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Corporate
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May 06, 2025
Post-Ch. 11 Rite Aid Trustee Asks To Take Over Insurance Suit
A trust tied to Rite-Aid's previous bankruptcy exit plan has asked a New Jersey bankruptcy judge for permission to take over for Rite Aid in an adversary case seeking insurance money related to opioid claims.
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May 06, 2025
Delta Must Keep Battling Customers' Trimmed IT Outage Suit
A Georgia federal judge on Tuesday threw out the bulk of customers' proposed class action over the 2024 global tech outage that disrupted thousands of flights, while permitting a handful of customers to move forward with claims that Delta owed them refunds.
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May 06, 2025
DC Circ. Sides With BofA In COVID Market Loss 'Uphill Battle'
The D.C. Circuit on Tuesday refused to revive a Bank of America client's suit claiming the bank should've tried to stop him from dumping his investments when the market tanked at the beginning of the pandemic, finding the bank is shielded by an investment contract and calling his claims an "uphill battle."
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May 06, 2025
OneTaste Execs Used Sexual Meditation For Abuse, Jury Told
A prosecutor on Tuesday told a New York federal jury that OneTaste Inc. founder Nicole Daedone and her top deputy used the company's "orgasmic meditation" practice to manipulate vulnerable women for the leaders' own financial gain, including through coerced sex work, while defense lawyers argued that patrons of the sexual wellness startup were consenting adults who could have left at any time.
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May 06, 2025
WeightWatchers Files Ch. 11 To Eliminate $1.15B Of Debt
WeightWatchers filed for Chapter 11 bankruptcy protection in Delaware bankruptcy court Tuesday, saying the restructuring will eliminate $1.15 billion in debt and allow the company to focus on its telehealth services.
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May 06, 2025
Apple Seeks Sanctions Against Winston & Strawn In App Suit
Apple has asked a California federal judge to sanction Winston & Strawn LLP and its client Musi Inc., arguing Monday they made "false and misleading allegations" in a lawsuit over Apple's decision to boot the music streaming service from the App Store for intellectual property infringement.
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May 06, 2025
Golf Gear Co. Sued In Del. Over Controller Share Sales
A pension fund stockholder of golf gear maker and distributor Acushnet Holdings Corp. sued its controlling stockholders and directors on Monday for purportedly lining up hundreds of millions in company share repurchases that preserved the controllers' status despite repeated stock sales.
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May 06, 2025
Experian Trims But Can't Ditch CFPB's Credit Reporting Suit
Experian must continue facing the U.S. Consumer Financial Protection Bureau's lawsuit accusing it of mishandling consumer credit reporting disputes as a California federal judge on Monday tossed some but not all of the bureau's claims against the credit reporting agency.
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May 06, 2025
Judge Backs Kellanova In $330M Teamsters Pension Row
An Illinois federal judge on Monday sided with Kellanova in considering cross-motions from the food company and a Teamsters pension fund to enforce and modify an arbitration award governing Kellanova's withdrawal liability after it ended its participation in the multiemployer pension plan in 2019.
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May 06, 2025
DR Horton Sued In Del. Over Property Deal Conflict Claims
Stockholders of residential land developer Forestar Group Inc. sued national homebuilding giant and Forestar controller D.R. Horton derivatively late Monday for hundreds of millions in potential damages tied to billions' worth of allegedly conflicted, below-market sales to Horton of Forestar-prepared lots.
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May 06, 2025
Honda Can't Toss Suit Over Defective Infotainment System
An Illinois federal judge won't fully dismiss a proposed class action from a woman alleging that her 2020 Honda Pilot was sold with a defective infotainment system, finding that she has standing to pursue monetary damages, but not an injunction because she no longer has the vehicle.
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May 06, 2025
Split 5th Circ. Nixes Amazon's Appeal To Halt NLRB Case
A divided Fifth Circuit panel found Tuesday that a Texas federal judge did not "effectively deny" Amazon's bid to halt a refusal-to-bargain case at the National Labor Relations Board based on allegations that the agency is unconstitutional, tossing the e-commerce giant's appeal for lack of jurisdiction.
