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Compliance
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July 21, 2025
Man Tweaks Suit Over Gun Purchase Ban Tied To Pot Conviction
A man who claims he was wrongly denied the right to buy a gun despite his four-decades-old marijuana felony being expunged has tweaked his legal efforts, dropping the FBI and the Bureau of Alcohol Tobacco, Firearms and Explosives as defendants in his lawsuit in Kansas federal court.
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July 21, 2025
Nonprofits Take Aim At New HUD Grant Rules
A coalition of nonprofit groups filed suit Monday in Rhode Island federal court, challenging new conditions for U.S. Department of Housing and Urban Development grants that target diversity, equity and inclusion programs; abortion access; and transgender individuals.
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July 21, 2025
CFPB Ends VyStar Consent Order After $1.5M Penalty Paid
The Consumer Financial Protection Bureau disclosed Monday that it has ended another Biden-era consent order, this time with VyStar Credit Union, which the agency said has paid the seven-figure penalty that was imposed against it last year.
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July 21, 2025
House GOP Would Cut SEC Funds, Curb Cyber Breach Rule
House Republicans are seeking to cut the U.S. Securities and Exchange Commission's budget by 7% in the upcoming fiscal year, presenting a plan that could also undercut a Biden-era regulation requiring publicly traded companies to quickly report cybersecurity breaches.
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July 21, 2025
BitGo, Bullish Join Crypto IPO Wave With Filings
Cryptocurrency custodian BitGo and venture-backed crypto exchange Bullish have both filed with the U.S. Securities and Exchange Commission to go public, marking an increasing number of crypto-related companies that are eyeing public listings in the current favorable regulatory regime under President Donald Trump.
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July 21, 2025
Not Enough Similarities To Apply DOJ Ad Tech Win: Google
Google urged a New York federal judge not to let website publishers, advertisers and others lock the company into the Justice Department's win in a separate Virginia federal court monopolization lawsuit over its advertising placement technology business, arguing the cases have key differences in facts and circuit standards.
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July 21, 2025
FinCEN Gives Investment Advisers Reprieve On AML Rule
The U.S. Department of the Treasury has pushed back the compliance date for a rule requiring investment advisers to report suspicious activity to the Financial Crimes Enforcement Network while it weighs the future of the Biden-era regulation.
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July 21, 2025
Crypto-Based Polymarket Sets US Return With Exchange Deal
Prediction market platform Polymarket said Monday it's returning to the U.S. with the acquisition of a registered derivatives exchange, a planned reentry that comes after a recently closed FBI investigation and a 2022 civil regulatory settlement that sent it offshore in the first place.
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July 21, 2025
Ky. AG Sues Temu For 'Stealing' User Data
Kentucky Attorney General Russell Coleman has brought a lawsuit in state court against Chinese bargain-shopping app Temu, accusing it of illegally "stealing" customer data without their knowledge and allowing the Chinese Communist Party to access the information.
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July 21, 2025
Lawmakers' Plan To Target Bid Protesters Seen As Unfounded
Congress's quest to deter frivolous protests from companies that fail to win Pentagon contracts exposes a gap between lawmakers and attorneys who refute the problem, and worry that small businesses that get penalized could get shut out of the procurement process.
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July 21, 2025
Energy Litigation To Watch In The 2nd Half Of 2025
Courtroom showdowns between the Trump administration and blue states over U.S. energy and climate change policy will dominate the energy litigation landscape for the rest of 2025. Here is what the energy industry will be watching closely in the second half of the year.
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July 21, 2025
Catching Up With Delaware's Chancery Court
Last week at the Delaware Court of Chancery, a major settlement between Meta Platforms Inc. and its investors reached on the proverbial courthouse steps during day two of a trial ended an $8 billion-plus suit accusing the company's directors and officers of breaching privacy regulations and corporate fiduciary duties tied to allegations dating to the Cambridge Analytica scandal more than a decade ago.
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July 21, 2025
Tax-Lien Biz Atty Tells Jury He Didn't Seek To Dupe Lender
Counsel for a former compliance lawyer accused of pilfering from a $20 million line of credit extended to his tax-lien investment firm told a Manhattan federal jury Monday that the defendant was "sloppy," but never intended fraud.
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July 21, 2025
COVID-19 Fraudster Can Keep His Pension, Conn. Judge Says
A former Connecticut firefighter who pled guilty in connection with a COVID-19 relief fund scam can keep the pension he earned through 26 years of service, a state trial court judge has ruled, pointing to the employee's otherwise clean record and comparatively lesser role in the scheme.
