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April 10, 2024
Retailer 99 Cents Can Tap $60.8M DIP For Ch. 11 Winddown
99 Cents Only can access $20.5 million of its Chapter 11 financing package, a Delaware bankruptcy judge ruled Wednesday, after attorneys for the discount retail chain resolved a handful of objections to first day approval of its debtor-in-possession loan.
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April 10, 2024
'Varsity Blues' Judge Won't Recuse From Bid For Plea Redo
The Boston federal judge overseeing the waning "Varsity Blues" college admissions case said Wednesday he should be the one to decide whether a parent who pled guilty in the scandal's early days should be able to have the conviction erased, calling her recusal bid "fraught with judge-shopping."
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April 10, 2024
Justices Asked To Ban FCA Suits Relying On Patent Reviews
Valeant Pharmaceuticals is going to the U.S. Supreme Court to argue that information cited in Patent Trial and Appeal Board reviews cannot later be used by whistleblowers in False Claims Act lawsuits.
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April 10, 2024
9th Circ. Doubts Calif.'s Standing In DOL Union Transit Fight
The Ninth Circuit appeared open Wednesday to restoring the U.S. Department of Labor's power to deny California transit funding because of a perceived conflict between state pension law and bargaining rights, focusing on the state's standing in a dispute that began between the DOL and a union.
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April 10, 2024
Former X Worker Can't Force Doc Release In Bonus Suit
A California federal judge refused to grant an ex-worker's request that the court decide whether X Corp. must provide employee bonus-related documents to its former chief financial officer before he sits for a deposition, chiding the former worker for not filing a proper request.
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April 10, 2024
NBC, Universal Sued Over 'Harry Potter' Ride Malfunction
Riders who were stuck for over an hour on a ride at the Wizarding World of Harry Potter in Universal Studios Hollywood that left them suspended midair have sued NBCUniversal and the theme park in California court, accusing them of negligently failing to safely maintain the attraction.
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April 10, 2024
EEOC Throws Weight Behind AI Bias Suit Against Workday
The U.S. Equal Employment Opportunity Commission said Workday shouldn't be able to dodge a Black job seeker's California federal court suit claiming it uses biased algorithms to screen out applicants, arguing that the software company can't evade liability by claiming it's not an employer.
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April 10, 2024
9th Circ. Says Arbitration Carveout Doesn't Apply To Cos.
Section 1 of the Federal Arbitration Act only applies to humans, not companies, a Ninth Circuit panel ruled Wednesday, affirming a Washington federal court decision shipping three Amazon workers' misclassification suit to arbitration.
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April 10, 2024
Musk Deposition Decision Put Off In Twitter Layoff Fight
A California federal judge deferred ex-Twitter employees' request to depose X Corp. owner Elon Musk until after other defendants gave their depositions in a suit alleging the company violated federal laws requiring advance warning of mass layoffs.
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April 10, 2024
Feds Cleared To Use Undercover Recording In Atty's Tax Trial
Federal prosecutors trying an attorney next week on charges he orchestrated a tax fraud scheme that spanned seven states will be allowed to play for the jury an audio recording made by an undercover agent, a North Carolina federal judge ruled.
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April 10, 2024
'Smart' Glass Maker View Escapes SPAC Merger Suit For Good
"Smart" glass manufacturer View Inc. has permanently beaten a proposed investor class action over an internal probe it announced following its go-public merger with a special purpose acquisition company, with a California federal judge ruling that the lead plaintiff did not own View stock when the identified corrective disclosures occurred.
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April 10, 2024
Venable Adds Cybersecurity Leaders In San Francisco, DC
Venable LLP has hired a senior director of cybersecurity services and a director of global security and technology strategy — additions joining on opposite sides of the U.S., the firm announced Wednesday.
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April 10, 2024
Children Fight Feds' Bid To Dodge Constitutional Climate Suit
A group of children has fired back at the federal government's attempt to dismiss its California federal court lawsuit alleging the U.S. Environmental Protection Agency knowingly allows unsafe levels of climate pollution despite the Constitution guaranteeing "a life-sustaining climate system."
