Kalshi Sued Over 'Death Carveout' For Khamenei Trades

By Katryna Perera

Prediction market Kalshi defrauded traders who bet that Iran's Supreme Leader Ayatollah Ali Khamenei would leave office before March 1, 2026, by invoking an improperly disclosed "death carveout" and refusing to pay full winnings to traders when Khamenei was killed in recent U.S. and Israeli military strikes, according to a suit in California federal court.

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Failed Fintech Synapse Is Sued Over Missing Customer Funds

By Aislinn Keely

Collapsed fintech middleware firm Synapse Financial Technologies, its brokerage subsidiary and its former executives have caught a proposed class action seeking to take the firm to task over alleged misrepresentations and mismanagement that left $85 million in customer funds unaccounted for.

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Oregon Passes Bill To Limit Out-Of-State Bank Interest Rates

By Jon Hill

Oregon lawmakers have approved legislation opting it out of a federal law that lets state-chartered banks export their home-state interest rates nationwide, advancing a measure similar to one in Colorado that is tied up in Tenth Circuit litigation. 

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Investors Accuse Alston & Bird Of Aiding $328M Crypto Fraud

By David Minsky

Several investors have brought a Florida federal proposed class action alleging legal malpractice against Alston & Bird LLP, accusing the law firm of drafting joint venture agreements that were used to aid a $328 million cryptocurrency scam. 

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Lost Mail Helps State Street Exit Judgment In Crypto Case

By Sydney Price

A North Carolina federal judge undid a default judgment ruling against investment management firm State Street Global Advisors, finding the investor who sued claiming he lost $650,000 trying to transfer cryptocurrency to a digital wallet named the wrong defendant, and a summons to the firm was lost.

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FinCEN Hits Canaccord With Record $80M Broker-Dealer Fine

By Sarah Jarvis

Canaccord Genuity Group Inc.'s broker-dealer arm Friday agreed to pay $80 million in settlements with three financial regulators for "widespread compliance failures" that allowed some securities fraud schemes to go undetected, with the broker-dealer admitting it willfully violated the Bank Secrecy Act.

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Polymarket Pushes For Block On Mich. Gambling Enforcement

By Tom Lotshaw

Polymarket US urged a Michigan federal judge to block the Great Lakes State from initiating any illegal gambling enforcement action against it, saying its prediction market exchange falls entirely under the purview of the Commodity Futures Trading Commission.

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Ex-Software CFO Gets 2 Years For $35M Crypto Fraud Scheme

By Ben Adlin

The former chief financial officer of a Seattle software startup will spend two years behind bars after being found guilty of bilking $35 million from his ex-employer, according to the terms of a sentence handed down by a Washington federal judge.

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SEC Ordered To Release Info On Text Messaging Sweeps

By Jessica Corso

A Florida federal judge has harshly criticized the U.S. Securities and Exchange Commission's litigation tactics as an "acute embarrassment" to the agency as he ordered it to turn over information about the penalties imposed on financial institutions whose employees discussed business information on their personal devices.

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Bank Beats Sanctions Bid In Jail Debit Card Fees Suit

By Sydney Price

Central Bank of Kansas City has been ordered to produce more documents related to a prepaid debit card program for formerly incarcerated people in an excessive fee class action, but will not face monetary sanctions for its failure to comply fully with a previous court order.

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Sidley Adds Payments Expert From Wilson Sonsini

By Andrea Keckley

Sidley Austin LLP announced that it has hired a finance and financial technology attorney and former senior counsel at the Federal Reserve Board of Governors from Wilson Sonsini Goodrich & Rosati PC, touting her experience advising companies across the payments ecosystem.

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Complaint Portal Updates Prove That The CFPB Is Listening

The Consumer Financial Protection Bureau's recent updates to its online complaint portal not only clarify complaint pathways and strengthen identity verification, but also signal that the bureau is more willing to consider industry perspectives on its activities and change course where warranted, say attorneys at Manatt.

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DOJ Forges Ahead With Law Firm EO Appeals At DC Circ.

By Lauren Berg

The U.S. Department of Justice on Friday moved ahead with filing appeals at the D.C. Circuit to defend executive orders issued by President Donald Trump targeting four law firms, just three days after the agency backtracked on its decision to drop the fight.

