U.S. Supreme Court Justices Clarence Thomas and Samuel Alito — often birds of a feather — butted heads Thursday over the original meaning and purpose of the U.S. Constitution's appropriations clause in a decision upholding the Consumer Financial Protection Bureau's unique funding scheme, highlighting what experts describe as the pair's different approaches to originalism.
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TOP NEWS

Analysis

Thomas, Alito: Two Originalists, Two Takes On CFPB Case

By Katie Buehler

U.S. Supreme Court Justices Clarence Thomas and Samuel Alito — often birds of a feather — butted heads Thursday over the original meaning and purpose of the U.S. Constitution's appropriations clause in a decision upholding the Consumer Financial Protection Bureau's unique funding scheme, highlighting what experts describe as the pair's different approaches to originalism.

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9th Circ. Won't Let Alexa Users Revive Voice Data Privacy Row

By Allison Grande

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.

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Apple Exec Must Produce All Docs On 27% App Fee Decision

By Dorothy Atkins

A California federal judge presiding over a high-stakes antitrust hearing over Apple's compliance with a court-ordered ban on App Store anti-steering rules ordered a company executive Thursday to hand over all of his communications and notes on Apple's decision to impose a new 27% fee after her injunction.

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$2B Default Recommended For Making Fair Trial 'Impossible'

By Bryan Koenig

Years of lies should put a pair of Chinese electronics companies on the hook for over $2 billion in default judgment, a special master told a California federal judge, adding that their yearslong no-show and disregard of U.S. counsel advice to retain documents have rendered a fair trial "impossible."

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Judge Questions Colo.'s Power Over Out-Of-State Banks

By Thy Vo

A Colorado federal judge on Thursday asked U.S. banking regulators why the state should be able to cap interest rates for loans made to residents by out-of-state financial institutions, questioning why it was "consistent with federalism" to let an individual state have that far of a reach.

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FTC Can't Make Albertsons, Kroger Produce Divestiture Docs

By Ali Sullivan

An administrative law judge on Thursday denied the Federal Trade Commission's "premature" bid to compel Kroger and Albertsons to fork over documents related to negotiations for the companies' expanded divestiture plan amid the commission's in-house challenge to the grocers' merger.

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Stubhub, Attys Face Sanctions Bid Over 'Strategy Of Evasion'

By Bonnie Eslinger

Counsel for consumers seeking StubHub refunds for events canceled or rescheduled due to COVID-19 urged a California federal magistrate judge Thursday to sanction the online ticket platform and its lawyers, saying they've "engaged in a strategy of evasion, denial and distortion" to avoid producing hyperlinked documents despite a court order.

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2nd Circ. Backs Win For Big Banks In Forex-Rigging Suit

By Elliot Weld

The Second Circuit on Thursday backed a ruling in favor of a group of large banks accused of conspiring to manipulate the foreign currency exchange market in euros and dollars, agreeing with a lower court that the plaintiffs hadn't made qualifying transactions or shown how prices were distorted.

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Q&A

Top Linklaters Attys See PE Rebound In Run-Up To Elections

By Al Barbarino

After a subtle uptick in private equity deal values in the first quarter, the global chair of Linklaters LLP's corporate department in New York, George Casey, and one of its top PE dealmakers in London, Alex Woodward, believe the pace of transactions is picking up and the market is primed for a comeback.

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POLICY & REGULATION

Analysis

Buckle Up: CFPB's High Court Win Will Thaw Frozen Docket

By Jon Hill

The Consumer Financial Protection Bureau is walking away from the U.S. Supreme Court with its funding and rulebook intact, a victory that caps off years of constitutional wrangling over how the agency was set up and will usher in a wave of activity that has financial services attorneys bracing for impact.

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FDIC's Gruenberg Scolded By Senators Over Agency Culture

By Katryna Perera

Federal Deposit Insurance Corp. Chairman Martin Gruenberg on Thursday faced a second round of congressional reprimand from both sides of the political aisle over his agency's workplace misconduct scandal, but Senate Democrats seemed ready to let Gruenberg clean up the mess himself and continue his tenure.

