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Compliance
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September 05, 2025
Tesla Proposes Making Musk The Trillion-Dollar Man
Texas-based Tesla on Friday proposed a pay package for CEO Elon Musk that could earn him a trillion dollars' worth of stock, if he meets certain corporate objectives over the next decade. It is believed to be the first trillion-dollar corporate compensation package in history.
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September 05, 2025
GC Cheat Sheet: The Hottest Corporate News Of The Week
In arguing that the proposed class action against the business should be denied, online platform OnlyFans' parent company said that the decision to use AI to create mistake-riddled documents is severe misconduct. Meanwhile, the U.S. Department of Labor's employee benefits arm unveiled a new fee disclosure rule involving pharmacy benefit managers and plans to revisit retirement plan fiduciary investment advice regulations. These are some of the stories in corporate legal news you may have missed in the past week.
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September 05, 2025
GigaCloud Investors Seek Final OK For $2.75M Deal In AI Suit
Investors in large parcel ecommerce company GigaCloud Technology Inc. have asked a Manhattan federal judge to give final approval to their $2.75 million deal ending claims the company misled investors about using artificial intelligence in its logistics systems.
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September 05, 2025
GRSM Launches Practice For Correctional Healthcare
Gordon Rees Scully Mansukhani has announced that it is launching a new practice to advise correctional healthcare providers.
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September 05, 2025
Tribal Groups Urge Justices To Address Religious Violations
Three Native American advocacy groups are backing a former Louisiana prisoner's U.S. Supreme Court petition for damages after guards forcibly shaved his head, arguing that the case presents issues vital to Indigenous cultural survival.
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September 05, 2025
Pot Co. Investors Say Ex-Partner Drained Coffers For Suits
The members of an investment firm are suing their former business partner in California state court, alleging that he misappropriated funds from the firm to defend himself in a separate suit by another business partner accusing him of fraud.
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September 05, 2025
How A 'Risky' Move Fueled Kobre & Kim's Win Over Phillips 66
In the trial over Propel Fuels' claims that Phillips 66 stole trade secrets during due diligence for an acquisition, Kobre & Kim switched up standard witness order and convinced a jury to award $605 million.
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September 05, 2025
EU Fines Google $3.5B For Giving Leg Up To Co.'s Ad Tech
European Union antitrust enforcers hit Google with a €2.95 billion ($3.5 billion) fine Friday for the same conduct targeted by the U.S. Department of Justice's successful monopoly case, intentional efforts to give its advertising placement technology business a leg up over the competition.
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September 05, 2025
DC Circ. Revives Emergency Defense Rule For Air Polluters
The D.C. Circuit on Friday restored air pollution-emitting facilities' right to defend themselves against alleged violations of the Clean Air Act by blaming emergency circumstances, finding that the U.S. Environmental Protection Agency's attempt to ban the practice was unlawful.
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September 05, 2025
Ørsted Investors Back $9.4B Rights Issue After US Order
Ørsted AS said Friday that its shareholders have thrown their weight behind a 60 billion Danish kroner ($9.4 billion) rights issue, amid a legal battle against an order from the Trump administration to stop work on an offshore wind farm.
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September 04, 2025
Feds Seek Stay On Court Order Releasing Foreign Aid Billions
The Trump administration urged the D.C. Circuit on Thursday to stay a federal judge's order that it release billions in frozen foreign aid pending its appeal, saying the disbursement will likely be "impossible" to recover according to the international aid organization plaintiffs' "own description of their financial condition."
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September 04, 2025
Mary Kay Co-Founder Sues Co. In Del. For Texas Legal Fees
The co-founder and executive chairman of Mary Kay Holding Corp. has sued in Delaware's Court of Chancery for legal fee advancements related in part to a billion-dollar-plus father-son battle in a Texas court over control of family trusts supported by the decades-old cosmetics empire.
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September 04, 2025
Texas AG Accuses PowerSchool Of Failing At Data Security
Texas' attorney general has become the latest to sue education technology provider PowerSchool Holdings Inc. over a 2024 data breach, asserting in a new state court lawsuit that the company failed to implement basic data security measure despite promising "state-of-the-art protections" for students' and employees' personal information.
