DOJ To Speed Up Review Of Qui Tam Benefits Fraud Claims

By Madeline Lyskawa

The U.S. Department of Justice announced that it's speeding up the agency's review of whistleblower complaints accusing contractors of defrauding state-administered benefits programs that are funded by the federal government, in violation of the False Claims Act. 

Memorandum attached | Read full article » | Save to favorites »

Hospital Operator, Execs Ink $32M FCA Settlement With Feds

By Sarah Jarvis

Psychiatric hospital operator Oglethorpe Inc. has agreed to pay $32 million and be excluded from all federal healthcare programs for 10 years to resolve allegations it knowingly failed to return Medicare overpayments in violation of the False Claims Act.

Settlement attached | Read full article » | Save to favorites »

Calif. AG Sues 23andMe Over Lapses In Genetic Data Security

By Allison Grande

California moved Thursday to sue the genetic testing company formerly known as 23andMe over a 2023 data breach that exposed the personal information of nearly 7 million customers, arguing that the company failed to implement even the most basic security measures and misled consumers about the scope of its safeguards and severity of the breach.

Complaint attached | Read full article » | Save to favorites »

Justices Urged To Probe Post-Mallory Forum-Shopping Flood

By Linda Chiem

Legal advocates said Thursday that the U.S. Supreme Court's 2023 Mallory ruling unleashed a wave of forum-shopping by plaintiffs lawyers using states' business-registration laws to sue out-of-state companies, and that the justices should take up the case again to stop litigants from unconstitutionally interfering with interstate commerce.

3 documents attached | Read full article » | Save to favorites »

Ohio Governor Pauses Data Center Tax Breaks

By Maria Koklanaris

Ohio became the most recent state to signal the growing unease in giving tax breaks to data centers as Gov. Mike DeWine said he directed the state tax credit authority to pause consideration of any new exemption requests.

Read full article » | Save to favorites »

Ex-VP Accuses Wells Fargo Of Race, Disability Bias

By Hayley Fowler

A former executive hired to help oversee Wells Fargo's compliance with a federal consent order over an unauthorized account scandal has accused the bank of race and disability discrimination, saying he was retaliated against and ultimately fired after lodging internal complaints of disparate treatment of Black employees.

Complaint attached | Read full article » | Save to favorites »

CFPB's Return-To-Office Plan Could Spur More Exits

By Jon Hill

The Consumer Financial Protection Bureau is moving forward with a return-to-office plan that will involve shifting to new headquarters, ending most telework and requiring field employees to relocate to the Washington, D.C., area starting this summer, Law360 has learned.

Read full article » | Save to favorites »

Ex-TD Bank Worker Admits Role In $3M Customer Fraud Scam

By Dorothy Atkins

A former TD Bank NA financial service representative entered a plea deal in New Jersey federal court Wednesday, admitting to defrauding bank customers and bribing an employee at another financial institution to falsify bank records to facilitate a $3.4 million fraud scheme.

1 document attached | Read full article » | Save to favorites »

SEC Fines David Lerner Associates For Reg BI Violations

By Sydney Price

New York-based brokerage firm David Lerner Associates Inc. will pay $200,000 to settle U.S. Securities and Exchange Commission claims that the firm failed on over 200 occasions to exercise reasonable care in recommending mutual fund shares to customers that caused them to pay higher transaction costs.

Order attached | Read full article » | Save to favorites »

Bilt Faces Dem Grilling Over Bank Partner Transition 'Turmoil'

By Sarah Jarvis

U.S. Sen. Elizabeth Warren, D-Mass., said Thursday that she wants answers from Bilt Rewards on reports that customers of the rent payment reward business have experienced transaction and payment issues stemming from the company's transition between bank partners.

Letter attached | Read full article » | Save to favorites »

Financial Adviser Gets 2 Years For $3.7M Investment Fraud

By Gina Kim

A Pennsylvania financial adviser was sentenced to more than two years in prison in federal court Thursday after copping to wire fraud stemming from a scheme where he transferred over $3.7 million from the bank account of a fund he managed to another client's account, to recoup investment losses.

