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Banking
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June 23, 2025
GOP Plan For Merging Agencies Faces Reckoning, And Alarm
The Senate parliamentarian has given a thumbs-down to a Republican budget proposal that would allow President Donald Trump to unilaterally eliminate agencies through mergers and consolidation, adding to what experts say are a host of problems with the little-noticed provision.
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June 23, 2025
Muddy Waters Must Face Suit Over $14M SEC Tipster Award
Investment research service Muddy Waters LLC and its founder cannot escape a lawsuit alleging they stiffed a purported former partner out of his share of a $14 million whistleblower award from the U.S. Securities and Exchange Commission, a New York federal judge ruled Monday.
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June 23, 2025
Visa Defeats Class Claims Over Third-Party Gift Card Scams
A New York federal judge on Monday threw out a proposed class action accusing Visa of knowingly peddling gift cards that are susceptible to scams, ruling that "no reasonable consumer would fail to recognize the possibility that a gift card they bought may be subject to a third-party scam."
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June 23, 2025
Fed Joins Peers In Axing Reputational Risk As Exam Factor
The Federal Reserve Board on Monday became the latest regulator to announce that it will no longer consider reputational risk in its examination programs for the supervision of banks.
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June 23, 2025
Binance Agrees To Shutter Conn. Trading Operations
Crypto platform Binance has agreed to shut down the Connecticut operations of its U.S. subsidiary BAM Trading Services Inc. after a majority owner of the company was convicted of money laundering and also admitted to violating state statutes, according to a new consent order.
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June 23, 2025
NC Judge Axes Trucking Co.'s Noncompete For Overreach
A North Carolina state court judge has truncated a freight factoring company's suit accusing its former client services supervisor of luring clients to a competing business, finding that the complaint fell short of identifying the allegedly stolen trade secrets and that the former employee's noncompete is too broad to be enforced.
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June 23, 2025
Wolfspeed To File Ch. 11 With Plan To Cut $4.6B Debt
Semiconductor manufacturer Wolfspeed Inc. said it plans to file for Chapter 11 bankruptcy in the near future as part of a restructuring plan to reduce its total debt by approximately 70%, which is approximately $4.6 billion.
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June 23, 2025
CFPB, MoneyLion Ask To Pause Suit For Settlement Talks
The Consumer Financial Protection Bureau and MoneyLion Technologies Inc. are in talks to settle the agency's lawsuit accusing the fintech lender of overcharging military service members, according to a filing in New York federal court.
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June 23, 2025
Shift4 Buying New Zealand Fintech Smartpay In $180M Deal
Allentown, Pennsylvania-based payments company Shift4 has agreed to acquire Smartpay, an independent provider of payment processing solutions in Australia and New Zealand, for NZ$296.4 million ($180 million).
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June 23, 2025
Ohio Debt Collector Calls Robocall Claims Too Thin To Pursue
A debt collection agency in Marietta, Ohio, asked a federal judge to toss part of a proposed class action brought against it for allegedly violating the Telephone Consumer Privacy Act by placing unsolicited robocalls to debtors, saying the suit failed to allege that the company actually used automatic calling systems.
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June 23, 2025
Catching Up With Delaware's Chancery Court
The Delaware Supreme Court reversed a year-old $199 million judgment against TransCanada in a suit challenging a merger that occurred nearly a decade ago, Aspen Technology Inc. was hit with another suit over its pending $7.2 billion merger with Emerson Electric, and Nielson Holdings Ltd. secured a temporary restraining order against its spinoff. In case you missed it, here's the latest from the Delaware Chancery Court.
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June 23, 2025
Crypto Exec Seeks 5th Circ. Redo Over IRS Summonses
A cryptocurrency executive asked the Fifth Circuit to reconsider his request to quash IRS summonses for his bank records, saying its decision that he was prematurely trying to appeal a lower court's ruling ignored his claims that the agency's documents were incomplete and lacked legal power.
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June 20, 2025
6th Circ. Upends Flagstar Bank Win In Overdraft Fees Suit
The Sixth Circuit on Friday undid Flagstar Bank's win against a putative consumer protection class action accusing it of charging customers surprise overdraft fees, saying in an unpublished opinion that a rational factfinder could possibly conclude that the bank breached its terms and conditions.
