Analysis

​​​​​​​Biden's AI Guidance For Gov't May Need More Risk Controls

By Daniel Wilson

The Biden administration's latest guidance for federal agencies' purchases of generative artificial intelligence technologies doesn't fully account for risks such as systems failing to work as intended, and could therefore fail to deter agencies from ill-advised investments, according to experts.

Read full article » | Save to favorites »

SEC Fines Trump Media's Audit Firm For 'Massive Fraud'

By Jessica Corso

The U.S. Securities and Exchange Commission said on Friday that it has fined and permanently suspended the public accounting firm of former President Donald Trump's social media company for allegedly running a "sham auditing mill" by failing to meet industry standards in reviewing the financial statements of hundreds of clients.

Order attached | Read full article » | Save to favorites »

Exxon Closes $60B Pioneer Purchase After FTC Agreement

By Al Barbarino

Exxon Mobil Corp. said Friday that it has closed its $60 billion acquisition of Pioneer Natural Resources, one day after the Federal Trade Commission gave the oil giant a conditional green light to move ahead with the deal. 

Read full article » | Save to favorites »

Judge Asks About Ad Quality As Google Search Trial Wraps

By Matthew Perlman

The D.C. federal judge overseeing the government's search monopolization case against Google peppered attorneys from both sides on Friday during the final day of trial arguments about how to address Google's contention that it raises ad prices to coincide with product improvements.

Read full article » | Save to favorites »

GC Cheat Sheet: The Hottest Corporate News Of The Week

By Michele Gorman

A former general counsel testified Thursday in the criminal fraud trial of former Autonomy CEO Michael Lynch that the company's chief operating officer didn't want a whistleblower's claims to get into court, and a South Carolina man and his companies must pay the SEC nearly $24.9 million to settle claims that he misappropriated investors' money to make Ponzi payments. These are among the stories in corporate legal news you may have missed in the past week.

Read full article » | Save to favorites »

3rd Circ. Clarifies Review Standard For Derivative Suits

By P.J. D'Annunzio

In a precedential ruling Friday declining to revive Cognizant Technology investors' derivative claims over a bribery scandal, the full Third Circuit held that the best way to review such cases on appeal was from the beginning, not giving deference to the lower court's decision or considering whether there was an abuse of discretion.

Opinion attached | Read full article » | Save to favorites »

NY's Citi Suit Imperils Wire Transfer Market, Bank Groups Say

By Jon Hill

Major banking trade groups are backing Citibank NA in its fight against the New York attorney general's lawsuit over the bank's payment fraud protocols, warning that the state's claims seek to change how wire transfers are regulated in a way that could "upend" the marketplace for such services.

Brief attached | Read full article » | Save to favorites »

5th Circ. Stands By Keeping CFPB Late Fee Case In Texas

By Lauren Berg

A Fifth Circuit panel will not reconsider its decision rejecting the cross-country transfer of a bank industry-backed challenge to the Consumer Financial Protection Bureau's $8 credit card late fee standard, denying the agency's bid to move the case back to Washington, D.C., from Texas.

2 documents attached | Read full article » | Save to favorites »

SoFi Unit To Pay FINRA $1.1M To Settle Customer ID Claims

By Bonnie Eslinger

SoFi Securities has agreed to pay $1.1 million to settle Financial Industry Regulatory Authority claims that it lacked a suitable user verification process for the firm's cash management brokerage business, allowing the opening of 800 accounts used by third parties to illegally transfer $8.6 million from other financial institution accounts.

Letter attached | Read full article » | Save to favorites »

Judge Says Lender Can't Escape CFPB's Loan Data Suit

By Isaac Monterose

A Florida federal judge has refused to dismiss the Consumer Financial Protection Bureau's suit accusing mortgage servicer and lender Freedom Mortgage Corp. of violating federal law by submitting inaccurate government mortgage loan data.

Order attached | Read full article » | Save to favorites »

Analysis

Binance Founder's Sentence Shaped By Plea And Apology

By Aislinn Keely

Binance founder Changpeng Zhao's willingness to cooperate with law enforcement and accept responsibility in court for the crypto exchange's anti-money laundering violations helped the former CEO land a deal with prosecutors that got him a relatively short prison sentence to close out a yearslong investigation.

Read full article » | Save to favorites »

BTC-e Mastermind Cops To Money Laundering Conspiracy

By Bonnie Eslinger

A Russian national pled guilty Friday to conspiracy to commit money laundering related to his central role in operating the cryptocurrency exchange BTC-e from 2011 to 2017, according to the U.S. Attorney's Office for the Northern District of California.