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May 06, 2025
House OKs Economic Espionage Act Targeting Russia, China
The U.S. House of Representatives passed a bill that would give President Donald Trump the authority to sanction certain countries that support other foreign adversaries' military aims by providing trade secrets or proprietary information owned by American entities, in legislation crafted over Russia's purported reliance on technology from China.
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May 06, 2025
SEC Panel Says Easier Trading Would Rev Up 'Reg A'
A small business-focused committee advising the Securities and Exchange Commission expressed renewed support on Tuesday for easing secondary trading in connection with Regulation A, hoping to broaden the appeal of this lightly used alternative to an initial public offering.
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May 06, 2025
B. Riley Escapes Investor Suit Over National Holdings Buyout
Delaware's Chancery Court has dismissed B. Riley Financial Inc. from a suit challenging its 2021 acquisition of National Holdings Corp., rejecting a former National stockholder's claim that B. Riley controlled the negotiations in the shadow of its significant stake in National.
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May 06, 2025
Mistrial Declared On Punitive Damages In Bard Cancer Case
A Georgia state judge declared a mistrial as to punitive damages Tuesday in a suit alleging C.R. Bard's ethylene oxide emissions caused a man's cancer, leaving a $20 million compensatory damages verdict in place but inviting a round of briefing on the unusual situation.
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May 06, 2025
Ex-CEO Can't Shake Conviction In COVID Test Kit Fraud Case
The former chief executive of a healthcare software company who touted a $670 million COVID test kit deal that collapsed was denied acquittal Monday by a Newark federal judge who ruled the evidence was sufficient for a reasonable juror to find beyond a reasonable doubt that he had engaged in securities fraud.
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May 06, 2025
Morgan Stanley Says SEC Has Closed Cash Sweep Probe
The U.S. Securities and Exchange Commission has ended an investigation into Morgan Stanley's cash sweep program without recommending an enforcement action, the bank told investors.
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May 06, 2025
CFPB Abandons Enforcement Of Buy Now, Pay Later Rule
The Consumer Financial Protection Bureau announced Tuesday that it will not prioritize enforcement actions taken on buy now, pay later products, adding to the list of positions the agency is reviewing or rolling back under the organization's new leadership.
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May 06, 2025
Ill. Judge Trims False Ad Suit Over Smartfood Popcorn
An Illinois federal judge on Monday partially granted a bid by PepsiCo to dismiss a putative class action alleging popcorn made by subsidiary Smartfoods Inc. was deceptively marketed as containing no artificial flavors or preservatives, when it contains maltodextrin, while saying the plaintiffs had done enough at this stage to allege the ingredient is an artificial preservative.
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May 06, 2025
3rd Circ. Won't Review PNC's $106M No-Coverage Ruling
The Third Circuit declined Tuesday to reconsider its decision that PNC Bank isn't owed coverage for a $106 million judgment it incurred over claims that its predecessor mismanaged funeral trust accounts.
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May 06, 2025
Google Calls Proposed Ad Tech Breakup 'Unworkable'
Google has told a Virginia federal court that fixes being proposed by enforcers in the ad tech monopolization case calling for the sale of its ad exchange and publisher-side tool are legally inappropriate and practically "unworkable."
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May 06, 2025
Trade Secrets Emerge As Path For Cos. To Protect AI Works
Classifying creations of artificial intelligence tools as trade secrets has become a viable alternative to copyrights and patents — a shift that is presenting businesses using AI with a range of strategies and risks they must consider to protect their innovations.
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May 06, 2025
Meta Wins $168M Verdict Against NSO Over WhatsApp Hack
A California federal jury found Tuesday that Israeli spyware-maker NSO Group owes Meta Platforms Inc. $444,719 in compensatory damages and a staggering $167.25 million in punitive damages for hacking 1,400 WhatsApp users' devices.
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May 06, 2025
Ex-Conrail CEO Says Saul Ewing Malpractice Suit Timely
Former Conrail CEO David LeVan has asked a Philadelphia judge to reject Saul Ewing LLP's argument that his legal malpractice lawsuit against the firm should be deemed untimely, arguing his case over the firm's handling of legal issues stemming from a failed Gettysburg casino project was subject to a tolling agreement.
