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May 21, 2025
CFTC Member Says Enforcement Needs More Transparency
The U.S. Commodity Futures Trading Commission's Christy Goldsmith Romero on Wednesday called on the agency to be more transparent about its enforcement decisions, while laying out the factors she weighs in crediting firms for self-reporting and cooperation.
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May 21, 2025
Google, Character.AI Can't Escape Suit Over Teen's Suicide
A Florida federal judge on Wednesday greenlit the bulk of claims in a suit accusing Character.AI and Google of causing a 14-year-old's suicide after he became addicted to an artificial intelligence chatbot, saying the AI app can be considered a product for the purposes of a product liability claim.
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May 21, 2025
House Panel Advances Bills Easing Securities, Banking Regs
The U.S. House of Representatives Financial Services Committee this week approved 25 bills largely aimed at reducing capital markets and banking regulations, moving the deregulatory proposals forward for consideration by the full House.
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May 21, 2025
Zurich Gets Default Win In $4.6M Contractor Coverage Spat
Zurich American Insurance Co. doesn't owe coverage to two subcontractors accused of bungling work on a Georgia natural gas plant, a federal judge has ruled, granting the insurer a default win in its suit seeking to nullify a $4.6 million claim.
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May 21, 2025
Judge Warns Attys Using AI To 'Advocate — Not Hallucinate'
A Florida federal judge on Tuesday sanctioned two attorneys in a shipping contract dispute for filing a brief that included a nonexistent case citation added by artificial intelligence, warning lawyers that they must "carefully evaluate, elucidate and advocate — not hallucinate" in their legal briefs.
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May 21, 2025
Latham, Gibson Dunn Steer $5.75B Lumen, AT&T Fiber Deal
Lumen Technologies, represented by Latham & Watkins, announced Wednesday that it is selling its Mass Markets fiber-to-the-home business in 11 states to AT&T Inc., represented by Gibson Dunn & Crutcher LLP, in a $5.75 billion cash deal that is expected to close in the first half of 2026.
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May 21, 2025
AbbVie Gets Victory In Allergan Shareholder Suit Upheld
An Illinois state appellate panel said Wednesday that a trial court properly dismissed a shareholder class action against biopharmaceutical company AbbVie Inc. that accused the drugmaker of issuing unregistered shares to investors after acquiring Irish pharmaceutical company Allergan.
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May 21, 2025
Google Gets Rumble's Video-Sharing Antitrust Case Tossed
A California federal court on Wednesday agreed with Google that Rumble waited too long to file an antitrust case accusing the tech giant of rigging search results to favor its YouTube unit over the rival video-sharing site.
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May 21, 2025
Chancery Orders Nominating Do-Over For Ionic Board Vote
Citing overwhelming trial evidence, a Delaware vice chancellor on Wednesday told bankrupt Celsius Network's Ionic Digital successor to reopen a board nomination window after finding that the company wrongly eliminated one of two director seats ahead of an election in a defensive move targeting dissident candidates.
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May 21, 2025
DraftKings Denied 3rd Circ. Review In MLB Players' IP Case
A Pennsylvania judge on Wednesday denied a request from DraftKings Inc. to appeal to the Third Circuit the lower court's refusal to dismiss an intellectual property lawsuit that accuses the company of using players' images without permission, saying the issues raised are not appropriate for immediate appeal.
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May 21, 2025
Texas Bills To Watch Before The End Of The 2025 Session
With less than two weeks remaining in the Texas legislative session, lawmakers will hit several deadlines in the coming days that will seal the fate of bills surrounding legal procedure, abortion, artificial intelligence and other topics.
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May 21, 2025
Kirkland, Fenwick Lead CoreWeave's Upsized $2B Debt Offer
Artificial intelligence startup CoreWeave Inc. on Wednesday said it raised $2 billion in debt through an upsized offering, represented by Kirkland & Ellis LLP and Fenwick & West LLP, that netted $500 million more than its initial target.
