The U.S. Supreme Court signaled skepticism Wednesday toward New Jersey's bid to cloak its public transit system in sovereign immunity, repeatedly questioning why the state chose the corporate form and rejected liability for the agency's debts but now insists the entity functions as an arm of the state.
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FRIDAY, JANUARY 16, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

Justices Wary Of NJ's Immunity Defense In Transit Injury Suits

By Carla Baranauckas

The U.S. Supreme Court signaled skepticism Wednesday toward New Jersey's bid to cloak its public transit system in sovereign immunity, repeatedly questioning why the state chose the corporate form and rejected liability for the agency's debts but now insists the entity functions as an arm of the state.

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DOJ Calls On 3rd Circ. To Rethink Habba DQ Ruling

By Ryan Boysen

In a request for rehearing en banc filed Wednesday, the federal government asked the Third Circuit to reconsider its decision blocking Alina Habba from serving as acting U.S. attorney for New Jersey, saying the issue is "of exceptional importance."

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NJ High Court Says Inmate Record Ban Violates Constitution

By Elizabeth Daley

The New Jersey Supreme Court said in a reversal Wednesday that the state's parole board cannot bar the disclosure to inmates of medical, psychiatric and psychological records used to determine their parole eligibility, finding that withholding this information from them is unconstitutional and against state law.

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Universal Music Cut Loose From Diddy Sex Assault Suit

By Y. Peter Kang

A New Jersey federal judge on Wednesday dismissed claims against Universal Music Group in a suit seeking to hold it liable for an alleged sexual assault of a teen girl by Sean "Diddy" Combs, saying the music giant can't be held liable for predecessor companies' alleged misconduct.

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NJ Judge Orders Mediation In Merck-Cencora Indemnity Fight

By Gianna Ferrarin

Cencora Inc. can't derail a Merck third-party complaint arguing a prior settlement between the parties requires the drug wholesaler to indemnify Merck in antitrust litigation by Humana, a New Jersey federal court ruled Wednesday, ordering the parties to go to mediation over the dispute.

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Analysis

'The Work Has Changed': How White-Collar Attys Are Coping

By Phillip Bantz

The Trump administration's dramatic policy enforcement changes over the past year, along with turmoil and turnover at the U.S. Department of Justice, has tilted the white-collar world on its axis, forcing lawyers and firms to abruptly shift focus and expand their practices, sometimes beyond traditional white-collar criminal defense matters.

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POLICY & REGULATION

NJ Legislature OKs Entertainment Renovation Tax Credit

By Jaqueline McCool

New Jersey would allow certain sports and entertainment renovation projects to claim an income tax credit under an economic development program if a bill passes in the state Legislature. 

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REAL ESTATE & DEVELOPMENT

NJ Court Won't Probe State's Unclaimed Property Law

By Grace Dixon

A New Jersey federal judge dismissed a Chilean citizen's suit challenging the constitutionality of New Jersey's unclaimed property law, finding that he lacks standing despite his arguments that he fears the state may again seize, sell and undercompensate him for abandoned stocks.

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ENFORCEMENT

Pharma Co. Consultant Charged With Insider Trading

By Julie Manganis

A New Jersey man is facing securities fraud charges after using his access to drug trial results for a Boston-area pharmaceutical company to make nearly $500,000 in profits, federal prosecutors say.

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THIRD CIRCUIT

3rd Circ. Nixes Engineer's Plea For Sharing Navy Contract Info

By P.J. D'Annunzio

In a precedential opinion Wednesday, a split Third Circuit panel ruled that a lower court should not have accepted the guilty plea of a Navy engineer charged with disclosing bid information related to a contract for submarine propeller machinery, holding that prosecutors based the plea deal on shaky legal ground.

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LITIGATION

Trump Admin Drops Appeal In Transportation Funds Suit

By Julie Manganis

The Trump administration has dropped its First Circuit appeal of an order blocking it from tying billions of dollars in federal transportation funding to states' cooperation with its immigration crackdown.

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EXPERT ANALYSIS

Series

The Law Firm Merger Diaries: Forming Measurable Ties

Relationship-building should begin as early as possible in a law firm merger, as intentional pathways to bringing people together drive collaboration, positive client response, engagements and growth, says Amie Colby at Troutman.

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LEGAL INDUSTRY

As Goldstein Trial Begins, Gov't Points To 'Lavish' Lifestyle

By Jared Foretek

An accountant for billionaire investor Alec Gores said that Thomas Goldstein had suggested he open a foreign account for Gores' poker-related transactions or even classify him as a professional player for tax purposes, although Gores was just getting started in the high-stakes poker world.

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Simpson Thacher Offers Stipend To Lure Summer Associates

By Tracey Read

In an effort for Simpson Thacher & Bartlett LLP to attract top students who want to pursue public interest work, the firm said it will pay a stipend of $42,500 for the 2026-2027 cycle for those who opt to spend their 1L summer in a qualifying public service, government, academic, in-house legal or nonprofit role.

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Calif. Justices Order Prosecutors To Explain Alleged AI Errors

By Dorothy Atkins

The California Supreme Court has ordered Nevada County prosecutors to explain to a lower court why they shouldn't be sanctioned for "apparent serial submission" of artificial intelligence-generated briefs with nonexistent legal citations in multiple criminal proceedings.

