2nd Circ. Backs Bankman-Fried's 25-Year Fraud Conviction

By Aislinn Keely

The Second Circuit on Friday upheld Sam Bankman-Fried's conviction and an $11 billion forfeiture order in an opinion that found the ex-CEO's claims that he could have made FTX customers whole didn't matter in the face of the government's "robust" evidence of his role in the fraud that felled the cryptocurrency exchange.

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NYC Bar Approves 4 Out Of 8 Judicial Primary Hopefuls

By Andrea Keckley

The New York City Bar Association announced on Thursday that it has approved half of the eight candidates running in contested primary elections for the city's civil courts later this month.

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2nd Circ. Leery Of Amazon Worker's Caregiver Bias Suit

By Grace Elletson

The Second Circuit appeared skeptical Friday of a former Amazon employee's attempt to revive her suit claiming she was unlawfully denied schedule flexibility to care for her son, questioning whether her suit should have been brought as an accommodation dispute rather than a discrimination suit.

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Lively Can Get Fees In Baldoni Case, But No Damages

By Cara Salvatore

A New York federal judge ruled Friday that actor Blake Lively can recoup legal fees from her "It Ends With Us" costar Justin Baldoni after the dismissal of his defamation claims, but found in an issue of first impression that federal procedure bars her from recovering treble and punitive damages under a new state law.

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Analysis

Insider Trading Defense May Draw On 'Varsity Blues' Playbook

By Chris Villani

After enlisting a crew of experienced attorneys, defendants charged in an insider trading case allegedly involving deal information stolen from huge law firms are preparing to use a strategy that could take some cues from the "Varsity Blues" case in the same Boston courthouse.

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DOJ Clears Paramount's $110B Deal To Acquire Warner Bros.

By Rae Ann Varona

The U.S. Department of Justice is closing its investigation into Paramount Skydance Corp.'s $110 billion deal for Warner Bros. Discovery Inc., the department's antitrust unit announced Friday, saying its review suggests the deal will "increase" and not harm competition in media and entertainment.

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Trader Admits Fib To SEC, Avoids $600M Fraud Trial

By Pete Brush

A former California investment executive told a Manhattan federal judge Friday that he lied to the U.S. Securities and Exchange Commission, copping to a lesser count of obstruction after prosecutors initially charged him with a $600 million "cherry-picking" fraud.

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Sleep Number Hits Chapter 11 With $415M Sale Offer

By Clara Geoghegan

Personalized mattress retailer Sleep Number Corp. filed for Chapter 11 protection Friday in New York to quickly sell its assets, citing macroeconomic challenges and a chaotic tariff landscape over the last year.

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Roundup

Real Estate Recap: Deal Innovation, Infra REITs, Compass

By Real Estate Authority Staff

Catch up on this past week's key developments by state from Law360 Real Estate Authority — including attorney insights into deal-side innovation, real estate investment trusts for digital infrastructure and New York's scrutiny of the $1.6 billion Compass-Anywhere merger.

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Detroit Tried To Seize Project, Developer Says In Suit

By Susan Smiley

A development company that sought to revive a 38-acre Detroit hospital campus and transform it into a $148 million commerce and innovation hub has filed a complaint in Michigan bankruptcy court claiming the city of Detroit and the Detroit Land Bank Authority are unlawfully obstructing the project and trying to reclaim the parcel for political reasons.

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Brief

Feds Drop Appeal To Preserve Trump Wind Permit Freeze

By Julie Manganis

The federal government has dropped its appeal of a Massachusetts federal judge's order last year blocking the Trump administration from freezing wind energy project permits, according to a filing with the First Circuit.

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Disability Rights Orgs. Seek To Halt NY, Ill. 'Aid-In-Dying' Laws

By Gianna Ferrarin

Disability rights organizations hit the governors of New York and Illinois with a pair of federal lawsuits seeking to stop new laws in each state from taking effect that would allow patients with terminal illnesses to seek a doctor's assistance in ending their lives.

