FTC Warns Mastercard, PayPal, Stripe, Visa About Debanking

By Jon Hill

The Federal Trade Commission on Thursday warned major payment companies that denying services to consumers based on their politics or religion could lead to an enforcement action, the latest move in the Trump administration's broader crackdown on so-called debanking.

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2nd Circ. Reopens Mortgage-Backed Securities ERISA Suit

By Kellie Mejdrich

The Second Circuit on Thursday revived a federal benefits lawsuit against Wells Fargo and Ocwen accusing the companies of mishandling home loans tied to a union pension fund's investments, overturning a lower court ruling that handed the bank and loan servicing companies a pretrial win in the proposed class action.

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9th Circ. Won't Rehear Flagstar Escrow Interest Decision

By Jon Hill

The Ninth Circuit declined Thursday to revisit a panel decision that held federally chartered banks aren't exempt from a California law requiring interest to be paid on mortgage escrow accounts, leaving Flagstar Bank on the hook for a $9 million borrower class action judgment.

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FINRA Fines Broker-Dealer $600K For Off-Channel Violations

By Sarah Jarvis

The Financial Industry Regulatory Authority has fined a San Francisco-based broker-dealer $600,000 for allegedly failing to supervise employees' use of unapproved messaging platforms, in a type of proceeding FINRA's CEO said earlier this week would indicate a "real breakdown" in oversight.

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PNC Beats Customer's $200K Forged Check Dispute

By Emilie Ruscoe

PNC no longer faces allegations it failed to prevent a customer's losses after his employees drained nearly $205,000 from his accounts, a Philadelphia federal judge found, noting the plaintiff's estate administrator didn't properly dispute relevant facts asserted by the bank.

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Ex-InterOil Exec Faces $210M Ruling, Seeks Appeal Bond Cut

By José Luis Martínez

A former executive of long-acquired oil company InterOil must pay a Swiss investor $210 million in damages and interest under a final judgment entered Thursday in Texas federal court, affirming a jury's findings last year that the executive breached agreements between the two.

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Investor Sues Music Catalog Firm Over Default Risks

By Jarek Rutz

A member of a music catalog investment group has sued in the Delaware Chancery Court to force the company to turn over financial records, alleging signs of mismanagement, missed payments and potential default risks tied to high-value music deals.

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Paul Weiss, Skadden Guide $22B US Life Insurance Merger

By Al Barbarino

Corebridge Financial Inc. and Equitable Holdings Inc. said Thursday they have agreed to merge in an all-stock transaction that values the combined company at about $22 billion, in a deal steered by Skadden Arps Slate Meagher & Flom LLP and Paul Weiss Rifkind Wharton & Garrison LLP.

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NY Bill Elevates Criminal Risk For 'Shadow' Crypto Firms

New York's proposed CRYPTO Act would expose unlicensed digital asset operators to criminal penalties ranging from state misdemeanor charges to felony convictions, potentially marking a significant shift in how New York — already among the most aggressive crypto regulators — oversees virtual currency businesses, say attorneys at Crowell & Moring.

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Assessing Potential Legal Claims From Private Credit Turmoil

Amid the downturn in the private credit markets spurred by multiple high-profile bankruptcies, a New York lawsuit stemming from the collapse of First Brands provides an important case study for investors to help minimize future losses and maximize any potential recovery in the event of a private credit default, say attorneys at Bleichmar Fonti.

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AG Watch: New York's Heightened Enforcement In Real Estate

Over the past several months, New York Attorney General Letitia James has brought a rapid succession of enforcement actions targeting rent stabilization abuse, unsafe housing conditions and fraudulent securities practices, signaling that the office views these problems as systemic issues warranting aggressive intervention, say attorneys at Quinn Emanuel.

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Opinion

AI Doc Ruling Got Privilege Analysis Wrong

Broad reasoning used by a New York federal judge in U.S. v. Heppner — to determine the criminal defendant's interactions with a generative artificial intelligence platform were not protected — mistakenly treats AI use as dispositive disclosure to a third party and adopts an unduly narrow conception of work product, say attorneys at Lankler Siffert.

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BigLaw Races To Capture Expanding Fund Finance Market

By Kevin Penton

Debt financing work at the fund level has long been dominated on the lender side by attorneys from Cadwalader Wickersham & Taft LLP, Haynes Boone and Mayer Brown LLP, but other firms are increasingly crafting formal practices and poaching fund finance stars from the more established players.

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Law360's Legal Lions Of The Week

By Kevin Penton

The Lanier Law Firm, Kiesel Law LLP, Panish Shea Ravipudi LLP, Wagstaff & Cartmell LLP and Beasley Allen Law Firm lead this week's edition of Law360 Legal Lions, after a California state jury in a bellwether trial found Meta and Google liable for harming the mental health of a woman who says she became addicted to their social media platforms as a child.