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June 20, 2025
Trump Inks Rollback Of Biden-Era OCC Bank Merger Rule
President Donald Trump on Friday signed legislation nullifying the Office of the Comptroller of the Currency's Biden-era bank merger rule, clinching a Republican campaign to overturn what industry groups criticized as an overly restrictive and unclear framework for reviewing proposed transactions.
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June 20, 2025
Democrats Probe Credit Union Board's Authority After Firings
Top Democrats on Friday questioned the National Credit Union Administration's chairman about his authority to run the agency solo since President Donald Trump fired the agency's other two board members, raising concerns about the legality of recent agency actions.
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June 20, 2025
Healthcare Suit Financer Faces New Suit Over Data Breach
Omni Healthcare Financial, which provides financial services to healthcare companies facing personal injury suits, has been hit with a fresh proposed class action alleging it allowed hackers access to health records and other personal information of more than 16,000 individuals in a data breach last year.
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June 20, 2025
Legal And Finance Influencer To Settle Over FTX Promotion
Attorney and personal finance influencer Erika Kullberg and the talent agency she founded have reached a deal with FTX investors over their alleged roles promoting the now-collapsed crypto exchange.
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June 20, 2025
Walmart Shells Out $10M To Resolve FTC Money Transfer Suit
Walmart has agreed to pay $10 million to put to rest the Federal Trade Commission's allegations that the retailer "turned a blind eye to scammers" who facilitated fraud through its money transfer services, according to an announcement made Friday.
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June 20, 2025
8th Circ. Sends SEC's $12M Dealer Suit Back To District Court
The Eighth Circuit on Friday granted a request from the U.S. Securities and Exchange Commission to remand a $12 million unregistered dealer judgment the agency won against financial firm Carebourn Capital LP back to the district court, despite Carebourn's bid to keep the matter in the federal appeals court.
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June 20, 2025
Senate's CFPB, PCAOB Cuts Hit Parliamentarian Roadblock
The U.S. Senate parliamentarian has thrown cold water on the Senate Banking Committee's bids to defund the Consumer Financial Protection Bureau and eliminate the Public Company Accounting Oversight Board as part of the "One Big Beautiful" budget megabill, but the panel's top Republican is vowing to keep seeking further spending cuts.
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June 20, 2025
Apple Opposes Class Cert. Bid In Mobile Wallet Monopoly Suit
Apple Inc. has pushed back against a bid for class certification in a suit accusing it of unlawfully monopolizing the "tap and pay" mobile wallet market for its own devices by blocking competition, saying the bid does not offer common evidence to support the plaintiffs' various claims.
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June 20, 2025
Wells Fargo Escapes Ex-Worker's Suit Over 401(k) Forfeitures
Wells Fargo defeated a proposed class action claiming it unlawfully used forfeited 401(k) funds to offset its own contributions instead of covering retirement plan expenses, as a Minnesota federal judge said the plan didn't require the company to pay for elective services.
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June 18, 2025
OCC Orders Earnings, Strategy Overhaul For 'Troubled' Carver
Carver Federal Savings Bank, one of the nation's largest Black-led banks, has agreed to undertake new strategic planning and efforts to improve its earnings in response to regulatory concerns flagged by the Office of the Comptroller of the Currency.
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June 18, 2025
NY Prosecutors Seize Crypto Linked To Social Media Scams
New York Attorney General Letitia James on Wednesday said her office and the Brooklyn District Attorney's Office collaborated to seize and freeze $440,000 worth of cryptocurrency that was stolen via Facebook scams targeting Russian-speaking communities in the city and beyond.
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June 18, 2025
BofA Judge Doubts Class Certification Bid In Unpaid PTO Suit
A California federal judge doubted Wednesday whether a named plaintiff can adequately represent a proposed class of Bank of America employees who claim they weren't paid for unused vacation time when they left the bank, observing during a hearing that her individualized issues "could make her very differently situated."
Expert Analysis
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When Legal Advocacy Crosses The Line Into Incivility
As judges issue sanctions for courtroom incivility, and state bars advance formal discipline rules, trial lawyers must understand that the difference between zealous advocacy and unprofessionalism is not just a matter of tone; it's a marker of skill, credibility and potentially disciplinary exposure, says Nate Sabri at Perkins Coie.
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Two Bills Promise A Crypto Revamp, But Not A Done Deal Yet
Recent efforts in Congress toward an updated regulatory framework for digital assets have led to two bills — the GENIUS Act and the CLARITY Act — that represent the most consequential legislative developments yet in the push for coherent, pro-innovation, reliable regulation for the industry, but both face multiple hurdles, says Mike Katz at Manatt.
