A divided Ninth Circuit panel Tuesday mostly upheld an injunction blocking the Trump administration from imposing new grant restrictions on transportation and housing funding for dozens of local governments, concluding federal agencies likely overstepped their authority by barring the money from being used to promote "gender ideology" or "illegal immigration."
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WEDNESDAY, AUGUST 26, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

9th Circ. Panel Largely Upholds Block On Feds' Grant Terms

By Rachel Riley

A divided Ninth Circuit panel Tuesday mostly upheld an injunction blocking the Trump administration from imposing new grant restrictions on transportation and housing funding for dozens of local governments, concluding federal agencies likely overstepped their authority by barring the money from being used to promote "gender ideology" or "illegal immigration."

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AIDS Org 'Had Its Chance' To Sue Express Scripts, Judge Says

By Bryan Koenig

Express Scripts convinced a Missouri federal judge Tuesday to dismiss an AIDS Healthcare Foundation antitrust suit the judge said was precluded by a rejected earlier case in the same district raising the "same facts and circumstances" accusing the pharmacy benefit manager of imposing lower reimbursement rates on specialty pharmacies.

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Judge Allows Hospital Groups To Fight AbbVie 340B Suit

By Jared Foretek

A D.C. federal judge will allow hospitals and health center groups to intervene on the side of the government as it fights AbbVie's challenge to the definition of "patient" in the 340B drug discount program, ruling that the providers would suffer concrete financial harm if the pharmaceutical company's interpretation prevails.

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23andMe, Calif. Spar Over Data Claims In Bankruptcy Court

By Alex Wittenberg

The bankruptcy trust for DNA testing company 23andMe and the state of California locked horns Tuesday over the debtor's plan to trim the size of claims that the state has asserted over a data breach in 2023.

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POLICY & REGULATION

Marijuana Rescheduling Critics Assail Government's Standard

By Sam Reisman

An attorney with the U.S. Drug Enforcement Administration told an administrative law judge that opponents to cannabis rescheduling could not use agency hearings to challenge federal health regulators' adoption of a new standard for assessing marijuana's medical use.

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LITIGATION

Ed Dept. Must Turn Over Records In Mental Health Grants Row

By Danielle Ferguson

A Washington federal judge Monday partly granted a group of states' bid for expedited discovery in their suit over the Trump administration's attempt to cut nearly $1 billion in funding for K-12 mental health grants, finding the information could assist the court before a hearing for a preliminary injunction.

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Drugstores Beat Sun Pharma's $10M Racketeering Suit

By George Woolston

A New Jersey federal judge threw out Sun Pharmaceutical Industries Inc.'s suit against a group of pharmacies alleging they engaged in a criminal, years-long racketeering scheme that resulted in it paying more than $10 million in refunds for short-dated pharmaceutical products, ruling that the pharmacies were improperly joined together.

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Geico Says NJ Top Court Upends 3rd Circ. Arbitration Ruling

By Danielle Ferguson

Geico urged a New Jersey federal court to reject medical clinics' bid to dismiss remaining claims in a lawsuit alleging they fraudulently billed no-fault patients, saying that a recent state supreme court ruling bolsters the insurer's argument that complex insurance fraud claims do not belong in arbitration.

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Pharmacy Asks Court To Toss Novo Nordisk Semaglutide Suit

By Spencer Brewer

A pharmacy asked a Texas federal judge to toss claims brought by Novo Nordisk Inc. accusing the pharmacy of illicitly compounding a lucrative weight-loss drug called semaglutide, saying Novo Nordisk's complaint amounts to a grievance list against the compounding industry.

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Target Says Wash. Law Blocks Baby Formula Botulism Claims

By Mike Curley

Target Corp. is asking a Washington federal court to throw out claims against it by parents who say their infant child developed infant botulism after eating baby formula purchased at the store, saying the Washington Product Liability Act protects retail sellers from such claims.

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Asbestos Firm Objects To Connecticut's New Suit Filing Plan

By James Boyle

A Connecticut plaintiffs firm specializing in mesothelioma litigation has asked a Superior Court administrative panel to reconsider a decision to move all asbestos cases to the Complex Litigation Docket in Hartford.

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6th Circ. Urged To Affirm Tobacco Fee Suit Toss

By Kellie Mejdrich

A trade group representing large employee benefit plan administrators wrote in support of insurance giant Progressive at the Sixth Circuit, asking the appellate court to back dismissal of a proposed class action alleging the insurer wrongfully charged workers more for healthcare who used tobacco and refused COVID-19 vaccination. 

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Tort Report: Mass. Jury Delivers Record Amazon Crash Verdict

By Y. Peter Kang

A record personal injury verdict against Amazon in a crash case and Aerosmith frontman Steven Tyler's upcoming sex abuse trial lead Law360's Tort Report, which compiles recent personal injury and medical malpractice news that may have flown under the radar.

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Steward Plan Trust Sues Insurers Over D&O Coverage Denial

By Emlyn Cameron

One of two trusts established under Steward Health Care's Chapter 11 plan has sued a gaggle of insurers in an offshoot lawsuit, saying the insurers were withholding half the coverage due to former directors and officers in another adversary case.

