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Compliance
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September 08, 2025
Class Actions May Be The New Injunction Bid, And Next Target
In the two months since the Supreme Court hobbled universal injunctions, lawyers and trial judges have pivoted to adjust to a new litigation landscape, with class actions playing a larger role in lawsuits seeking to stop presidential policies. That, in turn, could put the tactic in the administration's crosshairs.
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September 08, 2025
Catching Up With Delaware's Chancery Court
Last week at the Delaware Court of Chancery, a bankruptcy administrator for a generic drugmaker formerly known as Teligent was told he can proceed with duty of oversight claims against most former officers and directors of the company, who the administrator said was complicit in the company's collapse. In an opinion, the Court of Chancery cites its 1996 decision In re Caremark International Inc. Derivative Litigation, which refined director duties of care and oversight.
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September 08, 2025
Drexel Defends Employees In Ex-Administrator's Bias Case
Drexel University officials on Monday denied that contentious interactions between staff members and a former administrator were motivated by race and gender bias, telling a Pennsylvania federal judge in a bench trial the real driver was concern about her allegedly interfering with the independence of the school's auditors.
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September 08, 2025
23andMe's Ch. 11 Sale Flouted State Privacy Law, Calif. Says
The state of California has asked a Missouri federal judge to undo the $305 million bankruptcy sale of consumer DNA testing group 23andMe, arguing it sidestepped state consumer data protections.
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September 08, 2025
4 Firms Build EchoStar's $17B Spectrum Sale To SpaceX
Telecommunications company EchoStar on Monday announced plans to sell some of its spectrum licenses to Elon Musk-owned SpaceX in a $17 billion cash-and-stock deal built by four firms, following its sale a few weeks ago of certain wireless spectrum licenses to AT&T in a $23 billion deal.
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September 08, 2025
Pa. Bill Aims To Stop Reassessments For Small Improvements
Pennsylvania would allow small property improvements without the trigger of a reassessment under a bill introduced in the state Senate.Â
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September 08, 2025
Chief Justice Pauses FTC Commissioner's Reinstatement
Chief Justice John Roberts issued an order Monday temporarily staying the reinstatement of Democratic Federal Trade Commissioner Rebecca Slaughter while the Trump administration fights to bring a case challenging her removal to the U.S. Supreme Court.
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September 05, 2025
SEC Lost Year's Worth Of Gary Gensler Texts, Watchdog Says
The U.S. Securities and Exchange Commission made "avoidable errors" that caused the agency to lose all text messages sent and received by former chair Gary Gensler for nearly a year of his tenure, some of which haven't been recovered, according to a report from the SEC's Office of Inspector General.
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September 05, 2025
DC Circ. Won't Halt Order Releasing Billions In Foreign Aid
Both a divided D.C. Circuit panel and a district court judge Friday refused to hit pause on the judge's recent order requiring the Trump administration to release billions of dollars in frozen foreign aid.
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September 05, 2025
8th Circ. Vacates Biden-Era, Updated EV Fuel Economy Rules
The Eighth Circuit Friday vacated the U.S. Department of Energy's updated method of calculating the fuel economy equivalent estimates for electric vehicles, finding that the DOE didn't have the authority to enact the 2024 rule, nor did it comply with the Administrative Procedures Act.
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September 05, 2025
Trump Admin Says Enviro Groups Can't Block GHG Report
The Trump administration has told a Massachusetts federal judge that a lawsuit challenging its formation of a climate change science advisory panel is a misguided ploy to undermine the U.S. Environmental Protection Agency's impending reconsideration of the harms of greenhouse gases.
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September 05, 2025
Temu Hit With $2M Penalty In FTC's 1st INFORM Act Case
The operator of Chinese e-commerce platform Temu has agreed to pay $2 million to resolve the Federal Trade Commission's inaugural enforcement action under the INFORM Consumers Act, which requires online marketplaces to provide customers with certain information and tools to combat counterfeit goods offered by high-volume third-party sellers.Â
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September 05, 2025
Near Ch. 11 Litigation Trustee Sues MobileFuse In Del.
A litigation trustee for bankrupt data analytics company Near Intelligence Inc. has sued New York-based digital ad company MobileFuse LLC in the U.S. Bankruptcy Court for Delaware, alleging a multiyear circular payment conspiracy that cost Near more than $50.7 million.