Read full article » | Save to favorites »

CFTC Seeks To Join Kalshi Fight Over Rhode Island Ban

By David Steele

The U.S. Commodity Futures Trading Commission asked a Rhode Island federal judge to join Kalshi in its suit against the state of Rhode Island on Thursday, extending the commission's campaign to assert its regulatory authority over prediction markets.

Motion attached | Read full article » | Save to favorites »

Kalshi Targets Minnesota Prediction Market Ban In New Suit

By Aislinn Keely

Kalshi is taking aim at a Minnesota ban on prediction markets that it says would turn it into a felon for operating in the state, filing a suit that follows a similar bid by the U.S. Commodity Futures Trading Commission to block the state law.

Complaint attached | Read full article » | Save to favorites »

SEC OKs Paxos As 1st 'Blockchain-Native' Clearing Agency

By Aislinn Keely

Blockchain infrastructure firm Paxos said Thursday that the U.S. Securities and Exchange Commission has signed off on its clearing agency registration for blockchain-based settlement in what Paxos said is a first-of-its-kind approval.

Order attached | Read full article » | Save to favorites »

GreenSky Pays $10M To Settle Fraudulent Loan Claims

By Spencer Brewer

The Texas attorney general on Thursday announced that financial technology company GreenSky Holdings LLC has settled claims brought by multiple states accusing it of issuing fraudulent loans, paying $10 million in consumer restitution, civil penalties and other fees to the states.

Read full article » | Save to favorites »

Feds Say Canadian Co.'s Auto Devices Violate Emissions Law

By Ganesh Setty

The federal government has accused a Canadian automotive accessory retailer in Washington federal court of selling certain aftermarket products designed to boost vehicle performance by bypassing existing vehicle systems meant to ensure a vehicle satisfies federal emissions standards.

Complaint attached | Read full article » | Save to favorites »

Conn. Town Challenges Mass. Waste Plant Near State Line

By Julie Manganis

The Connecticut border town of Enfield says Massachusetts environmental regulators improperly granted a permit for construction of a waste processing and transfer facility in nearby East Longmeadow, according to a lawsuit filed Wednesday in Massachusetts state court.

Complaint attached | Read full article » | Save to favorites »

Wash. Tribes, River Group Fight FERC Hydro License

By Joyce Hanson

The Confederated Tribes and Bands of the Yakama Nation and nonprofit Columbia Riverkeeper have each sued the Federal Energy Regulatory Commission in the Ninth Circuit over the agency's issuance of a license for a hydroelectric project license.

2 documents attached | Read full article » | Save to favorites »

NC AG Can't Litigate Environmental Case, Biz Groups Say

By Abigail Harrison

The North Carolina Supreme Court should step in to prevent Attorney General Jeff Jackson from enacting his own policy vision — and subordinating agency regulation — through his ill-conceived environmental lawsuit, according to an amicus brief.

Brief attached | Read full article » | Save to favorites »

Tesla Must Face Calif. Agency's Race Bias Fight In July Trial

By Dorothy Atkins

A California state judge has mostly rejected Tesla Inc.'s bid for a summary judgment win in the California Civil Rights Department's lawsuit alleging the electric-auto maker has allowed racism to run rampant at its Fremont factory, sending the high-stakes civil rights dispute to a July 20 jury trial.

2 documents attached | Read full article » | Save to favorites »

Shield AI Worker Alleges Data Fraud, 'Sexual Violence' By Exec

By Spencer Brewer

An employee hit Shield AI Inc. with a suit in Texas federal court Thursday, alleging the defense technology company engaged in data fraud, allowed a company executive to perpetuate "egregious acts of sexual violence," and retaliated against him after he spoke up.

Complaint attached | Read full article » | Save to favorites »

Paxton Says Mass. Court Can't Halt ActBlue Case In Texas

By Carolyn Muyskens

Texas Attorney General Ken Paxton urged a Massachusetts federal judge to toss a lawsuit claiming his fraud allegations against Democratic fundraising platform ActBlue are politically motivated, saying the Bay State court cannot interfere in his Texas case.

