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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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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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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Klobuchar Reintroduces Sweeping Antitrust Reform Bill

By Lauren Berg

Sen. Amy Klobuchar, D-Minn., reintroduced sweeping legislation Thursday aimed at restoring competition by strengthening antitrust laws to help enforcers better deal with harmful conduct and mergers, garnering support from the American Antitrust Institute, Consumer Reports and others.

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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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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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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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Ex-Pharma Exec Cops To Contempt For Barred Finance Work

By Brian Dowling

A Boston federal judge on Thursday accepted a former pharmaceutical company executive's guilty plea to a criminal contempt charge for using an alias to work on a finance venture despite a U.S. Securities and Exchange Commission ban.

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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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Prosecutors Say Fake Fortune 500 Workers Funded N. Korea

By Alyssa Aquino

The Biden administration alleged that North Korea may have raised $6.8 million to develop nuclear weapons by installing remote information technology workers at Fortune 500 businesses, announcing charges Thursday against two individuals accused of helping agents pose as U.S. employees.

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DOL Unveils Long-Delayed Abandoned Retirement Plan Rules

By Jeff Montgomery

After being sidelined for more than a decade, a plan for expanding U.S. Department of Labor rules for terminating retirement plans abandoned by employers are moving forward again, the agency reported Thursday, along with a long-delayed role in the process for bankruptcy trustees.

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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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Meta Hit With EU Probe Over Child Safety Concerns

By Eddie Beaver

Meta was hit on Thursday with an investigation by the European Commission over concerns its Facebook and Instagram services could promote addictions in children.

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FTC Deputy Director Rao On Healthcare Antitrust Agenda

By Yeji Jesse Lee

The reason behind the Federal Trade Commission's changed attitude toward antitrust in healthcare in recent years isn't simple, according to Rahul Rao, deputy director of the FTC's Bureau of Competition.

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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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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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Biden Admin Proposes To Loosen Restrictions On Marijuana

By Sam Reisman

President Joe Biden on Thursday announced that his administration has formally recommended relaxing restrictions on marijuana, marking the most significant federal policy shift on cannabis since the drug was criminalized more than 50 years ago.

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Treasury Provides Extra Relief For Bonus Energy Tax Credits

By Kat Lucero

The U.S. Treasury Department provided additional safe harbors Thursday that clean energy project developers can use to qualify for bonus tax credits for domestically sourcing their steel and aluminum parts in response to the Biden administration's new trade restrictions on solar products from China.

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African Tax Admins Promote Use Of Voluntary Disclosures

By Jack McLoone

Voluntary disclosure programs have been very effective when countries launch them in anticipation of complying with an international standard on automatic exchanges of financial account information, the African Tax Administration Forum said Thursday in guidance on the programs.

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Firm Seeks To Force IRS To Process Worker Retention Credits

By Anna Scott Farrell

A tax advisory firm helping businesses apply for the pandemic-era employee retention credit has asked an Arizona federal court to force the IRS to resume processing claims, saying the moratorium in place since September violates the Administrative Procedure Act.

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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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DC Circ. Mulls Rolling Back Pipeline Safety Regs Over Cost

By Nadia Dreid

The industry group challenging a handful of pipeline safety standards told a D.C. Circuit panel on Thursday that there will be "no fight" between it and the government on one of the regulations if the court simply rules that two terms that the agency maintains have the same definition do mean the same thing.

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Oil & Gas Groups Challenge DOI Overhaul Of Leasing Regs

By Madeline Lyskawa

A coalition of oil and gas groups has slapped the U.S. Department of the Interior with a lawsuit in Wyoming federal court seeking to unravel the agency's final rule boosting bonding requirements, royalty rates and minimum bids for its onshore federal oil and gas leasing program.

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New BLM Plans Sunset Federal Coal Leasing In Wyo., Mont.

By Keith Goldberg

The U.S. Bureau of Land Management on Thursday unveiled court-ordered, revised resource management plans for coal-rich areas of Montana and Wyoming that end future coal leasing in the regions, a move blasted by congressional representatives of those states.

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Convicted Insurance Mogul Says He'll Trim Empire

By Travis Bland

Convicted insurance mogul Greg Lindberg told the North Carolina Supreme Court he's relinquishing control of portions of his enterprise to fulfill a deal to restructure them with independent oversight, according to court filings.

