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Compliance
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May 23, 2025
Texas Justices Answer 5th Circ. Query On State Usury Laws
The Texas Supreme Court on Friday concurred with a credit card industry firm that sued a lender over its "usurious" interest charges, telling the Fifth Circuit that state law holds that the maximum permissible interest on a loan is based on the declining principal balance, not the initial total principal amount.
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May 23, 2025
Groups Look To Block Trump's Monument Fishing Order
Three conservation groups are challenging a Trump administration proclamation that will open up a 400,000-square-mile Hawaiian national marine monument to commercial fishing, saying the president exceeded his Antiquities Act and constitutional authority in doing so.
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May 23, 2025
Ex-McKinsey Exec Sentenced For Obstructing Purdue Probe
A Virginia federal judge has sentenced a disbarred attorney and former McKinsey & Co. partner to six months in prison for obstructing an investigation into the consulting giant's work with opioid manufacturer Purdue, federal prosecutors announced Friday.
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May 23, 2025
FTC Probing Alcon's $430M Lensar Deal
The Federal Trade Commission has requested additional information about Swiss eye care company Alcon Inc.'s planned purchase of Florida-based medical technology developer Lensar Inc. in a deal worth up to $430 million.
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May 23, 2025
Biotech Insider Traded On $3.5B Novartis Deal, Feds Say
A former board member at Chinook Therapeutics orchestrated an insider-trading scheme after learning about Novartis' plans to purchase the biotech company for $3.5 billion in 2023, according to an indictment announced Friday.
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May 23, 2025
Chief Justice Pauses DOGE's FOIA Discovery For Now
Chief Justice John Roberts temporarily paused discovery Friday into whether the Department of Government Efficiency is an agency subject to Freedom of Information Act requests, giving the initiative a short reprieve as the U.S. Supreme Court considers DOGE's bid to more fully halt a purported "fishing expedition."
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May 23, 2025
Mo. Says Starbucks Lacks Grounds To Escape DEI Bias Suit
The state of Missouri urged a federal judge to reject Starbucks' bid to dismiss its suit claiming its diversity policies discriminate based on race and gender, arguing it has put forward enough evidence showing how the company's practices have harmed its citizens to keep the case in court.
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May 23, 2025
9th Circ. Urged To Force ERISA 401(k) Suit Arbitration
A Los Angeles-based investment management company urged the Ninth Circuit to force individual arbitration of an ex-worker's proposed class action alleging 401(k) mismanagement, arguing a lower court incorrectly concluded an arbitration provision in employees' retirement plan wasn't enforceable because it waived statutory rights under federal benefits law.
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May 23, 2025
GC Cheat Sheet: The Hottest Corporate News Of The Week
A new study found that the total number of shareholder proxy proposals submitted this year dropped significantly after the SEC rescinded past guidance. Meanwhile, a handful of BigLaw firms wrote to members of Congress defending the controversial agreements they made with the Trump administration to avoid executive orders targeting their shops. These are some of the stories in corporate legal news you may have missed in the past week.​
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May 23, 2025
2 Firms Tapped To Lead Visa Derivative Suits Over DOJ Claims
A California federal judge has combined lawsuits accusing Visa's executives and directors of allowing the company to understate the regulatory risk it faced by engaging in anticompetitive actions currently at the center of a lawsuit brought by the U.S. Department of Justice last year, and appointed two law firms to lead the litigation.
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May 23, 2025
Lindberg Urges NC Panel To Rebuff 'Ambush' Sanctions Bid
A convicted billionaire seeking to unravel a receivership order against him has urged the North Carolina Court of Appeals not to scrap his case as a sanction for alleged procedural violations, saying the only gamesmanship afoot is opposing counsel's monthslong "radio silence."
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May 23, 2025
FTC Finally Drops Challenge To Microsoft-Activision Deal
The Federal Trade Commission has dropped its in-house case seeking to block Microsoft's $68.7 billion purchase of video game developer Activision Blizzard, after its Ninth Circuit loss earlier this month, ending a lingering challenge to a deal that closed in late 2023.
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May 23, 2025
House Budget Would Sap Emerging Energy Tax Credit Market
The House's sweeping tax and budget legislation would scrap a relatively new financing option that lets project development owners sell valuable green energy tax credits for cash, which would likely doom or severely hamper the burgeoning market for the credits.