3 documents attached | Read full article » | Save to favorites »

States Say Fed. Circ. Should Keep Tariff Block During Appeal

By Jack McLoone

The Federal Circuit shouldn't stay an injunction blocking the collection of Section 122 tariffs from two businesses and Washington state while the federal government appeals the trade court ruling because the appeal is likely to fail, the businesses and 24 states said Thursday.

2 documents attached | Read full article » | Save to favorites »

9th Circ. Won't Revisit FCA Ruling Over Drug Price Program

By Ganesh Setty

The Ninth Circuit has said it will not disturb its March ruling allowing a hospital chain to pursue a False Claims Act lawsuit against various pharmaceutical companies for allegedly causing the government to overpay for drugs under a discount program.

Order attached | Read full article » | Save to favorites »

Trans Patients Say Stanford Can't Give DOJ Medical Records

By Gianna Ferrarin

A group of transgender adolescents who received gender-related care at a Stanford Medicine hospital urged a California federal court to order the hospital not to turn over any of their medical records in response to a criminal subpoena issued by a grand jury in Texas.

2 documents attached | Read full article » | Save to favorites »

Ex-Perrigo Workers Say Lax Security Led To Cyberattack

By Gina Kim

Perrigo, a company that manufactures branded and private-label over-the-counter healthcare products, was hit with a proposed class action in Michigan federal court Wednesday following a cyberattack linked to a notorious hacking group that claims to have accessed personal data belonging to current and former employees.

Complaint attached | Read full article » | Save to favorites »

9th Circ. Warned Of Market Forces In Nexstar-Tegna Case

By Matthew Perlman

The National Association of Broadcasters told the Ninth Circuit that a lower court's view of the market in a case challenging the $6.2 billion merger between Nexstar and Tegna is inconsistent with its members' experience and contradicts industry data recently submitted to regulators.

Brief attached | Read full article » | Save to favorites »

Athletes Decry Antitrust Immunity In College Sports Bill

By David Steele

College athlete advocacy groups have criticized a proposed bipartisan U.S. Senate bill that provides congressional oversight to college sports and allows athletes to have agents, but also limits player movement and compensation and grants the NCAA antitrust immunity.

Bill attached | Read full article » | Save to favorites »

Roundup

Injury Law Roundup: Freight Brokers, Uber Lose Key Cases

By Y. Peter Kang

The U.S. Supreme Court's green light of negligent hiring claims against freight brokers in highway crash cases and an adverse verdict against Uber in the sexual assault multidistrict litigation lead Law360's Injury Law Roundup.

Read full article » | Save to favorites »

GCI Wants To End Service In 6 Alaska Communities

By Aneeta Mathur-Ashton

GCI Communication Corp. has asked the Federal Communications Commission for permission to end certain telecommunications services in six Alaskan communities, arguing that other carriers offer those services.

1 document attached | Read full article » | Save to favorites »

Dem Sens. Ask DOJ To Preserve Trump-IRS Settlement Docs

By Jack McLoone

Two Democratic Senate leaders asked the U.S. Department of Justice to preserve any records related to the settlement of President Donald Trump's suit against the IRS in a letter published Thursday, signaling that further investigations may be coming.

2 documents attached | Read full article » | Save to favorites »

How SEC, CFTC Proposal Would Ease Private Fund Reporting

While the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission’s recent proposal to streamline and lighten certain confidential reporting requirements could bring welcome changes for many private fund advisers, sponsors should consider important nuances of its potential impact, say attorneys at Simpson Thacher.

Proposed Rule attached | Read full article » | Save to favorites »

Visa's Agentic Payment Rules Expose Compliance Tensions

Visa's recently released framework clarifying how payments driven by artificial intelligence can occur without consumer-merchant interaction exposes compliance risks under disclosure and fee transparency laws that may require merchants and payment providers to rethink consumer protection as agentic commerce expands, say attorneys at Stinson.