Read full article » | Save to favorites »

Roundup

Employment Authority: EEOC's New Harassment Guidance

Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with coverage on the five takeaways from the U.S. Equal Employment Opportunity Commission's long-awaited guidance on workplace harassment, the wage and hour cases that are changing federal arbitration and a National Labor Relations Board decision on severance agreements lands in the Sixth Circuit. 

Read full article » | Save to favorites »

Chamber Blasts FTC Bid For Member IDs In Noncompete Suit

By Emily Sawicki

The U.S. Chamber of Commerce is defending its ability to represent anonymous members in its Texas federal suit challenging the Federal Trade Commission's pending noncompete ban, arguing that the FTC's attempt to block that representation is "radical and unprecedented."

Brief attached | Read full article » | Save to favorites »

6 States Strike $270M Opioid Deal With Amneal

By Emily Field

The New York state attorney general on Friday said that a $270 million multistate deal had been reached with opioid manufacturer Amneal Pharmaceuticals for its role in the addiction epidemic over allegations that the company failed to report suspicious orders of the narcotics.

Read full article » | Save to favorites »

Conn. Dentists Settle Govt's Illegal Patient Recruiting Suit

By Brian Steele

Two Connecticut dental practices and their co-owners have settled a federal false claims lawsuit accusing them of making illegal payments to a patient recruiter to generate business through Medicaid, agreeing to fork over about $187,000 over five years, plus 4% interest.

2 documents attached | Read full article » | Save to favorites »

Roundup

The Privacy Report: Legislative Moves You May Have Missed

By Allison Grande

Tennessee's enactment of new restrictions on teens' social media use led the charge this week amid a flurry of state and federal efforts to increase protections for minors online, while Connecticut faces a looming deadline to become the first state with a comprehensive framework for regulating artificial intelligence. 

4 documents attached | Read full article » | Save to favorites »

EU OKs Nippon-US Steel Deal As DOJ Causes Delayed Close

By Jade Martinez-Pogue

The European Commission on Friday indicated via an annotation on its merger review page that it has given Nippon Steel's controversial $14.9 billion acquisition of U.S. Steel its unconditional approval, a move that comes just a day after the parties announced the deal would be delayed due to further scrutiny from the U.S. Department of Justice.

Read full article » | Save to favorites »

FTC Requests Additional Info On $16.5B Novo-Catalent Deal

By Tom Zanki

The Federal Trade Commission is seeking additional information on Novo Holdings' planned $16.5 billion acquisition of pharmaceutical services company Catalent in order to examine whether the blockbuster deal passes antitrust muster, according to a Friday securities filing.

Read full article » | Save to favorites »

DOJ Seeks Info Sharing With Texas In Google Ad Tech Case

By Ali Sullivan

The U.S. Department of Justice objected on Friday to a Virginia magistrate judge's refusal to coordinate discovery in its suit accusing Google of monopolizing key digital advertising technology with a similar case from state enforcers pending in Texas, contending the information sharing is needed to maintain a level playing field.

Brief attached | Read full article » | Save to favorites »

IRS Seeks More Info On Purpose Test In Buyback Tax Regs

By Kat Lucero

The IRS is seeking more information on fine-tuning a test in proposed rules on the stock buyback tax meant to assess whether the principal purpose of a U.S. subsidiary's funding purchase of its foreign parent's stock is to avoid the tax, an agency attorney said Saturday.  

Read full article » | Save to favorites »

Roundup

Real Estate Authority: Dirty Money, Forever Chems, Housing

By Real Estate Authority Staff

Law360 Real Estate Authority covers the most important real estate deals, litigation, policies and trends. Catch up on this week's developments by state — as well as on the illicit billions tucked away in commercial real estate, attorney takeaways from new "forever chemical" designations, and one foreign investor's bet on U.S. housing.

Read full article » | Save to favorites »

Phone Carriers Still Want More Time On SIM Swap Deadline

By Nadia Dreid

Telecom trade groups have once again told the Federal Communications Commission that their members are going to struggle to meet the deadline for complying with the agency's new rules aimed at combating SIM card swapping fraud.

1 document attached | Read full article » | Save to favorites »

Final EV Tax Credit Regs Add New Battery Tracing Test

By Kat Lucero

The U.S. Treasury Department unveiled final regulations Friday for the up to $7,500 electric vehicle tax credit that include a more detailed process for automakers to trace the battery supply chain to qualify for the credit's domestic content requirements.

Final Rule attached | Read full article » | Save to favorites »

Fla. Business Groups Line Up Behind State In CWA Permit War

By Juan-Carlos Rodriguez

A coalition of national companies and Florida-based business groups is weighing in on behalf of the state in its battle to convince the D.C. Circuit to stay a lower court's ruling that stripped it of the authority to administer a Clean Water Act program.