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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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Novel Applications May Fizzle After Fed Master Account Wins

Two recent federal court rulings that upheld decisions denying master account applications from two fintech-focused banks are noteworthy for depository institutions with novel charters that wish to have direct access to the Federal Reserve's payment channels and settle transactions in central bank money, say attorneys at Davis Polk.

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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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BCLP Sues St. Louis Over City Taxes On Partners' Income

By Kevin Penton

Bryan Cave Leighton Paisner LLP is suing St. Louis, Missouri, after the Midwestern city accused the firm of being delinquent on nearly $275,000 in earnings taxes, contending the municipality unlawfully taxed partners who don't live in the city, according to its court filing.

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Calif. Bar Halts Plans To Develop New Bar Exam

By Ryan Boysen

The State Bar of California has shelved a plan to develop its own online bar exam, a shift that could save the cash-strapped organization up to $4 million per year, but drew opposition from law school deans concerned about its ambitious rollout timeline.

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'That Is A Lie!' Trump Atty Assails Cohen In Fraud Trial Cross

By Frank G. Runyeon and Stewart Bishop

Donald Trump's lawyer lashed out at central prosecution witness Michael Cohen on Thursday during a second day of cross-examination in New York state's criminal fraud case, attacking his credibility and key testimony linking Trump to crimes.

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Coverage Recap: Day 14 Of Trump's NY Hush Money Trial

By Stewart Bishop

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 Thursday, day 14 of the trial.

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Democrats Prod Justice Thomas on RV Loan, Tax Treatment

By Anna Scott Farrell

Two Senate Democrats have asked U.S. Supreme Court Justice Clarence Thomas' attorney to respond to what they called a failure to answer their questions about the justice's $267,000 loan from a healthcare industry executive to finance a luxury recreational vehicle, saying the loan treatment could have violated federal tax laws.

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Investigate Pro-Gaza Reddit Post, GOP Pols Tell USPTO

By Andrew Karpan

An anonymous Reddit post purportedly from a patent examiner confessing "mixed feelings" about issuing a patent to an Israeli defense contractor, citing the country's ongoing bombardment of Gaza, has attracted the attention of Republicans in Congress and the director of the U.S. Patent and Trademark Office herself.

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Senate Confirms South Dakota State Judge To Federal Bench

By Courtney Bublé

The Senate voted 90-4 on Thursday to confirm Judge Camela C. Theeler to the District of South Dakota.

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Menendez Bribery Case Criminalizes Gifts, Jury Told

By Carla Baranauckas

Prosecutors are trying to criminalize friendship, gifts and advocacy, the counsel for one of U.S. Sen. Robert Menendez's co-defendants said Thursday in an opening statement in the corruption trial in Manhattan federal court.

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Judge Calls Out 'Cancel Culture' In Prof's Suit Against Penn

By P.J. D'Annunzio

A Pennsylvania federal judge said University of Pennsylvania leaders embraced "cancel culture" when they chastised an anthropology professor for handling remains from the 1985 MOVE house bombing in Philadelphia, allowing the professor's defamation case against the school to move forward.

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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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Roche Freedman Gets Split Ruling On Witnesses In Atty's Suit

By Andrea Keckley

A New York federal judge has issued a split decision on witness testimony in a dispute over the litigation boutique formerly called Roche Freedman.

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11th Circ. Tries To Untangle Aftermath Of Judge's Early Exit

By Ivan Moreno

An Eleventh Circuit panel on Thursday quizzed attorneys for rival breeders of disease-resistant shrimp about whether a $10 million trade-secrets jury verdict should be overturned after a federal magistrate judge presided over the trial's ending because a federal district judge had to catch a flight, with one of the panel judges saying the parties had been put "in a very difficult position."

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6th Circ. Still Won't Rethink Sanctions Against Trump Attys

By Henrik Nilsson

The Sixth Circuit on Thursday once again denied a bid from former Trump campaign lawyer Sidney Powell and other attorneys to reconsider sanctions issued against them after they challenged the 2020 presidential election results in Michigan, holding that the attorneys must seek permission for future filings given their history of "meritless motions."

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