Read full article » | Save to favorites »

FERC Order May Alter PJM's Framework, Spur $1B In Refunds

A recent order from the Federal Energy Regulatory Commission stands to reform how grid operator PJM Interconnection assigns transmission upgrade costs, with potentially sweeping implications for transmission owners, merchant transmission facilities and load-serving entities, including an estimated $1 billion in refunds and surcharges, say attorneys at Husch Blackwell.

Order attached | Read full article » | Save to favorites »

New Connecticut Law On Employers' AI Use Is Inventive

A recently passed Connecticut law regulating the use of artificial intelligence in employment decisions innovates by using third-party risk assessments to vet and certify AI models, and by recognizing a division of responsibility between developers and deployers, potentially influencing pending legislation in other states, say attorneys at Littler.

Read full article » | Save to favorites »

Opinion

International Patent Licensing System Must Be Maintained

As foreign approaches to patent enforcement threaten to distort the licensing markets that underpin modern technology, courts and policymakers must take action to ensure that the standard essential patent framework is preserved, says Brian O'Shaughnessy at Dinsmore.

Read full article » | Save to favorites »

Series

Studying Foreign Languages Makes Me A Better Lawyer

Studying Italian and Japanese has shown me that learning a new language can benefit a legal career in several ways, including by demonstrating the importance of approaching problems from a fresh perspective and the value of practicing patience with colleagues and clients, says Anna King at Genworth Financial.

Read full article » | Save to favorites »

Brief

Davis Polk Adds A&O Shearman Antitrust Partner In NY

By Andrea Keckley

Davis Polk & Wardwell LLP has hired a former A&O Shearman partner, who joined its antitrust and competition practice in New York.

Read full article » | Save to favorites »

Bonus Spotlight

Selendy Gay Doles Out Spring Associate Bonuses

By Aebra Coe

New York litigation boutique Selendy Gay PLLC paid its associates spring bonuses of as much as $25,000 this week, according to the firm.

Read full article » | Save to favorites »

Ex-Calif. Appellate Judge To Take Over As Law School Dean

By Rose Krebs

A former California appellate justice, who was the first Muslim to serve as a Court of Appeal justice in the U.S., has been named Western State College of Law at Westcliff University's next dean.

Read full article » | Save to favorites »

Dems Say DOJ Blocked Bondi On Trump Questions

By Courtney Bublé

Democrats were incensed on Friday that the U.S. Department of Justice attorneys who accompanied former Attorney General Pam Bondi to her committee interview stopped her from answering questions about President Donald Trump.

Letter attached | Read full article » | Save to favorites »

Civil Rights Icon Clarence B. Jones Dies At 95

By Andrea Keckley

Civil rights icon Clarence B. Jones, a speechwriter and personal attorney to Martin Luther King Jr., died May 22 at an assisted living facility in the Santa Clara County city of Cupertino, California, his family confirmed earlier this week. He was 95.

Read full article » | Save to favorites »

Roundup

UK Litigation Roundup: Here's What You Missed In London

By Megan Norcott

The past week in London has seen the billionaire who donated £5 million ($6.7 million) to Nigel Farage sue Ben Habib, the leader of far-right party Advance UK, for defamation; Mashreqbank bring claims against three subsidiaries of dissolved private equity giant Abraaj Group for commercial fraud; and the property and investment vehicle of the State of Kuwait be targeted by four real estate figures who filed a miscellaneous claim. Here, Law360 looks at these and other new claims in the U.K.

Read full article » | Save to favorites »

Titan Of The Plaintiffs Bar: Boies Schiller's Matthew Schwartz

By Sarah Jarvis

Matthew L. Schwartz oscillated among many career aspirations as a kid, from astronaut to mayor of New York. When it was time to head off to college, the man who would go on to handle the prosecution of employees tied to Bernie Madoff and become chair of Boies Schiller Flexner LLP set his sights on science, earning an undergraduate degree in physics.

Read full article » | Save to favorites »

Law360's Legal Lions Of The Week

By Kevin Penton

Phillips Black Inc., Hogan Lovells and Watkins & Eager PLLC lead this week's edition of Law360 Legal Lions, after the U.S. Supreme Court ruled that a Black Mississippi death row prisoner who argued racial discrimination tainted his jury selection is entitled to habeas corpus relief.

