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May 20, 2024
7-Eleven Says Insurer Must Cover Wrongful Death Suit
The insurer of a Houston 7-Eleven lessee facing negligence claims after one person was fatally shot and another was injured on its property must also cover 7-Eleven corporate in the litigation, the convenience store giant said, though conceding the lessee store's policy didn't specifically include 7-Eleven as an additional insured.
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May 20, 2024
Senate Report Ties Automakers To Uyghur Forced Labor
BMW, Jaguar Land Rover and Volkswagen imported cars and their parts that were manufactured by a Chinese company sanctioned for using forced labor, according to a congressional report released Monday raising concerns about compliance with recent measures to crack down on labor violations.
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May 20, 2024
Catching Up With Delaware's Chancery Court
Delaware was full of drama last week, as proposed changes to the state's corporate law statutes raised eyebrows and a professor's friend-of-the-court brief sparked a very unfriendly public exchange. Delaware's court of equity banged the gavel on pipeline and social media disputes, and shareholders filed new suits alleging insider trading, vote bungling, unfair stock buybacks and merger shenanigans. In case you missed any of it, here's the recap of all the top news last week from Delaware's Chancery Court.
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May 20, 2024
Justices Reject Seirus Challenge To Design Patent Test
The U.S. Supreme Court on Monday refused to review a Federal Circuit ruling that revived Columbia Sportswear's design patent suit against Seirus Innovative Accessories Inc., which Seirus said created an "illogical, unworkable test" for design patent cases.
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May 17, 2024
Apple OK'd New App Fees Despite Antitrust Ruling
An Apple Inc. executive conceded during a high-stakes antitrust hearing Friday over Apple's compliance with a court-ordered ban on App Store anti-steering rules that executives decided to implement a new 27% fee on out-of-app transactions despite knowing a jury had recently found that similar Google fees violated antitrust laws.
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May 17, 2024
Bong Co. Can't Get Early Win In TM Suit Over No-Show Opponent
The maker of Stündenglass-branded glass infusers was denied a win over a retailer that didn't bother to put up a defense against its trademark infringement suit, after a California federal judge accepted a magistrate's report that the litigious manufacturer still couldn't back up its claims.
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May 17, 2024
Judge Rails At Attys' Failure To Prep For Evasion Case Queries
A U.S. Court of International Trade judge lambasted the government's counsel during oral arguments Friday in a Cambodian pipe company's suit over a tariff evasion probe for failing to answer her questions, even with time to prepare.
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May 17, 2024
T-Mobile Must Face Sprint Merger Suit Before Appealing
The Seventh Circuit summarily rejected T-Mobile's move for interlocutory appeal in a proposed consumer class action targeting the company's 2020 merger with Sprint, allowing the case to advance to discovery after the district court denied T-Mobile's motion to dismiss in the fall.
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May 17, 2024
Kohl's Directors' Aversion To Sale Was Self-Serving, Suit Says
A Kohl's shareholder has hit the retailer's brass with a derivative suit alleging they covered up the results of a disastrous shift in business strategy and takeover offers, all in a bid to protect their own positions.
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May 17, 2024
Mich. $3.4M Sales Tax Bill Is Wrong, Sneaker Site Tells Court
The Michigan Treasury Department incorrectly calculated a sneaker resale site's sales tax liability from 2017 through 2019, as the site is a marketplace facilitator required to collect tax beginning in 2020, the site told the state Court of Claims.
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May 17, 2024
Furniture Co. Says Insurer Wrongly Denied Hacking Coverage
A Pittsburgh furniture company accused its insurer of bad faith and breach of contract for failing to cover more than $530,000 in losses due to monthslong hacking that began in 2021.
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May 17, 2024
Peloton Says Investors Are 'Manufacturing' Bike Recall Suit
Fitness equipment company Peloton urged a New York federal judge on Friday to toss a suit alleging it overstated the safety of its bikes before the U.S. Consumer Product Safety Commission recalled roughly 2.2 million Peloton products over a bike seat defect, saying the investors are trying to "manufacture" a case from a voluntary recall.