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April 10, 2024
Freshfields Guides EBay On Multipronged Trading Card Deal
Freshfields Bruckhaus Deringer LLP is guiding eBay Inc. on new agreements with collectibles grading company Collectors that include eBay acquiring Collectors' Goldin auction house, in what the companies said Wednesday is an effort to streamline the trading card hobby in the U.S.
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April 10, 2024
Pot Cos. Say California City Reneged On Fee Waiver Promise
Six cannabis companies are suing the city of Cudahy in California federal court, saying the city breached its contracts by refusing to waive fees accrued during national emergencies and city-caused delays, costing the companies more than $26 million in damages.
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April 10, 2024
Kirkland-Led Lone View Secures $850M For Inaugural Fund
Growth-oriented private equity shop Lone View Capital, advised by Kirkland & Ellis LLP, on Wednesday announced that it clinched its inaugural fund after raising $850 million from investors, bringing the firm's total assets under management to roughly $1.1 billion.
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April 09, 2024
'You're Going To Lose These People,' Judge Tells Lynch Atty
U.S. District Judge Charles Breyer on Tuesday chided a Steptoe partner representing former Autonomy CEO Michael Lynch in his criminal fraud jury trial, saying that his hourslong questioning of a Deloitte partner shouldn't go on much longer, or "you're going to lose these people."
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April 09, 2024
9th Circ. Says Hotel, Restaurant Virus Losses Not Covered
The Ninth Circuit on Tuesday said two groups of Washington state restaurants and hotels can't claim COVID-related business losses under their insurance policies because they failed to show they physically lost functional use of their properties as a result of the virus.
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April 09, 2024
Investor Can't Get Approval Of Hong Kong Award In Calif.
A California judge has thrown out a petition filed by a biotechnology company investor seeking to enforce a Hong Kong arbitral award that found she is the proper owner of the company's shares, saying the case has an insufficient connection to the Golden State.
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April 09, 2024
Prime Healthcare Lacked Oversight Of 401(k) Plan, Judge Told
An attorney who specializes in Employee Retirement Income Security Act litigation testified on Tuesday as the first witness in a California bench trial for two certified classes claiming Prime Healthcare Services Inc. poorly managed their 401(k) plans, and said the company's oversight of its investment committee was "almost a dereliction of duty."
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April 09, 2024
Calif. AG Backs Bill To Revamp 'Abysmal' Corporate Penalties
California Attorney General Rob Bonta gave his full support Tuesday to a state bill that would increase the cap on criminal penalties for corporate malfeasance from the "abysmal penalty" of $10,000 per felony to $25 million, or twice the value of the inflicted loss, and provide all proceeds to California's crime victim services.
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April 09, 2024
Calif. Addiction Clinic Can't Shake Off Copyright Suit
An intellectual property and false advertising feud between two rival addiction outpatient clinics in Sacramento will go on, a federal judge in California has ruled.
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April 09, 2024
99 Cents Only Moves Forward On Ch. 11 Shutdown Plans
Discount retail store 99 Cents Only is on track to close its 371 stores by the end of May as part of its Chapter 11 case after a Delaware bankruptcy judge on Tuesday approved first-day motions that lay groundwork for the company to close down, but held off on approving a debtor-in-possession package until terms reached during hallway negotiations can be memorialized.
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April 09, 2024
Venable Snags Trio Of Product Liability Partners From Steptoe
Three Steptoe LLP product liability and mass torts partners have departed the firm and joined Venable LLP in Chicago and Los Angeles, according to an announcement Tuesday.
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April 09, 2024
Pfizer Cancer Drug Way Too Expensive, Biden Told
The U.S. government is being asked yet again to use patent laws to lower the price of a prostate cancer drug that was developed at UCLA and is being sold by Pfizer for $136 a pill in the U.S.