Read full article » | Save to favorites »

DLA Piper Hires Real Estate, Construction Partner In Seattle

By Nate Beck

DLA Piper said it has added a Seattle-based real estate partner with experience advising a range of construction projects including data centers, mixed-use projects, schools and renewable energy facilities.

Read full article » | Save to favorites »

GC Cheat Sheet: The Hottest Corporate News Of The Week

By Sue Reisinger

Kirkland & Ellis says it's investing a half billion dollars into developing its own artificial intelligence platform to better serve clients. And Law360 looks at the general counsel who is guiding BP through its latest leadership crisis after the company abruptly dismissed its board chair.

Read full article » | Save to favorites »

Baker McKenzie Asks Judge Not To Toss Suit Against Ex-Atty

By Alison Knezevich

A lawyer for Baker McKenzie on Friday urged a Washington, D.C., judge not to dismiss the BigLaw firm's defamation suit against a former tax associate who accused a firm office leader of sexual assault, telling the court the accusations were false and made with "malice."

Read full article » | Save to favorites »

Fla. Panel Revives Firm's Suit Over Tobacco Case Referrals

By David Minsky

A Florida state appellate court revived a law firm's complaint alleging tortious interference against a widow over a contingency fee agreement involving tobacco injury case referrals, finding that the lower court wrongly tossed the lawsuit based on extraneous information even though there was sufficient evidence to support a claim.

2 documents attached | Read full article » | Save to favorites »

NY Judge Doubts Nussbaum-Linked Firms Belong In Ch. 11

By Emily Lever

A New York bankruptcy judge on Friday questioned whether his court was the proper venue to wind down two commercial real estate law firms headed by Mark J. Nussbaum as the debtors sought to ditch an assignment for the benefit of creditors process in New York state court.

Read full article » | Save to favorites »

Trump Urges 3rd Circ. To Reverse 'Bizarre' Anti-SLAPP Loss

By Dorothy Atkins

President Donald Trump urged the Third Circuit on Thursday to find a Pennsylvania anti-SLAPP statute shields him from the Central Park Five's defamation claims, slamming the lower court's "truly bizarre" ruling in an opening brief filed the same day a DLA Piper partner and others joined Trump's defense team.

2 documents attached | Read full article » | Save to favorites »

In Case You Missed It: Hottest Firms And Stories On Law360

For those who missed out, here's a look back at the law firms, stories and expert analyses that generated the most buzz on Law360 last week.

Read full article » | Save to favorites »

Akin Gump Owes Fees For Winebow's 'Self-Indulgent' Appeal

By Dorothy Atkins

The Ninth Circuit on Thursday ordered an importer's Akin Gump Strauss Hauer & Feld LLP attorneys to pay a European winemaker fees for having to defend against the importer's "spurious objections" to the winemaker's valid arbitral award, ruling that the importer's "self-indulgent" appeal warrants sanctions in the form of fees.

Order attached | Read full article » | Save to favorites »

Colo. Appeals Court Bars One-Way Fees In Eviction Cures

By Zach Dupont

A Colorado Court of Appeals panel on Thursday reversed the dismissal of a proposed class action against a group of landlords, Tschetter Sulzer PC and the Colorado Apartment Association accusing the collective of illegally extracting attorney fees from tenants during eviction proceedings.

Opinion attached | Read full article » | Save to favorites »

Double Shooting Renews Courthouse Safety Fears In NC

By Hayley Fowler

The shooting of two Fox Rothschild LLP attorneys outside a courthouse in Raleigh, North Carolina, ahead of Memorial Day weekend has renewed calls to protect the safety of judges and lawyers in an increasingly volatile justice system.

Motion attached | Read full article » | Save to favorites »

Calif. Panel Reverses Order For Citing Atty's Bogus Case Law

By Dorothy Atkins

A California appellate panel on Thursday reversed a judgment in favor of a man accused of abusing his son, finding that "without doubt" the trial judge abused her discretion by incorporating the man's bogus legal citations into her ruling, despite being alerted to the mistakes in advance.

Opinion attached | Read full article » | Save to favorites »