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Compliance
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June 11, 2025
Debt Collectors Push FCC To Shed Consumer Contact Rules
Debt collectors are adding their two cents to the Federal Communications Commission's request for unnecessary regulations that should be eliminated, calling on the agency to eliminate an upcoming rule that would make it easier for individuals to stop future robocalls and texts.
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June 11, 2025
NFL Tells 9th Circ. $4.7B Sunday Ticket Verdict Rightly Nixed
The National Football League has told the Ninth Circuit that a lower court was right to toss a $4.7 billion jury verdict for claims that the league colluded to raise the price of the Sunday Ticket broadcast package on DirecTV, after the court found testimony from a pair of experts during trial was unreliable.
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June 11, 2025
Ga. Hospice Provider Pays $9.2M To End Kickback Case
A Georgia hospice care provider and its CEO forked over $9.2 million to settle claims that they violated federal fraud laws by participating in a kickback scheme with medical directors who referred hospice patients to the group, prosecutors announced Wedesnday.
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June 11, 2025
Cigna Accused Of Misusing $17M In 401(k) Forfeitures
Retirement plan participants and beneficiaries at Cigna say the company violated the Employee Retirement Income Security Act by using up to $17 million given up by participants who quit early to reduce the company's matching contributions, rather than using it to pay for the plan's administrative costs.
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June 11, 2025
Disney, Universal Team Up For IP Suit Against AI Art Co.
Disney and Universal have teamed up to sue artificial intelligence company Midjourney in California federal court, calling the startup in their Wednesday lawsuit a "copyright free-rider" for training its AI art generator with their protected works from such iconic franchises as "Star Wars," Marvel's "Iron Man," "Shrek" and "The Simpsons."
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June 11, 2025
DOJ Seeks Green Light For Landlord Deal In RealPage Suit
The federal government has asked a North Carolina federal judge to sign off on a consent decree reached with landlord Cortland Management LLC in antitrust litigation targeting RealPage Inc. and the landlords it alleges used the company's software to collude on rental prices.
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June 11, 2025
Health Network Strikes Deal In Retirement Plan Forfeiture Suit
A Pennsylvania health system has settled a suit claiming it failed to tamp down on unnecessary expenses in its $1.1 billion retirement plan and used forfeited funds to cover its own contributions to the plan instead of using the abandoned cash to reduce fees.
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June 11, 2025
Lockheed Not Liable For Reporting Employee To Government
Lockheed Martin is shielded from a former employee's defamation and other claims that were based on the defense contractor's mandatory reporting of suspected misconduct, a Massachusetts intermediate appellate court ruled Wednesday.
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June 10, 2025
House Ag Committee Advances Crypto Market Structure Bill
The House Committee on Agriculture on Tuesday advanced a bill to regulate digital asset markets with broad bipartisan support despite concerns from Democrats that the U.S. Commodity Futures Trading Commission will need more funding to accomplish the broad crypto mandate contemplated by the bill.
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June 10, 2025
Tech Recruiter Settles DOJ Claims It Favored Visa Workers
A San Francisco Bay Area-based technology recruiting company agreed Tuesday to pay civil penalties and change its recruiting practices to resolve allegations it illegally preferred H-1B visa holders over U.S. workers, marking the government's renewed push under the Trump administration to enforce the Immigration and Nationality Act against companies favoring foreign workers.
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June 10, 2025
10th Circ. Affirms Toss Of USPS Contractor's $500M Suit
The Tenth Circuit on Tuesday refused to revive a U.S. Postal Service contractor's $500 million lawsuit accusing USPS of misappropriating its confidential business information and wrongfully terminating their long-running relationship, affirming a lower court's toss of tort and contract claims.
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June 10, 2025
Vertex Says Tax Software Rival Purposely Destroyed Evidence
Tax compliance software company Vertex Inc. told a Pennsylvania federal judge Monday that Avalara intentionally destroyed and failed to preserve "key sources of electronically stored information crucially relevant" to Vertex's lawsuit accusing its rival of poaching workers to steal trade secrets.
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June 10, 2025
Chamber Calls On Justices To Hear Auditor Fraud Case
The U.S. Chamber of Commerce is among the parties calling on the U.S. Supreme Court to take up a case accusing BDO USA LLP of securities fraud, telling the justices that allowing a Second Circuit ruling to stand could lead to more lawsuits against accountants, lawyers and underwriters.