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Ex-Taro Exec Slips Some Generics Price-Fixing Claims

By Carla Baranauckas

A Connecticut federal judge gave a former Taro Pharmaceuticals USA Inc. marketing executive a partial victory in generic drug price-fixing litigation, tossing several claims by state attorneys general but allowing others to proceed after finding that a jury could conclude he joined certain conspiracies.

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7-Eleven Reaches Deal To End Worker's Tobacco Fee Suit

By Grace Elletson

7-Eleven struck a deal to settle a proposed class action claiming it didn't give workers who used tobacco but agreed to quit an adequate chance to avoid paying a $720 annual health plan fee, according to a filing in Texas federal court.

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Health Exec Says CFO, Atty Knew Wage Claim Was Wrong

By MJ Koo

A former corporate officer has sued his ex-colleague and the colleague's attorney in Connecticut state court, alleging they named him as a personal defendant in a federal wage lawsuit without any factual basis and with the intent to pressure his company into settling claims it disputed.

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DEALS

McKesson Snags Precision Medicine Group In $2.25B Deal

By Jade Martinez-Pogue

Healthcare services provider McKesson Corp., advised by Davis Polk & Wardwell LLP, on Tuesday unveiled plans to acquire clinical research and biopharmaceutical commercialization services business Precision Medicine Group for roughly $2.25 billion.

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BANKRUPTCY

Court OKs New England Medical Network's $850K ERISA Deal

By Emily Brill

A New Hampshire federal judge has signed off on an $850,000 settlement to claims that a New England medical center network violated the Employee Retirement Income Security Act, bringing an end to a class action filed in 2022.

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Genesis Says Ex-Brass Used Trade Secrets To Build Rival

By Emily Lever

Genesis Healthcare on Tuesday filed an adversary complaint against a former executive of Genesis subsidiary LTC ACO LLC accusing her of stealing company documents and trade secrets to form a rival company.

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PEOPLE

Cooley Life Sciences Atty Joins Foley & Lardner In San Diego

By Adrian Cruz

Foley & Lardner LLP announced that a life sciences attorney with over 30 years of experience has jumped to the firm's San Diego office as a partner from Cooley LLP.

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Vedder Adds Benefits And Exec Comp Pro From Winston Taylor

By Kellie Mejdrich

Vedder has added a seasoned employee benefits and executive compensation partner from Winston Taylor LLP to join its practice as a new shareholder in Chicago, where she will advise clients on a wide range of retirement, health and welfare benefits issues, the firm announced Tuesday.

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Ex-DOJ Fraud Attys Switch To Civil Focus At Boutique Firm

By Phillip Bantz

Criminal fraud prosecutors commonly pursue careers as white collar defense lawyers after exiting the U.S. Department of Justice, but a group of ex-DOJ lawyers who have recently joined national litigation boutique AXS Law Group are embarking on a path less traveled.

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EXPERT ANALYSIS

How 'Most Favored Nation' Regime Affects Biopharma Deals

As M&A activity surges in the biopharma space, companies will need to account for the Trump administration's most-favored-nation pricing proposals — durable in concept, if unsettled in detail — when drafting deals, say attorneys at Gibson Dunn.

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Where DOJ's Fraud Priorities Memo May Actually Matter

The U.S. Department of Justice’s recently released memo outlining priorities for its newly created fraud division will shape how cases are identified, staffed and sequenced, meaning white collar defense work must begin earlier, say David Tarras at Tarras Defense and Trevor Jones at Dynamis.

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What To Know As Legal Duty To Consider AI Takes Shape

While the U.K. Jurisdiction Taskforce’s recent statement on liability for artificial intelligence harms is nonbinding for both U.K. and U.S. lawyers, it highlights the importance of being able to distinguish between the availability of a tool and a professional obligation to use it, say Jonny Frank and Michael Costa at StoneTurn.

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LEGAL INDUSTRY

Firm Revenue Climbs 12.4% In First Half Of 2026

By Daniel Moritz-Rabson

Record billing rate gains, strong demand and increased productivity fueled a successful start to the year for the legal industry, according to a report released Tuesday.

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Florida AG Slams Bar Complaint Against DHS Counsel

By Madison Arnold

Florida Attorney General James Uthmeier wrote to the executive director of the Florida Bar to criticize a recent complaint made to the bar against James Percival, general counsel of the U.S. Department of Homeland Security, for attacking judges.

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Legal Watchdog Lodges Bar Complaint Against Jeanine Pirro

By Hailey Konnath

The Legal Accountability Center said Tuesday that it filed a bar complaint against U.S. Attorney Jeanine Pirro, claiming that she abused her position to unjustifiably target Democratic lawmakers after they released a video reminding members of the military and intelligence community that it's their duty to refuse unlawful orders.

