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May 23, 2025
9th Circ. Judges Grapple With Funko Investors' Fraud Claims
Ninth Circuit panelists said Friday they were "struggling" with an appeal from a group of investors in a proposed class securities fraud case against toymaker Funko, expressing skepticism that the shareholders had shown corporate leadership knowingly misrepresented the status of a software update that flopped.
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May 23, 2025
Atty, Stepdaughter Face $600K Workers' Comp Fraud Charges
The Orange County District Attorney's Office has charged a California attorney and his stepdaughter with conspiring to defraud a police department she was employed at by filing fraudulent workers' compensation payments.
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May 23, 2025
SoCal Edison To Pay $82.5M Over 2020 Bobcat Fire Costs
Southern California Edison agreed Friday to pay $82.5 million to the federal government to resolve a lawsuit that seeks to recoup costs incurred by the U.S. Forest Service as a result of the devastating 2020 Bobcat Fire, which burned over 100,000 acres, the U.S. Attorney's Office for the Central District of California announced.
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May 23, 2025
9th Circ. Upholds Ch. 13 Plan Against Debt Bifurcation Appeal
The Ninth Circuit rejected a mortgage lender's bid to overturn a California couple's bankruptcy plan, ruling their recalculated home value qualified them for Chapter 13 despite initial estimates exceeding the unsecured debt limit.
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May 23, 2025
IP Notebook: Trump's AI Plan, ChatGPT Logs, Dewberry Cited
In this round of emerging issues in copyright and trademark law, Law360 takes a closer look at comments submitted to the National Science Foundation and other federal agencies to create an Artificial Intelligence Action Plan as part of an executive order from President Donald Trump.
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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
Judge Skeptical Of Harm In Recall Of Tribe's Gambling Eligibility
A D.C. federal judge on Friday signaled concerns with the Interior Department's decision to revoke a California tribe's gambling eligibility for a casino-resort project in the Bay Area, but said that the tribe faces an uphill battle in establishing the irreparable harm needed to secure a preliminary injunction.
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May 23, 2025
Staffing Co. Owner Gets 8 Years For $60M Payroll Tax Fraud
The owner of California staffing companies who admitted to a long-running payroll tax fraud that caused roughly $60 million in tax losses was sentenced to eight years in prison and ordered to pay $38 million in restitution to the Internal Revenue Service, prosecutors said.
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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
Musk Doubles Down After OpenAI Drops For-Profit Transition
OpenAI's decision to abandon its transition into a for-profit enterprise was not enough to appease Elon Musk, who doubled down Thursday with an amended California federal court complaint continuing to allege the ChatGPT maker tricked him into contributing nearly $45 million with false promises of remaining a nonprofit.
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May 23, 2025
Foley & Lardner Adds DLA Piper, McDermott Corporate Pros
Foley & Lardner LLP has hired two seasoned attorneys in California who previously practiced at DLA Piper and McDermott to bolster its innovative technology sector and transactions practice group.
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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
GAO Dismisses Protest To Forest Service Fire Retardant Buy
A Missouri company that supplies the U.S. Forest Service with fire retardants and support services had no basis to protest a sole-source award for the agency to buy 900,000 gallons of another company's product for testing, the U.S. Government Accountability Office said.
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May 23, 2025
Off The Bench: Tennis Officials, NCAA Stay On The Defensive
In this week's Off The Bench, tennis players face pushback from the governing bodies they are accusing of antitrust violations, college basketball players claiming the NCAA exploited them want their class action revived, and a baseball player seeking one last year to play in college hits another legal roadblock.
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May 23, 2025
Taxation With Representation: Troutman, A&O Shearman
In this week's Taxation With Representation, Blackstone acquires TXNM Energy, OpenAI buys io Products, Lumen Technologies sells its Mass Markets fiber-to-the-home business in 11 states to AT&T, and AMD sells its data center infrastructure manufacturing business to Sanmina.
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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 22, 2025
Nonprofits Seek To Block Trump's DEI, LGBTQ+ Orders
A group of nonprofits urged a California federal judge Thursday to block President Donald Trump's executive orders targeting diversity and inclusion policies and programs serving the LGBTQ+ community, arguing the unconstitutionally "vague" orders have upended lifesaving services and illegally treat transgender individuals as if they don't exist.
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May 22, 2025
Training LLMs Is OK, Pirating Isn't: Anthropic Judge Tips Hand
A California federal judge considering writers' copyright suit against Anthropic indicated Thursday that he thinks training its LLM with copyrighted works is fair use, but said plaintiffs can likely pursue claims that the AI startup infringed by obtaining those training materials from pirating websites instead of buying them.
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May 22, 2025
EV Carmaker Lucid Gets Inflated Biz Suit Trimmed, Again
A California federal judge on Thursday again trimmed a proposed investor class action that alleges electric carmaker Lucid made misleading production forecasts, finding that the latest complaint still doesn't adequately allege the defendants knew some of the challenged statements were false when they were issued.
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May 22, 2025
Chegg Investors Get Final OK In $55M Student Cheating Deal
A California federal judge on Wednesday gave his blessing to a $55 million settlement resolving investor claims that educational technology company Chegg Inc. falsely attributed its "dramatic growth" during the COVID-19 pandemic to its sustainable business model, rather than to students using the platform to cheat.
