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Compliance
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July 17, 2025
Insurer Says Pollution Exclusion Applies To Asbestos Suits
A Berkshire Hathaway unit said it doesn't owe coverage to a paint and drywall product manufacturer in a number of asbestos exposure suits, telling a Texas federal court Thursday that coverage is barred by a pollution exclusion in its umbrella and excess policies.
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July 17, 2025
CFTC Restructures Enforcement Division Amid Layoffs
The Commodity Futures Trading Commission plans to lay off around two dozen staff members and has聽restructured聽its enforcement division by eliminating some management positions, a person聽familiar with the matter told Law360 Thursday.
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July 17, 2025
Connecticut Music Festival Organizer To Pay $50K In Refunds
The bankrupt organizer of a botched Connecticut music festival known as Capulet Fest has agreed to pay up to $50,000 in restitution to ticket buyers to settle an investigation into possible violations of state law, the attorney general's office said Thursday.
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July 17, 2025
IRS Leaker Asks DC Circ. To Bar Comments By Ex-Employer
A tech worker appealing a five-year sentence for leaking tax returns while on the job at the IRS through contractor Booz Allen asked the D.C. Circuit on Thursday to block his former employer from weighing in, saying the company's opinion that he should finish his prison term is irrelevant.
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July 17, 2025
Neb. Asks Justices To Resolve River Dispute With Colo.
Nebraska is asking the U.S. Supreme Court to resolve its claims that Colorado is failing to deliver water from the South Platte River according to the terms of an early 20th-century compact.
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July 17, 2025
5th Circ. Affirms Nix Of Doctor's Captive Insurance Deductions
The owner of a Texas urgent care network is not entitled to $1 million in tax deductions for insurance premiums he paid to inside companies, the Fifth Circuit ruled, affirming the U.S. Tax Court's decision that the payments were not actually for insurance.
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July 17, 2025
Iowa Church Says DEA Can't 'Pocket Veto' Drug Exemption
An Iowa church is asking the D.C. Circuit to force the Drug Enforcement Administration to rule on an application it filed more than six years ago for a religious exemption to use a psychedelic in its services, saying the DEA shouldn't be allowed to "pocket veto" the application and leave the church hanging.
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July 17, 2025
Watchdog Raises Concerns On 9th Circ. Nominee's Crypto Work
President Donald Trump's nominee for the Ninth Circuit has a long record of representing cryptocurrency companies, which a watchdog group fears could aid what it calls the president's "self-enrichment" with digital currency.
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July 17, 2025
Meta, Stockholders Settle $8B Privacy Breach Suit
Attorneys for Meta stockholders reported a midtrial agreement Thursday to settle an $8 billion-plus Delaware Court of Chancery suit accusing the company's directors and officers of breaching privacy regulations and corporate fiduciary duties tied to allegations dating to the Cambridge Analytica scandal more than a decade ago.
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July 16, 2025
11th Circ. Nixes Walmart Win, Backs ALJ Removal Restriction
The Eleventh Circuit on Wednesday ruled in a published opinion that a removal restriction for administrative law judges is constitutional, reversing Walmart's win in a lawsuit that had blocked a chief administrative law judge from deciding on immigration-related complaints against the hypermarket company.
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July 16, 2025
NFT Fraudster Says He Used Tornado To Hide $1.1M Rug Pull
An admitted cryptocurrency fraudster who copped to a million-dollar nonfungible tokens scam Wednesday told the jury in the $1 billion money laundering and sanctions trial of Tornado Cash co-founder Roman Storm that when it came time to hide the proceeds of the NFT fraud, he turned to the crypto mixer to cover his tracks.
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July 16, 2025
Wells Fargo Sued Over 'Flippant' Mortgage Fee Refunds
A Wells Fargo mortgage borrower has filed a proposed class action against the bank, alleging the bank made an "inadequate" effort to resolve purported mortgage origination fee errors it has vaguely alerted certain borrowers to.
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July 16, 2025
Fed IG To Probe $2.5B HQ Renovation Amid Trump Criticism
The Federal Reserve's inspector general confirmed Wednesday that it plans to look into the central bank's $2.5 billion renovation of its Washington, D.C., headquarters, an overbudget project that has become a target of White House criticism of Fed Chair Jerome Powell.