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September 04, 2025
Doc Tells 1st Circ. Acquitted Conduct Marred Drug Sentence
A Massachusetts psychiatrist convicted over an alleged scheme to import and dispense nonapproved forms of addiction medication on Thursday told the First Circuit the trial judge wrongly ran afoul of limitations on the consideration of acquitted conduct in federal sentencings when handing him a three-year prison term.
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September 04, 2025
AI Co. Sues Rival, Ex-Exec Over Alleged Trade Secret Theft
Scale AI Inc. has slapped Mercor and a former executive with a trade secret theft suit in California federal court, claiming that while the generative artificial intelligence data competitor was wooing Scale's employee, he was stealing documents that "amount to a roadmap for unfairly competing with Scale."
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September 04, 2025
Philip Morris Gets Wash. Tobacco Deal Fight Sent To Arbitrator
A Washington state judge has ordered R.J. Reynolds Tobacco Co. to arbitrate rival Philip Morris USA Inc.'s claims that it breached a 2017 deal delineating billions of dollars in annual payments owed to states for Big Tobacco's public health toll by signing a new $277 million agreement with Washington in April.
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September 04, 2025
FTC Hits Chinese Toy Maker For Gathering Kids' Location Data
A robot toy maker has agreed to comply with federal rules for handling children's data and ensure that its vendors are doing the same in order to resolve the Federal Trade Commission's claims that the company enabled a Chinese analytics provider to collect geolocation information from mobile app users who were younger than 13 without parental consent.
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September 04, 2025
Trump Says 'Century-Old' Precedent Backs Fed Gov.'s Firing
President Donald Trump on Thursday hit back at Federal Reserve Board Gov. Lisa Cook's motion seeking to block her termination from the central bank, telling a Washington, D.C., federal court that Cook was ignoring "century-old" U.S. Supreme Court precedent that he says forecloses review of her removal for cause.
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September 04, 2025
Chevron, Exxon Kick Off High Court La. Pollution Case
Chevron and Exxon Mobil Corp. on Thursday asked the U.S. Supreme Court to overturn the Fifth Circuit's ruling that Louisiana state court, not federal court, is the proper venue for claims that their World War II-era oil production activities violated state law.
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September 04, 2025
SEC, CFPB Rulemaking Agendas Show Deregulatory Push
Federal regulators overseeing the financial services sector on Thursday unveiled new rulemaking agendas that they say will return their agencies to their core missions with policies to define authority and limit compliance burdens.
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September 04, 2025
Seattle Police Free From Federal Oversight After 13 Years
Seattle police have demonstrated "sustained compliance" with a federal consent decree put in place more than 13 years ago in response to the department's allegedly unconstitutional use of force, a Washington federal judge has ruled, returning full control of the department to city leaders.
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September 04, 2025
USDOT Scraps Airline Refund Rule In Deregulatory Push
The U.S. Department of Transportation is abandoning airline passengers' rights and other consumer protection regulations proposed by the Biden administration as President Donald Trump advances his deregulatory push, according to the White House's updated regulatory agenda released Thursday.
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September 04, 2025
Justices Asked To Block FTC Commissioner Reinstatement
The Trump administration asked the U.S. Supreme Court on Thursday to block the reinstatement of Democratic Federal Trade Commissioner Rebecca Slaughter while it appeals a ruling that found her firing was illegal, and also asked the high court to take up the case.
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September 04, 2025
EPA Touts 'Ambitious' New Deregulatory Agenda
The U.S. Environmental Protection Agency on Thursday laid out its regulatory agenda for the coming months, and said it intends to revisit or roll back Biden-era initiatives in several areas, including water, climate change and chemical regulations.
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September 04, 2025
NY AG Appeals Toss Of $500M Trump Fine In Civil Fraud Case
New York's attorney general said Thursday she will challenge an appeals court's decision to throw out what it called an "excessive" $489 million civil fraud penalty against President Donald Trump and his sons, his companies, and executives of his companies.
Expert Analysis
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Art Market Must Prepare For More AML Scrutiny
Calls for art market regulation continue to grow, as evidenced by a recently introduced bill that would subject it to the Bank Secrecy Act’s anti-money laundering requirements, so participants should consider adopting basic, risk-based controls, says Jane Levine at The ArtRisk Group.
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Series
Quilting Makes Me A Better Lawyer
Turning intricate patterns of fabric and thread into quilts has taught me that craftsmanship, creative problem-solving and dedication to incremental progress are essential to creating something lasting that will help another person — just like in law, says Veronica McMillan at Kramon & Graham.
