Third Circuit judges Wednesday explored divergent views of the False Claims Act's constitutionality and a record fraud verdict against Johnson & Johnson, expressing little eagerness to gut the FCA's whistleblower mechanism, and voicing uncertainty about evidence and jury instructions underpinning the drug promotion punishment.
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THURSDAY, MARCH 19, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

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Key Details As 3rd Circ. Ponders FCA's Fate, $1.6B J&J Fine

By Jeff Overley

Third Circuit judges Wednesday explored divergent views of the False Claims Act's constitutionality and a record fraud verdict against Johnson & Johnson, expressing little eagerness to gut the FCA's whistleblower mechanism, and voicing uncertainty about evidence and jury instructions underpinning the drug promotion punishment.

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FINRA Says Compliance Chief Took Part In Pre-IPO Fraud

By Sarah Jarvis

The Financial Industry Regulatory Authority has alleged in a disciplinary proceeding that Spartan Capital Securities LLC, its CEO and chief compliance officer defrauded customers by liquidating their own pre-initial public offering shares of a pharmaceutical company more quickly and at a higher price than their customers.

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DOJ Defends Labeling Anthropic A Security Risk

By Tom Lotshaw

The Trump administration told a California federal judge it lawfully labeled Anthropic PBC a supply chain risk to national security after the company tried to "strong-arm" the U.S. Department of Defense into usage restrictions for its artificial intelligence tools.

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Lawmakers Commit To April Crypto Bill Markup, Or Else

By Aislinn Keely

Sen. Cynthia Lummis, R-Wyo., told attendees of a Wasington, D.C., crypto conference Wednesday that she's confident the Senate Banking Committee will mark up a bill to regulate crypto markets after the Easter break now that compromises on key issues including stablecoin yield are in the final stages.

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13 State AGs Urge EPA To Walk Back 'Compliance First' Memo

By Rachel Riley

Attorneys general for New York, Massachusetts, Washington and 10 other states have called on the U.S. Environmental Protection Agency to rescind a December memo unveiling a "compliance first" approach to enforcement, arguing the strategy sidelines staff expertise and creates "bureaucratic bottlenecks" that will ultimately enable polluters.

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Senator Unveils Draft AI Bill Intended To Wipe Out State Regs

By Hailey Konnath

Sen. Marsha Blackburn, R-Tenn., on Wednesday released a draft of proposed legislation that would override a "patchwork" of state artificial intelligence regulations, touting the proposal as protecting "children, creators, conservatives and communities" and slamming the state regulations as hindering "AI innovation."

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CORPORATE

Zuckerberg, Snap CEO Likely Must Testify In School MDL Trial

By Dorothy Atkins

A California federal judge indicated Wednesday that Meta and Snap's CEOs will likely need to testify in an upcoming school district bellwether trial in the social media addiction multidistrict litigation, and declined Meta's bid to block arbitration demands, saying, "Meta's got plenty of money, go file a motion with the arbitration panel."

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SECURITIES & BANKING

Powell Says He Won't Make Fed Exit While Facing DOJ Probe

By Jon Hill

Federal Reserve Chair Jerome Powell said Wednesday that he will stay on as a board member of the central bank if he remains under U.S. Department of Justice investigation when his term as Fed chairman runs out this spring.

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Brief

CFTC Rescinds Request For Climate Risk Information

By Gautama Mehta

The U.S. Commodity Futures Trading Commission on Wednesday withdrew a request for information on climate-related financial risk published in 2022, on the grounds that President Donald Trump had revoked the executive order under which it was authorized.

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ENERGY & ENVIRONMENTAL

EPA Pushes For Win In Solar Grant Fight

By Tom Lotshaw

The U.S. Environmental Protection Agency told a Washington federal judge it reasonably terminated billions of dollars in grants for solar energy projects after Congress passed the 2025 federal budget bill, so a coalition of states can't challenge its decision.

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Pa. Utility Regulator Seeks $2.6M Fine Over Fatal Explosion

By Matthew Santoni

The Pennsylvania Public Utility Commission wants the gas company whose pipe leak allegedly caused the fatal 2023 explosion at the R.M. Palmer Co. chocolate factory in West Reading, Pennsylvania, to pay a $2.6 million civil fine, blaming the blast on the company's poor planning, inaccurate maps and failure to heed warnings that the plastic on its gas lines could degrade and fracture.

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Coal Plant Order Was Right Call, Energy Dept. Tells DC Circ.

