The widespread clash over whether the regulation of prediction markets falls under federal or state jurisdiction was bound to land in the U.S. Supreme Court, and a new circuit split and urgent policy questions may force the justices' hands to take up the issue.
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TOP NEWS

Analysis

Prediction Markets' High Court Clash Looks More Imminent

By Alex Lawson

The widespread clash over whether the regulation of prediction markets falls under federal or state jurisdiction was bound to land in the U.S. Supreme Court, and a new circuit split and urgent policy questions may force the justices' hands to take up the issue.

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Prediction Markets Ask Justices To Settle Sports Wager Split

By Aislinn Keely

Crypto.com on Friday became the third party to call on the U.S. Supreme Court to address the closely-watched circuit split on prediction market regulation, challenging a Ninth Circuit decision that allowed Nevada regulators to police certain sports event contracts since their "substance" appeared to be gambling.

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9 Prediction Markets Ordered To Stop Operating In Conn.

By Aislinn Keely

Connecticut has directed nine prediction market operators to close up shop in the state for allegedly offering off-label sports bets, while separately requesting several media outlets, payment processors and data organizations hand over information that could be relevant to the state's prediction market investigations.

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'FBoy Island' Star-Turned-Va. Candidate Sues Over Kalshi Fine

By Hailey Konnath

A lawyer and former contestant on the reality series "FBoy Island" has sued Kalshi after he was banned for trading on prediction markets about his own political campaign, saying he's not advocating for political candidate trading, rather, he's highlighting the monetization of candidates on prediction markets.

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POLICY & REGULATION

Bank Regulators Propose Tailored Third-Party Risk Guidance

By Katryna Perera

Federal banking regulators Friday proposed revisiting 3-year-old guidance on third-party risk management for banks, saying they plan to let banks tailor their practices more specifically to the actual risk posed by each relationship.

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ENFORCEMENT & COMPLIANCE

CashCall Loses 'Ill-Conceived' Bid To Undo $157M CFPB Win

By Dorothy Atkins

A California federal judge on Friday rejected lender CashCall Inc.'s latest bid to escape the Consumer Financial Protection Bureau's $157 million enforcement judgment in decade-old litigation over a tribal lending program, finding that CashCall's request is an "ill-conceived tactic" designed to delay enforcement.

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LITIGATION

Kalshi Can Appeal Tribe's Sports Betting Claims, Judge Says

By Katryna Perera

A Wisconsin federal judge Friday said Kalshi can appeal a ruling allowing claims brought by the Ho-Chunk Nation to proceed, saying that since the issues involved will "certainly" make their way to the U.S. Supreme Court eventually, the Seventh Circuit should consider them now.

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DEALS

Bitcoin Miner Atlantic HPC Lands $150M SPAC Merger

By Jade Martinez-Pogue

Bitcoin mining company Atlantic HPC Group Inc., led by Hunter Taubman Fischer & Li LLC, on Friday revealed plans to go public by merging with Ellenoff Grossman & Schole LLP-led special purpose acquisition company Aperture AC in a $150 million deal.

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Don't Miss It: Cooley, Latham Steer Hot Deals

By Jade Martinez-Pogue

A lot can happen in the world of mergers and acquisitions and equity fundraising over the course of a couple of weeks, and it's difficult to keep up with all the deals.

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EXPERT ANALYSIS

Lessons For Banks When A Fintech Partner Fails

Recent fintech bankruptcies highlight best practices for how banks can strengthen third-party oversight, data-access rights, wind-down planning and customer communications to limit regulatory exposure and consumer harm when a fintech partner collapses, say attorneys at Barack Ferrazzano.

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Attorneys Using AI May Have Ethical Duty To Redact Docs

The trajectory of legal ethics guidance in recent years strongly suggests that as redaction technology becomes more accessible, the failure to use it when uploading highly confidential materials into artificial intelligence tools will become increasingly difficult to defend as reasonable, say attorneys at Lewis Brisbois.

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LEGAL INDUSTRY

Big Biz Coalition Backs Litigation Funding Disclosure Rule

By Ryan Boysen

Big U.S. businesses and insurers like Amazon, Anthropic, Chubb and Walmart asked the federal judiciary on Monday to tighten disclosure requirements for litigation finance, claiming the lack of guardrails allows funders to operate "in the shadows."

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Indiana Atty Hit With $10K Sanction Over False Citations

By Andrea Keckley

An Indiana federal judge on Friday adopted a magistrate judge's recommendation to sanction a local attorney $10,000 after finding that five briefs in a consumer credit case included citations to nonexistent cases.

