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California
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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.
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May 22, 2025
Calif. Docs Bring FDA Stem Cell Regulation Fight To Top Court
Two California clinics that provide stem cell treatments are urging the U.S. Supreme Court to review a Ninth Circuit panel's finding that their treatments are "drugs" subject to Food, Drug and Cosmetic Act regulations.
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May 22, 2025
Calif. Judge Likely To Extend Block On Gov't Reorg, Job Cuts
A California federal judge indicated Thursday she'll likely convert her temporary restraining order into a preliminary injunction against President Donald Trump's executive order to reduce the federal workforce, saying the law "seems clear" that presidents cannot issue large-scale agency reductions without congressional approval and "to hold otherwise" would contradict nine previous presidents and 21 congresses.
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May 22, 2025
At NY Show, The Trial Is Fake But The Entertainment Is Real
Playing at Irondale in Brooklyn, production company Fever's "The Jury Experience" seeks to capitalize on the trend of immersive, interactive entertainment by giving members of the public a chance to take part in something conventional wisdom says they'd normally try to avoid — jury duty.
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May 22, 2025
Tax Court Backs IRS In Multibillion-Dollar Facebook Clash
The U.S. Tax Court largely sided with the IRS on Thursday in a multibillion-dollar tax dispute with Facebook, upholding the agency's approach for valuing the company's intangible property but finding it applied the wrong data points in its analysis.
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May 22, 2025
As Trump Wields FCA, Whistleblowers May See 'Dollar Signs'
The Trump administration's plan to use the False Claims Act to target diversity programs and alleged civil rights fraud steers a well-worn statute into uncharted territory, and could spur significant whistleblower activity amid high-profile battles with Harvard University, BigLaw firms and other institutions, experts told Law360.
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May 22, 2025
Sutter Health's $228.5M Antitrust Deal Gets Initial OK
A California federal judge on Thursday preliminarily approved Sutter Health's $228.5 million deal settling a 13-year case over claims the hospital chain boosted costs by pushing all-or-nothing networks on insurers, saying that after a trial and a Ninth Circuit reversal, "it's nice that we didn't have to try this case twice."
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May 22, 2025
Int'l Student Visa Record Terminations Blocked Nationwide
A California federal judge barred the Trump administration on Thursday from detaining foreign students who had their electronic F-1 student visa records terminated, and from imposing any additional adverse legal consequences on affected international students across the country.
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May 22, 2025
Congress Kills Calif. EV Program Waiver, Other Climate Rules
Congress on Thursday sent President Donald Trump four resolutions undoing U.S. Environmental Protection Agency actions, including the Biden-era approval of California's effort to ban the sale of gas-powered vehicles in the state, drawing a promise of litigation from the state.
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May 22, 2025
Coalition Backs Calif. Tribe's Fight Over $700M Casino Project
A coalition of tribes weighed in on a dispute over the federal government's decision to rescind gambling eligibility for the Scotts Valley Band of Pomo Indians' $700 million casino project, questioning the federal government's perceived acquiescence to pushback from other tribes.
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May 22, 2025
Judge Asks If DEI Is Now 'Homogeneity, Inequity And Exclusion'
A Massachusetts federal judge considering a challenge to the Trump administration's cuts to hundreds of National Institutes of Health grants pressed the U.S. Department of Justice on Thursday for its definition of diversity, equity and inclusion, at one point asking hypothetically whether the government's policy is now "homogeneity, inequity and exclusion."
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May 22, 2025
Silvergate Estate To Chip In For $37.5M Investor Settlement
Silvergate Capital and investors suing over its collapse have reached a $37.5 million deal with a "rare" source of partial funding to resolve claims that the failed crypto-focused bank misrepresented its safeguards against onboarding customers like FTX, the fraud-ridden crypto exchange that made up roughly a sixth of the bank's deposit base.
Expert Analysis
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Charging A Separate Tariff Fee May Backfire For Retailers
In the wake of the Trump administration's newly imposed tariffs, retailers facing significant supply chain cost increases may be considering adding a tariff fee to offset these costs, but doing so risks violating state drip pricing bans, say attorneys at Benesch.
