Compliance

  • January 23, 2020

    BREAKING: 'Murderer' Insys Founder Gets 5½ Years

    Insys Therapeutics Inc. founder John Kapoor was sentenced to more than five years behind bars Thursday as victims decried him as a “mobster” and “murderer” who devastated countless families by bribing doctors to prescribe a powerful opioid spray.

  • January 23, 2020

    Wells Fargo Ex-CEO Fined $17.5M For Role In Sales Scandal

    The Office of the Comptroller of the Currency said Thursday that it is bringing enforcement actions against five former Wells Fargo executives and has reached settlements with three others over their alleged roles in the bank’s sales practices scandal, including a $17.5 million fine for former CEO John Stumpf.

  • January 23, 2020

    Paul Hastings, Kirkland Lead Moody's $700M Deal For RDC

    Moody’s Corp. said Thursday it plans to buy Regulatory DataCorp., which provides risk and compliance intelligence, data and software, from Vista Equity Partners for $700 million, in a deal led by Paul Hastings and Kirkland. 

  • January 23, 2020

    EPA Narrows Federal Oversight Of Water Pollution

    The Trump administration on Thursday officially narrowed the federal government's permitting authority under the Clean Water Act, in a final rewrite of a rule that replaces a controversial and broader Obama-era policy the president already rescinded.

  • January 23, 2020

    Insys VP Who Dressed As Dancing Opioid Gets 2 Years

    Former Insys Therapeutics Inc. Vice President Alec Burlakoff, infamous for dressing as an anthropomorphic bottle of fentanyl spray and rapping about titration in a sales video, was sentenced Thursday to 26 months in prison for his role in a conspiracy to bribe doctors to prescribe opioids.

  • January 22, 2020

    Telegram Calls SEC's $1.7B Suit 'Fundamentally Flawed'

    The U.S. Securities and Exchange Commission and Telegram took aim at each other's arguments in their blockbuster $1.7 billion face-off, with the messaging company saying there are "glaring" flaws in the agency's argument that the company engaged in an unregistered securities offering of its Gram tokens.

  • January 22, 2020

    DC Circ. Won't Reconsider EPA Pollution Policy Ruling

    The D.C. Circuit on Wednesday rejected a request by environmentalists and California to reconsider a split panel's ruling that courts can't review a U.S. Environmental Protection Agency memorandum rescinding its "once in, always in" air pollution permitting policy.

  • January 22, 2020

    Congress Weighs In On SEC Disgorgement Power Challenge

    Two dozen members of Congress told the U.S. Supreme Court on Wednesday that stripping the U.S. Securities and Exchange Commission's power to seek disgorgement in civil cases would upend decades of legislation and buck sound precedent undergirding the nation's securities laws.

  • January 22, 2020

    Wash. Orders Pet Insurers To Repay $4.7M For Overcharges

    Washington state’s insurance regulator has ordered two Chubb Ltd. pet insurance carriers to repay $4.7 million to thousands of policyholders who were overcharged on premiums and hit the insurers with a $950,000 fine.

  • January 22, 2020

    Comptroller Balks At Calls For Extra Time On Lending Rules

    The head of the Office of the Comptroller of the Currency said Wednesday that he is not inclined to give more time for the public to weigh in on a proposed overhaul of regulations requiring banks to lend in underserved communities, despite objections from Democratic lawmakers and advocacy groups that the rules changes are being rushed through.

  • January 22, 2020

    Trading Firm To Pay $1M To End Spoofing Probe

    An Australian trading firm will pay a total of $1 million to resolve spoofing claims and avoid criminal prosecution over an alleged yearslong market manipulation scheme by one of its former traders, the U.S. Department of Justice and the Commodity Futures Trading Commission said Tuesday.

  • January 22, 2020

    FCC Prods Major Music Producers On Payola Practices

    The Federal Communications Commission is continuing its effort to suss out how much payola impacts the music industry, as Commissioner Michael O'Rielly sent letters to music-making giants Sony, Universal and Warner Music Group to learn what they're doing to prevent the practice. 

  • January 22, 2020

    Former Toll Brothers GC Rejoins Cozen O'Connor

    An attorney who spent nearly two decades as an in-house lawyer and general counsel to Toll Brothers Inc. has returned to his roots at Cozen O’Connor, the firm announced Tuesday.

