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California
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May 10, 2024
Dropbox Hit With Proposed Class Action Over Data Breach
A Dropbox Inc. user has claimed that the file-hosting service failed to properly safeguard users' personal data, which was exposed in a breach last month, according to a proposed class action filed in California federal court.
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May 10, 2024
Real Estate Authority: Norfolk Southern, Big 4 Earnings, HUD
Catch up on this week's key real estate developments by state from Law360 Real Estate Authority — including reflections from co-lead plaintiffs counsel in the Norfolk Southern derailment case, Q1 results from the big four brokers, and a synopsis of billions in new grants from the U.S. Department of Housing and Urban Development.
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May 10, 2024
EV Startup Says California Settlement Covers Stockholder Suit
Backers of a transaction that took electric vehicle startup Faraday Future Intelligent Electric Inc. public with a $1 billion value in 2021 have asked Delaware's Court of Chancery to block discovery in a stockholder challenge to the deal, citing pending settlement of a similar federal action in California.
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May 10, 2024
Eastman Withdraws From Colo. Suit Amid Disbarment Case
Former Donald Trump lawyer John C. Eastman withdrew as an attorney in a Colorado civil suit on Friday as the California Supreme Court is set to consider a recommendation for the attorney's disbarment.
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May 10, 2024
Solar Co. Stockholders Claim Execs, Board Caused Losses
SunPower's current and former leadership was accused in a derivative shareholder suit of sending the residential solar power company into a financial tailspin by revising financial statements multiple times and causing the stock value to drop.
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May 10, 2024
Black Doctor Must Arbitrate Bias Claims Against Hospice Co.
A Black doctor must arbitrate her claims that she was mistreated by non-Black colleagues at a home healthcare company and fired after raising concerns that it was sidestepping Medicare billing regulations, a California federal judge ruled, finding an arbitration agreement she signed is legitimate.
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May 10, 2024
1st Circ. Fast-Tracks DraftKings Noncompete Feud
The First Circuit on Friday granted a former DraftKings executive's request to expedite his appeal of a Boston federal judge's ruling that blocked him from doing similar work in the U.S. for rival Fanatics.
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May 10, 2024
Kraken Says SEC's Crypto Theory Would 'Gut Howey'
Crypto exchange Kraken told a California federal judge that the U.S. Securities and Exchange Commission's theory of why token sales on public exchanges offend securities laws could lead to a "significant reordering of the U.S.'s financial regulatory structure" if the agency's enforcement action against its parent companies is upheld.
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May 10, 2024
Nipple Covers Don't Stick To Body As Advertised, Suit Says
Cakes Body LLC faces a putative class action filed Thursday in California federal court by a consumer who says the company falsely creates the impression that its reusable nipple covers function as alternatives to bras that adhere to the body, but that the product doesn't work as advertised.
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May 10, 2024
Capital One Accused Of Not Fully Investigating Fraud Claims
Capital One has been hit with a proposed class action in California federal court accusing it of breaching contract terms by refusing to sufficiently investigate consumers' fraud claims.
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May 10, 2024
9th Circ. Splits PAGA Claims In Macy's Arbitration Fight
Macy's can't compel arbitration of nonindividual claims in a worker's wage suit brought under California's Private Attorneys General Act, the Ninth Circuit ruled Friday, saying language in an arbitration pact prevents blending together different types of claims.
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May 10, 2024
Fed. Circ. Questions Claim Construction In Google Ad Row
Federal Circuit judges took issue with a district court's claim construction in digital advertising company Impact Engine's infringement summary judgment loss to Google, but questioned why the ad startup didn't raise its objections earlier.
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May 10, 2024
Newsom Says No Tax Increases Planned In Calif. Budget
California would not increase taxes or impose new taxes under a revised budget plan presented Friday by Democratic Gov. Gavin Newsom.
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May 10, 2024
Oakland Says SF Has No TM Rights To 'San Francisco Bay'
The city of Oakland has pushed back at San Francisco's trademark infringement complaint over Oakland's plan to incorporate "San Francisco Bay" into its airport name, arguing that the Golden Gate City's claims are doomed because its airport is not even located in San Francisco.