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September 05, 2025
Democrat Slaughter Asks Justices To Let Her Stay On FTC
Democratic Federal Trade Commissioner Rebecca Slaughter urged the U.S. Supreme Court on Friday not to pause her reinstatement while the Trump administration challenges lower court decisions holding that her firing was illegal, saying those decisions were plainly correct and she's in no danger of sowing "chaos."
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September 05, 2025
Employment Authority: NYC Grocery Workers' Min. Pay
Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with coverage on how grocery delivery workers in New York City could become the latest group to receive a minimum pay standard without being classified as employees, a look at five employment bills to watch in California and how gig drivers in California could soon have the ability to unionize.
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September 05, 2025
SEC, CFTC Set Sights On Crypto In Regulatory Collab
The U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission said Friday they are moving forward with a broad regulatory harmonization effort that they hope will encourage innovation in growing markets, and lawyers tell Law360 they expect the focus to be writing rules governing the crypto sector.
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September 05, 2025
Real Estate Recap: Investor Power Plays
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including what attorneys have been seeing when it comes to the power dynamic between fund managers and their investors.
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September 05, 2025
Judge Doubts DOE Stance On Ending Mental Health Grants
A Seattle federal judge hinted on Friday that 16 states have valid claims against the U.S. Department of Education for arbitrarily discontinuing mental health funding for public schools, expressing frustration with the federal government's argument that it could terminate grant funding the same way it could fire a landscaper under contract. Â
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September 05, 2025
Quantum Corp. Faces Investor Suit Over $4M Revenue Error
Data storage company Quantum Corp. is facing a proposed class action from an investor who claimed in Colorado federal court on Thursday the company committed securities fraud by making false representations to investors through earnings reports for the 2024 fiscal year.
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September 05, 2025
Fla. Judge Trims Trump Media SPAC Exec Hacking Suit
A Florida federal judge has sent into discovery a suit alleging a board director for President Donald Trump's social media company and his associate hacked a cloud server to steal documents used to oust the former CEO of the company, finding that several computer fraud and conspiracy claims fail but allowing a breach of fiduciary duty claim to move forward.
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September 05, 2025
FTC Drops Appeal For Rule Banning Noncompetes
The Federal Trade Commission officially abandoned its appeal Friday in a case that set aside a Biden administration rule banning the use of most employee noncompete clauses, but the agency said it plans to bring enforcement actions on a case-by-case basis instead.
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September 05, 2025
Debt Relief Co. Appeals sa¹ú¼Ê´«Ã½'s $43M Win To 7th Circ.
The former owner of a defunct debt relief provider and the company have filed an appeal to the Seventh Circuit to challenge a ruling ordering them to pay more than $43 million in restitution and penalties to settle claims from the Consumer Financial Protection Bureau that the firm preyed on student loan borrowers.
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September 05, 2025
Top Groups Lobbying The FCC
Lobbying slowed toward the end of the dog days, but the Federal Communications Commission heard from advocates nearly 100 times in August on issues like next-generation TV, satellite spectrum rules and 900 megahertz broadband.
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September 05, 2025
Merck Shakes Off Some Claims From Cholesterol Drugs Suit
A New Jersey federal judge has partly granted a request from Merck & Co. to dismiss claims brought by Humana over an alleged anticompetitive scheme to control distribution of cholesterol drugs Zetia and Vytorin, tossing several proposed theories of monopolization but allowing unjust enrichment claims and state law antitrust claims to survive.
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September 05, 2025
HCA Healthcare Can't Halt Discovery In 401(k) Forfeiture Suit
A Tennessee federal judge denied HCA Healthcare's bid Friday to stop discovery while the court considers its motion to toss a worker's suit claiming it illegally used forfeited 401(k) funds to cover its own contribution costs, finding the alleged novelty of her claims can't block case information collection.
Expert Analysis
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AG Watch: Texas Embraces The MAHA Movement
Attorneys at Kelley Drye examine Texas Attorney General Ken Paxton's actions related to the federal Make America Healthy Again movement, and how these actions hinge on representations or omissions by the target companies as opposed to specific analyses of the potential health risks.
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DOJ Whistleblower Program May Fuel Criminal Antitrust Tack
A recently launched Justice Department program that provides rewards for reporting antitrust crimes related to the U.S. Postal Service will serve to supplement the department’s leniency program, signaling an ambition to expand criminal enforcement while deepening collaboration across agencies, say attorneys at Crowell & Moring.