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May 22, 2025
Feds Push To Nix Landmark Migrant Kids Detention Settlement
The Trump administration is urging a California federal judge to end a landmark settlement agreement governing the custody of detained immigrant children — a move advocacy groups that have long fought for it quickly vowed to fight.
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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
California City Cleared In Employment Discrimination Trial
A Los Angeles jury cleared the city of Baldwin Park, California, of liability on Thursday in a wrongful-termination suit by a former longtime employee who claimed that she was forced to resign after complaining about race and gender bias and misuse of federal housing funds.
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May 22, 2025
Levi Strauss Calls For Sanctions Against Boies Schiller
Levi Strauss is seeking more than $15,000 from Boies Schiller Flexner LLP and training for the firm's litigation attorneys in the proceeding over a former executive's sex discrimination claims, telling a California federal judge that Boies Schiller flouted deadlines and refused to meet with opposing counsel.
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May 22, 2025
Senators Unveil DNA Privacy Bill Amid 23andMe's Ch. 11 Sale
A bipartisan group of U.S. senators on Thursday introduced a bill designed to safeguard customers' genetic information in bankruptcy cases, saying 23andMe's plan to sell users' DNA data to a pharmaceutical company during its Chapter 11 raises new concerns surrounding consumer privacy.
Expert Analysis
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Influencer Campaign Lawsuits Signal New Endorsement Risks
Recent class actions allege that companies' influencer campaigns violate the Federal Trade Commission's Endorsement Guides and various state laws, but it's not clear whether the failure to comply can sustain these lawsuits, or whether the plaintiffs' creative theory of damages will hold up to scrutiny, says Gonzalo Mon at Kelley Drye.
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Calif. Antitrust Laws May Turn More Zealous Than US Regs
California is poised in the next 18 months to significantly expand its antitrust laws, broadening the scope of liability and creating a premerger review process that could be more expansive than review under the Hart-Scott-Rodino Act, say attorneys at Munger Tolles.
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The Repercussions Of FEMA's Wildfire Cleanup Policy Cuts
The Federal Emergency Management Agency recently announced a decision to cease conducting additional soil tests to confirm that the land is safe and free of toxins after wildfires, meaning people could be moving back into houses unfit for human habitation, potentially leading to years of lawsuits, says Vineet Dubey at Custodio & Dubey.
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What's At Stake As 9th Circ. Eyes Cultural Resource Damages
In Pakootas v. Teck Cominco, the Ninth Circuit is faced with the long-unresolved question of whether cultural resource damages are recoverable as part of natural resource damages under the Superfund law — and the answer will have enormous implications for companies, natural resource trustees and Native American tribes, says Sarah Bell at Farella Braun.
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Calif. May Pick Up The Slack On Foreign Bribery Enforcement
The California attorney general recently expressed an interest in targeting foreign bribery amid a federal pause in Foreign Corrupt Practices Act enforcement, so companies should calibrate their compliance programs to mitigate against changing risks, especially as other states could follow California’s lead, say attorneys at Gibson Dunn.
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E-Discovery Quarterly: The Perils Of Digital Data Protocols
Though stipulated protocols governing the treatment of electronically stored information in litigation are meant to streamline discovery, recent disputes demonstrate that certain missteps in the process can lead to significant inefficiencies, say attorneys at Sidley.
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Series
Law School's Missed Lessons: Preparing For Corporate Work
Law school often doesn't cover the business strategy, financial fluency and negotiation skills needed for a successful corporate or transactional law practice, but there are practical ways to gain relevant experience and achieve the mindset shifts critical to a thriving career in this space, says Dakota Forsyth at Olshan Frome.
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Meta Case Brings Customer-Facing Statements Issue To Fore
Now that Facebook v. Amalgamated Bank has returned to California federal court after the U.S. Supreme Court in November found it improvidently granted certiorari, it will be worth watching whether customer-facing communications, such as Facebook's privacy policies, are found to be made in connection with the sale of a security, says Samuel Groner at Fried Frank.
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A Cold War-Era History Lesson On Due Process
The landmark Harry Bridges case from the mid-20th century Red Scare offers important insights on why lawyers must be free of government reprisal, no matter who their client is, says Peter Afrasiabi at One LLP.
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Series
Improv Makes Me A Better Lawyer
Improv keeps me grounded and connected to what matters most, including in my legal career where it has helped me to maintain a balance between being analytical, precise and professional, and creative, authentic and open-minded, says Justine Gottshall at InfoLawGroup.
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TikTok Bias Suit Ruling Reflects New Landscape Under EFAA
In Puris v. Tiktok, a New York federal court found an arbitration agreement unenforceable in a former executive's bias suit, underscoring an evolving trend of broad, but inconsistent, interpretation of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, say attorneys at Williams & Connolly.
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Avoiding Pitfalls Around New Calif. Commercial Lease Law
A California law that became effective this year requires commercial landlords to extend certain protections previously afforded to residential tenancies, and a few key provisions of the law especially warrant reexamination of leasing and operational processes, say attorneys at Holland & Knight.
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How BigLaw Executive Orders May Affect Smaller Firms
Because of the types of cases they take on, solo practitioners, small law firms and public interest attorneys may find themselves more dramatically affected by the collective impact of recent government action involving the legal industry than even the BigLaw firms named in the executive orders, says Reuben Guttman at Guttman Buschner.
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.