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May 21, 2025
USPTO Tackling Backlog Despite Hiring Freeze, Official Says
While the U.S. Patent and Trademark Office waits out a federal hiring freeze preventing it from bringing in more patent examiners, it's using initiatives like reassignments and rewards to "do more with less" and cut down on patent pendency, the agency's deputy commissioner for patents said Wednesday.
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May 21, 2025
What To Know Before VLSI, Intel's Patent License Trial
Over the last several years, VLSI Technologies has racked up infringement awards in an expansive multibillion-dollar fight against Intel, but those could be rendered moot after a trial next week, when a Texas federal jury reviews a question central to determining whether Intel already has a license to VLSI's patents.
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May 21, 2025
Goddard Systems Settles $11M Shaken Baby Suit In Conn.
Goddard Systems Inc. has settled a lawsuit claiming that negligence in hiring at one of its franchise schools resulted in an employee shaking an infant and permanently injuring them, according to a new order issued in the Connecticut Superior Court.
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May 21, 2025
NY Firm To Repay $1M, Avoids Fine Over Illiquid Investments
New York-based broker-dealer David Lerner Associates Inc. has agreed to pay more than $1 million in restitution to end the Financial Industry Regulatory Authority's allegations that the firm's inadequate supervisory system failed to flag representatives' recommendation of illiquid limited partnerships to thousands of customers, in a settlement that includes no fine against the firm.
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May 21, 2025
Full Fed. Circ. Undoes $20M Google Loss, Orders New Trial
The full Federal Circuit on Wednesday ordered a new damages trial in a case where a jury told Google LLC to pay $20 million for infringing an EcoFactor Inc. thermostat patent, ruling that the testimony of EcoFactor's damages expert was unreliable and should not have been admitted.
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May 21, 2025
Rite Aid Cleared To Sell Pharmacy Assets To CVS, Others
A New Jersey bankruptcy judge Wednesday gave drugstore chain Rite Aid the go-ahead to transfer millions of prescriptions and dozens of stores to CVS, Walgreens and other pharmacy businesses in Chapter 11 transactions.
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May 21, 2025
Payday Lender's Ex-CEO Pleads Guilty In $66M Ponzi Scheme
The former CEO of a Miami payday loan company pled guilty Wednesday to operating a Ponzi scheme that prosecutors say fraudulently raised $66 million from more than 500 investors.
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May 21, 2025
Ford Hits Calif. Firms With RICO Suit Over Lemon Law Billing
The Ford Motor Co. sued several California-based law firms and lawyers in Los Angeles federal court Wednesday, accusing them of conspiring to overcharge clients and defraud major automotive manufacturers by more than $100 million by submitting falsely inflated time sheets in thousands of consumer protection cases.
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May 21, 2025
Kronos Bio Shareholder Says Sale Unfairly Benefits Execs
Kronos Bio is facing a new shareholder suit claiming its plan to be acquired by another biopharmaceutical company will unfairly entitle Kronos executives to "lucrative" benefits unavailable to public shareholders.
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May 21, 2025
Apple Lets Fortnite Back In App Store As Appeal Pends
Apple has allowed Epic Games to put its popular Fortnite video game back in the App Store, while the sides await a ruling on Apple's bid to pause an injunction mandating additional changes to its policies issued after the court found it had violated a previous order.
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May 21, 2025
SafeMoon CEO Convicted Of Looting Crypto Company
A Brooklyn federal jury on Wednesday quickly found the former CEO of SafeMoon guilty of conspiring to loot over $40 million from the cryptocurrency firm, making him the second former top leader of the once-hot company to be convicted while its founder remains a fugitive.
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May 21, 2025
Trump Can't Fire Privacy Board Democrats, DC Court Says
The Trump administration is not allowed to remove two Democrats from the U.S. Privacy and Civil Liberties Oversight Board, Congress' privacy watchdog over the executive branch's counterterrorism policies, a D.C. federal judge ruled Wednesday.
