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Corporate
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April 24, 2024
Takeaways From The FTC's Noncompetes Ban
The first legal challenges to the Federal Trade Commission's new ban on essentially all noncompete agreements that employers impose on workers have already been filed, but questions remain, not just on the rule's legal viability, but also on the likelihood of follow-on rulemakings and the rule's exact reach.
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April 24, 2024
Pepsi Can't Use Workers' Comp Immunity In Fla. Shooting Suit
Florida's Third District Court of Appeal on Wednesday ruled that a Pepsi subsidiary can't utilize a workers' compensation immunity defense in a lawsuit brought by a former employee who was shot by a co-worker, saying the company took inconsistent positions on his claim for benefits.
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April 24, 2024
Nuclear Fuel Co. Investor Sues Over Hair-Trigger 'Poison Pill'
A Centrus Energy Corp. stockholder on Wednesday hit the company, as well as current and former directors, with a proposed class action in Delaware Chancery Court, challenging allegedly hair-trigger shareholder rights "poison pill" restrictions that activate anti-takeover measures based on a relatively low share ownership percentage.
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April 24, 2024
3 Takeaways On How AI Is Forcing Publicity Rights To Evolve
As digital replicas of someone's voice, image or likeness become easier to create with the help of artificial intelligence, this new era of deepfakes is shining a spotlight on the nation's patchwork of right-of-publicity laws and raising questions over when Congress may act to pass a national framework.
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April 24, 2024
Judge Suggests Amazon Never Denied Late-Delivery Refund
A Washington federal judge seemed to signal Wednesday that a putative class action accusing Amazon of not delivering a package as quickly as promised might get dismissed, noting the plaintiff did not actually get denied a refund because he never requested one.
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April 24, 2024
Backpage Execs Win Partial Acquittal In Prostitution Ad Retrial
An Arizona federal judge has partially overturned jury retrial convictions against two former Backpage.com executives and the now-defunct classifieds website's co-founder, but she refused to acquit the trio of all charges or grant a second retrial in a sprawling criminal case alleging they facilitated Backpage's $500 million prostitution scheme.
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April 24, 2024
DOL Says Firm 'Repeatedly' Misclassified Highway Workers
The U.S. Department of Labor recently determined that a subcontractor "repeatedly misclassified" employees who worked on 25 federal highway construction projects in Pennsylvania, according to a notice filed in Pennsylvania federal court Wednesday in a lawsuit against three construction firms.
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April 24, 2024
9th Circ. Says NLRB Can Enforce Starbucks Bargaining Order
The Ninth Circuit said Wednesday that Starbucks must recognize its Seattle roastery workers' April 2022 vote to unionize, overruling the coffee giant's contention that ballots should have been cast in person and concluding a National Labor Relations Board manager had discretion to call the mail-in election because of COVID-19 case counts at the time.
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April 24, 2024
Binance Founder Should Get 3 Years, Not Probation, Feds Say
Federal prosecutors asked a Washington federal judge to sentence Binance founder Changpeng Zhao to three years over his failure to implement an effective anti-money laundering program at his crypto exchange, but the founder said jail time isn't necessary since he's already paid "massive" fines and comparable cases haven't resulted in prison sentences.
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April 24, 2024
Under Armour Must Show Shoe Sponsor Deals In Patent Row
Under Armour is being forced to turn over information relating to deals it has with athletes like basketball star Stephen Curry as part of a patent infringement lawsuit, but the Texas federal judge in the case limited how much the sportswear company has to provide.
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April 24, 2024
Chamber Of Commerce Sues FTC Over New Noncompete Rule
The U.S. Chamber of Commerce has lodged a promised lawsuit challenging the Federal Trade Commission's new rule banning noncompete agreements, contending the pacts are good for the economy and that the agency lacks authority to issue the regulation.
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April 24, 2024
Noteholders Say Chilean Telecom Lacks US Ties For Ch. 11
A group of WOM SA noteholders asked a Delaware bankruptcy judge to dismiss the Chilean cellphone network operator's Chapter 11 case, saying the company has no connections with the United States and courts here don't have jurisdiction over the company's assets.