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May 10, 2024
Disney Can't Dodge Biased Firing Suit, 'Star Wars' Actor Says
An actor featured in "Star Wars" spin-off series "The Mandalorian" urged a California federal judge to reject Disney's bid to dismiss her suit alleging she was illegally fired for sharing her political views on social media, arguing the company hasn't shown that her posts impeded its artistic expression.
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May 10, 2024
X Corp.'s Data Scraping Suit Stymied By Copyright Act
A California federal judge has dismissed X Corp.'s suit accusing an Israeli company of mining and selling user data culled from its platform, noting that X's claims would allow it to block others from distributing publicly available user content and are preempted by the Copyright Act.
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May 10, 2024
JLM Couture Nears Settlement With Bridal Dress Designer
Dressmaker JLM Couture told Delaware's bankruptcy court Friday it reached an agreement in principle with a bridal dress designer, who was sued by the company and had sought to convert its Chapter 11 case into a Chapter 7 liquidation.
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May 10, 2024
X Denies Post-Acquisition Policies Biased Against Women
X Corp. denied that Elon Musk implemented policies intended to push out women after he took over the social network formerly known as Twitter, telling a California federal court that any layoffs or actions it took were within the confines of the law.
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May 10, 2024
Off The Bench: Ohtani Translator's Plea, NBA Star Tops Agent
In this week's Off The Bench, Shohei Ohtani's ex-interpreter will plead guilty, an NBA star wins in his clash with the agent who sought to represent him, and a tennis player who was abused by her former coach is awarded $9 million.
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May 10, 2024
Altman's Nuclear Fission Biz Fizzles After SPAC Deal Closes
Shares of Oklo Inc., a nuclear-fission startup backed by OpenAI CEO Sam Altman, were down nearly 50% on Friday, the company's first day of trading after completing its merger with Altman's special-purpose acquisition company AltC Acquisition Corp.
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May 10, 2024
Calif. May Allow Judges To Work Remotely In Civil Matters
California's Judicial Council next week will consider amending court rules to allow judges to preside remotely over civil proceedings from a location other than a courtroom.
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May 10, 2024
SEC Targets Fatburger's Parent Co. In $27M Loan Scheme
The restaurant company that owns Fatburger and Fazoli's made illegal loans to its director and former chief executive, who spent $27 million in company money on himself while skirting taxes and leaving the company struggling, the Securities and Exchange Commission told a California federal court Friday.
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May 10, 2024
Benefits Groups Urge High Court To Take Up AT&T 401(k) Suit
Several benefits groups urged the U.S. Supreme Court to hear AT&T's request to overturn a Ninth Circuit ruling that upended its win in retirement plan participants' class action accusing it of mismanaging their 401(k), saying allowing the decision to stand would redefine prohibited transactions.
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May 10, 2024
'Iron Man 2' Actor Guilty Of Wire Fraud In COVID 'Cure' Scam
A bodybuilder and actor from "Iron Man 2" was found guilty Friday of 11 counts of wire fraud by a Los Angeles federal jury, after prosecutors argued he tried to scam investors in March 2020 by falsely claiming he'd found a cure for COVID-19 and that NBA legend Earvin "Magic" Johnson was a major investor.
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May 10, 2024
Axl Rose Shouldn't Escape NY Sex Assault Suit, Model Says
A former Penthouse model is urging a New York state court not to toss her case alleging Axl Rose sexually assaulted her in 1989, arguing the Guns N' Roses lead singer is making faulty arguments about attempts to serve him with the suit to avoid accountability.
Expert Analysis
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What Brands Must Know For Calif. Recycle Label Compliance
A brand that stamps nonrecyclable packaging with the chasing arrows symbol could face liability under California's new law on labeling recyclable material, so brand owners should keep an eye on the state's pending survey process to identify which materials meet the criteria before requirements go into effect, say attorneys at ArentFox Schiff.
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What New Calif. Strike Force Means For White Collar Crimes
The recently announced Central District of California strike force targeting complex corporate and securities fraud — following the Northern District of California's model — combines experienced prosecutorial leadership and partnerships with federal agencies like the IRS and FBI, and could result in an uptick in the number of cases and speed of proceedings, say attorneys at MoFo.