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July 16, 2025
4th Circ. Upends Gated Community's Win In Fair Housing Row
The owner of several assisted-living group homes for seniors won a second chance Tuesday to press claims that his Maryland gated community is illegally refusing to let him open a new home there, with the Fourth Circuit ruling that a reasonable jury could find violations of the federal Fair Housing Act.
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July 16, 2025
Disbarred Atty Urges 9th Circ. To Nix $243M Loan Scam Order
A Ninth Circuit panel appeared skeptical Wednesday of a disbarred attorney's bid to unwind an order requiring the lawyer to pay $243 million for his role in a student loan scam, pressing back against his claim that he had no opportunity to depose two witnesses because he was in custody.
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July 16, 2025
Telehealth Co. Says SEC Has Wrapped Securities Investigation
Fruit Street Health PBC announced聽that the U.S. Securities and Exchange Commission has closed an investigation into the telehealth company for which the agency previously sued it to comply with a subpoena.
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July 16, 2025
House Crypto Bills Clear Procedural Hurdle After Late Stall
Three pieces of crypto legislation moved forward late Wednesday night after stumbling at a procedural hurdle in the House of Representatives as multiple Republican lawmakers broke with their party and temporarily withheld their support.
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July 16, 2025
SEC Says Firm's Ex-Compliance Chief Doctored Exam Forms
The former chief compliance officer of a previously registered investment adviser has agreed to pay $40,000 and face a three-year industry bar to resolve claims she altered about 170 forms she handed over to the U.S. Securities and Exchange Commission as part of its examination of her former firm.
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July 16, 2025
Pharmacy Benefit Managers Say Ohio Can't Recast Suit
The state of Ohio can't "recast its complaint on appeal" in order to convince the Sixth Circuit that its enforcement suit accusing two pharmacy benefit managers of working to raise the cost of prescription drugs belongs in state court, those managers have told the appellate court.
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July 16, 2025
Meta Wanted To Shield Zuckerberg From FTC Suit, Chancery Told
A former Facebook director testified Wednesday that company directors resisted federal efforts to include CEO Mark Zuckerberg as a defendant in a privacy breach suit that settled for $5 billion in 2019, starting a Delaware trial on a derivative stockholder suit to recover the payout.
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July 16, 2025
SEC Awards More Than $7M To 5 Whistleblowers
The U.S. Securities and Exchange Commission approved more than $7 million in awards to five whistleblowers Wednesday, in three redacted orders indicating they voluntarily provided original information that led to enforcement actions the agency pursued.
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July 16, 2025
Crypto Treasuries Gain Traction, But Regulatory Risk Remains
Public companies are increasingly adding digital assets to their corporate treasuries amid a more favorable regulatory environment for crypto, but attorneys on the deals say they're still counseling clients to be prepared to pivot if policy winds change.
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July 16, 2025
Cornell Workers Urge 2nd Circ. Remand Suit Justices Revived
Cornell University workers urged the Second Circuit to remand their sweeping class action alleging retirement plan mismanagement to New York federal court, arguing that the lower court should decide whether to hold a jury trial on a claim that the U.S. Supreme Court revived in April.
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July 16, 2025
FCC Looks To Streamline Regs For Enviro Reviews
The Federal Communications Commission expects to move a plan forward in August that would overhaul its rules for scrutinizing telecom and broadband projects under the National Environmental Policy Act.
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July 16, 2025
DOJ Settles With Recruiter Of Temporary Foreign Farmworkers
The U.S. Department of Justice announced a settlement agreement with a Mississippi staffing consultancy Tuesday, closing an investigation into allegations that the company manipulated job orders to give preference to H-2A visa workers.
Expert Analysis
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Attacks On Judicial Independence Tend To Manifest In 3 Ways
Attacks on judicial independence now run the gamut from gross (bald-faced interference) to systemic (structural changes) to insidious (efforts to undermine public trust), so lawyers, judges and the public must recognize the fateful moment in which we live and defend the rule of law every day, says Jim Moliterno at Washington and Lee University.
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A Look At Texas Corp. Law Changes Aimed At Dethroning Del.
Seeking to displace Delaware as the preferred locale for incorporation, Texas recently significantly amended its business code, including changes like codifying the business judgment rule, restricting books and records demands, and giving greater protections for officers and directors in interested transactions, say attorneys at Fenwick.
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OCC's Digital Embrace Delivers Risk, Opportunity For Banks
As the Office of the Comptroller of the Currency continues to release and seek more information on banks' participation in the crypto-asset arena, institutions may see greater opportunity to pursue digital asset and custody services, but must simultaneously educate themselves on transformations occurring throughout the industry, says Kirstin Kanski at Spencer Fane.