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April 24, 2024
Seyfarth Picks Up BCLP Corporate Finance Pro In Atlanta
Seyfarth Shaw LLP is expanding its corporate team with a Bryan Cave Leighton Paisner LLP finance specialist as a partner in its Atlanta office, the firm said Wednesday.
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April 24, 2024
Tesla Must Put Musk's Potential Payday In Trust, Investors Say
Class attorneys for Tesla stockholders have asked Delaware's chancellor to seize or shelter in a trust tens of billions in company stock sidelined by a ruling that struck down CEO Elon Musk's 10-year compensation plan in January, pending a fast-track hearing.
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April 24, 2024
Solar Panel Co. Loses Calif. Appeal Over PAGA Arbitration
A California appellate panel sided with a lower court as it ruled in a published opinion that a carveout in a home solar panel company's employment agreement did not require a former worker to arbitrate his individual Private Attorneys General Act claims, keeping his suit in court.
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April 24, 2024
Trump Can't Subpoena Daniels For Alleged Bias In NY Trial
A New York state judge rejected Donald Trump's "overbroad" subpoena seeking records that the former president said would show bias by adult film star Stormy Daniels ahead of her testimony about an alleged hush money payment in 2016.
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April 24, 2024
Baker McKenzie Adds 17-Atty Deals Team From Munger Tolles
A team of 11 transactional partners and six associates in Los Angeles is heading to Baker McKenzie from Munger Tolles & Olson LLP, according to an announcement Wednesday.
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April 23, 2024
Monsanto Judge Slashes $857M PCB Jury Verdict
A Washington state judge slashed a nearly $860 million PCB poisoning verdict against Monsanto by roughly half on Tuesday, while the company sought to avoid future losses by moving to sever an upcoming 14-plaintiff trial in another toxic tort stemming from the same Evergreen State school site.
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April 23, 2024
New Ga. Law Restricts Social Media Use For Youth Under 16
A bill signed into law Tuesday by Georgia Gov. Brian Kemp imposes new restrictions on minors' internet usage, including requiring social media companies to verify that users are 16 or older unless they receive approval from an individual's parents to use the service.
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April 23, 2024
TikTok Divestment Bill Heads To Biden's Desk
The Senate voted 79-18 on Tuesday night to pass a bill requiring ByteDance Ltd. to divest the popular social media app TikTok or face a ban in the U.S., which now goes to the president's desk.
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April 23, 2024
Globetrotters Say SBA's 'Bureaucratic Hell' Cost COVID Grant
The Harlem Globetrotters on Monday renewed their yearslong fight with the U.S. Small Business Administration over a $10 million COVID-19 relief grant, filing a new suit in D.C. federal court accusing the SBA of leaving the team in "bureaucratic hell" rather than forking over the money it's entitled to.
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April 23, 2024
Ex-Autonomy Tech Exec Doubted 'Bizarre' $6M Deal, Jury Told
Autonomy's ex-chief technology officer testified Tuesday in the California federal fraud trial of former CEO Michael Lynch that he had concerns about Autonomy's "bizarre" 2010 deal to sell $6 million in repackaged hardware, which prosecutors allege was never delivered and was only used to artificially inflate Autonomy's revenues.
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April 23, 2024
SEC Critics Preview Future Challenges To Agency Action
The U.S. Securities and Exchange Commission may face new challenges to its enforcement authority from the way it imposes industry bars to the burden of proof needed to bring its civil cases, two frequent legal opponents of the agency said Tuesday.
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April 23, 2024
Ex-Williams Sonoma Exec Pleads Not Guilty To Fraud
A former Williams Sonoma executive appeared remotely before a U.S. magistrate judge in California federal court on Tuesday and pleaded not guilty to an 18-count superseding indictment alleging he orchestrated a kickback scheme and another involving the diversion of payments.
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April 23, 2024
Meta Secures Partial Trim Of Video Technology Patent Suit
A federal judge has narrowed a suit accusing Meta Platforms Inc. of infringing patents related to video technology, throwing out one of VideoLabs' patents but letting the patent owner keep moving forward with another.
Expert Analysis
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5 Issues To Consider When Liquidating Through An ABC
Assignments for the benefit of creditors continue to grow in popularity as a tool for an orderly wind-down, and companies should be considering a number of issues before effectuating the assignment, including in which state it should occur, obtaining tail coverage and preparing a board creditor mailing list, says Evelyn Meltzer at Troutman Pepper.