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Senate Passes Bill To Block SEC Crypto Accounting Guidance

By Aislinn Keely

The U.S. Senate voted Thursday to send a bill overturning the U.S. Securities and Exchange Commission's controversial crypto accounting guidance to the president's desk, though without the necessary votes to override the White House's planned veto.

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EPA Doctor Not A Whistleblower For Slamming Lead Plan

By Juan-Carlos Rodriguez

A former U.S. Environmental Protection Agency pediatrician and epidemiologist who publicly criticized the EPA's plan to reduce lead in drinking water as inadequate is not protected by federal whistleblower law, the Federal Circuit said Thursday.

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Justices Say CFPB Is Constitutionally Funded

By Jon Hill

The U.S. Supreme Court ruled Thursday that the Consumer Financial Protection Bureau is constitutionally funded, rejecting a payday lender-backed challenge that threatened to incapacitate the agency and throw a wrench in the Biden administration's financial regulatory agenda.

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SEC Adopts Rules For Uncovering, Reporting Data Breaches

By Jessica Corso

The U.S. Securities and Exchange Commission announced the adoption of cybersecurity rules Thursday that will require investment advisers and broker-dealers to put procedures in place for detecting data breaches and for notifying customers when their personal information may have been compromised.

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FCC Told Rural Aid Can't Lean Too Much On Broadband Maps

By Jared Foretek

Wireless providers are calling out flaws in the Federal Communications Commission's national broadband map, telling the agency to require more certification from providers to verify that they can actually serve areas they say they can before allocating broadband deployment funding.

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ENFORCEMENT

Conn. Justices Snatch Debt Collection Practice Of Law Case

By Emily Sawicki

The Connecticut Supreme Court has opted to hear a case that questions whether the state's banking commissioner or its judicial branch has the power to regulate debt collection activities that occur under the purview of law firms, leapfrogging the case over the state's intermediate appellate court and into the state's highest court.

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DC Judge Mulls Dominion's DQ Bid For Pro-Trump Mich. Atty

By Ali Sullivan

Lawyers for Dominion Voting Systems pursuing defamation claims against former Overstock.com CEO Patrick Byrne fought Thursday to disqualify the Michigan attorney representing him, insisting to a D.C. federal judge that disqualification is the most appropriate remedy for the lawyer's leak of Dominion's confidential discovery documents.

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FCC To Pull Phone Co.'s Authorization To Operate In US

By Christopher Cole

The Federal Communications Commission said Thursday it plans to revoke a telecom company's authorization to operate in the U.S. after the business failed to comply with an agreement with federal agencies stemming from a security review.

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Bitcoin ATM Operator Ran Illegal Money Transmitter, Jury Says

By Aislinn Keely

A New York state jury has convicted the operator of a network of bitcoin kiosks that allegedly catered to criminal activity of operating an unlicensed money transmitter and tax fraud, the Manhattan District Attorney's Office said Thursday.

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LITIGATION

GM, LG Ink $150M Deal To End Chevy Bolt Battery Defect Suit

By Mike Curley

A proposed class of Chevrolet Bolt owners asked a Michigan federal court on Thursday to give the go-ahead for a $150 million deal to end claims against General Motors LLC and LG units over alleged battery defects they say make the cars prone to overheating and fires.

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BIC Hit With Class Action Over PFAS-Containing Razors

By Jonathan Capriel

The makers of BIC razors intentionally use so-called forever chemicals in several of their products but failed to mention that to customers, who say they wouldn't have bought the razors if they'd known they were exposing themselves to toxic chemicals.

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BofA Customers Get Final OK For $8M Deal In ACH Fee Suit

By Sydney Price

A North Carolina federal judge has granted final approval to an $8 million settlement for Bank of America customers who claim they were unfairly charged fees for Automated Clearing House transfers.