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FTC AI Inquiry Signals Intensified Focus On Emerging Tech
The Federal Trade Commission's recent inquiry into investments and partnerships between Big Tech companies and artificial intelligence startups appears to be directed at guiding future enforcement decisions in competition, privacy and consumer protection — and three principles discussed at a related tech summit give insight on the agency's approach, say attorneys at Skadden.
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Preparing For A New Wave Of Litigation Under Silicosis Rules
After the Division of Occupational Safety and Health of California issued an emergency temporary standard to combat noncompliance with assessments of workers' exposure to particles of crystalline silica, companies that manufacture, distribute or sell silica-containing products will need aggressive case-specific discovery to navigate a new wave of litigation, say attorneys at Dechert.
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Reimagining Law Firm Culture To Break The Cycle Of Burnout
While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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A Key Tool For Calif. Policyholders With Nonadmitted Insurers
As insurers increasingly flee California and residents of the Golden State are forced to insure their properties with nonadmitted insurers, it is crucial to understand the Unauthorized Insurers Process Act, a critical but underutilized tool for policyholders, say Keith Meyer and Kya Coletta at Reed Smith.
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Opinion
Gilead Ruling Signals That Innovating Can Lead To Liability
A California appeals court's ruling last month in Gilead Life Sciences v. Superior Court of San Francisco that a drug manufacturer can be held liable for delaying the introduction of an improved version of its medication raises concerns about the chilling effects that expansive product liability claims may have on innovation, says Gary Myers at the University of Missouri School of Law.
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Vagueness In Calif. Climate Law Makes Compliance Tricky
California's recently enacted Voluntary Carbon Market Disclosures Act requires companies making claims of carbon neutrality, or significant greenhouse gas emissions reductions, to disclose information supporting those claims — but vague and conflicting language in the statute poses multiple problems for businesses, say John Rousakis and Chris Bowman at O'Melveny.
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Grant Compliance Takeaways From Ga. Tech's FCA Settlement
Georgia Tech’s recent False Claims Act settlement over its failure to detect compliance shortcomings in a grant program was unique in that it involved a voluntary repayment of funds prior to the resolution, offering a few key lessons for universities receiving research funding from the government, says Jonathan Porter at Husch Blackwell.
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Series
Competing In Dressage Makes Me A Better Lawyer
My lifelong participation in the sport of dressage — often called ballet on horses — has proven that several skills developed through training and competition are transferable to legal work, especially the ability to harness focus, persistence and versatility when negotiating a deal, says Stephanie Coco at V&E.
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Potential Defendant Strategies Amid Calif. Privacy Questions
Although the current case law surrounding the California Consumer Privacy Act is in its infancy, courts have begun addressing important issues related to the notice-and-cure provisions of the statute, and these decisions show defendant-businesses would be wise to assert their notice rights early and repeatedly, say Viola Trebicka and Dan Humphrey at Quinn Emanuel.
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Deferral Pointers For Employers After $700M Ohtani Deal
Darren Goodman and Christine Osvald-Mruz at Lowenstein Sandler examine the legal consequences of Shohei Ohtani's $700 million, 10-year contract with the Los Angeles Dodgers — a high-profile example of nonqualified deferred compensation — and offer lessons for employers of all sizes interested in similar deals.
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High Court Case Could Reshape Local Development Fees
If last month's oral arguments are any indication of how the U.S. Supreme Court will rule in Sheetz v. County of El Dorado, it's unlikely the justices will hold that the essential nexus and rough proportionality tests under the cases of Nollan, Dolan and Koontz apply to legislative exactions, but a sweeping decision would still be the natural progression in the line of cases giving property owners takings claims, says Phillip Babich at Reed Smith.
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Employer Lessons From Nixed Calif. Arbitration Agreement
A California state appeals court’s recent decision to throw out an otherwise valid arbitration agreement, where an employee claimed a confusing electronic signature system led her to agree to unfair terms, should alert employers to scrutinize any waivers or signing procedures that may appear to unconscionably favor the company, say Guillermo Tello and Monique Eginli at Clark Hill.
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How Poor Governance, Weak Contracts Harm Cannabis Cos.
Decades into cannabis decriminalization and legalization, many companies in the industry still operate on a handshake basis or fail to keep even minimally required records, which can have devastating effects and lead to costly, business-killing litigation, says Griffen Thorne at Harris Bricken.