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NJ Federal Judge DQs Beasley Allen In J&J Talc MDL

By Emily Sawicki

A New Jersey federal judge has disqualified the Beasley Allen Law Firm from representing hundreds of plaintiffs in sprawling multidistrict litigation over Johnson & Johnson's talc-based baby powder, holding that the firm violated ethics rules by collaborating with former outside counsel for J&J, a ruling the law firm has vowed to appeal.

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Atty Sanctioned For AI Hallucinations In Workers' Comp Row

By Gianna Ferrarin

A New Jersey appellate court on Friday ordered an attorney to pay $1,000 in sanctions for failing to rectify AI-hallucinated case citations pointed out to him in an appeal concerning reimbursement sought by a workers' compensation carrier.

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

By Laura Stewart Liberty

The past week in London has seen Apple hit back at a tech company's wireless charging patent claim, a flurry of businesses bring COVID-19 pandemic insurance claims as a key deadline draws closer and Ipulse Partners LLP file a claim against a luxury yacht company it represented in a trademark dispute. Here, Law360 looks at these and other new claims in the U.K.

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Polsinelli Hires Practice Head From McDermott In NY

By Andrea Keckley

Polsinelli PC said Thursday that it has hired a longtime McDermott Will & Schulte LLP attorney to co-lead its special situations and alternative investment practice, saying the move "further advanc[es] the firm's strategic focus on private credit, distressed investing, and complex restructuring matters."

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Apollo, BlackRock Deny Asking Kirkland To Abandon Optimum

By Tracey Read

Apollo, Ares, BlackRock and other major financial companies have denied Optimum Communications' claims accusing them of "bullying" Kirkland & Ellis LLP into withdrawing as the telecommunications company's transaction counsel to get revenge for a collusion lawsuit filed in New York federal court.

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GC Cheat Sheet: The Hottest Corporate News Of The Week

By Sue Reisinger

A federal judge has stopped the Pentagon from dropping AI giant Anthropic from the government's supply chain, and Latham & Watkins ranked first in a survey of in-house legal leaders on which law firms are most helpful in developing business, followed by King & Spalding, Jones Day and Ropes & Gray.

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Firms Targeted By Trump Urge DC Circ. To Uphold EO Rulings

By Alison Knezevich

Four law firms targeted last year by President Donald Trump urged the D.C. Circuit on Friday to affirm lower court rulings that struck down executive orders restricting their ability to practice law, saying the directives blatantly violate the Constitution.

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Brief

Amazon Swaps MoFo In, Perkins Coie Out In Cooker Suit

By Ben Adlin

Amazon.com LLP switched counsel Friday in a customer's product defect suit accusing the retail giant of selling a faulty pressure cooker that allegedly malfunctioned and caused her severe burns, substituting two Morrison Foerster LLP attorneys in place of an outgoing Perkins Coie LLP lawyer.

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Mich. Judge Signals No Stay If Attys Exit Retaliation Suit

By Melanie Dorsey

A Michigan federal judge said Friday she is not inclined to pause a long-running sexual harassment suit again if counsel for an attorney who is suing her ex-mentor and former firm are allowed to withdraw, telling the parties, "We've been here. We've done this," as she heard arguments over a motion to exit the case.

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Judiciary Nixes Amicus Disclosure Reform Over Potential Chill

By Emily Sawicki

The federal judiciary has been asked not to move forward with a plan to add to amicus brief disclosure requirements designed to curb "dark money" groups from bankrolling amicus briefs, after rules committee chairs pulled the recommendation over concerns of a possible chilling effect.

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Ex-Williams & Connolly Clerk Accused Of Posting Client Info

By Hailey Konnath

A former Williams & Connolly LLP clerk has been posting confidential firm information — including client information and work email exchanges — and he's threatening to "keep leaking" the materials, which he called "a fun read," according to a suit filed in District of Columbia Superior Court.

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Mayer Brown's $21M Fee Bid In RI Truck Tolls Suit Rebuffed

By Linda Chiem

A Rhode Island federal judge on Friday rebuffed Mayer Brown LLP's bid for $21 million in attorney fees for representing the commercial trucking industry's lead trade group in long-running litigation over the state's truck tolling program, saying the American Trucking Associations ultimately was not the "prevailing party."

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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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FCC Told It Can't Make Foreign Call Centers Speak English

By Nadia Dreid

The National Creditors Bar Association is not pleased with the Federal Communications Commission's plans to pass new rules that would require companies to make sure their foreign call center operators speak "American Standard English," saying the agency has no power over foreign employees.

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