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May 23, 2025
Alarms Sound As DOJ Anti-Corruption Unit Withers
Created in the aftermath of the Watergate scandal as a guardrail against government corruption and politically motivated criminal prosecutions, the Justice Department's Public Integrity Section has been stripped down under the Trump administration to a skeleton crew with severely limited responsibilities, potentially opening the door for improper prosecutions and eliminating a knowledge base built up over decades.
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May 23, 2025
Takeaways For Benefits Attys After Parity Enforcement Freeze
A recent decision by President Donald Trump’s administration to stop enforcing regulations requiring employer health plans to analyze their coverage of behavioral health conditions compared with physical healthcare coverage has benefits attorneys uncertain about what's coming next. Here, Law360 talks to attorneys about the regulatory about-face.
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May 23, 2025
La. Sued For Blocking Community Air Monitoring Sensors
Louisiana is hindering its citizens' ability to monitor air pollution in their communities by threatening to dish out "crippling" fines to those who share data collected from certain affordable sensors, according to a lawsuit filed by environmental groups accusing the state of violating the First and 14th amendments.
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May 23, 2025
Judge Blocks Trump Move To Ban Harvard Foreign Enrollment
A Massachusetts federal judge on Friday granted a restraining order to Harvard University temporarily blocking the Trump administration from enforcing a ban on enrolling foreign students, hours after the school filed a suit calling the move unconstitutional and retaliatory.
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May 22, 2025
SEC Drops Dealer Suits In 'Astonishing' Move, Crenshaw Says
The U.S. Securities and Exchange Commission on Thursday dropped several suits targeting businesses for failing to register as securities "dealers" with the agency as required by law, a move that the SEC's sole Democratic commissioner called "astonishing."
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May 22, 2025
Hawaii Shop Alleges CBD Wares Were Actually THC
A CBD retailer sued a supplier in Hawaii federal court Tuesday for allegedly selling it goods that were represented as CBD products when they actually had an unlawful amount THC in them, which caused some of the products to be seized by law enforcement and one of its customers to fall seriously ill.
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May 23, 2025
Ex-FCC Nom Slams Trump For Pulling Digital Equity Funding
One-time FCC nominee Gigi Sohn dug into President Donald Trump for killing the $2.75 billion Digital Equity Fund, borrowing his language to say that the abrupt cancellation of a congressionally approved program was "unconstitutional" and "illegal."
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May 22, 2025
Critics Decry Budget Bill As Clean Energy 'Attempted Murder'
The budget reconciliation bill that House Republicans passed Thursday replaced an earlier plan to phase out renewable energy tax credits with a 60-day qualification period, leaving project developers struggling to meet a deadline experts say is unrealistic and effectively guts the benefit.
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May 22, 2025
Lottery.com Execs Cop To Securities Fraud In SPAC Case
Two former Lottery.com executives pled guilty Thursday to their role in a scheme to fraudulently inflate reported revenues in a 2021 take-public deal involving the mobile and online lottery gaming platform company.
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May 22, 2025
Fiber Optics Co.'s Leaders Sued Over Financial Restatements
Officers and directors of fiber optics technology company Luna Innovations Inc. are facing a shareholder derivative complaint after the company announced it would revise certain financial statements after prematurely recognizing certain revenue it hadn't actually earned yet.
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May 22, 2025
What's Next As DOJ Mulls Dropping Boeing Criminal Case
Boeing might be on the verge of closing a chapter in its 737 Max legal saga as the U.S. Department of Justice contemplates dropping its criminal conspiracy case against the company in what experts described as an unprecedented move just a year after Boeing was preparing to be branded a corporate felon.
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May 22, 2025
Proxy Proposal Omissions Rose Post-SEC Bulletin, Study Finds
There was a sharp drop in the total number of shareholder proxy proposals submitted this year and a rise in the number of submitted proposals that were omitted from corporate ballots following the U.S. Securities and Exchange Commission's rescission of past guidance, ISS Corporate Solutions Inc. said Thursday.
Expert Analysis
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Chancery Ruling Raises Bar For Advance Notice Bylaws Suits
The Delaware Court of Chancery's recent ruling in Siegel v. Morse will make it more difficult for plaintiffs to successfully challenge advance notice bylaws before the emergence of an actual or threatened proxy contest, presumably reducing the occurrence of such challenges, say attorneys at Venable.
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DOJ Memo Raises Bar For Imposition Of Corporate Monitors
A recently released U.S. Department of Justice memo, outlining guidance on the imposition of compliance monitors in corporate criminal cases, reflects DOJ leadership’s concerns about scope creep and business costs, but the strategies for companies to avoid a monitorship haven't changed much compared to the Biden era, says James Koukios at MoFo.
