid out in the deposition notice and the company's attorney engaged in "improper, obstructionist conduct" during the proceeding.
Expert Analysis
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Series
Being A Navy Reservist Makes Me A Better Lawyer
Serving this country in uniform has not only been one of the greatest honors of my life, but it has also provided me with opportunities to broaden my legal acumen and interpersonal skills in ways that have indelibly contributed to my civilian practice, says Phillip Smith at Weinberg Wheeler.
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How To Prepare For Expanded HSR Notification Process
Following the recent publication of the Federal Trade Commission's final rule enhancing premerger reporting requirements under the Hart-Scott-Rodino Act, filing parties can take key steps to comply by the new Feb. 10 effective date, say attorneys at Squire Patton.
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Cos. Should Inventory Issues To Prep For New Congress
As the legislative and oversight agendas of the 119th Congress come into sharper focus, corporate counsel should assess and plan for areas of potential oversight risk — from tax policy changes to supply chain integrity — even as much uncertainty remains, say attorneys at WilmerHale.
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Navigating DOJ's Patchwork Whistleblower Regime
In the past few months, the U.S. Department of Justice and several individual U.S. attorney’s offices have issued different pilot programs aimed at incentivizing individuals to blow the whistle on misconduct, but this piecemeal approach may create confusion and suboptimal outcomes, say attorneys at BakerHostetler.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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A Look At Similarities Between SOX And SEC's Cyber Rule
Just as the Sarbanes-Oxley Act paved the way for greater transparency and accountability in financial reporting, the SEC's cybersecurity rule is doing much the same for cybersecurity, ensuring that companies are resilient in the face of growing cyber threats, says Padraic O'Reilly at CyberSaint.
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Trump Rollback Of Biden Enviro Policies: What To Expect
Donald Trump's upcoming second presidential term will usher significant shifts in U.S. environmental and natural resource law and policy — and while the Biden administration is racing to secure its legacy, the incoming Trump administration is making plans to dramatically roll back most, if not all, of Biden's environmental initiatives, say attorneys at Beveridge & Diamond.
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Class Actions At The Circuit Courts: November Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses six federal court decisions that touch on Rule 23 of the Federal Rules of Civil Procedure, and when individual inquiries are needed to prove economic loss.
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Why K-Cup Claims Landed Keurig In Hot Water With SEC
The U.S. Securities and Exchange Commission's recent settlement with Keurig Dr. Pepper for making incomplete statements regarding the recyclability of K-cup pods highlights the importance of comprehensive corporate disclosures, particularly with respect to ESG matters, say attorneys at BCLP.
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Predicting Shareholder Activism Trends In New Trump Admin
While President-elect Donald Trump has promised tax policies, deregulation and lax antitrust enforcement — which all fuel shareholder activism — a closer look at his first administration's track record suggests that his second presidency might be a mixed bag for activist investors and companies alike, say attorneys at Sidley.
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Destination Skiing And The DOJ's Mountain Merger Challenge
Attorneys at Robins Kaplan consider what the U.S. Department of Justice's second request for information portends for Alterra's acquisition of Colorado's Arapahoe Basin ski area, exploring the potential consequences for market definition, industry consolidation and the transformation of the lift ticket market.
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Putting NYDFS AI Cybersecurity Guidance Into Practice
New guidance from the New York Department of Financial Services explains how financial institutions should assess and mitigate cybersecurity risks associated with artificial intelligence, focusing on four main threats and highlighting how varying environments require specific mitigation measures, say attorneys at Saul Ewing.
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Copyright Questions Surround AI Music Platform Suits
If recent lawsuits filed by the Recording Industry Association of America against two artificial intelligence music platform developers — who maintain that use of copyrighted works to train AI models constitutes fair use — go to trial, this novel issue will make for potentially precedent-setting decisions, says intellectual property lawyer Eric Lane.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Opinion
In Visa Case, DOJ Continues To Misapply The Sherman Act
The recent U.S. Department of Justice debit market monopolization case against Visa fuels concerns that a misguided Biden administration DOJ is inappropriately expanding its interpretation of the Sherman Antitrust Act beyond the demonstrable economic effects that business conduct has on consumers, says Shubha Ghosh at Syracuse University.