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Fintech
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March 25, 2025
Ripple Labs To Pay SEC $50M To End Case, Legal Chief Says
Ripple Labs legal chief Stuart Alderoty said Tuesday the cryptocurrency firm will pay the U.S. Securities and Exchange Commission a $50 million civil penalty to resolve the agency's landmark enforcement action, or a fraction of the $125 million fine that a federal court originally imposed upon it over past unregistered institutional token sales.
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March 24, 2025
Wash. Bill Pay Biz Can't Exit FTC Consumer Protection Suit
A Washington federal judge has declined to throw out a Federal Trade Commission consumer protection suit against a Seattle-based online bill pay platform, rejecting the company's stance that disclaimers on its website absolve it claims of deceptive business practices.
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March 24, 2025
Bank Groups Take Aim At Fed's Stress-Test Methodology
Top bank trade groups are pressing their Ohio federal court challenge to the Federal Reserve Board's stress tests of big banks, asking for a ruling that would force major changes to the way the annual assessments of firm resilience are designed and executed.
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March 24, 2025
Feds, Javice Rest In Trial Over JPMorgan's $175M Frank Buy
Manhattan federal prosecutors and Charlie Javice on Monday both wrapped up their cases in the trial of the former Frank CEO and another executive, who are accused of tricking JPMorgan into buying the education startup for $175 million based on false information.
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March 24, 2025
'Enough Is Enough': Tornado Cash Users Demand Judgment
Challengers to the Treasury Department's now-dissolved sanctions of crypto mixer Tornado Cash on Monday urged a Texas federal judge to make clear that the designation was unlawful despite the government's claims that the case is moot now that it has removed Tornado Cash from its blocked persons list.
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March 24, 2025
Bread Financial Gets Investor's Spinoff Suit Tossed For Good
Bread Financial Holdings Inc. and some of its executives have beaten a shareholder suit alleging that they tried to defraud investors by concealing issues with now-bankrupt spinoff company Loyalty Ventures, with a court ruling that the defendants had made necessary disclosures to investors.
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March 24, 2025
Visa Ducks Antitrust Suit Rife With 'Elementary Mistakes'
A California federal judge took a credit card transaction middleman to task Monday for "muddled" antitrust claims supported by "elementary mistakes" and tossing its proposed class action against Visa Inc.
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March 24, 2025
Mass. Wants Info On Robinhood's March Madness Contracts
Massachusetts' secretary of state has issued a subpoena to Robinhood Markets Inc. related to the trading platform's sporting event contracts tied to this year's March Madness tournaments, officials said Monday.
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March 24, 2025
Chancery Won't Restart Disputed Bitcoin ATMs For Now
Delaware's Court of Chancery refused on Monday to order reactivation of dozens of bitcoin cryptocurrency ATM kiosks shut down by an Iowa grocery chain after that state's attorney general sued Bitcoin Depot and a similar operation for alleged scamming of users.
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March 24, 2025
Danish Court Sends Fintech Into Bankruptcy
Fintech company Spark Technology A/S on Monday hit bankruptcy in the Bankruptcy Division of the Danish Maritime and Commercial Court after several months of being in hot water with the Danish Business Authority.
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March 24, 2025
SEC, FINRA Enforcement Heads Say Crypto Still A Focus
Heads of enforcement at the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority indicated Monday the agencies are keeping their eyes on cryptocurrency, even as the former has backed off of various cases and investigations involving crypto.
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March 24, 2025
Trump Asks High Court To Halt Fed. Workers' Reinstatement
The Trump administration asked the U.S. Supreme Court on Monday to pause a California federal court order reinstating tens of thousands of probationary federal workers who were fired from six agencies, arguing the band of nonprofit groups that obtained the order have no standing to challenge the firings.
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March 24, 2025
Supreme Court Skips Fed. Circ. 1-Word Order Cases
The U.S. Supreme Court on Monday rejected a pair of challenges to the Federal Circuit's use of one-word orders in patent cases.
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March 21, 2025
Only FDIC Can Sue Over Signature Bank Collapse, Judge Says
A New York federal judge on Friday tossed a shareholder lawsuit over alleged misstatements about Signature Bank's health ahead of its 2023 collapse, saying shareholders lacked standing to sue in light of the FDIC being a receiver of both the failed bank's assets and rights of the bank's stockholders.