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June 10, 2025
Feds Reboot FCPA Agenda With Narrower Enforcement Focus
The U.S. Department of Justice on Tuesday released new and tightened guidelines for enforcement of the Foreign Corrupt Practices Act after a four-month pause on such prosecutions, centering prospective investigations on situations that affect U.S. competitiveness and national security as well as transnational cartels.
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June 10, 2025
First Republic Brass Beat Investor Suit Over Bank Failure
A California federal judge dismissed for good a shareholder suit against the former directors and officers of now-failed First Republic Bank and its auditor over the lender's 2023 collapse, finding that the plaintiffs failed to first exhaust their required administrative remedies and, therefore, the court does not have jurisdiction to hear the case.
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June 10, 2025
Senate Dems Seek To Slow GOP Roll On CFPB Defunding Bill
Senate Banking Committee Democrats are demanding a hearing on GOP budget legislation that would defund the Consumer Financial Protection Bureau and make other financial agency cuts, arguing that its "sweeping" plans should be scrutinized before going to the floor.
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June 10, 2025
9th Circ. Says Legal Co.'s $1.7M Chase Check Suit Is Too Late
The Ninth Circuit affirmed a California federal court's ruling dismissing a suit by legal support company Nationwide Legal against JPMorgan Chase, saying its suit claiming Chase Bank acted negligently when it allowed a Nationwide Legal employee to deposit fraudulent checks was time-barred.
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June 10, 2025
Lindberg Says NC Court Can't Force $1.24M Claim On Fla. Co.
Convicted mogul Greg Lindberg is fighting a New Jersey publisher's bid to collect on a $1.24 million judgment from a holding company in Florida, saying in a brief filed in North Carolina state appellate court that he doesn't hold an interest in the Florida company.
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June 10, 2025
Amazon Can't Duck Suit Over Non-FDA Approved Supplements
Amazon must face a proposed class action alleging it sells non-FDA approved supplements touting health-related claims without mandatory disclaimers, after a Washington federal judge rejected the company's argument the plaintiffs lack standing to pursue claims over supplements they never bought, finding the plaintiffs allege a uniform, systematic marketing practice.
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June 10, 2025
Alphabet Investor Sues Company For TikTok Docs
An Alphabet Inc. shareholder filed suit on Tuesday against the Google parent company in Delaware Chancery Court, seeking access to the company's books and records to investigate its compliance with a ban on the distribution of the TikTok mobile app under the Protecting Americans from Foreign Adversary Controlled Applications Act.
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June 10, 2025
Trump's CFTC Pick Won't Push To Fill Leadership Vacancies
President Donald Trump's pick to lead the U.S. Commodity Futures Trading Commission told senators Tuesday that the financial regulator would likely need to beef up its staff should Congress grant it more authority over the cryptocurrency industry, but he would not commit to pushing the president to fill vacancies at the top of the agency.
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June 10, 2025
Edward Jones Among 5 Firms Paying $9.3M Over Inflated Fees
Edward Jones, TD Ameritrade and three other wealth adviser firms have reached a $9.3 million settlement with the North American Securities Administrators Association after having been accused of overcharging fees for small-dollar investors.
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June 10, 2025
Deere & Co. Must Face FTC Suit Over Repair Restrictions
An Illinois federal judge compared John Deere's second attempt at beating a right-to-repair suit to Steve Martin's Pink Panther II reboot, calling it "predictable" and "derivative" as he again rejected the farm equipment giant's motion for judgment on the pleadings and allowed the Federal Trade Commission's case against it to proceed.
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June 10, 2025
SEC To Resume Review Of Swiss Adviser Registrations
Switzerland-based investment advisers seeking to do business in the U.S. can immediately resume submitting new and pending registration applications for consideration with the U.S. Securities and Exchange Commission, regulators said Tuesday.
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June 10, 2025
10th Circ. Backs DOL Win In Construction Co. Retirement Suit
The Tenth Circuit backed the U.S. Department of Labor's win in an enforcement case against a defunct construction firm and its owner alleging retirement plan mismanagement, ruling Tuesday that a Utah federal court properly ended the case after the defendants' repeated failures to respond to court orders.
Expert Analysis
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Synopsys-Ansys Merger Augurs FTC's Return To Remedies
The Federal Trade Commission's recent approval of $35 billion merger between Synopsys and Ansys, subject to the divestiture of certain assets, signals a renewed preference for settlements over litigation, if the former can preserve competition and a robust structural remedy is available, say attorneys at Simpson Thacher.
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CFPB's Guidance Withdrawal Deepens Industry Uncertainty
Following the Consumer Financial Protection Bureau's recent withdrawal of dozens of guidance documents in a post-Chevron world, financial services providers are left to make their own determinations about the complex issues addressed in the now-revoked materials, presenting a significant compliance burden, say attorneys at Bradley Arant.