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Series
Law School's Missed Lessons: Becoming A Firmwide MVP
Though lawyers don't have a neat metric like baseball players for measuring the value they contribute to their organizations, the sooner new attorneys learn skills frequently skipped in law school — like networking, marketing, client development and case evaluation — the more valuable, and less replaceable, they will be, says Alex Barnett at DiCello Levitt.
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How NY's FAIR Act Mirrors ÃÛÌÒÊÓÆµ State Recommendations
New York's proposed FAIR Business Practices Act, which targets predatory lending and junk fees, reflects the Rohit Chopra-era Consumer Financial Protection Bureau's recommendations to states in a number of ways, including by defining "abusive" conduct and adding a new right to file class actions, says Christian Hancock at Bradley Arant.
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Expect Eyes On Electronic Devices At US Entry Points
Electronic device searches are becoming common at U.S. border inspections, making it imperative for companies to familiarize themselves with what's allowed, and mandate specific precautions for employees to protect their privacy and sensitive information during international travel, say attorneys at Seyfarth.
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Big Tech M&A Risk Under Trump May Resemble Biden Era
Merger review under the Trump administration may not differ substantially from merger review under the Biden administration, particularly in the Big Tech arena, in which case dealmakers and investors should shift the antitrust discount on M&A deals upward, says Jonathan Barnett at the University of Southern California Gould School of Law.
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Takeaways From DOJ's 1st Wage-Fixing Jury Conviction
U.S. v. Lopez marked the U.S. Department of Justice's first labor market conviction at trial as a Nevada federal jury found a home healthcare staffing executive guilty of wage-fixing and wire fraud, signaling that improper agreements risk facing successful criminal prosecution, say attorneys at McGuireWoods.
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Calif. Climate Superfund Bill Faces Legal, Technical Hurdles
California could soon join other states in sending the fossil fuel industry a massive bill for the costs of coping with climate change — but its pending climate Superfund legislation, if enacted, is certain to face legal pushback and daunting implementation challenges, says Donald Sobelman at Farella Braun.
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How Cos. Can Navigate Risks Of New Cartel Terrorist Labels
The Trump administration’s recent designation of eight drug cartels as foreign terrorist organizations gives rise to new criminal and civil liabilities for companies that are unwittingly exposed to cartel activity, but businesses can mitigate such risks in a few key ways, say attorneys at Steptoe.
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Cosmetic Co. Considerations As More States Target PFAS
In the first quarter of the year, seven states introduced or passed legislation focused on banning the sale of cosmetics that contain PFAS, making it necessary for businesses to adjust their product testing and supply chain practices, product formulations, marketing strategies, and more, say attorneys at Alston & Bird.
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What We Lost After SEC Eliminated Regional Director Role
Former U.S. Securities and Exchange Commission Regional Director Marc Fagel discusses the recent wholesale elimination of the regional director position, the responsibilities of the job itself and why discarding this role highlights how the appearance of creating a more efficient agency may limit the SEC's effectiveness.
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Mass. Suit Points To New Scrutiny For Home Equity Contracts
The Massachusetts attorney general’s recent charge that a lender sold unregulated reverse mortgages shows more regulators are scrutinizing mortgage alternatives like home equity contracts, but a similar case in the Ninth Circuit suggests more courts need to help develop a consensus on these products' legality, say attorneys at Weiner Brodsky.
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EEOC Suits Show Cos. Shouldn't Ax Anti-Harassment Efforts
Companies shouldn't be so quick to eliminate anti-harassment programs in response to the U.S. Equal Employment Opportunity Commission's guidance cautioning against unlawful diversity, equity and inclusion programs, as recent enforcement actions demonstrate that the agency still plans to hold employers accountable for addressing sexual harassment, says Ally Coll at the Purple Method.
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Reading Tea Leaves In High Court's Criminal Law Decisions
The criminal justice decisions the U.S. Supreme Court will announce in the coming weeks will reveal whether last term’s fractured decision-making has continued, an important data point as the justices’ alignment seems to correlate with who benefits from a case’s outcome, says Sharon Fairley at the University of Chicago Law School.
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$38M Law Firm Settlement Highlights 'Unworthy Client' Perils
A recent settlement of claims against law firm Eckert Seamans for allegedly abetting a Ponzi scheme underscores the continuing threat of clients who seek to exploit their lawyers in perpetrating fraud, and the critical importance of preemptive measures to avoid these clients, say attorneys at Lockton Companies.