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Weighted Baby Swaddle 'Inherently Dangerous,' Suit Alleges

By Julie Manganis

A Massachusetts company has been hit with a proposed class action over its allegedly "inherently dangerous" weighted baby blankets and swaddling wraps, a product category suspected in multiple infant deaths and under investigation by the Consumer Product Safety Commission.

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Albertsons Sued Over 'Naturally Flavored' Fruit Bar Labels

By Henrik Nilsson

Albertsons Cos. Inc. was hit with a proposed class action Wednesday in California federal court by a shopper who alleges the grocer falsely labels its breakfast cereal bars as containing natural flavors even though they're made with artificial ingredients derived from petrochemicals.

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Gilead, Teva Want 17 HIV Drug Antitrust Appeals Consolidated

By Matthew Perlman

Gilead Sciences Inc. and Teva Pharmaceuticals are asking the Ninth Circuit to consolidate 17 appeals contesting their win in a case alleging they delayed generic versions of HIV medications, saying the three groups of buyers are raising largely the same issues but refuse to commit to combining their briefs.

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EXPERT ANALYSIS

Lessons On Challenging Class Plaintiffs' Expert Testimony

In class actions seeking damages, plaintiffs are increasingly using expert opinions to establish predominance, but several recent rulings from California federal courts shed light on how defendants can respond, say Jennifer Romano and Raija Horstman at Crowell & Moring.

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FTC Noncompete Rule's Impact On Healthcare Nonprofits

Healthcare entities that are nonprofit or tax-exempt and thus outside of the pending Federal Trade Commission noncompete rule's reach should evaluate a number of potential risk factors and impacts, starting by assessing their own status, say Ben Shook and Tania Archer at Moore & Van Allen.

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Businesses Should Take Their AI Contracts Off Auto-Renew

When subscribing to artificial intelligence tools — or to any technology in a highly competitive and legally thorny market — companies should push back on automatic renewal contract clauses for reasons including litigation and regulatory risk, and competition, says Chris Wlach at Huge Inc.

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Trump Hush Money Case Offers Master Class In Trial Strategy

The New York criminal hush money trial of former President Donald Trump typifies some of the greatest challenges that lawyers face in crafting persuasive presentations, providing lessons on how to handle bad facts, craft a simple story that withstands attack, and cross-examine with that story in mind, says Luke Andrews at Poole Huffman.

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Exploring An Alternative Model Of Litigation Finance

A new model of litigation finance, most aptly described as insurance-backed litigation funding, differs from traditional funding in two key ways, and the process of securing it involves three primary steps, say Bob Koneck, Christopher Le Neve Foster and Richard Butters at Atlantic Global Risk LLC.

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LEGAL INDUSTRY

Analysis

Alito Flag Report Fuels Ethics Debate, But Likely No Recusal

By Katie Buehler

Responses to a report that an upside-down American flag flew outside U.S. Supreme Court Justice Samuel Alito's home following the 2020 presidential election broke along partisan lines Friday, with conservatives decrying it as a smear campaign and liberals calling for his recusal from pending election-related cases and for general court ethics reform.

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Analysis

Trump's Potential Witness Could Be Defense 'Dynamite'

By Phillip Bantz

As Donald Trump's hush money trial in Manhattan nears its end, experts say criminal defense attorney Robert Costello, who once advised the former president's ex-fixer and key prosecution witness Michael Cohen, has surfaced as a potentially bombshell witness for the defense.

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Menendez Bribery Trial: 5 Things To Know About Week 1

By Carla Baranauckas

Explosive opening statements, closed-door jury questioning and an FBI agent's recount of the moment he found a treasure trove of gold bars and cash highlighted the first week of trial in the government's second corruption case against U.S. Sen. Robert Menendez.

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Ga. Judge In 2020 Election Cases To Take Senior Status

By Courtney Bublé

U.S. District Judge Steve Jones of the Northern District of Georgia, who has presided over high-profile cases involving the 2020 election, voting rights and abortion, will take senior status on Jan. 1, 2025, according to an update Friday.