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May 17, 2024
Zero Duty Doesn't Address Exporter's Benefits, Calif. Biz Says
A juice wholesaler's attorney argued Friday that the U.S. Department of Commerce ignored the relationship between a Brazilian lemon juice exporter and its supplier, while calling for higher duties to account for benefits the Brazilian company may have received.
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May 17, 2024
Feds Seek 10 Years In First Product Safety Conviction
The government is asking for a pair of 10-year prison sentences for two Gree USA Inc. executives convicted of failing to report defective humidifiers, after the two were found guilty of conspiracy to defraud the U.S. Consumer Product Safety Commission.
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May 17, 2024
'Confusing' Evidence Leads To New Patent Trial For Shopify
A Delaware federal judge Friday granted in part Shopify Inc.'s bid for a new trial in an infringement suit over a series of patents for website generation owned by Express Mobile Inc. after Express won a $40 million jury verdict in 2022.
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May 17, 2024
Chicago Wants Climate Deception Claims Back In State Court
The city of Chicago says it should be in state court hashing out climate change deception claims against several of the nation's largest oil producers because the companies lodged "objectively baseless" arguments to remove its case to federal court.
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May 17, 2024
Air Gun Co. Manager Accused Of Fraud By Receiver
The court-appointed overseer of a crumbling North Carolina air gun company has alleged that an owner was fraudulent and self-dealing with the businesses' money, saying a forensic accounting showed money flowing between accounts.
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May 17, 2024
Koch-Tied Group Says Transparency Law Offends Federalism
The Corporate Transparency Act is unconstitutional because it does not regulate interstate commerce yet mandates that state-registered entities disclose personal information, a conservative group affiliated with the billionaire Koch brothers told the Eleventh Circuit on Friday.
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May 17, 2024
Dolce & Gabbana Sued Over 'Worthless' Digital Outfit NFTs
Luxury fashion brand Dolce & Gabbana has been hit with a shareholder class action in New York federal court, alleging it sold consumers "essentially worthless" non-fungible tokens that it misrepresented as high-value and abandoned the project while retaining over $25 million that was used to fund it.
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May 17, 2024
Google Says Payment Means No Need For DOJ Ad Tech Jury
Google is arguing in Virginia federal court the government has no right to a jury trial in a case accusing the company of monopolizing key digital advertising technology, especially after Google issued a check for the money enforcers could be awarded if they won.
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May 17, 2024
$5M Candy Recall Coverage Dispute Moved To Texas Court
An insurer's lawsuit disclaiming coverage for a candy manufacturer over a near $5 million recall over metal fragments found in certain gummy candies belongs in Texas, a New York federal judge has ruled, finding that the action was "filed preemptively to deprive the natural plaintiff of its choice of forum."
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May 17, 2024
Trade Commission Affirms Harm From Indian Steel Cylinder
The U.S. International Trade Commission has determined that nonrefillable steel cylinders imported into the U.S. from India have harmed U.S. producers through unfair prices and government-backed subsidies, allowing the U.S. Department of Commerce to place anti-dumping and countervailing duties on the goods.
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May 17, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen a wave of claims filed against Verity Trustees Ltd., Harley-Davidson hit retailer Next with an intellectual property claim, Turkish e-commerce entrepreneur Demet Mutlu sue her ex-husband and Trendyol co-founder Evren Üçok and the Solicitors Regulation Authority file a claim against the former boss of collapsed law firm Axiom. Here, Law360 looks at these and other new claims in the U.K.
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May 17, 2024
Kitchenware Cos. Seek Duties On Chinese Disposable Pans
A group of domestic companies that produce disposable aluminum pans is pushing for tariffs on Chinese imports, telling U.S. trade officials that its overseas rivals are using unfair trade practices to get ahead of the competition.
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May 16, 2024
9th Circ. Won't Let Alexa Users Revive Voice Data Privacy Row
The Ninth Circuit on Thursday refused to reinstate a proposed class action alleging Amazon's Alexa software illegally collects voice data to target users with advertisements, agreeing with the lower court that the e-commerce giant had clearly disclosed the practice and the plaintiffs hadn't shown they were harmed.
