Expert Analysis

• Banks Should Reassess Warehouse Lines Amid Credit Stress

  

  Growing stress in private credit markets means banks with warehouse lines to nonbank lenders should inventory exposures, revisit covenants and prepare for tougher regulator scrutiny, as repayment strains and weakening fund liquidity could turn seemingly indirect risks into material compliance concerns, say attorneys at Barack Ferrazzano.

• Perfectus Settlement Illuminates DOJ's Tariff Fraud Strategy

  

  The Department of Justice's recent False Claims Act settlement with Perfectus Aluminum illustrates the government's continuing interagency focus on customs and tariff enforcement, and the related criminal indictment provides insight into conduct enforcers may associate with tariff evasion schemes, say attorneys at Morgan Lewis.

• 7 Ways Va. Employers Can Prep For New Noncompete Limits

  

  As of July 1, Virginia noncompete agreements with employees fired without "cause" must provide "severance benefits" — but with those key terms undefined, employers should implement several flexible but defensible compliance strategies to limit their exposure once the rule is rolled out, say attorneys at Cooley.

• Data Collection Push Signals New Era For Bank Compliance

  

  An executive order pushing for broad bank collection of beneficiary data and a Financial Crimes Enforcement Network geographic targeting order in Minnesota should prompt financial institutions to run checks on customer diligence and privacy controls, as these directives may be part of a wider compliance shift, say attorneys at Faegre Drinker.

• Citron Founder Verdict Tests Reach Of 'Half-Truth' Fraud

  

  A California federal jury's conviction this week of Citron founder Andrew Left may be remembered less as a conventional manipulation prosecution than as a case about how far the "half-truth" doctrine can reach when applied to modern market speech, says Elisha Kobre at Sheppard.

• Series

  Competing At Poker Makes Me A Better Lawyer

  

  Playing poker in male-dominated rooms taught me to treat skepticism as background noise when my opponents seem to underestimate me, to apply pressure when it matters and to adapt without losing strategic discipline — skills that are all indispensable in restructuring and insolvency matters, says Alexis Gambale at Pashman Stein.

• FTC Sweep Signals Increased 'Made In USA' Claim Scrutiny

  

  After the Federal Trade Commission's recent enforcement sweep targeting allegedly deceptive "Made in USA" claims, companies should expect continued scrutiny of both traditional and digital marketing channels, coupled with sustained focus on supply chain transparency and claim substantiation, say attorneys at Morgan Lewis.

• Private Lender Verification Lessons From Recent Fraud Cases

  

  Recent fraud allegations involving private credit borrowers raise compliance red flags for lenders, who must recognize that financial and collateral verification is an essential safeguard as failures in underwriting and monitoring infect the broader market, say Michael Bresnick at Venable and Brian Mich at Control Risks Group.

• 5 Things Associates Must Ask About Their Firm's Merger Plan

  

  The associates who navigate law firm mergers best ask the right questions early, such as inquiring about partners' plans, to assess how the merger could affect their workflow and career path, says Jackie Bokser-LeFebvre at Major Lindsey.

• CFTC Trading Rule Can't Police Prediction Markets Yet

  

  The Commodity Futures Trading Commission’s recent efforts to police insider trading in prediction markets through a post-Dodd-Frank anti-fraud rule exposes doctrinal gaps around misappropriation theory, leaving platforms to fill the void with win-rate-based surveillance, says attorney Tamara de Silva.

• FinCEN World Cup Warning Raises Trafficking Risks For Cos.

  

  The Financial Crimes Enforcement Network's recent warning of human trafficking risks during the World Cup games signals heightened scrutiny ahead of the upcoming tournament, and suggests regulators increasingly expect businesses beyond financial institutions to maintain effective trafficking-risk controls, say attorneys at Morgan Lewis.

• 2 'Rocket Dockets' And The Rules That Propel Them

  

  The fastest civil trial courts in the country are currently in the Eastern District of Virginia and the Southern District of Florida, and their chief judges provide insights into the court rules that keep them ahead, says Robert Tata at Hunton.

• Retailer Risk Reduction Tips As Email Marketing Suits Surge

  

  Amid a flood of email marketing lawsuits following last year's Washington Supreme Court ruling in Brown v. Old Navy, retailers seeking to avoid high litigation costs can take several steps to reduce risks by focusing on their email subject lines advertising sales, says Gonzalo Mon at Kelley Drye.

• Why Nuclear Licensees Must Watch 2nd Circ.'s Holtec Review

  

  In reviewing a New York federal court's preemption ruling concerning disposal of nuclear materials, the Second Circuit must confront the lower court's recognition of a purpose-based path to field preemption, which could be game-changing for nuclear material licensees, says Andrew Averbach at Womble Bond.

• Operational AI Washing: Dismantling Claims Before Discovery

  

  Operational AI washing claims can be rebuffed before discovery extracts their true costs by turning the documentary record established in earnings calls and public disclosures into a layered defense, which can exploit the Private Securities Litigation Reform Act’s heightened pleading standards, say attorneys at Akerman.