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July 21, 2025
Trade Court Hits Importer With $3.4M Penalty Over Fraud
U.S. Customs and Border Protection is due to collect more than $2.4 million in duties plus interest and a $3.4 million civil penalty after the U.S. Court of International Trade determined in a recent opinion that a California-based importer falsely reported Chinese mattress springs were imported from Thailand.
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July 21, 2025
Ex-ComEd CEO Gets 2 Years For Burying Madigan Bribes
The former CEO of Commonwealth Edison and later Exelon Utilities was sentenced to two years in prison Monday for a scheme to pay millions to associates of ex-Illinois House Speaker Michael Madigan to secure his support for major energy legislation, and for hiding the nature of those payments to circumvent the company's internal accounting controls.
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July 21, 2025
EPA Asks 9th Circ. To Reverse Calif. Judge In Fluoride Suit
The U.S. Environmental Protection Agency is asking the Ninth Circuit to reverse a California federal judge who ruled that the EPA's current "optimal" level of fluoride in drinking water poses an unreasonable risk of lowering children's IQ.
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July 21, 2025
Feds Want Early Out For Bank In $3M Redlining Case
The government told a Pennsylvania federal judge on Monday that a bank it previously accused of discriminatory lending should be released from court oversight because it fulfilled the bulk of its obligations stemming from an approximately $3 million settlement.
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July 21, 2025
4th Circ. Reverses Portion Of Railroads' Broadband Suit
The Fourth Circuit has ruled that the Association of American Railroads has standing to challenge a Virginia state law requiring railroads to allow for broadband crossings, reversing a trial court decision and dealing another blow to a law that the Virginia Supreme Court already gutted on state constitutional grounds in May.
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July 21, 2025
CME Group, NYMEX Dodge Carbon Futures Suit
A New York federal judge has tossed a suit brought by three investment funds against CME Group Inc. and the New York Mercantile Exchange, alleging they improperly interpreted and failed to enforce rules governing carbon offset futures contracts, finding the plaintiffs do not have statutory standing to bring a private right of action under the Commodity Exchange Act.
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July 21, 2025
DOL Rescinds ERISA Guidance On Citi Racial Equity Program
The U.S. Department of Labor rescinded a Biden-era opinion letter Monday that had backed Citi's commitment to pay fees for diverse investment managers overseeing Citi-sponsored benefit plans regulated by the Employee Retirement Income Security Act, saying the letter no longer reflected the department's views.
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July 21, 2025
Not So Fast: CFPB Shelves Bid To Scrap State Notice Rules
The Consumer Financial Protection Bureau on Monday withdrew a plan to repeal rules that regulate how state officials are supposed to alert it before suing companies under its federal enforcement authority, reversing course after industry groups lobbied to tighten, not toss, the requirements.
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July 21, 2025
Trump Admin's Harvard Cuts Vex Judge: 'Staggering To Me'
A Massachusetts federal judge said Monday that the Trump administration has not presented evidence that Harvard has failed to address antisemitism on its campus and expressed bewilderment at the government's legal justifications for cutting $2.2 billion in funding.
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July 21, 2025
Top 4 Texas Cases To Watch: A Midyear Report
Several major cases are taking shape in the Lone Star State, including the Southwest Airlines Pilots Association's suit seeking to hold Boeing accountable for lost revenue after the 737 Max was grounded, as well as the continuing fallout of a former Houston judge's romance scandal that could cost a Texas firm millions of dollars. Here's a look at the top cases to watch in Texas through the rest of the year.
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July 21, 2025
Capital One Board Ignored Account Scheme Risks, Suit Says
The board and executives at Capital One left the bank exposed to legal and regulatory problems when it hid high-yield savings accounts from legacy customers to boost profits, an investor has alleged in a derivative lawsuit brought in Virginia federal court.
Expert Analysis
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The Metamorphosis Of The Major Questions Doctrine
The so-called major questions doctrine arose as a counterweight to Chevron deference over the past few decades, but invocations of the doctrine have persisted in the year since Chevron was overturned, suggesting it still has a role to play in reining in agency overreach, say attorneys at Crowell & Moring.
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A Rapidly Evolving Landscape For Noncompetes In Healthcare
A wave of new state laws regulating noncompete agreements in the healthcare sector, varying in scope, approach and enforceability, are shaped by several factors unique to the industry and are likely to distort the market, say attorneys at Seyfarth.