Expert Analysis
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Retailers Must Be Mindful Of Sale Ads As Class Actions Rise
A recent uptick in class actions filed against retailers over a breadth of allegedly deceptive pricing practices — including misleading reference prices for sales and discounts offered on a perpetual basis — show no sign of slowing down, indicating that class counsel are laser-focused on challenging advertising strategies, say Louis DiLorenzo and Paavana Kumar at Davis+Gilbert.
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NY's Revamped Card Surcharge Ban Is Unique Among States
Newly revised New York legislation bolsters the state's ban on credit card surcharges, potentially reinvigorating similar laws across the country despite the fact that many of them have been ruled unconstitutional, say Tom Witherspoon and Audrey Carroll at Stinson.
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Legislative And Litigation Trends In Environmental Advertising
Companies that tout their products' environmental benefits can significantly reduce the risk that they will face allegations of greenwashing by staying up to date on related Federal Trade Commission guidance, state requirements and litigation trends, say Raqiyyah Pippins and Kelsie Sicinski at Arnold & Porter.
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What's On The Horizon In Attorney General Enforcement
A look at recent attorney general actions, especially in the areas of antitrust and artificial intelligence, can help inform businesses on what they should expect in terms of enforcement trends as 10 attorney general races play out in 2024, say attorneys at Cozen O'Connor.
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2nd Circ. Ruling Will Guide Social Media Account Ownership
The Second Circuit’s recent decision in JLM Couture v. Gutman — which held that ownership of social media accounts must be resolved using traditional property law analysis — will guide employers and employees alike in future cases, and underscores the importance of express agreements in establishing ownership of social media accounts, says Joshua Glasgow at Phillips Lytle.
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Del. Segway Dismissal Suggests Execs Not Liable For Biz Risk
While the debate continues within the Delaware Chancery Court over whether Caremark liability applies to matters of pure business risk, the court's recent rejection of Segway’s suit against the ex-president who oversaw financial difficulties suggests the court is uninterested in undermining the deference the business judgment rule grants corporate fiduciaries, say attorneys at Dechert.
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Exporters Should Approach Self-Disclosure With Caution
A January Bureau of Industry and Security memorandum created an abbreviated process for disclosing export control violations that lack aggravating factors, but deciding which disclosure method to utilize remains a complex strategic undertaking to which companies must give careful consideration, say attorneys at Covington.
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Series
Coaching High School Wrestling Makes Me A Better Lawyer
Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.
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Freight Forwarders And Common Carriers: Know Your Cargo
Freight forwarders and other nonprincipal parties involved in global cargo movement should follow the guidance in the multi-agency know-your-cargo compliance note to avoid enforcement actions should they fail to spot evasive tactics used in supply chains to circumvent U.S. sanctions and export controls, say attorneys at Venable.
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SG's Office Is Case Study To Help Close Legal Gender Gap
As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.
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A Refresher On Alcohol Sponsorships Before The Super Bowl
As millions of people will see in Super Bowl commercials Sunday, celebrity sponsorships continue to be a valuable tool for alcohol beverage marketers — and those looking to better target audiences must understand how regulation of the alcohol industry affects these deals, say attorneys at McDermott.
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Opinion
Food Safety Bill Needed To Protect Kids From Heavy Metals
The recent announcement by the Centers for Disease Control and Prevention that hundreds of children may have been exposed to unsafe lead levels in applesauce highlights the continuing failure by Congress to pass legislation that would require baby food manufacturers to ensure safer levels of heavy metals in their products, says Vineet Dubey at Custodio & Dubey.
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What Brands Must Know For Calif. Recycle Label Compliance
A brand that stamps nonrecyclable packaging with the chasing arrows symbol could face liability under California's new law on labeling recyclable material, so brand owners should keep an eye on the state's pending survey process to identify which materials meet the criteria before requirements go into effect, say attorneys at ArentFox Schiff.
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Del. Dispatch: Clarification On Fiduciary Duties Of Controllers
The Delaware Chancery Court’s January opinion in a Sears Hometown and Outlet Stores' stockholder dispute — holding that a controlling stockholder owes the company and minority shareholders some fiduciary duties when selling shares or voting to change the status quo — suggests instances where investors opposing board decisions should tread carefully, say attorneys at Fried Frank.
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Reimagining Law Firm Culture To Break The Cycle Of Burnout
While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.