  • January 22, 2020

    Nutmeg Group's Ex-Compliance Chief Sanctioned Over Fraud

    A former chief compliance officer of defunct investment adviser The Nutmeg Group LLC must pay disgorgement after an Illinois federal judge said the inexperienced executive was responsible for the firm's flawed system and "literally had no idea what he was doing."

  • January 22, 2020

    DOJ Pauses $37.6M Suit Against Fugees Star Linked To 1MDB

    A D.C. federal judge on Tuesday let the federal government pause its forfeiture action seeking $37.6 million from a founding member of the renowned hip-hop group Fugees for his alleged participation in the multibillion-dollar 1Malaysia Development Berhad fraud scandal.

  • January 22, 2020

    Kik Ordered To Tell SEC About Recent Business Endeavors

    A Manhattan federal judge on Wednesday directed Kik Interactive Inc., a mobile messaging concern transitioning into cryptocurrency management, to provide the U.S. Securities and Exchange Commission with details about how its business has changed since 2018.

  • January 22, 2020

    Michigan, Tesla Cut Deal Ending Direct Sale Suit

    Tesla Inc. and the Michigan Attorney General's Office reached an agreement Wednesday that will end the electric car manufacturer's federal suit attacking a 2014 law that prevented it from selling vehicles directly to consumers in the state.

  • January 22, 2020

    DOT Cracks Downs On Emotional Support Animals On Flights

    Dogs would be the only service animals allowed in airplane cabins under a new proposed rule announced by the U.S. Department of Transportation on Wednesday, putting an end to passengers flying with so-called emotional support animals that in recent years have included birds, pigs and rodents.

  • January 22, 2020

    Former Eversheds Litigator Shaping IRS Enforcement Efforts

    As the IRS ramps up its enforcement on syndicated conservation easements, cryptocurrency transactions and microcaptive insurance arrangements, the efforts will be guided by a veteran Eversheds Sutherland litigator who once squared off against the agency over tax shelter transactions.

  • January 22, 2020

    GCs Must Brace For AI-Based Litigation Risks

    As in-house lawyers embrace artificial intelligence, they should get ahead of growing litigation risks by beefing up their compliance departments and preparing for breaches, according to a report released Wednesday by Crowell & Moring LLP.

  • January 22, 2020

    FERC Faces Heat Over State Clean Energy Subsidies Order

    Regional grid operator PJM Interconnection has headlined an onslaught of arguments that the Federal Energy Regulatory Commission stretched its authority too far in its recent order restricting the presence of state electricity programs in PJM's wholesale electricity auctions.    

  • January 22, 2020

    Senators Unveil Bill Requiring Vape Cos. To Pay FDA

    A bipartisan group of senators on Wednesday announced that they have introduced legislation that would mandate e-cigarette companies to pay user fees to the U.S. Food and Drug Administration to fund stronger oversight over the industry.

  • January 22, 2020

    Cooperating Insys CEO Gets 2½ Years In Prison

    Despite being a key witness in the government’s conviction of his onetime boss, former Insys Therapeutics Inc. CEO Michael Babich was sentenced to 2½ years in prison Wednesday for his role in an opioid bribery scheme — longer than two former colleagues who were convicted at trial. 

  • January 22, 2020

    Insys Exec Gets 1 Year As Atty Slams 'Salacious' Prosecution

    A former Insys Therapeutics Inc. sales manager who was recruited from a strip club to work for the troubled company was sentenced to a year and a day in prison on Wednesday for her role in an opioid kickback and fraud scheme as her attorney decried what he called the "salacious details" of the government's prosecution.

  • January 21, 2020

    Grayscale 1st Crypto Investor To Get SEC Reporting Co. Label

    Grayscale Bitcoin Trust has become the first "digital currency investment vehicle" to successfully reach the status of an SEC reporting company after its registration Form 10 with the U.S. Securities and Exchange Commission was deemed effective, Grayscale Investments said Tuesday.

Expert Analysis

  • Pro-Employer NLRB Rulings May Prompt Handbook Reviews

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    Three new National Labor Relations Board rulings that overturn Obama-era pro-worker precedents may indicate that now is a good time for employers to strengthen their workplace policies on nonbusiness email use, investigation confidentiality and union dues, say Charles Caulkins and Garrett Kamen at Fisher Phillips.

  • FTC-DOJ Vertical Merger Guide Aims To Boost Transparency

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    New draft guidelines from the U.S. Department of Justice and Federal Trade Commission clarify how the agencies will approach vertical merger inquiries and signal that parties will be held accountable for proving pro-competitive benefits, say former FTC acting commissioner Maureen Ohlhausen and Christine Ryu-Naya of Baker Botts.