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Protecting Workers Amid High Court-EEOC Trans Rights Rift
In Ames v. Ohio Department of Youth Services and U.S. v. Skrmetti, the U.S. Supreme Court clarified that Title VII protects employees from discrimination based on sexual orientation and gender identity, so employers should still protect against such discrimination despite the U.S. Equal Employment Opportunity Commission's unclear position, says Ally Coll at the Purple Method.
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Arguing The 8th Amendment For Reduction In FCA Penalties
While False Claims Act decisions lack consistency in how high the judgment-to-damages ratio in such cases can be before it becomes unconstitutional, defense counsel should cite the Eighth Amendment's excessive fines clause in pre-trial settlement negotiations, and seek penalty decreases in post-judgment motions and on appeal, says Scott Grubman at Chilivis Grubman.
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Business Takeaways Following CCPA Enforcement Actions
Advisories and recent enforcement activity by the California Privacy Protection Agency against Honda and Todd Snyder underscore the agency's enforcement interest in the intersection of data minimization and consumer rights, and could make it more challenging for a business to provide a streamlined consumer rights process, say attorneys at Covington.
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Compliance Lessons From 1st-Ever Product Safety Sentences
A California federal judge’s recent sentencing of two former Gree USA executives in a landmark Consumer Product Safety Act case serves as a reminder of the federal government’s willingness to pursue criminal prosecution of individuals who fail to report safety hazards, as well as companies’ need to strengthen their reporting and compliance programs, say attorneys at Cooley.
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GENIUS Act Creates 'Commodity' Uncertainty For Stablecoins
Half a century ago, Congress made trading in onion futures on commodity exchanges unlawful, and payment stablecoins could soon face a similarly unstable fate in the markets as the GENIUS Act heads to the president's desk for signature, says Peter Malyshev at Cadwalader.
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9th Circ. Decisions Help Clarify Scope Of Legal Lab Marketing
Two Ninth Circuit decisions last week provide a welcome development in clarifying the line between laboratories' legal marketing efforts and undue influence that violates the Eliminating Kickbacks in Recovery Act, and offer useful guidance for labs seeking to mitigate enforcement risk, says Joshua Robbins at Buchalter.
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$95M Caremark Verdict Should Put PBMs On Notice
A Pennsylvania federal judge’s recent ruling that pharmacy benefits manager CVS Caremark owes the government $95 million for overbilling Medicare Part D-sponsored drugs highlights the effectiveness of the False Claims Act, as scrutiny of PBMs’ outsized role in setting drug prices continues to increase, say attorneys at Duane Morris.
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Cos. Face Convergence Of Anti-Terrorism Act, FCPA Risks
Recent moves by the U.S. Department of Justice to classify cartels and transnational criminal organizations as terrorist groups, and to use a range of statutes including the Foreign Corrupt Practices Act to pursue these types of targets, mean that companies operating in certain jurisdictions are now subject to overlapping exposure, say attorneys at Miller & Chevalier.
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Unpacking Enforcement Challenges Of DOJ's Bulk Data Rule
Now fully effective, the U.S. Department of Justice's new data security program represents the U.S.' first data localization requirement ripe for enforcement, but its implementation faces substantial practical challenges that may hinder the DOJ's ability for wide-ranging or swift action, say attorneys at Cleary.
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Feds' Shift On Reputational Risk Raises Questions For Banks
While banking regulators' recent retreat from reputational risk narrows the scope of federal oversight in some respects, it also raises practical questions about consistency, reputational management and the evolving political landscape surrounding financial services, say attorneys at Smith Anderson.
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Nuclear Stakeholders Must Prepare For Cyber Threats
As the White House signals its support for a revival of nuclear power to supply the power needs of data centers and the artificial intelligence industry, investors and operators must keep in mind that safeguarding nuclear infrastructure from evolving cyber threats will be essential, say attorneys at A&O Shearman.
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Series
Playing Mah-Jongg Makes Me A Better Mediator
Mah-jongg rewards patience, pattern recognition, adaptability and keen observation, all skills that are invaluable to my role as a mediator, and to all mediating parties, says Marina Corodemus.
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FTC Staff Cuts Unlikely To Curb Antitrust Enforcement Agenda
While Federal Trade Commission Chair Andrew Ferguson's recent commitment to reducing agency staff may seem at odds with the Trump administration's commitment to antitrust enforcement, a closer analysis shows that such reductions have little chance of derailing the president's efforts, say attorneys at Squire Patton.