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Judiciary AI Rule Draws Fire As Judges Get Deepfakes Survey

By Jeff Overley

Federal judiciary policymakers heard extensive concerns Thursday regarding high-profile plans to formally screen evidence generated with artificial intelligence, and they set the stage for more feedback by preparing an AI survey for every federal trial judge.

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ICE Detention Facilities Nearly Doubled Last Year, Report Says

By Tom Lotshaw

An American Immigration Council report said the Trump administration detained record numbers of noncitizens last year, most without criminal records, and held them in a rapidly expanding network of facilities that could soon rival the federal criminal prison system.

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Fla. High Court Opens Door To Non-ABA Accrediting Entities

By Carolina Bolado

The Florida Supreme Court on Thursday changed the bar exam admission requirements to allow graduates of law schools accredited by entities other than the American Bar Association to sit for the Florida bar exam.

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5th Circ. Revives Allstate's Fraud Suit Over Car Crash Billing

By Gina Kim

The Fifth Circuit on Wednesday revived Allstate's racketeering suit alleging doctors and personal injury lawyers unleashed a barrage of unnecessary treatments for car accident patients and caused Allstate to pay $4.7 million in claims, finding the insurer sufficiently pled details about the conspiracy and specifics surrounding each allegedly fake medical billing.

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Sens. Advance Indiana Judge Nominee Grilled Over Sermons

By Courtney Bublé

A federal judicial nominee for Indiana who came under scrutiny by a Republican senator for his past sermons as an ordained elder was voted out of committee Thursday alongside five other judicial nominees.

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Trump US Atty Pick In NM Bumped To First Assistant

By Emily Sawicki

A New Mexico federal judge has ruled the Trump-appointed interim U.S. Attorney for New Mexico is not validly serving in the role but declined to disqualify the prosecutor from a slate of cases pending in the district, instead determining the lawyer may continue to work in the federal prosecutor's office as first assistant.

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Wash. Judges To Pick US Atty As Floyd's Term Set To Expire

By Gina Kim

The chief judge for the Western District of Washington on Wednesday announced the court's intent to select a U.S. attorney to serve on a temporary basis if President Donald Trump's pick, Charles Neil Floyd, who has been serving on an interim basis, isn't confirmed by the Senate by next month. 

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LAW FIRMS IN TODAY'S NEWS

Barnes & Thornburg

Blackburn Law PLLC

Brown Rudnick

Buchanan Ingersoll

Covington & Burling

Davis Polk

Emery Celli

Gibson Dunn

Hausfeld LLP

Kaplan Marino

Kirkland & Ellis

Knox Ricksen

Kroger Gardis

Krovatin Nau

Latham & Watkins

Lewis Brisbois

Lowell & Associates

Martin G. Weinberg PC

Massey & Gail

McCarter & English

McDermott Will & Schulte

Mintz & Gold

Munger Tolles

Schwartz White

Sher Tremonte

Simpson Thacher & Bartlett LLP

Sorrels Law

Sullivan Papain

Thompson Coe

Treanor Devlin Brown

Troutman

Winston & Strawn

Womble Bond

Woods Rogers

COMPANIES IN TODAY'S NEWS

American Bar Association

American Immigration Council Inc.

Arthrex Inc.

BASF SE

California Public Defenders Association

Cencora Inc.

Civil Rights Corps

Exxon Mobil Corp.

Humana Inc.

Lawyers for Civil Justice

LexisNexis Legal & Professional

McAfee Inc.

Merck & Co. Inc.

Microsoft Corp.

Mosaic

New Jersey Transit Corp.

OpenAI OpCo LLC

RELX PLC

Regents of the University of California

Seton Hall University

The Florida Bar

Thomson Reuters Corp.

Universal Music Group NV

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Attorney General's Office

California Supreme Court

Federal Bureau of Investigation

Federal Judicial Center

Florida Supreme Court

Internal Revenue Service

Judicial Conference of the United States

New Jersey Attorney General's Office

New Jersey Office of the Public Defender

New Jersey Supreme Court

Pennsylvania Supreme Court

U.S. Attorney's Office

U.S. Attorney's Office for the District of Maryland

U.S. Attorney's Office for the District of Massachusetts

U.S. Attorney's Office for the District of New Jersey

U.S. Attorney's Office for the District of New Mexico

U.S. Attorney's Office for the Eastern District of Pennsylvania

U.S. Attorney's Office for the Southern District of New York

U.S. Court of Appeals for the Fifth Circuit

U.S. Court of Appeals for the First Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Education

U.S. Department of Homeland Security

U.S. Department of Justice

U.S. Department of Transportation

U.S. District & Bankruptcy Courts of Southern District of Texas

U.S. District Court for the Central District of California

U.S. District Court for the District of Alaska

U.S. District Court for the District of Columbia

U.S. District Court for the District of Maryland

U.S. District Court for the District of Massachusetts

U.S. District Court for the District of Minnesota

U.S. District Court for the District of New Jersey

U.S. District Court for the District of New Mexico

U.S. District Court for the District of Rhode Island

U.S. District Court for the District of South Carolina

U.S. District Court for the Eastern District of Pennsylvania

U.S. District Court for the Eastern District of Virginia

U.S. District Court for the Northern District of New York

U.S. District Court for the Western District of Arkansas

U.S. District Court for the Western District of Missouri

U.S. District Court for the Western District of Tennessee

U.S. District Court for the Western District of Virginia

U.S. District Court for the Western District of Washington

U.S. Immigration and Customs Enforcement

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

United States District Court for the District of Wyoming

United States District Court for the Southern District of Indiana