Brief attached | Read full article » | Save to favorites »

Mass. Quarry Resolves AG's River Pollution Claims

By Brian Dowling

A lime quarry in western Massachusetts on Friday struck a $299,000 settlement with the state attorney general over wastewater discharges that allegedly turned the Hoosic River an eerie, cloudy white from bank to bank for 13 miles.

Complaint attached | Read full article » | Save to favorites »

Akerman Hires Miami-Dade Atty As Chair Of Land Use Team

By Isaac Monterose

Akerman LLP hired Dennis A. Kerbel, a veteran Miami-Dade County, Florida, government attorney, as the new chair of its land use and entitlements team in its Miami office, the firm announced this week.

Read full article » | Save to favorites »

How Cos. Can Protect IP In Light Of FTC Noncompete Rule

While several groups are challenging the Federal Trade Commission’s recently approved rule banning noncompetition agreements, employers should begin planning other ways to protect their valuable trade secrets, confidential information and other intellectual property, says Thomas Duston at Marshall Gerstein.

Final Rule attached | Read full article » | Save to favorites »

New Federal Bill Would Drastically Alter Privacy Landscape

While the recently introduced American Privacy Rights Act would eliminate the burdensome patchwork of state regulations, the proposed federal privacy law would also significantly expand compliance obligations and liability exposure for companies, especially those that rely on artificial intelligence or biometric technologies, says David Oberly at Baker Donelson.

1 document attached | Read full article » | Save to favorites »

Opinion

CFPB Could, And Should, Revise Open Banking Rulemaking

In light of continued global developments in open banking, the Consumer Financial Protection Bureau should evaluate whether it actually should use its proposed rule on Section 1033 of the Dodd-Frank Act to amplify personal financial data rights in the U.S., says Brian Fritzsche at the Consumer Bankers Association.

Proposed Rule attached | Read full article » | Save to favorites »

How Cos. Can Comply With New PFAS Superfund Rule

The U.S. Environmental Protection Agency's new rule designating two per- and polyfluoroalkyl substances as "hazardous substances" under the Superfund law will likely trigger additional enforcement and litigation at sites across the country — so companies should evaluate any associated reporting obligations and liability risks, say attorneys at Alston & Bird.

Read full article » | Save to favorites »

Social Media Free Speech Issues Are Trending At High Court

The U.S. Supreme Court's recent decision examining what constitutes state action on social media can be viewed in conjunction with oral arguments in two other cases to indicate that the court sees a need for more clarity regarding how social media usage implicates the First Amendment, say attorneys at Kean Miller.

Read full article » | Save to favorites »

How EB-5 Regional Centers Can Prepare For USCIS Audits

In response to the recently announced U.S. Citizenship and Immigration Services guidelines that require EB-5 regional center audits every five years to verify their compliance with immigration and securities laws, regional centers should take steps to facilitate a seamless audit process, say Jennifer Hermansky and Miriam Thompson at Greenberg Traurig.

Read full article » | Save to favorites »

Legal Industry Gains Jobs In April Following Downward Trend

By Tracey Read

The U.S. legal sector eased back into a positive trajectory in April, with a gain of 3,200 jobs compared with the previous month, according to preliminary data released Friday by the U.S. Bureau of Labor Statistics.

Read full article » | Save to favorites »

Titan Of The Plaintiffs Bar: Boies Schiller's Sigrid McCawley

By Hannah Albarazi

Sigrid McCawley was barely back from parental leave with her fourth child in February 2015 when she flew to New York City to take on a case that would turn her life upside down, and change the world.

Read full article » | Save to favorites »

Analysis

How Big IP Judgment Winners Are Insuring 'Nuclear Verdicts'

By Ivan Moreno

Until a few years ago, intellectual property plaintiffs who scored large monetary awards — often referred to as "nuclear verdicts" — had to wait out a lengthy appellate process before knowing how much money they would end up with. But a relatively new type of insurance policy is allowing plaintiffs to insure part of their judgment in case it gets reduced or wiped out on appeal. 

Read full article » | Save to favorites »

AI Legal Tools Could Be Too Pricy For Those Most In Need

By Marco Poggio

At a moment when generative AI is showing potential to help poor and underserved communities address legal issues they've historically had to face without representation, some experts warn that the cost of legal AI tools could put them out of reach for those who need them the most.

Read full article » | Save to favorites »

Gen AI Shows Promise — And Peril — For Pro Se Litigants

By Marco Poggio

Research on the capabilities of generative AI tools to help self-represented people has shown potential, but there is broad disagreement about how and when pro se litigants should be using them alone.

Read full article » | Save to favorites »

Q&A

NJ Judge Kugler Reflects On 32 Years Spent As Federal Jurist

By George Woolston

With the fates of his colleagues who didn't get the chance to enjoy retirement weighing on his mind, Senior U.S. District Judge Robert Kugler decided this year it was time to call it a career on the bench in Camden, New Jersey, after three decades of service.