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Justices Hand Agencies Broad Discretion In NEPA Review
By limiting the required scope of reviews under the National Environmental Policy Act, the U.S. Supreme Court's recent ruling in Seven County Infrastructure Coalition v. Eagle County could weaken the review process under NEPA, while also raising questions regarding the degree of deference afforded to agencies, say attorneys at Foley Hoag.
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Remediation Still Reigns Despite DOJ's White Collar Shake-Up
Though the U.S. Department of Justice鈥檚 recently announced corporate enforcement policy changes adopt a softer tone acknowledging the risks of overregulation, the DOJ has not shifted its compliance and remediation expectations, which remain key to more favorable resolutions, say Jonny Frank, Michele Edwards and Chris Hoyle at StoneTurn.
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Compliance Refresher For 'Made In USA' Labeling Claims
As tariffs reshape the trade landscape, companies hoping to invoke the powerful consumer appeal of 鈥淢ade in USA鈥 labels must understand the strict rules for making acceptable claims so they avoid the costly legal ramifications and brand damage possible from misrepresenting products as 100% American, say attorneys at Morgan Lewis.
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4 Strategies For De-Escalating Hospitality Industry Disputes
As recent uncertainty in the travel business exacerbates the risk of conflict in the hospitality sector, industry in-house counsel and their outside partners should consider proactive strategies aimed at de-escalating disputes, including preserving the record, avoiding boilerplate clauses and considering arbitration, say Randa Adra at Crowell and Stephanie Jean-Jacques at Hyatt.
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Series
Law School's Missed Lessons: Appreciating Civil Procedure
If you鈥檙e like me, law school鈥檚 often complex and theoretical approach to teaching civil procedure may have contributed to an early struggle with the topic, but when seen from a practical perspective, new lawyers may find they enjoy mastering these rules, says Chloe Villagomez at Foster Garvey.
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Calif. Bar Exam Fiasco Shows Why Attys Must Disclose AI Use
The recent revelation that a handful of questions from the controversial California bar exam administered in February were drafted using generative artificial intelligence demonstrates the continued importance of disclosure for attorneys who use AI tools, say attorneys at Troutman.
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The State Of Play For Bank Merger Act Applications
Both the Office of the Comptroller of the Currency's recent reversal of changes to its bank merger policies and the Federal Deposit Insurance Corp.'s rescission of its 2024 statement may be relevant for all banks considering a transaction, as responsibility for review depends on the identity of the parties and the transaction structure, say attorneys at Davis Polk.
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Del. Corporate Law Rework May Not Stem M&A Challenges
While Delaware's S.B. 21 introduced significant changes regarding controllers and conflicted transactions by limiting what counts as a controlling stake and improving safe harbors, which would seem to narrow the opportunities to challenge a transaction as conflicted, plaintiffs bringing shareholder derivative claims may merely become more resourceful in asserting them, say attorneys at Debevoise.
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State AGs' Focus On Single-Firm Conduct Is Gaining Traction
Despite changes in administration, both federal antitrust agencies and state attorneys general have shown a trending interest in prosecuting monopolization cases involving single-firm conduct, with federal and state legislative initiatives encouraging and assisting states鈥 aggressive posture, says Steve Vieux at Bartko Pavia.
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What Parity Rule Freeze Means For Plan Sponsors
In light of a District of Columbia federal court鈥檚 recent decision to stay litigation challenging a Mental Health Parity and Addiction Equity Act final rule, as well as federal agencies' subsequent decision to hold off on enforcement, attorneys at Morgan Lewis discuss the statute鈥檚 evolution and what plan sponsors and participants can expect going forward.
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Max Pressure On Iran May Raise Secondary Sanctions Risk
New sanctions designations announced June 6 are the latest in a slew of actions the administration has taken to put pressure on Iran鈥檚 military programs and petroleum exports that will likely increase non-U.S. businesses鈥 secondary sanctions risk, says John Sandage at Berliner Corcoran.
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Platforms Face Section 230 Shift From Take It Down Act
The federal Take It Down Act, signed into law last month, aims to combat deepfake pornography with criminal penalties for individual wrongdoers, but the notice and takedown provisions change the broad protections provided by Section 230 of the Communications Decency Act in ways that directly affect platform providers, say attorneys at Troutman.