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Justices Widen Gap Between Federal, Calif. Enviro Reviews
While the U.S. Supreme Court's recent opinion in Seven County Infrastructure Coalition v. Eagle County, Colorado, narrowed the scope of National Environmental Policy Act reviews, it may have broadened the gulf between reviews conducted under NEPA and those under the California Environmental Quality Act, say attorneys at Hanson Bridgett.
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In 2nd Place, Va. 'Rocket Docket' Remains Old Reliable
The U.S. District Court for the Eastern District of Virginia was again one of the fastest civil trial courts in the nation last year, and an interview with the court’s newest judge provides insights into why it continues to soar, says Robert Tata at Hunton.
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SEC Signals Opening For Private Fund Investment Reform
At SEC Speaks in late May, the U.S. Securities and Exchange Commission made clear that it's considering allowing registered funds of private funds to be offered broadly to true retail investors, meaning existing funds should review their disclosures focusing on conflicts of interest, liquidity and fees, say attorneys at Stradley Ronon.
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Parsing A Lack Of Antitrust Info-Sharing Enforcement Clarity
Information sharing among competing firms has recently faced dramatic changes in antitrust agency guidance, while courts grapple with the permissible scope of pricing algorithms, leaving companies in limbo, but potential Trump administration changes could offer some reprieve, say attorneys at Axinn.
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What FCA Liability Looks Like In The Cybersecurity Realm
Two recent settlements highlight how whistleblowers and the U.S. Department of Justice have been utilizing the False Claims Act to allege fraud predicated on violations of cybersecurity standards — timely lessons given new bipartisan legislation introducing potential FCA liability for artificial intelligence use, say attorneys Rachel Rose and Julie Bracker.
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Foreign Sovereign Entities Should Heed 9th Circ. IP Ruling
After the Ninth Circuit recently held that four Chinese state-controlled companies were not immune from criminal indictment for alleged economic espionage, foreign sovereign-controlled entities should assess whether their operations and affiliation with their parent states qualify for sovereign immunity under the common law, say attorneys at Cleary.
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Proposed State AI Rule Ban Could Alter Employer Compliance
A proposal in the congressional budget bill that would ban state and local enforcement of laws and regulations governing artificial intelligence may offer near-term clarity by freezing conflicting rules, but long-term planning would remain difficult for employers seeking safe, lawful AI deployment strategies, say attorneys at Fisher Phillips.
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Operating Via Bank Charter Offers Perks Amid Industry Shift
As bank regulators become more receptive to streamlining barriers that have historically stood in the way of de novo bank formation, and as fintechs show more interest in chartering, attorneys at Goodwin outline the types of charters available and their benefits.
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How Attorneys Can Become Change Agents For Racial Equity
As the administration targets diversity, equity and inclusion efforts and law firms consider pulling back from their programs, lawyers who care about racial equity and justice can employ four strategies to create microspaces of justice, which can then be parlayed into drivers of transformational change, says Susan Sturm at Columbia Law School.
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Unicoin Case Reveals SEC's Evolving Enforcement Posture
The U.S. Securities and Exchange Commission's recent fraud allegations against cryptocurrency company Unicoin send a clear message that while the Trump administration supports digital asset development, it will act decisively against deception, inflated valuations and false assurances, says David Zaslowsky at Baker McKenzie.
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Public Cos. Must Heed Disclosure Risks Amid Trade Chaos
Ongoing uncertainties caused by President Donald Trump's shifting stances on tariffs and trade restrictions have exponentially escalated financial reporting pressures on public companies, so businesses must ensure that their operations and accounting practices align with the U.S. Securities and Exchange Commission's standards, say Jennifer Lee at Jenner & Block and Edward Westerman at Secretariat Advisors.
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Seven County Ruling Should Trim Agency Enviro Analysis
The U.S. Supreme Court's ruling in Seven County Infrastructure Coalition v. Eagle County provides needed clarity for infrastructure projects by expressly directing agencies to narrow environmental reviews, and reducing the threat of litigation if even tangential issues are not exhaustively evaluated, say attorneys at Dentons.
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Digital Equity Act Grant Terminations Raise Key Legal Issues
The Trump administration's move to cancel grant programs created under the Digital Equity Act yields key legal and policy questions facing the executive branch, Congress and the courts, including how the administration plans to implement the cancellation of the Digital Equity Act's appropriations in the first place, say attorneys at Akin.