Expert Analysis
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How Data Brokers Can Prep For Calif. Delete Act Compliance
As California Delete Act obligations approach in late January, data brokers should proactively assess and scrutinize their compliance with the act, taking proactive measures to mitigate potential risks associated with noncompliance, say Goli Mahdavi and Gabrielle Harwell at BCLP.
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PAGA Turns 20: An Employer Road Map For Managing Claims
As California’s Private Attorneys General Act turns 20, the arbitrability of individual and representative claims remains relatively unsettled — but employers can potentially avoid litigation involving both types of claims by following guidance from the California Supreme Court’s Adolph v. Uber ruling, say attorneys at Mintz.
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How 4 State AGs Are Shaping Data Privacy Compliance
As the landscape of state data privacy laws continues to grow across the nation, understanding how state attorneys general — such as in California, Colorado, Connecticut and Virginia — are thinking about these laws is critical to begin forecasting how enforcement will play out, say Michelle Kallen and Daniel Echeverri at Jenner & Block.
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Wachtell-X Ruling Highlights Trend On Arbitrability Question
A growing body of case law, including a California state court's recent decision in X Corp. v. Wachtell, holds that incorporation of specific arbitral body rules in an arbitration provision may in and of itself constitute clear and unmistakable evidence of delegation of arbitrability to an arbitrator, and thus such clauses should be drafted carefully, say attorneys at Norton Rose.
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7 E-Discovery Predictions For 2024 And Beyond
The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.
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Landmark Product Safety Prosecution May Signal Sea Change
U.S. v. Chu, a novel prosecution and guilty verdict of corporate executives for failing to report product defects under a consumer safety law, will certainly not be the last case of its kind, and companies will need to prepare for the government’s increasingly aggressive enforcement approach, say attorneys at Cooley.
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ESG Concerns Can No Longer Be Ignored In 2024
While the long wait for the U.S. Securities and Exchange Commission's ESG rule continues, government attention to regulations, increased litigation efforts and shareholder resolutions seeking transparency highlight the importance of placing an emphasis on ESG considerations, say attorneys at Wollmuth Maher.
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A Closer Look At The Federal Criminal Enforcement Slump
Former Deputy Attorney General Rod Rosenstein, now at King & Spalding, explains that the U.S. Department of Justice’s statistical reports reveal that federal authorities are considerably less productive today than in the past, as criminal prosecutions fell in 2022 in every major category, for reasons that are not entirely clear.
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5 Litigation Funding Trends To Note In 2024
Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.
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Key Issues When Navigating A Tenant's Bankruptcy
In light of recent Chapter 11 filings by Rite Aid and WeWork — companies with thousands of commercial leases — practitioners should review issues that can arise when bankruptcy is used to exit a lease, including the consequences of lease rejection and the statutory cap on landlord damage claims for a rejected lease, say attorneys at Proskauer.
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Growing Green Tech Demand Spells Trouble For Groundwater
Increasing demand for green technology is depleting the groundwater reserves used to extract and process the necessary minerals, making a fundamental shift toward more sustainable water use practices necessary at both the state and federal levels, says Sarah Mangelsdorf at Goldberg Segalla.
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What To Know About FCA Cybersecurity Enforcement
Now is a good time for practitioners, government contractors and potential relators to review recent developments in cybersecurity-related False Claims Act enforcement, and consider best practices for navigating this space in the new year, say Ellen London at London & Stout, and Li Yu and Molly Knobler at DiCello Levitt.
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8 Privacy Law Predictions For 2024
As the new year begins, looking back to several of last year's privacy law developments may help companies forecast what to focus on when updating their privacy programs, including children's privacy, so-called dark patterns and the collection of data by connected cars, say attorneys at Sheppard Mullin.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q4
As 2023 came to an end, we continued to see developments in California that are certain to have an impact on the financial services industry in 2024, including the California Department of Financial Protection and Innovation's request for comments on the state's new digital asset law and the state's continued enforcement actions against debt collectors, say Jennifer Olivestone and Juan Azel at Winston & Strawn.
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4 Legal Ethics Considerations For The New Year
As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.