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Compliance
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July 09, 2025
2nd Circ. Backs Convictions For $150M 'Psychic' Fraud
The Second Circuit upheld Wednesday a Canadian man's 10-year prison sentence and fraud convictions stemming from a decades-long $150 million direct mailing psychic scheme that defrauded elderly victims, ruling there was sufficient evidence he intended to harm his customers who received something different from what was advertised.
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July 09, 2025
Linqto Users Say Founder Flouted Securities Laws
Customers of recently bankrupt private investment platform Linqto sued its founder and former CEO in New York federal court on Wednesday, alleging in a proposed class action that he disregarded securities laws and oversaw aggressive and misleading marketing to lure investors.
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July 09, 2025
FCC Targets Older Regulations On Phone Service 'Slamming'
The Federal Communications Commission will take a close look during its July meeting at whether to consolidate or even scrap a bevy of rules against "slamming," or the unauthorized switching of phone services to a new provider.
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July 09, 2025
7th Circ. Nixes Rail Sharing Order Power For Subpar Service
Federal regulators can't give themselves power to order rail carriers to share shipments with their rivals unless the incumbent railroad's service is "inadequate," a Seventh Circuit panel said in striking a Surface Transportation Board rule designed to empower such mandates when service merely fails certain reliability metrics.
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July 09, 2025
EPA Sued Over Oil Refineries' Hydrogen Fluoride Use
A group of environmental advocates has hauled the U.S. Environmental Protection Agency into California federal court to stop the use of hydrogen fluoride in domestic oil manufacturing refineries, arguing it's endangering the public and the Toxic Substances Control Act requires that the agency eliminate those risks through regulations.
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July 09, 2025
OFAC Fines Tech Co. $1.4M Over Iran Sanctions Violations
Harman International Industries Inc. has agreed to pay more than $1.4 million to settle allegations from the U.S. Department of the Treasury's trade sanctions enforcement arm that various compliance deficiencies at the audio electronics company contributed to Iran sanctions violations.
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July 09, 2025
J&J Seeks To Toss 'Nowhere Close' Band-Aid PFAS Suit In NJ
Johnson & Johnson and Kenvue Inc. are urging a New Jersey federal court to toss a proposed class action alleging that the companies have not disclosed to the public that PFAS "forever chemicals" are present in unsafe amounts in Band-Aid brand adhesive bandages, arguing that the plaintiffs come "nowhere close" to stating a plausible claim.
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July 09, 2025
Water Co. Can't Charge Customers $42M, Conn. Justices Say
State regulators lawfully rejected Eversource subsidiary Aquarion Water Co. of Connecticut's 2022 request to increase rates by $42 million to pay for plant additions, but they wrongly scuttled the utility's $1.5 million bid to recover conservation expenses, the Connecticut Supreme Court ruled Wednesday.
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July 09, 2025
Judge Says Founder Should Escape Logan Paul Crypto Suit
A Texas magistrate judge has recommended that a former assistant of influencer Logan Paul be released from a "rug pull" cryptocurrency suit.
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July 09, 2025
Red States Want In On Youths' Suit Over Trump Energy Orders
A coalition of Republican states led by Montana asked a federal court Tuesday for permission to intervene in a lawsuit brought by youths challenging President Donald Trump's recently enacted fossil fuel policies.
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July 09, 2025
Plan Administrator Seeks To Toss Union's Pension Error Suit
A benefit plan administration company said it shouldn't have to face a lawsuit claiming a union pension fund paid $2.4 million in interest because the administrator paid benefits on the wrong day of the month, arguing in Pennsylvania federal court that it wasn't acting as a fiduciary.
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July 09, 2025
3M PFAS Suit Belongs In State Court, Conn. Tells 2nd Circ.
Connecticut is urging the Second Circuit to reject 3M Co.'s effort to move a state court lawsuit accusing the company of polluting the environment with forever chemicals contained in its consumer products to federal court.
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July 09, 2025
5 Years Ago, The McGirt Ruling Reshaped Tribal Jurisdiction
It was widely held for decades that Oklahoma had domain over criminal matters on tribal lands, but five years ago, the U.S. Supreme Court turned that regime on its head, finding 19th century federal treaties with the Creek Nation that formed its reservation are valid — and, in turn, reestablishing 45% of the Sooner State as Indian Country.