Read full article » | Save to favorites »

Graham Blasts Mass. Judge Nom For 'Radical' Policing Letter

By Courtney Bublé

Sen. Lindsey Graham, R-S.C., the top Republican on the Senate Judiciary Committee, blasted a Massachusetts judicial nominee on Friday for failing to disclose prior to his nomination hearing that his name appears on the letterhead of a 2020 public statement issued in the wake of protests following the murder of George Floyd by police.

1 document attached | Read full article » | Save to favorites »

Hope Hicks Tells Jury Of 'Access Hollywood' Tape Fallout

By Stewart Bishop and Frank G. Runyeon

Hope Hicks, a former senior aide to Donald Trump, took the witness stand Friday in the former president's Manhattan hush money trial and described the fallout during the 2016 campaign after the release of the notorious "Access Hollywood" video and as word of his alleged extramarital affairs began to spread.

Read full article » | Save to favorites »

Coverage Recap: Day 7 Of Trump's NY Hush Money Trial

By Frank G. Runyeon

Law360 reporters are providing live updates from the Manhattan criminal courthouse as Donald Trump goes on trial for allegedly falsifying business records related to hush money payments ahead of the 2016 election. Here's a recap from day seven.

Read full article » | Save to favorites »

Judge In Trump's Georgia Case Raises $320K For Election Bid

By Chart Riggall

In his bid for election to his first full term on the bench, the judge overseeing former President Donald Trump's Georgia election interference case is enjoying support from a broad swath of the Atlanta legal community, raising over $127,000 in the last three months.

Read full article » | Save to favorites »

Harvey Weinstein Denied Win In $1M Fee Fight With Jose Baez

By Craig Clough

A New York state judge on Friday denied an early win to Harvey Weinstein in his $1 million fee dispute with criminal defense attorney Jose Baez, saying the incarcerated former media mogul produced nothing but a "self­-serving affidavit" and "haphazard printout" to make his arguments. 

Opinion attached | Read full article » | Save to favorites »

Robbins Geller Attys To Take Stand In $8M Sanctions Dispute

By Bryan Koenig

A petroleum refiner will put current and former Robbins Geller Rudman & Dowd LLP attorneys on the stand May 7 in an extraordinary evidentiary hearing testing what the plaintiffs' lawyers knew about an analyst's now-discredited findings as they pursued since-nixed price-fixing claims.

1 document attached | Read full article » | Save to favorites »

Greenberg Traurig No Longer Repping Guatemala In $32M Suit

By Rae Ann Varona

Guatemala's newly elected government has decided not to have Greenberg Traurig as its counsel in its fight against a construction and engineering firm's bid to enforce $31 million in arbitral awards, according to a Friday filing in a D.C. federal court.

Brief attached | Read full article » | Save to favorites »

Colo. Jury Hits Berkshire Unit With $7M Monopoly Verdict

By Daniel Ducassi

A Colorado federal jury on Friday awarded the rival of a Berkshire Hathaway-owned construction supplier $6.7 million for the larger company's monopolistic practices, hours after a judge scolded the Berkshire company's lawyer because he "crossed a line" during closings.

Verdict attached | Read full article » | Save to favorites »

California Judge Ousted For 'Willful,' 'Prejudicial' Misconduct

By Jake Maher

A California state judge has been removed from the bench after an investigation found that he conducted a campaign of retaliation against court employees he suspected of being "moles" in a probe against him and lied about his actions to investigators afterward.

Decision attached | Read full article » | Save to favorites »

Calif. Appeals Court Calls Firm's Conduct 'Woefully Uncivil'

By Hailey Konnath

A California state appeals court has backed sanctions against The Vanderpool Law Firm in a dispute with Masimo Corp., finding that the firm had engaged in misconduct during discovery and noting that it was "woefully uncivil" in its emails with opposing counsel.

Decision attached | Read full article » | Save to favorites »

Law360's Legal Lions Of The Week

By Kevin Penton

Clement & Murphy PLLC and Yetter Coleman LLP lead this week's edition of Law360 Legal Lions, after the Fifth Circuit reversed a Texas federal court's $1.6 billion ruling against IBM in an operating agreement dispute with Houston-based software company BMC.

Read full article » | Save to favorites »

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

By Laura Stewart Liberty

The past week in London has seen rapper Ivorian Doll hit with a copyright claim, private members club Aspinalls file a claim against a Saudi sheikh, and Motorola Solutions file a claim against the British government on the heels of its dispute over losing a £400 million ($502 million) government contract. Here, Law360 looks at these and other new claims in the U.K.

Read full article » | Save to favorites »

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.

Read full article » | Save to favorites »