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2 NY Rulings May Stem Foreign Co. Derivative Suits
In recent decades, shareholders have challenged the internal affairs doctrine by bringing a series of derivative actions in New York state court on behalf of foreign corporations, but the New York Court of Appeals' recent rulings in Ezrasons v. Rudd and Haussmann v. Baumann should slow that trend, say attorneys at Cleary.
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Despite Rule Delay, FTC Scrutiny Looms For Subscriptions
Even though the Federal Trade Commission has delayed its click-to-cancel rule that introduces strict protocols for auto-renewing subscriptions, businesses should expect active enforcement of the new requirements after July, and look to the FTC's recent lawsuits against Uber and Cleo AI as warnings, say attorneys at Holland & Knight.
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AGs Take Up Consumer Protection Mantle Amid CFPB Cuts
State attorneys general are stepping up to fill the enforcement gap as the Trump administration restructures the Consumer Financial Protection Bureau, creating a new regulatory dynamic that companies must closely monitor as oversight shifts toward states, say attorneys at Cozen O’Connor.
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Va.'s Altered Surcharge Law Poses Constitutional Questions
Virginia's recently amended consumer protection law requiring sellers to display the total price rather than expressly prohibiting surcharges follows New York's recent revision of its antisurcharge statute and may raise similar First Amendment questions, says attorneys at Stinson.
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Series
Volunteering At Schools Makes Me A Better Lawyer
Speaking to elementary school students about the importance of college and other opportunities after high school — especially students who may not see those paths reflected in their daily lives — not only taught me the importance of giving back, but also helped to sharpen several skills essential to a successful legal practice, says Guillermo Escobedo at Constangy.
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Fed's Crypto Guidance Yank Could Drive Innovation
The Federal Reserve Board's recent withdrawal of guidance letters brings regulatory consistency and broadens banks' ability to innovate in the crypto-asset space, but key distinctions remain between the Fed's policy on crypto liquidity and that of the other banking regulators, says Dan Hartman at Nutter.
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Attacks On Judicial Independence Tend To Manifest In 3 Ways
Attacks on judicial independence now run the gamut from gross (bald-faced interference) to systemic (structural changes) to insidious (efforts to undermine public trust), so lawyers, judges and the public must recognize the fateful moment in which we live and defend the rule of law every day, says Jim Moliterno at Washington and Lee University.
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OCC's Digital Embrace Delivers Risk, Opportunity For Banks
As the Office of the Comptroller of the Currency continues to release and seek more information on banks' participation in the crypto-asset arena, institutions may see greater opportunity to pursue digital asset and custody services, but must simultaneously educate themselves on transformations occurring throughout the industry, says Kirstin Kanski at Spencer Fane.
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Remediation Still Reigns Despite DOJ's White Collar Shake-Up
Though the U.S. Department of Justice’s recently announced corporate enforcement policy changes adopt a softer tone acknowledging the risks of overregulation, the DOJ has not shifted its compliance and remediation expectations, which remain key to more favorable resolutions, say Jonny Frank, Michele Edwards and Chris Hoyle at StoneTurn.
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Series
Law School's Missed Lessons: Appreciating Civil Procedure
If you’re like me, law school’s often complex and theoretical approach to teaching civil procedure may have contributed to an early struggle with the topic, but when seen from a practical perspective, new lawyers may find they enjoy mastering these rules, says Chloe Villagomez at Foster Garvey.
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Section 899 Could Be A Costly Tax Shift For US Borrowers
Intended to deter foreign governments from applying unfair taxes to U.S. companies, the proposal adding new Section 899 to the Internal Revenue Code would more likely increase tax burdens on U.S. borrowers than non-U.S. lenders unless Congress limits its scope, says Michael Bolotin at Debevoise.
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Calif. Bar Exam Fiasco Shows Why Attys Must Disclose AI Use
The recent revelation that a handful of questions from the controversial California bar exam administered in February were drafted using generative artificial intelligence demonstrates the continued importance of disclosure for attorneys who use AI tools, say attorneys at Troutman.
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The State Of Play For Bank Merger Act Applications
Both the Office of the Comptroller of the Currency's recent reversal of changes to its bank merger policies and the Federal Deposit Insurance Corp.'s rescission of its 2024 statement may be relevant for all banks considering a transaction, as responsibility for review depends on the identity of the parties and the transaction structure, say attorneys at Davis Polk.