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Opinion
Judicial Independence Is Imperative This Election Year
As the next election nears, the judges involved in the upcoming trials against former President Donald Trump increasingly face political pressures and threats of violence — revealing the urgent need to safeguard judicial independence and uphold the rule of law, says Benes Aldana at the National Judicial College.
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Legal Issues When Training AI On Previously Collected Data
Following the Federal Trade Commission's recent guidance about the use of customer data to train artificial intelligence models, companies should carefully think through their terms of service and privacy policies and be cautious when changing them to permit new uses of previously collected data, says James Gatto at Sheppard Mullin.
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Document Retention Best Practices To Lower Litigation Risks
As new technologies emerge and terabytes of data can be within the purview of a single discovery request, businesses small and large should take four document management steps to effectively minimize risks of litigation and discovery sanctions long before litigation ensues, says Kimbrilee Weber at Norris McLaughlin.
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Series
Riding My Peloton Bike Makes Me A Better Lawyer
Using the Peloton platform for cycling, running, rowing and more taught me that fostering a mind-body connection will not only benefit you physically and emotionally, but also inspire stamina, focus, discipline and empathy in your legal career, says Christopher Ward at Polsinelli.
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The Challenges SEC's Climate Disclosure Rule May Face
Attorneys at Debevoise examine potential legal challenges to the U.S. Securities and Exchange Commission's new climate-related disclosure rule — against which nine suits have already been filed — including arguments under the Administrative Procedure Act, the major questions doctrine, the First Amendment and the nondelegation doctrine.
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Tips For Healthcare M&A Amid Heightened Antitrust Scrutiny
As the Biden administration maintains its aggressive approach to antitrust merger enforcement, prudent healthcare M&A counsel will consider practical advice when contemplating their next transaction, including carefully selecting a merger partner and preparing for a potentially long waiting period prior to closing, say attorneys at Davis Wright.
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Class Actions At The Circuit Courts: March Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses four notable circuit court decisions on topics from consumer fraud to employment — and provides key takeaways for counsel on issues including coercive communications with putative class members and Article III standing at the class certification stage.
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Compliance Steps After ABA White Collar Crime Conference
Senior law enforcement officials’ statements this month at the American Bar Association's white collar crime conference suggest government enforcement efforts this year will increasingly focus on whistleblower incentives, artificial intelligence and data protection, and companies will need to update their compliance programs accordingly, say attorneys at Baker McKenzie.
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2 Issues For Venture-Backed Climate Tech Startups To Avoid
As climate tech startups become more common, poor equity dilution management and stacked seed financing are two common pitfalls that apply more acutely to climate tech startups than to the broader venture-backed startup space, say attorneys at Goodwin.
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Spartan Arbitration Tactics Against Well-Funded Opponents
Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.
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How Private Funds Can Navigate New FinCEN Reporting Rules
In light of the Financial Crimes Enforcement Network's new regulations implementing beneficial ownership reporting requirements, private fund managers must assess whether certain obligations apply to entities within their structures and whether potential structural changes could simplify those obligations, say attorneys at Winston & Strawn.
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Md. May See Vigorous Resale Price Maintenance Enforcement
In Maryland, indications of a new focus on resale price maintenance agreements are significant because state prosecution in this area has been rare, particularly outside California, say attorneys at DLA Piper.
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What 2 Years Of Ukraine-Russia Conflict Can Teach Cos.
A few key legal lessons for the global business community since Russia's invasion of Ukraine could help protect global commerce in times of future conflict, including how to respond to disparate trade restrictions and sanctions, navigate war-related contract disputes, and protect against heightened cybersecurity risks, say attorneys at Morgan Lewis.
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Uncertainty Surrounds Patent Eligibility Restoration Bill
A recent U.S. Senate hearing regarding the Patent Eligibility Restoration Act, a bill that aims to overhaul patent eligibility law and establish clearer statutory exclusions, marks a pivotal moment in the ongoing patent eligibility debate, but the law’s fate remains uncertain as discussions continue, say attorneys at Marshall Gerstein.