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May 21, 2025
Walgreens Ducks False Ad Suit Over Mucus Relief Meds
An Illinois federal judge on Tuesday dismissed a potential class action accusing Walgreens of misleading customers by selling them over-the-counter mucus relief medicine containing benzene without warning them of that risk, saying the claims are preempted by a federal drug safety law.
Expert Analysis
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3 Steps For In-House Counsel To Assess Litigation Claims
Before a potential economic downturn, in-house attorneys should investigate whether their company is sitting on hidden litigation claims that could unlock large recoveries to help the business withstand tough times, says Will Burgess at Hilgers Graben.
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ERISA Forecast After Diverging Pension Risk Transfer Rulings
Two district courts' split decisions on whether plaintiffs had standing in class actions challenging pension risk transfer transactions, amid a swath of similar suits, provide an early indication of how courts might rule in this new wave of Employee Retirement Income Security Act litigation, say attorneys at Gibson Dunn.
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Despite SEC Climate Pause, Cos. Must Still Heed State Regs
While businesses may have been given a reprieve from the U.S. Securities and Exchange Commission's rules aimed at standardizing climate-related disclosures, they must still track evolving requirements in states including California, Illinois, New Jersey and New York that will soon require reporting of direct and indirect carbon emissions, say attorneys at Husch Blackwell.
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Series
Teaching College Students Makes Me A Better Lawyer
Serving as an adjunct college professor has taught me the importance of building rapport, communicating effectively, and persuading individuals to critically analyze the difference between what they think and what they know — principles that have helped to improve my practice of law, says Sheria Clarke at Nelson Mullins.
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5 Areas Contractors Should Watch After 1st 100 Days
Federal agencies and contractors face challenges from staff reductions, contract terminations, pending regulatory reform and other actions from the second Trump administration's first 100 days, but other areas stand to become more efficient and cost-effective, say attorneys at Thompson Hine.
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Crunching The Numbers Of Trump SEC's 1st 100 Days
During the first 100 days of the second Trump administration, the U.S. Securities and Exchange Commission brought significantly fewer stand-alone enforcement actions than at the beginning of the Biden and the first Trump administrations, with every one of the federal court complaints including allegations of fraudulent conduct, say attorneys at Dentons.
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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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3 Change Management Tools To Boost Compliance Efforts
As companies grapple with rapidly changing regulations and expectations, leaders charged with implementing their organizations’ compliance programs should look to change management principles to make the process less costly and more effective, says Liisa Thomas at Sheppard Mullin.
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FDIC Rules Rollback Foretells More Pro-Industry Changes
The Federal Deposit Insurance Corp.’s March withdrawal of Biden-era proposals to tighten brokered deposit rules and impose new corporate governance standards shows that acting chair Travis Hill’s commitment to reviewing regulations that may restrict growth and innovation for financial institution and fintech companies is unlikely to flag soon, say attorneys at Cooley.
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NY Tax Talk: Sourcing, Retroactivity, Information Services
Attorneys at Eversheds Sutherland examine recent decisions by New York’s Tax Appeals Tribunal, Division of Taxation and Court of Appeals on location sourcing of broker-dealer receipts, a case of first impression on the retroactive application of Corporate Franchise Tax regulations and when fees for information services are excluded from taxation.
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SEC Update May Ease Accredited Investor Status Verification
The U.S. Securities and Exchange Commission recently opened a new avenue to verifying accredited investor status, which could encourage more private fund sponsors and other issuers to engage in a general solicitation with less fear that they will lose the offering's exemption from registration under the Securities Act, say attorneys at Simpson Thacher.
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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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Del. Dispatch: Open Issues After Corp. Law Amendments
Recent amendments to the Delaware General Corporation Law represent a significant change in the future structuring of boards and how the First State will approach conflicted transactions, but Delaware courts may interpret the amendments narrowly, limiting their impact, say attorneys at Fried Frank.