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Google Sues Phishing Ring Over Using AI To Build Scam Sites

By Dorothy Atkins

Google sued a Chinese cybercrime operation in New York federal court Friday, alleging the group has created "plug-and-play" phishing software that uses Google's Gemini and other artificial intelligence tools to help scammers quickly build scam websites, which have already been used to defraud over 100,000 victims.

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NY Appellate Court Revives Drug Sentence Reduction Bid

By Parker Quinlan

A New York state appeals court has ruled that an incarcerated man should be given a second shot at reducing his drug conviction sentence, finding that even though he was also convicted of murder, the timing of the convictions allows him to request resentencing.

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AmTrust, Investors Ink $19M Deal In Restatements Suit

By Katryna Perera

Two classes of AmTrust investors have inked a $19 million deal with the insurance company in a suit alleging that AmTrust made a series of misstatements about its finances dating back to 2012, which required the insurer to restate its financials and ultimately sank the company's stock.

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2nd Circ. Doubts Tax Plea Advice Misled Man On Deportation

By Aaron Keller

A skeptical Second Circuit judge on Friday told a Connecticut attorney to stop saying his client was "affirmatively misled" while pleading guilty to tax evasion charges, hinting a written plea agreement and verbal warnings from a federal judge were probably sufficient to advise the client he could be deported.

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CFTC Secures Trading Ban Against Celsius' Mashinsky

By Katryna Perera

A New York federal judge Friday signed off on a consent order that would resolve the U.S. Commodity Futures Trading Commission's claims against Alexander Mashinsky, founder and former CEO of the now-defunct Celsius Network, and permanently bar him from trading commodities or running another commodity business.

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Zoetis Brass Face Derivative Suit Over Pet Meds Statements

By Emilie Ruscoe

Directors and officers of animal health company Zoetis Inc. have been hit with shareholder derivative claims that they breached their fiduciary duties by concealing that safety warnings about one of its products and increasing competition were hurting the company's bottom line.

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Academics Ask 2nd Circ. To Revive Publisher Conspiracy Suit

By Bryan Koenig

Academic researchers are asking the Second Circuit to revive their proposed class action accusing six of academia's largest journal publishers of colluding to stifle their leverage and eliminate pay for peer review work, arguing the district court credited the publishers' "written rules" but "discarded" how those rules were implemented.

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Jane Street Used Tips To Dodge Losses, Terraform Says

By Sydney Price

The administrator for bankrupt cryptocurrency company Terraform Labs has urged a New York federal court not to dismiss his suit against trading firm Jane Street over claims the firm used confidential information to profit from Terraform's collapse, arguing that it is liable as an insider and a tippee.

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Court Won't Halt NY Pot Licensure In Dormant Commerce Row

By Sam Reisman

A New York federal judge has rejected a renewed bid from out-of-state cannabis entrepreneurs to halt retail marijuana licensure in the state, saying the challengers could not show that they would be irreparably harmed from licensing going forward.

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NY Appeals Court OKs Officials' Inspections Of Hemp Stores

By Sam Reisman

A New York intermediate appellate court has reversed a lower court's decision to grant a preliminary injunction that blocked New York City and state authorities from conducting warrantless raids against hemp stores suspected of selling unlicensed cannabis.

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Direct Fed Payment Access Finally In Sight For Fintechs

A recent executive order and a Federal Reserve proposal could finally allow direct payment system access for fintechs and other nonbanks, potentially reducing reliance on sponsor banks and reshaping competition, as well as prompting organizations to reassess partnership strategies as litigation and rulemaking unfold, say attorneys at Freshfields.

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How A Founder's AI Pitch Deck Can Become A Crime Scene

As recent indictments and prosecutions against tech executives illustrate, AI washing is a criminal enforcement priority, not a regulatory formality, highlighting the importance of ensuring that founders don't overstate what their artificial intelligence does, particularly in the initial pitch deck to investors, says attorney Alan N. Walter.