  • Navigating Criminal Antitrust Inability-To-Pay Claims With DOJ

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    Due to the U.S. Department of Justice Antitrust Division's silence following recent guidance from the Criminal Division on inability-to-pay claims, counsel defending these claims should evaluate the Antitrust Division's historical approach in crediting cooperation, say attorneys at BakerHostetler.

  • Nissan Ex-CEO Illustrates Do's And Don'ts Of Image Repair

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    Lawyers can draw a number of useful lessons about reputation management from the efforts of former Nissan executive Carlos Ghosn — who recently escaped house arrest in Tokyo — to restore his sullied reputation, says Elizabeth Ortega at ECO Strategic Communications.

  • What To Know Before Enforcing A Nicotine-Free Workplace

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    U-Haul’s recent policy banning the hire of nicotine users provides an opportunity for employers to consider the potential legal ramifications of such a move and other options for encouraging a healthier workforce, say attorneys at McDermott.

  • HIPAA Compliance Lessons From 2019 Enforcement Trends

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    Although 2019 was a comparatively quiet year for Health Insurance Portability and Accountability Act enforcement, the U.S. Department of Health and Human Services' Office for Civil Rights is still prioritizing the HIPAA security rule and right of access claims, and is not afraid to impose civil money penalties or take action against smaller providers, says Dena Castricone of DNC Law.

  • Reining In Runaway Loss Calculations For Procurement Fraud

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    In criminal prosecutions of procurement fraud cases involving set-aside contracts, prosecutors frequently argue that the victim’s loss is the total face value of the wrongfully awarded contracts, but this reasoning cannot survive basic scrutiny, say David Chaiken and Tiffany Bracewell at Troutman Sanders.

  • Takeaways From Exxon’s Winning OFAC Penalty Challenge

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    A recent Texas federal court decision overturning a $2 million Office of Foreign Assets Control fine against Exxon provides insight into OFAC's enforcement of complex sanctions and when its practices may not provide proper notice to companies subject to U.S. sanctions, say Aaron Hutman and Zachary Rozen at Pillsbury.

  • How OFCCP's Systemic Discrimination Audit Proposal Is Flawed

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    The Office of Federal Contract Compliance Programs' recently proposed new rule, laying out statistical thresholds for finding systemic discrimination, would implement a problematic method of statistical analysis and notice provisions that may provide government contractors inadequate time to respond, say Chris Wilkinson and Necia Hobbes at Orrick.

  • DOJ's Trade Security Reporting Policy Boosts Transparency

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    Recent guidance from the U.S. Department of Justice's National Security Division on the voluntary self-disclosure part of its sanctions and export controls enforcement program continues the DOJ’s movement toward increased transparency, but leaves unanswered questions about how the policy will be applied in practice, say attorneys at Paul Hastings.

  • Courts' Deference To DOL Joint Employer Rule Is Up In The Air

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    Employers should use the U.S. Department of Labor’s narrowed standard for determining joint employer status under the Fair Labor Standards Act as a guidepost until federal courts weigh in on whether and to what extent they will defer to the new rule, say Alexander Passantino and Kevin Young at Seyfarth.

  • Iran Airspace Bans May Lead To EU Passenger Claims

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    After the recent killing of Qasem Soleimani and the downing of Ukraine International Airlines Flight 752, the commercial aviation sector must consider how resulting restrictions on air travel may affect passenger compensation claims under European Union rules, says James Jordan of Holman Fenwick.

  • Key Trends In Energy Antitrust Enforcement And Litigation

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    Antitrust agencies and private litigants continued to focus on the energy industry in 2019, and new antitrust policy initiatives announced by the U.S. Department of Justice last year will offer energy companies opportunities to avoid prosecution in certain cases, say attorneys at Vinson & Elkins.

  • Don't Let Moonlighting Undermine Employment Visa Status

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    Employees with nonimmigrant visas should be educated about the parameters of lawful U.S. employment because they may not know that earning extra income through a side gig could render them ineligible for permanent residence down the road, say Douglas Halpert and Jessica Cadavid at Hammond Law Group.

  • Climate Law Brings Challenges For NYC Co-Ops And Condos

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    New York City's Climate Mobilization Act leaves several unanswered questions for co-ops and condos, such as what will happen to buildings with rent-regulated units, how buildings will pay for compliance costs, and how building owners will divide CMA responsibilities with tenants, says William McCracken of Ganfer Shore.