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March 21, 2025
4th Circ. Won't Pause Order To Reinstate Federal Workers
The Fourth Circuit on Friday refused to pause a Maryland federal judge's restraining order requiring the reinstatement of thousands of probationary workers who were fired from 18 federal agencies.
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March 21, 2025
SEC Crypto Roundtable Puts 'Howey' To The Test
The U.S. Securities and Exchange Commission brought a dozen cryptocurrency legal experts together on Friday to wrestle with how to define security status for digital assets, and their in-depth discussion left the regulator with more questions or suggestions than agreed-upon definitions.
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March 21, 2025
Texas Regulator Says Scammers Recruited Game Developers
The Texas State Securities Board entered an emergency cease-and-desist order to stop offers of an allegedly fraudulent blockchain token called Apertum, saying its creators successfully recruited developers behind "Grand Theft Auto V" to launch a new game requiring the purchase of the token.
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March 21, 2025
SEC Guidance Moves Needle In Favor Of Private Fundraising
The U.S. Securities and Exchange Commission's recent guidance on how accredited investors can self-certify when participating in broadly publicized private placements simplifies legal compliance for issuers, according to attorneys, though the jury is still out on whether market participants will embrace the new framework.
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March 21, 2025
Treasury Lifts Sanctions Against Crypto Mixer Tornado Cash
The U.S. Department of the Treasury said Friday that it has removed U.S. government sanctions against cryptocurrency mixer Tornado Cash, ending the Biden-era blacklisting after the Fifth Circuit said last year that key code underpinning the service wasn't sanctionable.
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March 21, 2025
Cigna Wants Fees After Being Cleared In Payment IP Row
Cigna has urged a Texas federal court to award it legal fees in a case where it was cleared of infringing a card payment patent, saying the patent owner was trying to get the court to rule that a Federal Circuit ruling on the same patent in another case was wrong.
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March 21, 2025
Fed Defends Swipe Fee Cap Against Ky. Pizzeria's Challenge
The Federal Reserve Board asked a Kentucky federal judge to uphold its existing cap on debit card swipe fees, defending the regulatory measure's substantive and procedural merits in a suit brought by a family-owned pizza shop operating in the state.
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March 20, 2025
OCC Says It Will Stop Examining Banks For Reputation Risk
The Office of the Comptroller of the Currency said Thursday that it will no longer examine banks for reputation risk, adopting a policy change that some Republican lawmakers want to require for all federal banking regulators to help curb so-called debanking.
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March 20, 2025
SEC Steps Back From Crypto Mining In Staff Statement
The U.S. Securities and Exchange Commission's Division of Corporation Finance said Thursday that certain crypto mining activities are beyond the agency's purview, but the commission's lone Democrat warned against interpreting the statement as a "wholesale exemption for mining."
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March 20, 2025
SEC Says 'Personnel Changes' Are Delaying 8th Circ. Briefing
The U.S. Securities and Exchange Commission has been granted more time to respond to an Eighth Circuit appeal questioning its definition of securities dealer, as the agency has said one attorney's exit has made it too difficult to stick to the prior briefing schedule.
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March 20, 2025
Ex-Kubient CEO Gets 1 Year For Lying About AI Fraud Tool
A New York federal judge on Thursday sentenced software company Kubient Inc.'s former CEO to a year and a day in prison for putting $1.3 million in phony revenue on the digital advertising technology company's books and lying about an artificial intelligence-powered tool meant to spot digital ad fraud.
Expert Analysis
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AI Will Soon Transform The E-Discovery Industrial Complex
Todd Itami at Covington discusses how generative artificial intelligence will reshape the current e-discovery paradigm, replacing the blunt instrument of data handling with a laser scalpel of fully integrated enterprise solutions — after first making e-discovery processes technically and legally harder.
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When Innovation Overwhelms The Rule Of Law
In an era where technology is rapidly evolving and artificial intelligence is seemingly everywhere, it’s worth asking if the law — both substantive precedent and procedural rules — can keep up with the light speed of innovation, says Reuben Guttman at Guttman Buschner.