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More BigLaw Raises Predicted Despite Silence After Milbank

By Alison Knezevich

While boutiques make up many of the law firms that have quickly matched Milbank LLP's recently announced associate raises, recruiters told Law360 Pulse this week that they predict more BigLaw firms will eventually reveal their own salary hikes.

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Q&A

JAMS Chief Executive Says Mass Arbitrations On The Rise

By Kellie Mejdrich

Mediation giant JAMS says it has seen a major upswing in mass arbitrations in employment and other contexts, as plaintiff-side firms develop new ways of responding to language requiring out-of-court dispute resolution by companies. CEO Kimberly Taylor and veteran JAMS mediator Robert Meyer spoke to Law360 about mediation trends, with a specific focus on employee benefits disputes.

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Atty Faces Sanctions Over Fake Quotes In Taco TM Fight

By Brian Steele

A Connecticut attorney could be sanctioned for including fake case quotes and misrepresentations of the law in court filings that seek dismissal of a trademark case against a taco restaurant, a federal judge said Friday in questioning whether the documents were sullied by artificial intelligence.

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Analysis

3 Things To Know As Judge Stares Down Impeachment Push

By Kelcey Caulder

The scandal that could cost U.S. District Judge Eleanor Ross her job also threatens to cause courthouse chaos in the form of recusal motions, bids to reopen suits and uncertainty for clerks. Here, Law360 looks at three things to know about the calls to impeach the judge and their potential fallout.

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Texas Court Urged To Keep Judge Romance Suit Alive

By Adrian Cruz

In multiple filings, EJS Investment Holdings LLC has asked a Texas federal judge to reject attempts by former U.S. Bankruptcy Judge David Jones and other parties to dismiss its proposed class action over his secret romance with a former Jackson Walker LLP partner.

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'Poor Lawyering': Walmart Flub Haunts Class Attys At 9th Circ.

By Jeff Overley

Amid warnings of a chilling effect on plaintiffs counsel, a Ninth Circuit panel Friday scrutinized six-figure sanctions against attorneys whose false advertising suit targeting Walmart Inc. collapsed because of crucial fine print in an avocado oil receipt.

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No Amici In Comey Seashell Threat Case, Judge Says

By Craig Clough

A North Carolina federal judge on Friday said she will not allow any amici to weigh in on former FBI Director James Comey's criminal charges alleging he threatened President Donald Trump with a social media post, finding the parties are "ably represented" by counsel and public input is not needed.

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Ill. Judge Decries Grand Jury 'Turmoil,' Tosses Fraud Charges

By Lauraann Wood

An Illinois federal judge agreed Friday to dismiss fraud charges against two men ahead of an evidentiary hearing probing recent grand jury misconduct claims, but cautioned that "getting rid" of the case may not have prosecutors' desired effect, as such allegations continue causing "turmoil" throughout the district court.

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Deluge Of Video Evidence Overwhelms Criminal Cases

By Brandon Lowrey

Surveillance cameras and police body cameras are creating a flood of video evidence that can help prosecutors and defense attorneys build strong cases. But many have been struggling with the technical and logistical challenges that come with the sheer volume of footage.

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Roundup

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

By Laura Stewart Liberty

The past week in London has seen the FCA bring a claim against a fund manager it accused of providing investment services despite having been banned, an Ardmore unit sue a contractor two days before the construction group's collapse, and shipping and cruise giant MSC hit back at an entertainment company following separate intellectual property litigation in the U.S. Here, Law360 looks at these and other new claims in the U.K.

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Roundup

GC Cheat Sheet: The Hottest Corporate News Of The Week

By Sue Reisinger

Elon Musk and SpaceX's legal team blasted off with the largest IPO in history, with shares priced at $150 each at opening before briefly topping $176. And a new study shows investors have approved 11 of 17 companies' requests to move their incorporation from Delaware to Texas so far this proxy season.

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Law360's Legal Lions Of The Week

By Kevin Penton

Kirkland & Ellis LLP leads this week's edition of Law360 Legal Lions, after a Los Angeles jury in a bellwether trial cleared Johnson & Johnson of any liability in the deaths of three women from ovarian cancer.

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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.

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