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Series
Adapting To Private Practice: From DOJ Enviro To Mid-Law
Practitioners leaving a longtime government role for private practice — as when I departed the U.S. Department of Justice’s environmental enforcement division — should prioritize finding a firm that shares their principles, values their experience and will invest in their transition, says John Cruden at Beveridge & Diamond.
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Addressing D&O Allocation Questions Amid Shifting Economy
As increasing global insolvency this year may lead to an increase in directors and officers insurance claims, businesses should review their policies' allocation provisions to avoid negotiating how coverage will apply to covered and uncovered claims during a suit, say attorneys at Reed Smith.
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A Look At Probabilistic Tracing After High Court's Slack Ruling
Recent decisions following the U.S. Supreme Court's 2023 ruling in Slack v. Pirani have increased the difficulty of pleading Securities Act claims for securities issued in direct listings by rejecting the use of statistical probabilities to establish that share purchases were traceable to a challenged registration statement, says Jonathan Richman at Brown Rudnick.
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Class Actions At The Circuit Courts: April Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses four federal appellate court decisions and identifies practice tips from cases involving pretrial detainee bail funds, employment law, product defect allegations and claims of not providing proper pain medication at a jail.
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Legal Ethics Considerations For Law Firm Pro Bono Deals
If a law firm enters into a pro bono deal with the Trump administration in exchange for avoiding or removing an executive order, it has an ethical obligation to create a written settlement agreement with specific terms, which would mitigate some potential conflict of interest problems, says Andrew Altschul at Buchanan Angeli.
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Avoiding Compliance Risks Under Calif. Recycling Label Law
CalRecycle's recently published final findings on California's S.B. 343 — determining which products and packaging materials are eligible to use the "chasing arrows" recyclability symbol — offer key guidance that businesses operating in the state must heed to avert the risk of penalties or litigation, says Christopher Smith at Greenspoon Marder.
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Series
Playing Football Made Me A Better Lawyer
While my football career ended over 15 years ago, the lessons the sport taught me about grit, accountability and resilience have stayed with me and will continue to help me succeed as an attorney, says Bert McBride at Trenam.
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10 Arbitrations And A 5th Circ. Ruling Flag Arb. Clause Risks
The ongoing arbitral saga of Sullivan v. Feldman, which has engendered proceedings before 10 different arbitrators in Texas and Louisiana along with last month's Fifth Circuit opinion, showcases both the risks and limitations of arbitration clauses in retainer agreements for resolving attorney-client disputes, says Christopher Blazejewski at Sherin and Lodgen.
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How Trump Energy Order May Challenge State Climate Efforts
Even if the Trump administration's recent executive order targeting state and local environmental, climate and clean energy laws, regulations and programs doesn't result in successful legal challenges to state authority, the order could discourage state legislatures from taking further climate action, say attorneys at Foley Hoag.
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Notable Q1 Updates In Insurance Class Actions
The first quarter of 2025 was filled with the refinement of old theories in the property and casualty space, including in vehicle valuation, time to seek appraisal and materials depreciation, says Mathew Drocton at BakerHostetler.
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Series
Power To The Paralegals: The Value Of Unified State Licensing
Texas' proposal to become the latest state to license paraprofessional providers of limited legal services could help firms expand their reach and improve access to justice, but consumers, attorneys and allied legal professionals would benefit even more if similar programs across the country become more uniform, says Michael Houlberg at the University of Denver.
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AI Use In Class Actions Comes With Risks And Rewards
The use of artificial intelligence in class actions holds promise for helping to analyze complex evidence, but attorneys and experts must understand how to use it correctly, and how to explain it clearly, say Simone Jones and Eric Mattson at Sidley and Anna Shakotko at Cornerstone Research.
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10 Soft Skills Every GC Should Master
As businesses face shifting regulatory and technological uncertainty, general counsel will need to strengthen certain soft skills to succeed, from admitting when they make a mistake to maintaining a healthy dose of dispassion, says Douglas Brown at Manatt.
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6 Criteria Can Help Assess Executive Branch Actions
With new executive policy changes announced seemingly every day, several questions can help courts, policymakers and businesses determine whether such actions are proper, effective and in keeping with our democratic norms, say Marc Levin and Khalil Cumberbatch at the Council on Criminal Justice.