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AG Garland Held In Contempt By House Committees

By Courtney Bublé

Two House committees voted late Thursday to hold Attorney General Merrick Garland in contempt for not turning over audio recordings of the president and his ghostwriter speaking with special counsel Robert Hur for his investigation into President Joe Biden's handling of classified documents.

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Ex-Baltimore State's Atty Says 20-Month Sentence Too Harsh

By Emily Sawicki

Former Baltimore State's Attorney Marilyn Mosby has asked a federal judge to cut down prosecutors' requested 20-month prison sentence after she was convicted of abusing a COVID-19-era program to obtain money from a retirement fund and conning a lender to obtain a vacation home, arguing the proposal "stray[s] from the reality of this case."

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'We Feel It': NJ Ranks 2nd In Ch. 11 Cases, Chief Judge Says

By George Woolston

New Jersey federal courts saw the second most Chapter 11 bankruptcy filings in the nation over the last year, Chief U.S. District Judge Renée Marie Bumb of the District of New Jersey said on Friday.

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NJ Courts Chief Warns Plan To Pick Appeals Bench A 'Mistake'

By George Woolston

Chief Justice Stuart Rabner of the New Jersey Supreme Court on Friday defended how the state judiciary assigns appeals court judges, criticizing a proposal to move the power to appoint appellate judges from the chief justice to the state Senate and the governor's office.

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1st Circ. Rejects Ex-Immigration Judges' Bid For Asylum Redo

By Elliot Weld

The First Circuit's full bench refused to reopen a Salvadoran woman's case seeking asylum, despite former immigration judges weighing in to say that the judge who denied her asylum didn't follow a legal requirement to ensure her record was complete.

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Law360's Legal Lions Of The Week

By Kevin Penton

Haynes and Boone LLP and Lubin & Enoch PC lead this week's edition of Law360's Legal Lions, after the U.S. Supreme Court unanimously determined that federal courts do not have discretion to toss a case once it's decided that the claims belong in arbitration.

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GC Cheat Sheet: The Hottest Corporate News Of The Week

By Michele Gorman

The SEC adopted cybersecurity rules to require investment advisers and broker-dealers to put procedures in place for detecting data breaches and for notifying customers when their personal information may have been compromised, and lawyers said SPACs won't get sought-after relief from a new 1% tax on stock buybacks under a recent Treasury Department proposal. These are among the stories in corporate legal news you may have missed in the past week.

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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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Promo that reads Law360 2024 Titans of the Plaintiffs Bar Promo that reads Law360 Pulse 2024 AI Survey

LAW FIRMS IN TODAY'S NEWS

A&O Shearman

Ahdoot & Wolfson

Alioto Law Firm

Arnold & Porter

Bailey & Glasser

Baker Botts

Ballard Spahr

Bayard PA

Berry Silberberg

Boies Schiller

Bradley Arant

Buchalter APC

Burr & Forman

Bursor & Fisher

Cantey Hanger

Chimicles Schwartz

Clark Hill

Cleary Gottlieb

Clyde & Co

Commonwealth Law Group

Cooper Barton & Cooper

Cotchett Pitre

Covington & Burling

Cravath Swaine

Crowell & Moring

Davis Polk

Davis Wright Tremaine LLP

Debevoise & Plimpton

Dechert LLP

DiCello Levitt

Duane Morris

Duffy & Young

Edelsberg Law

Feldman Shepherd

Fenwick & West

Fine Kaplan

Gibbons PC

Gibson Dunn

Goodwin Procter

Hagens Berman

Haynes & Boone

Hilliard & Shadowen

Hogan Lovells

Holland & Knight

Jones Day

Kaliel Gold

Kaplan Marino

Keller Rohrback

Kellogg Hansen

King & Spalding

Kirkland & Ellis

Latham & Watkins

Law Offices of Todd M. Friedman

Lewis Baach

Linklaters LLP

Locke Lord

Lubin & Enoch

Manatt Phelps

Matthew G. Miller PC

Mayer Brown

McCune Wright

McDermott Will & Emery

McGuireWoods

Migliaccio & Rathod

Miller Canfield

Moore & Van Allen

Morgan Lewis

NechelesLaw

Nelson Mullins

Paul Hastings

Pillsbury Winthrop

Poole Huffman

Pryor Cashman

Rathje Woodward

Ropes & Gray

Saveri & Saveri

Schertler Onorato

Seila Law

Shamis & Gentile

Simon & Simon PC

Skadden Arps

Skiermont Derby

Squire Patton

Sullivan & Cromwell

Susman Godfrey

The Miller Law Firm PC (Rochester, MI)