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Legal Jobs Up 19th Straight Month In 'Goldilocks' Economy

By Tracey Read

The legal sector continued its lengthy upward streak in February, with 2,600 more people employed in lawyer, paralegal and other law-related professional roles last month than in January, according to seasonally adjusted data released Friday by the U.S. Bureau of Labor Statistics.

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Ex-Girardi Keese Atty Pleads Guilty For Role In Client Scandal

By Dorothy Atkins

Former Girardi Keese attorney Keith Griffin pled guilty to criminal contempt in Illinois federal court on Thursday for his role in the firm's failure to pay millions ​in client settlement funds to relatives of victims killed in the crash of Lion Air Flight 610.

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Louisiana Atty Sanctioned Over AI Hallucinations In Filing

By Matt Perez

A Louisiana attorney was fined $1,000 Thursday for his use of artificial intelligence in drafting an error-riddled brief, while three co-counsel were spared penalty.

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Constantine Cannon Defends Handling Of Sutter $75M Fee

By Dorothy Atkins

Constantine Cannon LLP pushed back against Schneider Wallace Cottrell Kim LLP's allegations it unfairly reduced Schneider Wallace's share of a $75.4 million fee award in Sutter Health's $228.5 million antitrust deal, arguing in California federal court that the firm "sat on the sidelines" for most of the decadelong fight and isn't entitled to a bigger cut.

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NJ Talc Suit Will Proceed Amid Beasley Allen DQ Appeal

By Emily Sawicki

The New Jersey Supreme Court has declined to stay multicounty litigation over Johnson & Johnson's talc-based baby powder brought by hundreds of women who allege their ovarian cancer was linked to the product, while Beasley Allen appeals its removal as plaintiff's counsel over a firm partner's collaboration with the pharmaceutical giant's former outside counsel.

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Florida Bar Rescinds Claim Agency Is Investigating Halligan

By Jack Karp

The Florida Bar said Friday that it is not investigating controversial former interim U.S. attorney for the Eastern District of Virginia Lindsey Halligan, walking back a previous assertion it had made in a letter to a nonprofit that it was probing Halligan's actions.

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Courts Aren't Ignoring Justices' TPS Orders, Ex-Judges Say

By Ganesh Setty

Over 175 former federal and state judges have slammed the Trump administration's claim that lower courts "flouted" interim orders from the U.S. Supreme Court in litigation involving the administration's revocation of foreign nationals' temporary protected status, saying they weren't binding.

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Dems Again Push For Independent Immigration Courts

By Courtney Bublé

Democrats have again introduced a bill that would shift the immigration courts from the executive branch to an independent judiciary, following concerns that the Trump administration has "weaponized" the system.

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Roundup

UK Litigation Roundup: Here's What You Missed In London

By Laura Stewart Liberty

This past week in London has seen British American Tobacco sued by more than 100 investors, the government bring a claim against a COVID-19 supplier of personal protective equipment, Annington Funding sue its new corporate trustees on the Financial List, and Piers Morgan hit with a defamation claim from a pro-Israel barrister he interviewed on his YouTube channel. 

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GC Cheat Sheet: The Hottest Corporate News Of The Week

By Sue Reisinger

Anthropic, the developer of Claude AI, says it will take the Pentagon to court over being designated a national security risk because it wants to impose ethical guardrails on Claude's use. And the Mideast war is making in-house legal teams across the country work long hours to protect employees trapped by the violence and to keep businesses running despite broken supply chains. These are some of the stories in corporate legal news you may have missed in the past week.

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Law360's Legal Lions Of The Week

By Kevin Penton

Winston & Strawn LLP, Sullivan Papain Block McManus Coffinas & Cannavo PC, Stanford's Supreme Court Litigation Clinic and attorney Olivia Gabriel lead this week's edition of Law360 Legal Lions, after the U.S. Supreme Court ruled that New Jersey cannot shield its public transit system from personal injury lawsuits by out-of-state plaintiffs under sovereign immunity.

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In Case You Missed It: Hottest Firms And Stories On Law360

For those who missed out, here's a look back at the law firms, stories and expert analyses that generated the most buzz on Law360 last week.

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