Expert Analysis
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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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How Proxy Advisory Firms Are Approaching AI And DEI
Institutional Shareholder Services' and Glass Lewis' annual updates to their proxy voting guidelines reflect some of the biggest issues of the day, including artificial intelligence and DEI, and companies should parse these changes carefully, say attorneys at Cahill Gordon.
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5 Key Issues For Multinational Cos. Mulling Return To Office
As companies increasingly revisit return-to-office mandates, multinational employers may face challenges in enforcing uniform RTO practices globally, but several key considerations and practical solutions can help avoid roadblocks, say attorneys at Baker McKenzie.
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Reviving A Dormant Criminal Statute In Antitrust Prosecution
The U.S. Department of Justice is poised to revive a dormant misdemeanor statute to resolve bid-rigging charges against a foreign national, providing important context to a recent effort to entice foreign defendants to take responsibility for pending charges or face the risk of extradition, say attorneys at Axinn.
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Traversing The Shifting Sands Of ESG Reporting Compliance
Multinational corporations have increasingly found themselves between a rock and a hard place attempting to comply with EU and California ESG requirements while not running afoul of expanding U.S. anti-ESG regimes, but focusing on what is material to shareholder value and establishing strong governance can help, say attorneys at MoFo.
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An Unrestrained, Bright-Eyed View Of Legal AI's Future
Todd Itami at Covington offers a bright-eyed, laughing-all-the-way, skydive look at what the legal industry could look like after an artificial intelligence revolution, which he believes may happen much sooner and more dramatically than we expect.
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Tracking The Evolution In Litigation Finance
Despite continued innovation, litigation finance remains an immature market with borrowers recieving significantly different terms as lenders learn to value cases, which firms need a strong handle on to ensure lending terms do not overwhelm collateral value, says Robert Wilkins at Lightfoot Franklin.
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How Plan Sponsors Can Mitigate Risk In PBM Contracts
A recent lawsuit in New York federal court alleges that JPMorgan caused exorbitant prescription costs by mishandling the pharmacy benefit manager arrangement, adding to a growing body of Employee Retirement Income Security Act fiduciary breach litigation and affirming that fiduciaries must proactively manage their healthcare plan vendors, say attorneys at Hall Benefits Law.
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Series
Volunteer Firefighting Makes Me A Better Lawyer
While practicing corporate law and firefighting may appear incongruous, the latter benefits my legal career by reminding me of the importance of humility, perspective and education, says Nicholas Passaro at Ford.
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Tax Takeaways From Georgia's 2025 Legislative Session
Attorneys at Eversheds Sutherland discuss tax-related measures passed by the Georgia Legislature during the session that adjourned on April 4, which included a decrease in income tax rates, an extension of the time in which to a protest tax assessment and cleanup provisions related to launching the state’s new tax court next year.
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Limit On SEC Enforcement Authority May Mean Fewer Actions
Following a recent U.S. Securities and Exchange Commission final rule revoking the Enforcement Division director's long-standing authority to issue formal investigation orders, it's clear the division is headed for a new era of limited autonomy, marked by a significantly slower pace of SEC investigations, say attorneys at Ballard Spahr.
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Calif. Antitrust Laws May Turn More Zealous Than US Regs
California is poised in the next 18 months to significantly expand its antitrust laws, broadening the scope of liability and creating a premerger review process that could be more expansive than review under the Hart-Scott-Rodino Act, say attorneys at Munger Tolles.
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As SEC, CFTC Retreat, Who Will Police The Crypto Markets?
As the U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission pull back from policing the crypto markets, the Federal Trade Commission and Consumer Financial Protection Bureau have the authority to pick up the slack — although recent events raise doubts that they will do so, say attorneys at Skadden.
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Digesting A 2nd Circ. Ruling On Food Delivery App Arbitration
The Second Circuit recently rejected Grubhub's attempt to arbitrate price-fixing claims, while allowing Uber Eats to do so, reinforcing that even broad arbitration clauses must connect to the underlying dispute and suggesting that terms of service litigation may center on websites' design and content, say attorneys at Greenspoon Marder.
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E-Discovery Quarterly: The Perils Of Digital Data Protocols
Though stipulated protocols governing the treatment of electronically stored information in litigation are meant to streamline discovery, recent disputes demonstrate that certain missteps in the process can lead to significant inefficiencies, say attorneys at Sidley.