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Jackson Lewis Removes Ex-Atty's Bias Suit To Federal Court

By Patrick Hoff

Jackson Lewis PC has moved a former associate's suit accusing the firm of refusing to accommodate her temporary work restrictions following her medical leave to California federal court, saying state court wasn't the right venue for dispute.

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Bove Rejects Recusal Bid Tied To DOJ Whistleblower Claims

By Courtney Bublé

U.S. Circuit Judge Emil Bove declined Monday to recuse himself in a Third Circuit immigration case, saying the attorneys for the petitioner are "recycling a failed pre-confirmation political smear" on him.

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State Farm Attorney Sanctioned $999.99 For AI Hallucinations

By Jonathan Capriel

An attorney for State Farm who filed several motions citing nonexistent cases and fabricated quotes generated by AI software must pay a $999.99 sanction, a Los Angeles judge ruled, an amount one cent below the threshold that would have triggered a mandatory notice to the State Bar of California under state law.

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Brief

Ex-Moses & Singer Partner Gets 10 Months For Tax Crimes

By Craig Clough

A Connecticut federal judge Monday sentenced a former Moses & Singer LLP partner to 10 months of imprisonment and ordered him to pay more than $3.1 million for failing to file personal income tax returns, the U.S. attorney's office announced.

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Catching Up With Delaware's Chancery Court

By Jarek Rutz

The Delaware Chancery Court this past week saw disputes over allegedly fabricated board approvals at a telecom infrastructure startup, insider trading and child safety at Roblox Corp. and ownership of artificial intelligence technology used in legal proceedings.

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COMPANIES IN TODAY'S NEWS

Amazon.com Inc.

American Bar Association

Andreessen Horowitz LLC

Anthropic PBC

Apple Inc.

Atlas Energy LP

Atreides Management LP

Capital One Financial Corp.

Carrick Capital Partners LLC

ClearList LLC

Coinbase Global Inc.

Coller Capital Ltd.

Compass Minerals International, Inc.

ESPN Inc.

Experian PLC

Fort Point Capital

Founders Fund

GE Aerospace

Gibson Technical Services Inc.

Google LLC

HSBC Holdings PLC

Home Box Office Inc.

International Legal Finance Association

Kalshi Inc.

Kleiner Perkins Caufield & Byers

Lawyers for Civil Justice

Mercedes-Benz USA LLC

Microsoft Corp.

NBCUniversal Media LLC

NVIDIA Corp.

Nasdaq Inc.

OpenAI OpCo LLC

Paypal Holdings Inc.

PennantPark Investment Corp.

Positron

Roblox Corp.

Samsung Electronics Co. Ltd.

Silicon Graphics Inc.

Socure Inc.

SolarWinds Corp.

Stanford University

State Bar of California

State Farm Mutual Automobile Insurance Co.

Stride Bank NA

Target Corp.

Tegna Inc.

Tesla Inc.

Thomson Reuters Corp.

Toyota Motor Corp.

U.S. Chamber of Commerce

University of Virginia

Valor Equity Partners LLC

Walmart Inc.

Webull Financial LLC

LAW FIRMS IN TODAY'S NEWS

Akerman LLP

Barack Ferrazzano

Bienert Katzman

Boardman & Clark

Cooley LLP

Cummins & White

DLA Piper

Ellenoff Grossman

Harding Counsel

Hodgson Russ

Hunter Taubman

Jackson Lewis PC

Kirkland & Ellis

Lanier Law Firm

Latham & Watkins

Law Office of Lester J. Marston

Lewis Brisbois

Manatt Phelps

Mayer Brown

McAfee & Taft

Milbank LLP

Moses & Singer

Musick Peeler

Paganelli Law Group

Proskauer Rose

Quarles & Brady

Robinson & Cole

Sidley Austin

Skadden Arps

Wachtell Lipton

Winston Taylor

GOVERNMENT AGENCIES IN TODAY'S NEWS

Commodity Futures Trading Commission

Consumer Financial Protection Bureau

Delaware Court of Chancery

Federal Deposit Insurance Corp.

Federal Reserve System

Ho-Chunk Nation

National Credit Union Administration

Nevada Attorney General's Office

Office of the Comptroller of the Currency

State of Nevada

U.S. Attorney's Office for the District of Connecticut

U.S. Court of Appeals for the Ninth Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Homeland Security

U.S. Department of Justice

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

U.S. District Court for the District of Connecticut

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

U.S. Senate

U.S. Supreme Court

United States District Court for the Southern District of Indiana

United States District Court for the Western District of Wisconsin