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How Community Banks Can Limit Overdraft Class Action Risk
With community banks increasingly confronted with class actions claiming deceptive overdraft fees, local institutions should consider proactively revising their customer policies and agreements to limit their odds of facing costly and complicated consumer litigation, say attorneys at Jones Walker.
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Opinion
Bar Exam Reform Must Expand Beyond A Single Updated Test
Recently released information about the National Conference of Bar Examiners’ new NextGen Uniform Bar Exam highlights why a single test is not ideal for measuring newly licensed lawyers’ competency, demonstrating the need for collaborative development, implementation and reform processes, says Gregory Bordelon at Suffolk University.
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How States Are Regulating Health Insurers' AI Usage
The absence of a federal artificial intelligence framework positions states as key regulators of health insurers’ AI use, making it important for payors and service providers to understand the range of state AI legislation being passed in California and elsewhere, and consider implementing an AI-focused compliance infrastructure, say attorneys at Ropes & Gray.
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Export Misconduct Resolutions Emphasize BIS, DOJ Priorities
The U.S. Department of Justice's and Bureau of Industry and Security's recently resolved parallel enforcement actions against semiconductor technology company Cadence Design demonstrate the agencies' prioritization of penalties for export control violations involving China, as well as the importance of voluntary self-disclosure, say attorneys at Fenwick.
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Disney Art Suit Will Test Recent AI Fair Use Boundaries
While the first U.S. rulings to address the issue recently held that it's fair use for generative artificial intelligence models to train on certain copyrighted books without permission, Disney v. Midjourney, filed in June, will test the limits of the fair use framework in a visual art context, says Rob Rosenberg at Moses & Singer.
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Location Data And Online Tracking Trends To Watch
Regulators and class action plaintiffs are increasingly targeting companies' use of online tracking technologies and geolocation data in both privacy enforcement and litigation, so organizations should view compliance as a dynamic, cross-functional responsibility as scrutiny becomes increasingly aggressive and multifaceted, say attorneys at Arnold & Porter.
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HHS Plan To Cut Immigrant Benefits Spurs Provider Questions
A recent notice from the U.S. Department of Health and Human Services identifying new federal public benefit programs for which nonqualified aliens are not eligible may have a major impact on entities that participate in these programs — but many questions remain unanswered, say attorneys at Foley.
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A Simple Way Courts Can Help Attys Avoid AI Hallucinations
As attorneys increasingly rely on generative artificial intelligence for legal research, courts should consider expanding online quality control programs to flag potential hallucinations — permitting counsel to correct mistakes and sparing judges the burden of imposing sanctions, say attorneys at Lankler Siffert & Wohl and Connors.
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Opinion
SEC Should Restore Its 2020 Proxy Adviser Rule
Due to concerns over proxy advisers' accuracy, reliability and transparency, the U.S. Securities and Exchange Commission should reinstate its 2020 rule designed to suppress the influence that they wield in shareholder voting, says Kyle Isakower at the American Council for Capital Formation.
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DOJ Consumer Branch's End Leaves FDA Litigation Questions
With the dissolution of the U.S. Department of Justice's Consumer Protection Branch set to occur by Sept. 30, companies must carefully monitor how responsibility is reallocated for civil and criminal enforcement cases related to products regulated by the U.S. Food and Drug Administration, say attorneys at Foley & Lardner.
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Surveying The Changing Overdraft Fee Landscape
Despite recent federal moves that undermine consumer overdraft fee protections, last year’s increase in fee charges suggests banks will face continued scrutiny via litigation and state regulation, says Amanda Kurzendoerfer at Bates White.
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What's At Stake In High Court Review Of Funds' Right To Sue
The U.S. Supreme Court's upcoming review of FS Credit Opportunities v. Saba Capital Master Fund, a case testing the limits of using Investment Company Act Section 47(b) to give funds a private right of action to enforce other sections of the law, could either encourage or curb similar activist investor lawsuits, say attorneys at Goodwin.
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Handling Sanctions Risk Cartel Control Brings To Mexico Port
Companies operating in or trading with Mexico should take steps to mitigate heightened exposure triggered by routine port transactions following the U.S. Treasury’s recent unequivocal statement that a foreign terrorist organization controls the port of Manzanillo, says Jeremy Paner at Hughes Hubbard.