By Keith Goldberg

The U.S. Department of Energy has urged the D.C. Circuit to back the DOE's order keeping a Michigan coal-fired power plant open, saying the Federal Power Act gives Energy Secretary Chris Wright broad emergency authority to prevent power plants from closing.

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EMPLOYMENT & BENEFITS

Brief

DOL Tweaks ERISA Regs After Fiduciary Rule Lawsuits End

By Kellie Mejdrich

The U.S. Department of Labor's employee benefits arm on Wednesday published technical amendments to its fiduciary investment advice regulations, to better reflect current policy following the conclusion of two lawsuits challenging a 2024 rule that would have expanded the definition of an investment advice fiduciary under federal benefits law.

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GOV'T CONTRACTS

Navy Contractor Will Pay $10.5M To Settle Overcharging Suit

By Elaine Briseño

The U.S. Department of Justice announced that a submarine materials contractor agreed to pay $10.5 million to settle allegations that its entities knowingly overcharged the U.S. Air Force and the U.S. Navy for materials and training.

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Feds Say It's End Of The Line For NY, NJ Hudson Tunnel Suit

By Linda Chiem

The Trump administration has asked a Manhattan federal judge to dismiss New York and New Jersey's attempt to force the federal government to continue funneling payments for the ongoing $16 billion rehabilitation of aging commuter train tunnels under the Hudson River.

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Ed. Dept. Flouting Mental Health Funding Order, States Claim

By Gianna Ferrarin

The U.S. Department of Education is flouting orders that it fund K-12 mental health grants given to public schools by only partially funding the grants and threatening to withhold remaining funds, a group of state attorneys general told a Washington federal court.

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INTERNATIONAL TRADE

ITC Orders $5M In Penalties For Illegal Chocolate Milk Imports

By Adam Lidgett

The U.S. International Trade Commission has levied $5.3 million in penalties on four grocers that were found to have violated a ban on importing a chocolate malt drink mix.

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Judge Tosses Sanctions Review For HK Electronics Co.

By Jared Foretek

A D.C. federal judge ruled Wednesday that the U.S. Department of State's Office of Economic Sanctions Policy and Implementation lacked authority to deny a Hong Kong electronics company's bid for removal from its sanctions blacklist, sending the company's removal petition back for review by the proper official.

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CYBERSECURITY & PRIVACY

Meta Smart Glasses Pose Mass Surveillance Risk, Sens. Warn

By Rae Ann Varona

Three U.S. senators Wednesday warned in a letter to Meta that the tech giant's plans to integrate facial recognition technology into its smart glasses risk "normalizing mass surveillance" at a time the federal government is using similar tech to "intimidate protesters and chill speech."

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Macy's Judge Rules Wash. Antispam Law Is Constitutional

By Ben Adlin

Macy's must face a consumer class action accusing the retail giant of breaking a Washington state law prohibiting certain spam emails, a Seattle federal judge ruled Wednesday, declaring that Washington's Commercial Electronic Mail Act is neither unconstitutional nor preempted by federal law.

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COMPETITION

FTC Says Amazon Seeks 'Impossible' Standard For Sanctions

By Bryan Koenig

The Federal Trade Commission pressed a Washington federal judge Tuesday to sanction Amazon.com for using autodeleting Signal chats and deleting raw meeting notes to hide evidence of company policies that created an artificial pricing floor across online retail stores, arguing Amazon is fighting the motion by inventing an "impossible-to-meet standard" for imposing sanctions.

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FTC, Fitness Giant Xponential Strike $17M Franchise Rule Deal

By Lauren Berg

The Federal Trade Commission announced Wednesday that the franchise group behind Club Pilates, Pure Barre and other boutique fitness brands agreed to pay $17 million to resolve claims that it previously misled franchisees about the costs, risks and other key details about operating one of its studios.

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CONSUMER PROTECTION & PRODUCT LIABILITY

FDA Can't 'Refuse To File' Tobacco Applications, Suit Says

By Mike Curley

The maker and a seller of Zone nicotine pouches are suing the U.S. Food and Drug Administration in Texas federal court, alleging the agency stalled and eventually refused to file their marketing application, despite federal law requiring the FDA to either approve or deny such applications.

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TELECOMMUNICATIONS

NTIA Still Crafting Plans For $21B In 'Non-Deployment' Funds

By Christopher Cole

The U.S. Department of Commerce has doled out many billions of dollars for broadband projects and has been asking for public input about how to spend roughly $21 billion in unspent funds, but there is no target date to unveil any decisions, the federal official in charge of spending the money said Wednesday.