Tousley Brain

Troutman Pepper

Trump Alioto

Van Winkle Law Firm

Weil Gotshal

Willkie Farr

Wittels McInturff

Zelle LLP

de Castro PC

COMPANIES IN TODAY'S NEWS

Albertsons Cos. Inc.

Align Technology Inc.

Allianz SE

Amazon.com Inc.

American Academy of Pediatrics

American Bankers Association

American Bar Association

Apple Inc.

Atlantic Global Insurance Services

BHP Group PLC

BP PLC

Bain & Co. Inc.

Bank of America Corp.

Beam Suntory Inc.

Bed Bath & Beyond Inc.

Blackbaud Inc.

Brennan Center for Justice

C&S Wholesale Grocers

CVS Health Corp.

Change Healthcare Inc.

Citigroup Inc.

Comcast Corp.

Community Financial Corp.

Consumer Bankers Association

Enel SpA

Epic Games Inc.

Exxon Mobil Corp.

Federalist Society

Getty Images Inc.

Gilead Sciences Inc.

Google LLC

HSBC Holdings PLC

Huge Inc.

Invitae Corp.

Johnson & Johnson

LG Chem Ltd.

LG Electronics Inc.

LG Energy Solution Ltd.

Mercedes-Benz USA LLC

Meta Platforms Inc.

Microsoft Corp.

NASDAQ Inc.

National Telephone Cooperative Association

Netflix Inc.

New Civil Liberties Alliance

New Jersey State Bar Association

New York University

Overstock.com Inc.

Permira

Rhapsody International Inc.

Rite Aid Corp.

Ryan LLC

S&P Global Inc.

Seattle University

Snap Inc.

Spotify Technology SA

StubHub Inc.

Tesla Inc.

Teva Pharmaceutical Industries Ltd.

The Catholic University of America

The Kroger Co.

The New York Times Co.

The Royal Bank of Scotland Group PLC

Thrasio Holdings Inc.

Trump Organization Inc.

U.S. Chamber of Commerce

UBS Group AG

UnitedHealth Group Inc.

Walmart Inc.

WeWork Inc.

Wolters Kluwer

GOVERNMENT AGENCIES IN TODAY'S NEWS

Centers for Disease Control and Prevention

Competition and Markets Authority

Connecticut Attorney General's Office

Connecticut Department of Banking

Consumer Financial Protection Bureau

Equal Employment Opportunity Commission

European Union

Executive Office of the President

Federal Bureau of Investigation

Federal Communications Commission

Federal Deposit Insurance Corp.

Federal Judicial Center

Federal Reserve System

Federal Trade Commission

Maine Department of Environmental Protection

Manhattan District Attorney's Office

National Institutes of Health

New Jersey Supreme Court

New York Department of Financial Services

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

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

U.S. Consumer Product Safety Commission

U.S. Court of Appeals for the Federal Circuit

U.S. Court of Appeals for the First Circuit

U.S. Court of Appeals for the Ninth Circuit

U.S. Court of Appeals for the Second Circuit

U.S. Department of Health and Human Services

U.S. Department of Justice

U.S. Department of Labor

U.S. Department of the Treasury

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

U.S. District Court for the District of Columbia

U.S. District Court for the District of Delaware

U.S. District Court for the District of Maryland

U.S. District Court for the District of Massachusetts

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

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

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

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

U.S. Environmental Protection Agency

U.S. Postal Service

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

United States District Court for the District of Colorado