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Lessons Learned 3 Years After First CCPA Enforcement Action
Three years after the first public enforcement action under the California Consumer Privacy Act, Attorney General Rob Bonta has pursued a steady stream of enforcement actions across industries, providing a clearer picture of how the law is being interpreted and enforced, says Tatum Andres at Kilpatrick.
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2 Appellate Rulings Offer Clickwrap Enforcement Road Map
Two recent decisions from the Fourth and Eleventh Circuits in cases involving Experian signal that federal appellate courts are recognizing clickwrap agreements' power in spite of their simplicity, and offer practical advice on how companies can sufficiently demonstrate notice and assent when attempting to enforce contractual terms, says Brian Willett at Saul Ewing.
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How Tariffs Can Affect Event Studies In Securities Litigation
When the control period is calm and the event window is stormy — often the case with breaking political or economic developments, like President Donald Trump's recent tariff announcements — traditional event study methodology can increase the risk of misleading conclusions in securities litigation, say economic consultants at NERA.
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How To Prep For Potential Passage Of SAFER Banking Act
The Secure and Fair Enforcement Regulation, or SAFER, Banking Act, could fundamentally reshape how financial institutions interact with cannabis businesses, so operators that move now to get their house in order will be best positioned to capitalize if and when change comes, says Alex Leonowicz at Howard & Howard.
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How Proposed FAA Rule May Streamline Drone Operations
The Federal Aviation Administration's recent proposed rule on autonomous drone delivery operations offers a more streamlined approach, by shifting away from the current pilot-centered framework and placing safety and operational responsibility at the level of the operator's organization, say Amanda Losacco and Jessica Monahan at Cozen O'Connor.
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What To Expect From 401(k) Plan Alternative Assets Order
The executive order this month making it easier for retirement plans to invest in alternative assets, including private equity, real estate and digital assets, marks a watershed moment for democratizing access to private markets, but the U.S. Department of Labor's anticipated formal rulemaking will also be impactful, say attorneys at Simpson Thacher.
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The Future Of Lab-Test Regs After FDA Rescinds Rule
The U.S. Food and Drug Administration recently rescinded its laboratory-developed tests rule in response to a Texas federal court decision this spring, reinforcing a separation of authority between the FDA and the Centers for Medicare & Medicaid Services, and calling into question the FDA's role in overseeing such tests without congressional action, say attorneys at Venable.
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How AI Is Easing Digital Asset Recovery In Fraud Cases
In combination with recent legislation and a maturing digital asset infrastructure, artificial intelligence tools are making it easier to recover stolen assets, giving litigants a more specific understanding of financial fraud earlier in the process and making it economically feasible to pursue smaller fraud claims, says Solomon Shinerock at Lewis Baach.
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Sanctions Considerations For Reentering The Syrian Market
Reentering or opening new markets in Syria, now that the Trump administration has revoked certain long-standing sanctions and export controls, necessitates increased due diligence and best practices capable of adapting to a changing local environment as well as future changes in U.S. law, say attorneys at Nixon Peabody.
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What 2 Profs Noticed As Transactional Law Students Used AI
After a semester using generative artificial intelligence tools with students in an entrepreneurship law clinic, we came away with numerous observations about the opportunities and challenges such tools present to new transactional lawyers, say professors at Cornell Law School.
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Despite SEC Reset, Private Crypto Securities Cases Continue
While the U.S. Securities and Exchange Commission under the Trump administration has charted a new approach to crypto regulation, the industry still lacks comprehensive rules of the road, meaning private plaintiffs continue to pursue litigation, and application of securities laws to crypto-assets will be determined by the courts, say attorneys at Skadden.
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State AGs Are Turning Up The Antitrust Heat On ESG Actions
Recent antitrust developments from red state attorneys general continue a trend of environmental, social and governance scrutiny, and businesses exposed to these areas should conduct close examinations of strategy and potential material risk, say attorneys at Morgan Lewis.
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Crypto Custody Guidelines Buoy Both Banks And Funds
A statement released last month by banking regulators — highlighting risks that the agencies expect banks holding crypto-assets to mitigate — may encourage more traditional institutions to offer crypto-asset safekeeping and thereby offer asset managers more options for qualified custodians to custody crypto-assets for their clients, say attorneys at Dechert.