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FCC Removes 4 Drone Systems From Security Risk List

By Christopher Cole

The Federal Communications Commission has authorized more drones for distribution on the U.S. market, after defense officials cleared them from posing national security risks.

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Brief

FCC Warns 'Rip, Replace' Participants That It Will Be Watching

By Nadia Dreid

Companies receiving Federal Communications Commission funds under the "rip and replace" program ought to be keeping good records of how they're spending the agency's money and disposing of the equipment they're supposed to be replacing, the FCC warned recently.

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TAX

Judge Finalizes $3.3M Tax Bill Order For 'Survivor' Winner

By Kat Lucero

A Rhode Island federal court entered a final $3.3 million tax judgment against the first "Survivor" winner, clearing the way for the federal government to start debt collection proceedings to recoup funds tied to the former contestant's tax avoidance on his prize money.

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NYU Tax Center Backs IRS In 2nd Circ. Limited Partner Fight

By Kat Lucero

An investment company's bid to restore a self-employment tax exemption for its limited partners improperly relies on state law to define their federal tax status, New York University's Tax Law Center told the Second Circuit in an amicus brief supporting the IRS.

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IRS Summons For Man's Coinbase Info Cleared To Go Ahead

By Jaqueline McCool

A man who alleged that the IRS violated his privacy rights in its summons of personal financial documents from Coinbase failed to properly serve the U.S. in his attempt to block the summons, a California federal judge said Wednesday, dismissing the case.

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EXPERT ANALYSIS

How Internal Reporting Could Benefit Antitrust Whistleblowing

As the Justice Department's new antitrust whistleblower program stands to raise questions over the interaction between rewards and corporate leniency, incentivizing internal reporting first could increase the likelihood that the Antitrust Division receives the high-quality evidence needed to successfully prosecute cartel cases, says Daniel Oakes at Axinn.

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As Justices Mull Suncor, Cos. Face New Climate Suit Realities

Following the U.S. Supreme Court's recent decision to hear Suncor Energy v. Boulder County — its first case analyzing the litigation impact of the U.S. Environmental Protection Agency's rescission of its 2009 greenhouse gas endangerment finding — companies must consider new preemption questions surrounding climate lawsuits after the rescission, say attorneys at Hollingsworth.

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How To Wield The Clarity Act As A Litigation Defense Tool

The Clarity Act is being discussed as a future compliance statute, but for litigators it can be used as a present-day defense tool to strengthen fair‑notice framing, argue for forward‑looking remedies rather than punitive ones and reprice settlement leverage as statutory clarity approaches, say attorneys at Baker McKenzie.

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What Texas Anti-Boycott Ruling Means For ESG Landscape

A Texas federal court's recent ruling in American Sustainable Business Council v. Hegar that Texas' anti-ESG law is unconstitutional on First Amendment grounds will likely embolden legal challenges to similar laws in other states that have adopted fossil fuel boycott statutes, say attorneys at ArentFox Schiff.

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Series

Law School's Missed Lessons: The Human Element

Law school teaches you to quickly apply intellect and logic when handling a legal issue, but every fact pattern also involves a person, making the ability to balance expertise with empathy critical to the growth of relationships with clients, colleagues and adversaries, says Rachel Adcox at Adcox Strategies.

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PRACTICAL GUIDANCE

Employer Strategies For Limiting Data Breach Litigation Risks

Employers must invest in robust cybersecurity and incident response protocols to both prevent data breaches and position themselves favorably in potential litigation, as legal defenses will increasingly rely on demonstrating reasonable security measures, prompt breach notification and transparent response efforts, says Gerald Maatman at Duane Morris.

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LEGAL INDUSTRY

Alston & Bird Hires Derivatives Atty From K&L Gates

By Jack Rodgers

Alston & Bird LLP has hired a former K&L Gates LLP lawyer, who has joined its financial services group, the firm announced Thursday.

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Nomination For New DOJ Fraud Chief Heads To Senate Floor

By Courtney Bublé

The nomination of Colin McDonald for the new position of assistant attorney general for fraud was sent to the full Senate on Thursday, after the Judiciary Committee voted 12-10 along party lines to advance his nomination.

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McGuireWoods Gains Former Fried Frank IP Litigator In DC

By Jack Rodgers

McGuireWoods LLP announced Thursday it has hired an intellectual property litigator from Fried Frank Harris Shriver & Jacobson LLP, which he moved to in 2022 alongside his wife.

