Block To Pay $45M To End State Claims Over Cash App Fraud

By Aislinn Keely

A coalition of 46 states announced Wednesday that Cash App parent company Block Inc. will pay $45 million in a multistate settlement to resolve claims it misled users on the safety of its payment app and failed to protect them from fraud.

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Kalshi Sends NY Prediction Market Ruling To 2nd Circ.

By Aislinn Keely

Kalshi is challenging a New York federal court's decision to deny it an enforcement shield from the state's gaming laws, adding the Second Circuit to the list of appellate courts set to weigh in on the question of prediction market regulation.

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NY Kalshi Ruling Should Inform Conn. Cases, AG Says

By Tom Lotshaw

A New York federal judge's denial of Kalshi's push to block the state from regulating sports-related offerings on its prediction market platform should inform litigation the company and Coinbase have brought against Connecticut, the Connecticut Office of the Attorney General has said.

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CFPB Calls For Input On Mortgage Rule Changes To Cut Costs

By Jon Hill

The Consumer Financial Protection Bureau is kicking off a broad review of its mortgage disclosure rules that is aimed at identifying ways to ease compliance costs for lenders and expand credit access for borrowers, according to a new regulatory notice.

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Citi Should Be Shrinking, Not Shopping, Sen. Warren Says

By Jon Hill

If Citigroup thinks now is a good time to expand its "financial empire" with a major acquisition, its already-mammoth size and past compliance troubles should make it think again, the top Democrat on the U.S. Senate Banking Committee told the bank on Wednesday.

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States Warn SEC Of Semiannual Reporting Fraud Concerns

By Jessica Corso

State securities regulators have joined investors and asset managers in urging the U.S. Securities and Exchange Commission not to adopt a semiannual reporting structure, arguing the move away from quarterly reporting by publicly traded companies could lead to more insider trading and accounting fraud.

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Citadel Securities Drops Portofino Suit To Chase UK Judgment

By Caroline Simson

Citadel Securities has agreed to drop its New York trade secrets lawsuit targeting a Swiss cryptocurrency trading firm launched by two ex-employees in order to focus on enforcing a roughly £6 million ($8 million) judgment it's already won in the dispute, according to documents filed Wednesday.

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BofA Customers Seek Final OK Of $2.25M Deal Over ATM Fees

By Gina Kim

Nearly 540,000 Bank of America account holders who sued over out-of-network fees they were charged for balance inquiries made at 7-Eleven ATMs asked a California federal judge on Tuesday for his final approval of a $2.25 million class settlement, bringing the years-long litigation closer to its end.

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K&L Gates Adds Ex-CFTC Chief Counsel From Willkie Farr

By Tracey Read

K&L Gates LLP has brought on a Willkie Farr & Gallagher LLP attorney who is a former chief counsel to ex-Commodity Futures Trading Commissioner Kristin N. Johnson, the firm said Wednesday.

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Series

Calif. Banking Brief: All The Notable Legal Updates In Q2

The year's second quarter brought several noteworthy financial services developments to California, including activity around a commercial finance oversight bill, the former Consumer Financial Protection Bureau head's appointment to lead a new consumer agency, and a ruling reinforcing viable bank-fintech partnerships, say attorneys at Manatt.

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Ohio Fuels Litigation Funding Debate As Foreign Ban Is Enacted

By Ryan Boysen

Ohio has enacted a sweeping law that bans all foreign litigation funders from doing business in the Buckeye State, drawing praise from the U.S. Chamber of Commerce and outrage from the litigation finance industry.

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ABA Seeks Trump Docs In Suit Alleging Law Firm Intimidation

By Emily Sawicki

The Trump administration cannot rely on the presidential communications privilege to block disclosure of communications related to allegations that the president sought to intimidate BigLaw firms into conforming with his policy initiatives, the American Bar Association told a D.C. federal judge.

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Trump's SDNY Pick Steps In As Clayton Focuses On DC

By Pete Brush

U.S. Attorney for the Southern District of New York Jay Clayton said Wednesday that President Donald Trump's pick to succeed him, James McDonald, will assume a leadership role as Clayton works on his own nomination for director of national intelligence in Washington.

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Judge Says Warning 'Sufficient Deterrent,' Nixing AI Sanctions

By Emily Sawicki

A Kentucky federal judge has declined to sanction two attorneys who filed a brief that included errors generated by artificial intelligence amid a fraud case against a notary public, finding the lawyers had no history of misconduct and had shown sufficient remorse.

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Wis. Judge Avoids Prison Time In ICE Obstruction Sentence

By Nate Beck

A former Wisconsin state judge on Wednesday was fined $5,000 but will not serve prison time for obstructing the U.S. Immigration and Customs Enforcement arrest of a defendant in her courtroom by directing him down a private hallway away from agents before he was later captured.

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Del. Judge Recuses Herself From Apollo $570M Payout Suit

By Katryna Perera

The Delaware vice chancellor presiding over litigation regarding a $570 million payout to Apollo Global Management Inc. insiders has disqualified herself from the case after a possible conflict of interest arose due to her former role as an attorney with Skadden Arps Slate Meagher & Flom LLP, which was involved in a merger with ties to the payout.

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Ga. Judge Rejects UPS Plaintiff's Bid To Force Recusal

By Madison Arnold

A Georgia federal judge reportedly disciplined for having sexual intercourse in her chambers and attending a political event has opted not to recuse herself in the case of a former UPS employee in his dismissed racial discrimination lawsuit.

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McCarter Trial Judge Has 'Serious Doubts' About NY Expert

By Brian Steele

The Hartford judge presiding over a $22.5 million lawsuit against McCarter & English LLP and a former partner said Wednesday he had "serious doubts" about allowing testimony from a defense expert, but let him proceed as long as he did not claim to interpret New York law.

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Morgan & Morgan Malpractice Fight Won't Get Another Review

By Kelcey Caulder

The Georgia Court of Appeals has rejected Morgan & Morgan PA's bid to challenge a trial court ruling denying the firm's summary judgment motion in a legal malpractice case brought against it by clients seeking representation in a personal injury action.

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Day Pitney Can't Be Cut Off From New Counsel, Client Says

By Aaron Keller

A former Connecticut chief justice's ethics gaffe cannot preclude fellow lawyers at Day Pitney LLP from communicating with new counsel for John B. Clinton, a private equity management firm owner locked in a 13-year-old, $1.3 million corporate windup lawsuit, Clinton has urged a Connecticut state court judge to conclude.

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