The Trump administration's final rule expanding foreign ownership requirements to more than 37,000 defense contractors and subcontractors and the Pentagon's review of the second phase of cybersecurity requirements headline five policy initiatives that government contractors should look for in the second half of this year.
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THURSDAY, JULY 23, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

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Analysis

Gov't Contracting Policies To Watch In The 2nd Half Of 2026

By Madeline Lyskawa

The Trump administration's final rule expanding foreign ownership requirements to more than 37,000 defense contractors and subcontractors and the Pentagon's review of the second phase of cybersecurity requirements headline five policy initiatives that government contractors should look for in the second half of this year.

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Analysis

SpaceX May Not Escape Shareholder Suits' Orbit So Easily

By Sarah Jarvis

SpaceX's recent blockbuster initial public offering includes a novel and untested framework to steer shareholder disputes to Texas' Business Court and arbitration while prohibiting investor class actions, in a move attorneys said will certainly be challenged in court and could lead to the company facing an impractical number of arbitration proceedings.

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Judge Skeptical Of Harm From Chinese Military Co. Label

By Aneeta Mathur-Ashton

A D.C. federal judge on Wednesday appeared skeptical of a Chinese pharmaceutical company's claims that it has suffered irreparable damage from the U.S. Department of Defense's recommendation that it be designated a "Chinese military company."

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CYBERSECURITY

OpenAI Says AI Agent Hacked Startup Platform During Testing

By Allison Grande

OpenAI disclosed "an unprecedented cyber incident" that occurred when two of its artificial intelligence models broke out of their testing environment and accessed the servers of Hugging Face, a third-party AI and machine learning startup that operates an open-source platform for developers and others to share models and datasets.

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POLICY & REGULATION

FCC Clears Way For Upper C-Band Auction To Sell 160 MHz

By Christopher Cole

The Federal Communications Commission voted Wednesday to set up an auction to sell exclusive licenses in the upper C-band airwaves, getting the process moving at what FCC Chair Brendan Carr called an "unprecedented" speed following Congress' order last year to expedite the sale long awaited by wireless carriers.

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Reps. Hit With Robocalls As They Discuss How To Stop Them

By Nadia Dreid

Robocalls were the thing on everyone's mind Wednesday morning as a House Energy and Commerce subcommittee heard from witnesses about a half dozen bills that lawmakers hope will protect the nation's telecommunications networks.

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ENFORCEMENT

Huawei Loses Bid To Block Laptop Evidence In NY RICO Case

By Aneeta Mathur-Ashton

A New York federal judge has refused to grant a motion to suppress four laptops and two recordings involving Huawei employees that the government obtained during its lengthy investigation of the Chinese telecommunications company.

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Maduro Gets 2027 Trial Date, Plans To Challenge Indictment

By Pete Brush

A Manhattan federal judge on Wednesday scheduled a 2027 trial date for deposed Venezuelan President Nicolás Maduro and his wife, after hearing that Maduro plans in the coming weeks to claim immunity as a sovereign leader from charges of narco-terrorism.

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LITIGATION

States Seek Win Over Trump Admin In DEI Contracts Dispute

By Madeline Lyskawa

Nineteen states and the District of Columbia are urging a Maryland federal judge to vacate federal agencies' implementation of President Donald Trump's executive order requiring government contractors to agree that they won't engage in "racially discriminatory" diversity, equity and inclusion activities.

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Subcontractor Says Lockheed Ignored Claims In Dismissal Bid

By Zach Dupont

A Lockheed Martin subcontractor said the court can't dismiss the bulk of its claims accusing the defense contractor of failing to pay back costs incurred from another subcontractor's alleged failures because the company's motion to dismiss mischaracterizes the complaint's allegations, according to a response brief filed Tuesday.

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Lockheed Guard Wants Video In Gun Handling Dispute

By Corey Rothauser

A former Sikorsky Aircraft security officer has asked a Connecticut state court to order Sikorsky Aircraft Corp. and parent company Lockheed Martin Corp. to turn over surveillance footage that he says is critical to determining whether he can bring legal claims over his termination after his union declined to take his grievance to arbitration.

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GAO

GAO Says Army Properly Rejected Expired Contract Proposal

By Madeline Lyskawa

The U.S. Army reasonably excluded a company's proposal from being considered for several multiple-award task order contracts because it had expired, the U.S. Government Accountability Office said, rejecting the company's claim that it emailed the Army to extend the proposal's validity. 

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PEOPLE

Sullivan & Cromwell Adds National Security, Investment Atty

By Jack Rodgers

Sullivan & Cromwell LLP has hired a new national security and foreign investments and trade regulations practice partner for its Washington, D.C., office, the firm announced Tuesday.

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LEGAL INDUSTRY

Holland & Knight Hit With $1.2B Malpractice Suit

By Madison Arnold

A real estate firm is accusing Holland & Knight LLP and three attorneys of malpractice in a new complaint filed in Florida state court and is seeking up to $1.2 billion in damages after more than 30 states opened investigations into the company's practices.

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Co. Turned Away Simpson Thacher's Deal Meeting, Jury Told

By Cara Salvatore

A retired Simpson Thacher & Bartlett LLP partner who handled the fundraising round alleged to have destroyed Patriot National Inc. testified in a Florida state malpractice trial Wednesday that the insurance services company waved off his attempt to present details to the board.