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Insurance Co. Aflac's GC Pay Jumped To $5.9M In 2025

By Madison Arnold

The general counsel of Georgia-based insurance giant Aflac Inc. got a pay hike in 2025, taking home a total compensation of almost $6 million.

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Sitting Judges Take Stand Over Threats Growing 'Ordinary'

By Jake Maher

On the heels of an ethics opinion giving them wider latitude to speak publicly, sitting federal judges brought attention Thursday to the increasing threats against them and their family members, warning about the dangers of such threats becoming "ordinary."

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LAW FIRMS IN TODAY'S NEWS

Alston & Bird

ArentFox Schiff

Axinn Veltrop

Baker McKenzie

Ballard Spahr

Berger Montague

CohenMalad

Covington & Burling

Davis Polk

Dechert LLP

Duane Morris

Eversheds Sutherland

Fried Frank

Gibbs Mura

Gibson Dunn

HJV Car Accident Personal Injury Lawyers

Hollingsworth LLP

Jenner & Block

K&L Gates

Kellogg Hansen

King & Spalding

Latham & Watkins

Levin Sedran

Levins Tax Law

Lieff Cabraser

McDermott Will & Schulte

McGuireWoods

Michael Best & Friedrich

Morgan Lewis

Motley Rice

Munger Tolles

Peretz & Associates

Reese Marketos

Ropes & Gray

Skadden Arps

Steptoe LLP

Stranch Jennings

Strauss Borrelli

Walkup Melodia

Williams & Connolly

WilmerHale

COMPANIES IN TODAY'S NEWS

AFLAC Inc.

Amazon.com Inc.

American Civil Liberties Union

American Electric Power Co. Inc.

Amicus

Anthropic PBC

Apple Inc.

Boston College

Brennan Center for Justice

Chevron Corp.

Clean Air Task Force Inc.

Club Pilates

Coinbase Global Inc.

CrowdStrike Holdings Inc.

Earthjustice

Equifax Inc.

Executive Health Resources Inc.

Federation Internationale de Football Association

Financial Industry Regulatory Authority Inc.

Futures Industry Association

General Dynamics Corp.

Google LLC

ITG Brands LLC

International Business Machines Corp.

JUUL Labs Inc.

Johnson & Johnson

LexisNexis Legal & Professional

Luxottica Group S.p.A.

Macy's Inc.

McDonald's Corp.

Meta Platforms Inc.

Midcontinent Independent System Operator Inc.

New York University

Nike Inc.

Old Navy LLC

OpenAI OpCo LLC

Pure Barre

RELX PLC

Shell PLC

Sirius Solutions LLLP

Spartan Capital Securities LLC

Suncor Energy Inc.

Sunoco LP

TikTok Inc.

U.S. Chamber of Commerce

UGI Corp.

UGI Utilities Inc.

Ulta Beauty Inc.

Universal Health Services Inc.

Verizon Communications Inc.

Xponential Fitness LLC.

Yandex

YouTube Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Department of Justice

City of New York

Colorado Supreme Court

Commodity Futures Trading Commission

Employee Benefits Security Administration

Executive Office of the President

Federal Communications Commission

Federal Energy Regulatory Commission

Federal Reserve System

Federal Trade Commission

Food and Drug Administration

Internal Revenue Service

International Trade Commission

National Institute of Standards and Technology

National Telecommunications and Information Administration

National Transportation Safety Board

New Jersey Attorney General's Office

New York Attorney General's Office

Office of Foreign Assets Control

Office of the Attorney General for the District of Columbia

Oklahoma Supreme Court

Pennsylvania Public Utility Commission

Pipeline and Hazardous Materials Safety Administration

State of Michigan

U.S. Air Force

U.S. Attorney's Office for the District of South Carolina

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

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

U.S. Attorney's Office for the Western District of Washington

U.S. Court of Appeals for the District of Columbia Circuit

U.S. Court of Appeals for the Fifth Circuit

U.S. Court of Appeals for the Second Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Commerce

U.S. Department of Defense

U.S. Department of Education

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 State

U.S. Department of Transportation

U.S. Department of the Treasury

U.S. District Court for the Central District of California

U.S. District Court for the District of Columbia

U.S. District Court for the District of Rhode Island

U.S. District Court for the District of South Carolina

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

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

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

U.S. District Court for the Western District of Tennessee

U.S. District Court for the Western District of Texas

U.S. District Court for the Western District of Washington

U.S. Environmental Protection Agency

U.S. House of Representatives

U.S. Navy

U.S. Postal Service

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

U.S. Tax Court

US Office of Management and Budget

Washington Attorney General's Office