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July 09, 2025
T-Mobile Tanks DEI Policies To Meet FCC Chair's Goal
T-Mobile says it will shut down diversity, equity and inclusion programs to align with goals of the Federal Communications Commission's chair as the carrier seeks regulatory approval of two major wireless and fiber deals.
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July 09, 2025
Former SEC Officials Discuss Agency's New Priorities
Though swift regulatory and enforcement changes at the U.S. Securities and Exchange Commission have created a more business-friendly environment, three agency veterans now at Gibson Dunn & Crutcher LLP caution to watch out for compliance landmines.
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July 09, 2025
Antitrust Enforcers Beat Google, Try Meta And Keep Going
When U.S. District Judge Leonie M. Brinkema held on April 17 that Google was liable for illegally monopolizing two out of three advertising placement technology markets targeted by the U.S. Department of Justice, her ruling contributed to potentially one of the most consequential convergences of antitrust enforcement in recent memory.
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July 09, 2025
Fla. DJ Challenges FCC's $2.4M Pirate Radio Fine
A Miami-area DJ is challenging a nearly $2.4 million Federal Communications Commission penalty for running an unauthorized radio station, arguing a recent U.S. Supreme Court decision renders the commission's forfeiture process unconstitutional.
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July 09, 2025
Former FCC Republican Opposes Next-Gen TV Mandate
The feds shouldn't push a next-generation TV mandate on electronics makers and related industries at the behest of broadcasters eager to move to the new standard, says a Republican former member of the Federal Communications Commission.
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July 09, 2025
DHS To Subpoena Harvard For Foreign Student Records
The U.S. Department of Homeland Security said Wednesday it will send administrative subpoenas to Harvard University seeking information about its foreign students, yet another salvo in the ongoing legal battle between President Donald Trump's administration and the Ivy League school.
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July 08, 2025
FTC Warns Amazon, Walmart On False 'Made In USA' Labeling
The Federal Trade Commission announced Tuesday that it has informed Amazon and Walmart that third-party sellers on their online marketplaces might be falsely labeling products "Made in USA" and asked the companies to watch for and take corrective action against sellers who make such false claims.
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July 08, 2025
Conn. AG Hits Ticket Marketplace With 1st Data Privacy Fine
An online ticket marketplace has become the first to be handed a monetary penalty under Connecticut's comprehensive data privacy law, with the state's attorney general announcing a settlement Tuesday that will require the company to pay $85,000 and maintain consumer rights request metrics to resolve claims that it failed to fix several alleged privacy notice deficiencies.
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July 08, 2025
5th Circ. Wary To Let Surety Stick Chevron With $11M Bill
A Fifth Circuit panel seemed skeptical of a surety company's argument that BP and Chevron need to pony up $11 million to pay for decommissioning costs, asking Tuesday what to do with contractual language that seemingly absolved them of having to pay that bill.
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July 08, 2025
Insurer Fights ACA Loss, Citing Justices' Trans Care Ruling
Premera Blue Cross urged a Washington federal court to rethink an early win it granted against the insurer over its coverage policy for gender dysphoria surgery, arguing the U.S. Supreme Court's recent decision in U.S. v. Skrmetti is dispositive of a sex discrimination claim in the case.
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July 08, 2025
Omnicare, CVS Tab In FCA Case Increases To $949M
A New York federal judge on Monday raised a False Claims Act judgment against Omnicare and CVS to a combined $949 million following a jury's finding that they submitted millions of false prescription claims for long-term care patients.
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July 08, 2025
Alphabet's $500M Investor Deal Over Compliance Gets 1st OK
A California federal judge gave preliminary approval Tuesday to Google parent Alphabet's Inc.'s settlement with investors alleging that executives engaged in anticompetitive and monopolistic practices, saying she wants to hear shareholders' reactions to Alphabet's agreement to spend $500 million over the next decade building a global regulatory compliance program before she grants final approval.
Expert Analysis
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Takeaways From DOJ's 1st Wage-Fixing Jury Conviction
U.S. v. Lopez marked the U.S. Department of Justice's first labor market conviction at trial as a Nevada federal jury found a home healthcare staffing executive guilty of wage-fixing and wire fraud, signaling that improper agreements risk facing successful criminal prosecution, say attorneys at McGuireWoods.
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Calif. Climate Superfund Bill Faces Legal, Technical Hurdles
California could soon join other states in sending the fossil fuel industry a massive bill for the costs of coping with climate change — but its pending climate Superfund legislation, if enacted, is certain to face legal pushback and daunting implementation challenges, says Donald Sobelman at Farella Braun.