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Brief

Pillsbury Data Breach Suit Voluntarily Dismissed

By Matt Perez

A proposed class action against Pillsbury Winthrop Shaw Pittman LLP over a data breach last year has been voluntarily dismissed by the named plaintiffs, following a granted motion to stay in April to discuss mediation.

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DLA Piper Says Deception, Not Bias, Cost Palestinian Atty Job

By Grace Elletson

DLA Piper urged an Illinois federal judge to toss a Palestinian attorney's suit claiming the firm revoked a job offer out of discrimination, arguing it rescinded the offer because she concealed allegations that she assaulted someone at a protest.

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DC Bar Leaders Say DOJ Ethics Suit Encourages Misconduct

By Emily Sawicki

Washington, D.C., attorney regulators continue to garner support in their effort to toss a Justice Department lawsuit over alleged "weaponizing" of executive branch lawyer discipline, with D.C. bar organizations, scores of legal scholars and more than 500 former DOJ attorneys backing the disciplinary authorities.

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Mich. Gets Judge With Blue Slips In 1st For Trump Admin

By Courtney Bublé

The U.S. Senate voted 62-36 on Wednesday to confirm Michael Martin, a longtime federal prosecutor, to the Eastern District of Michigan and Benjamin Flowers, former solicitor general of Ohio, to the Sixth Circuit.

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DOL IG Says Info-Sharing Pacts Lacked Safeguards

By Irene Spezzamonte

U.S. Department of Labor Inspector General Anthony P. D'Esposito testified Wednesday before a U.S. House subcommittee that during the Biden administration, the department shared confidential information with plaintiffs' attorneys without notifying the Wage and Hour Division or the Employee Benefits Security Administration.

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Gov't Attys May Face Broader Duty To Report Misconduct

By Alison Knezevich

Attorneys representing the government could face "more demanding" obligations to disclose misconduct by people within their client organizations than attorneys representing private entities, according to an ethics opinion issued Wednesday by the American Bar Association.

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Retired Judges Rip Bid To Ban Foreign-Born Federal Judges

By Courtney Bublé

A group of 58 retired federal judges, appointed by presidents of both parties, on Wednesday came out strongly against recent proposals from Republican lawmakers that would require federal judges to be natural-born U.S. citizens and relinquish any citizenship that is not of the United States.

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US Marshals Can't Make Immigration Arrests In DC Court

By Rae Ann Varona

A D.C. federal judge Wednesday refused to toss a lawsuit from a certified class of immigrants challenging immigration arrests by U.S. marshals in D.C. Superior Court, declaring that the marshals lack authority and necessary training for the arrests.

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Securities Class Action Deals On Target To Hit 6-Year High

By Katryna Perera

The value of class action settlements is on track to reach a six-year high of $4.4 billion, fueled in part by a handful of "mega settlements" and other high-dollar deals, a Cornerstone Research report released Wednesday said. 

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COMPANIES IN TODAY'S NEWS

Amazon.com Inc.

American Arbitration Association

American Association for Justice

American Bar Association

Anthropic PBC

CTIA

Cisco Systems Inc.

Consumer Federation of America

Huawei Technologies Co. Ltd.

JPMorgan Chase & Co.

Lockheed Martin Corp.

OpenAI OpCo LLC

Patriot National Inc.

Space Exploration Technologies Corp.

T-Mobile US Inc.

The District of Columbia Bar

LAW FIRMS IN TODAY'S NEWS

AXS Law Group

Arnold & Porter

Ashbrook Byrne

Ballard Spahr

Burns Charest

Burr & Forman

Carella Byrne

Cohen Milstein

Conrad & Scherer

Cooley LLP

Covington & Burling

Cozen O'Connor

DLA Piper

Gibson Dunn

Goodreid & Grant

Holland & Knight

Jenner & Block

Jones Day

Labaton Keller

Meritz Reddy

Milberg PLLC

Miller & Chevalier

Morrison & Foerster

Parker & Sanchez

Pillsbury Winthrop

Protorae Law

Seyfarth Shaw

Shook Hardy

Sidley Austin

Simpson Thacher & Bartlett

Stearns Weaver

Steptoe LLP

Sullivan & Cromwell

Wiley Rein

Williams & Connolly

Wilson Sonsini

GOVERNMENT AGENCIES IN TODAY'S NEWS

Committee on Foreign Investment in the United States

Dallas Fort Worth International Airport

Employee Benefits Security Administration

Equal Employment Opportunity Commission

Executive Office of the President

Federal Acquisition Regulatory Council

Federal Aviation Administration

Federal Bureau of Investigation

Federal Communications Commission

San Francisco International Airport

Small Business Administration

U.S. Army

U.S. Attorney's Office

U.S. Attorney's Office for the Eastern District of Michigan

U.S. Attorney's Office for the Eastern District of New York

U.S. Attorney's Office for the Southern District of New York

U.S. Customs and Border Protection

U.S. Department of Defense

U.S. Department of Energy

U.S. Department of Homeland Security

U.S. Department of Justice

U.S. Department of Labor

U.S. Department of Veterans Affairs

U.S. Department of the Treasury

U.S. District Court for the District of Columbia

U.S. District Court for the District of Connecticut

U.S. District Court for the District of Maryland

U.S. District Court for the Eastern District of Michigan

U.S. District Court for the Eastern District of New York

U.S. District Court for the Northern District of Illinois

U.S. District Court for the Southern District of New York

U.S. Government Accountability Office

U.S. Immigration and Customs Enforcement

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

US Office of Management and Budget

United States District Court for the District of Colorado

Wage and Hour Division