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Likely Doomed CFPB Contract Rule Still Has Industry Pointers
While the Consumer Financial Protection Bureau's January proposal on consumer financial contract provisions is unlikely to be finalized under the new administration, its provisions are important for industry to recognize, particularly if state attorneys general decide to take up the enforcement mantle, say attorneys at Saul Ewing.
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The Risk And Reward Of Federal Approach To AI Regulation
The government has struggled to keep up with artificial intelligence's furious pace, but while an overbroad federal attempt to adopt a more unified approach to regulating AI poses its own risks, so does the current environment of regulatory uncertainty, say attorneys at Covington.
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Drug Cartels' Terrorist Label Raises Litigation Risk For Cos.
President Donald Trump's planned designation of some Latin American drug-trafficking groups as foreign terrorist organizations creates an additional and little-noticed source of legal exposure: U.S. civil litigation risk involving terrorism claims by victims of those groups, say attorneys at Covington.
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Imagine The Possibilities Of Openly Autistic Lawyering
Andi Mazingo at Lumen Law, who was diagnosed with autism about midway through her career, discusses how the legal profession can create inclusive workplaces that empower openly autistic lawyers and enhance innovation, and how neurodivergent attorneys can navigate the challenges and opportunities that come with disclosing one’s diagnosis.
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Series
Documentary Filmmaking Makes Me A Better Lawyer
Becoming a documentary filmmaker has allowed me to merge my legal expertise with my passion for storytelling, and has helped me to hone negotiation, critical thinking and problem-solving skills that are important to both endeavors, says Robert Darwell at Sheppard Mullin.
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Litigation Funding Disclosure Debate: Strategy Considerations
In the ongoing debate over whether courts should require disclosure of litigation funding, funders and plaintiffs tend to argue against such mandates, but voluntarily disclosing limited details about a funding arrangement can actually confer certain benefits to plaintiffs in some scenarios, say Andrew Stulce and Marc Cavan at Longford Capital.
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Understanding Risks Of Celebrities 'Hawking' Crypto Tokens
Prominent social media personality Haliey Welch was recently sued over the promotion and sale of the Hawk Tuah cryptocurrency memecoin, underscoring the importance of public figures conducting due diligence to verify they aren't endorsing a token that is in fact a security, say attorneys at Sheppard Mullin.
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Mass. Law Shows Patchwork Money Transfer Rules Persist
Though Massachusetts' recently passed law governing domestic money transfers means 26 states now have a version of the Model Money Transmission Modernization Act on the books, the national framework remains a patchwork that will continue to force industry players to pay sharp attention to state variations, say attorneys at Manatt.
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Scope And Nature Of Judicial Relief Will Affect Loper's Impact
The practical result of post-Loper Bright rulings against regulatory actions will depend on the relief courts grant — and there has been controversy in these types of cases over whether the ruling is applied just to the parties or nationwide, and whether the action can be left in place while it's corrected, says Steven Gordon at Holland & Knight.
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Series
Adventure Photography Makes Me A Better Lawyer
Photographing nature everywhere from Siberia to Cuba and Iceland to Rwanda provides me with a constant reminder to refresh, refocus and rethink the legal issues that my clients face, says Richard Birmingham at Davis Wright.
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How Cos. Can Respond To CFPB Digital Asset Safeguard Plan
Though the Consumer Financial Protection Bureau’s proposal to regulate online payment platforms via existing federal laws would create new challenges, digital payment companies that engage with the rulemaking process could help shape a win-win regulatory framework that protects consumer data and ensures the sector’s growth, says Allison Raley at Arnall Golden.
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Future Of Crypto-Asset Classification Is In 2nd Circ.'s Hands
A definitive ruling from the Second Circuit in a rare interlocutory appeal in the U.S. Securities and Exchange Commission's ongoing court battle with Coinbase could finally establish clear guidelines on the classification of digital assets, influencing how they are regulated and traded in the U.S., say attorneys at Manatt.
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5 Ways To Create Effective Mock Assignments For Associates
In order to effectively develop associates’ critical thinking skills, firms should design mock assignments that contain a few key ingredients, from messy fact patterns to actionable feedback, says Abdi Shayesteh at AltaClaro.