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How Cos. Can Navigate Risks Of New Cartel Terrorist Labels
The Trump administration’s recent designation of eight drug cartels as foreign terrorist organizations gives rise to new criminal and civil liabilities for companies that are unwittingly exposed to cartel activity, but businesses can mitigate such risks in a few key ways, say attorneys at Steptoe.
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Cosmetic Co. Considerations As More States Target PFAS
In the first quarter of the year, seven states introduced or passed legislation focused on banning the sale of cosmetics that contain PFAS, making it necessary for businesses to adjust their product testing and supply chain practices, product formulations, marketing strategies, and more, say attorneys at Alston & Bird.
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What We Lost After SEC Eliminated Regional Director Role
Former U.S. Securities and Exchange Commission Regional Director Marc Fagel discusses the recent wholesale elimination of the regional director position, the responsibilities of the job itself and why discarding this role highlights how the appearance of creating a more efficient agency may limit the SEC's effectiveness.
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Mass. Suit Points To New Scrutiny For Home Equity Contracts
The Massachusetts attorney general’s recent charge that a lender sold unregulated reverse mortgages shows more regulators are scrutinizing mortgage alternatives like home equity contracts, but a similar case in the Ninth Circuit suggests more courts need to help develop a consensus on these products' legality, say attorneys at Weiner Brodsky.
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EEOC Suits Show Cos. Shouldn't Ax Anti-Harassment Efforts
Companies shouldn't be so quick to eliminate anti-harassment programs in response to the U.S. Equal Employment Opportunity Commission's guidance cautioning against unlawful diversity, equity and inclusion programs, as recent enforcement actions demonstrate that the agency still plans to hold employers accountable for addressing sexual harassment, says Ally Coll at the Purple Method.
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Perspectives
Reading Tea Leaves In High Court's Criminal Law Decisions
The criminal justice decisions the U.S. Supreme Court will announce in the coming weeks will reveal whether last term’s fractured decision-making has continued, an important data point as the justices’ alignment seems to correlate with who benefits from a case’s outcome, says Sharon Fairley at the University of Chicago Law School.
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$38M Law Firm Settlement Highlights 'Unworthy Client' Perils
A recent settlement of claims against law firm Eckert Seamans for allegedly abetting a Ponzi scheme underscores the continuing threat of clients who seek to exploit their lawyers in perpetrating fraud, and the critical importance of preemptive measures to avoid these clients, say attorneys at Lockton Companies.
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Hints Of Where Enforcement May Grow Under New CFPB
Though the Consumer Financial Protection Bureau has significantly scaled back enforcement under the new administration, states remain able to pursue Consumer Financial Protection Act violators and the CFPB seems set to enhance its focus on predatory loans to military members and fraudulent debt collection and credit reporting practices, say attorneys at MoFo.
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Only Certainty About FAR Reform Order Is Its Uncertainty
The president’s recent order overhauling the Federal Acquisition Regulation, which both contractors and agencies rely on to ensure predictability and consistency in federal procurement, lacks key details about its implementation, which will likely eliminate many safeguards that ensure contractors are treated fairly and that procurements are awarded in a reasonable manner, say attorneys at Miles & Stockbridge.
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Maintaining Legal Compliance For GenAI In Life Sciences
As companies continue to implement generative artificial intelligence to enhance all phases of drug discovery, they must remain mindful of legal, regulatory and practical considerations as best practices in this space emerge and evolve, say attorneys at Sullivan & Cromwell.
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Series
Teaching Business Law Makes Me A Better Lawyer
Teaching business law to college students has rekindled my sense of purpose as a lawyer — I am more mindful of the importance of the rule of law and the benefits of our common law system, which helps me maintain a clearer perspective on work, says David Feldman at Feldman Legal Advisors.
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SEC's Crypto Statement Offers Clarity On Disclosures
While the crypto industry awaits a definitive rule from the U.S. Securities and Exchange Commission on whether a crypto-asset is a security, its recent guidance provides a road map for registrants seeking to comply with current disclosure requirements and shows the commission is working toward a comprehensive regulatory framework, say attorneys at Debevoise.
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Disparate Impact Theory Lives On Despite Trump Order
Although President Donald Trump's recent executive order directed federal agencies to stop pursuing disparate impact claims, employers may still be targeted by private litigants' claims and should therefore stay alert to the risk that their practices may produce a disparate impact on members of a protected group, say attorneys at Duane Morris.