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6th Circ. Says Judge Can't Escape Teen Mock Arrest Suit

By Susan Smiley

A Sixth Circuit panel on Monday allowed to proceed a Michigan federal lawsuit filed against a Detroit judge who handcuffed a 15-year-old student and subjected her to a mock trial after she fell asleep in his courtroom, ruling that judicial immunity does not protect him.

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Watchdog Wants NY Judge Ousted Over Retaliatory Suit

By Rose Krebs

The New York State Commission on Judicial Conduct has determined a state judge should be removed from office for filing a retaliatory defamation suit against an eye-care worker who had lodged an ethics complaint over the judge refusing to wear a mask in an office in 2021.

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NY Times Says EEOC Dragging Feet On Anti-White Bias Info

By Grace Elletson

The New York Times Company has sued the U.S. Equal Employment Opportunity Commission, claiming the anti-discrimination watchdog flouted federal law by failing to respond to requests for records of communications with conservative legal groups and agency efforts to investigate claims of bias against white workers.

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Colo. Judge Ships $8.3M Messner Reeves Fraud Suit To Utah

By Zach Dupont

A Colorado federal judge granted a motion Monday from law firm Messner Reeves LLP to move a lawsuit accusing the firm of stealing more than $8 million as part of a fraudulent loan scheme to Utah after finding the venue was the proper forum to litigate the claims.

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COMPANIES IN TODAY'S NEWS

23andMe Inc.

7-Eleven Inc.

AIDS Healthcare Foundation

AbbVie Inc.

Allergan PLC

Allianz Global Corporate & Specialty SE

Amazon.com Inc.

American Bar Association

Bauer Inc.

ByHeart Inc.

Central Puget Sound Regional Transit Authority

Cerberus Capital Management LP

Dairy Farmers of America Inc.

Dartmouth-Hitchcock Medical Center

Express Scripts Holding Co.

Federalist Society

Geico Corp.

Genesis HealthCare Corp.

Global Logistic Properties Ltd.

LinkedIn Corp.

McKesson Corp.

Medco Health Solutions Inc.

Nara Organics Inc.

National Association of Community Health Centers

Novo Nordisk A S

Outcome Health

Precision Medicine Group LLC

Public Rights Project

Rhapsody International Inc.

Sandoz International GmbH

Smart Approaches to Marijuana

Stanley Black & Decker Inc.

Steward Health Care System LLC

StoneTurn Group LLP

Sun Pharmaceutical Industries Ltd.

Target Corp.

The ERISA Industry Committee

The Florida Bar

The New York Times Co.

The Progressive Corp.

UMass Memorial Health

Wells Fargo & Co.

YouTube Inc.

LAW FIRMS IN TODAY'S NEWS

AXS Law Group

Anderson & Kreiger

Arnold & Porter

Blank Rome

Bowman & Brooke

Capozzi Adler PC

Carmody MacDonald

Carter Arnett

Chase Law & Associates

Consovoy McCarthy

Cooley LLP

Covington & Burling

Davis & Santos

Davis Polk

Dynamis LLP

Early Lucarelli

Emery Celli

Faegre Drinker

Fieger Law

Fisher & Phillips

Foley & Lardner

Gage Spencer & Fleming

Gibson Dunn

Gordon Rees

Health Law Alliance

Hinckley Allen

Husch Blackwell

Kesselman Brantly

Law Lyman

Law Office of Jeffrey Randolph

Mayer Brown

McCarthy Leonard

McDermott Will & Schulte

McGuireWoods

Messner Reeves

Minchella & Associates LLC

Morgan Lewis

Murphy Orlando

Ogletree Deakins

Pacifica Law Group

Paul Weiss

Perkins Law

Perkins Law Group PLLC

Polsinelli PC

Powers Pyles

Quinn Emanuel

Reid Collins

Rivkin Radler

Schaerr Jaffe

Seyfarth Shaw

Shapiro Arato

Siri & Glimstad

Spencer Fane

Trenk Isabel

Welter Law Firm

Wilentz Goldman

Winston Taylor

Zuckerman Spaeder

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Department of Justice

Centers for Medicare & Medicaid Services

Equal Employment Opportunity Commission

Federal Trade Commission

Florida Supreme Court

Food and Drug Administration

Missouri Attorney General's Office

New Jersey Supreme Court

New York State Commission on Judicial Conduct

Pima County Attorney's Office

Pima County, Arizona

Port of Seattle

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

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

U.S. Bankruptcy Court for the Eastern District of Missouri

U.S. Court of Appeals for the Ninth Circuit

U.S. Court of Appeals for the Seventh Circuit

U.S. Court of Appeals for the Sixth Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Defense

U.S. Department of Education

U.S. Department of Health and Human Services

U.S. Department of Homeland Security

U.S. Department of Housing and Urban Development

U.S. Department of Justice

U.S. Department of Transportation

U.S. District & Bankruptcy Courts of Southern District of Texas

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 New Jersey

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

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

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 Washington

U.S. District Court of the District of New Hampshire

U.S. Drug Enforcement Administration

U.S. Government Accountability Office

U.S. Navy

U.S. Securities and Exchange Commission

U.S. Supreme Court

United States District Court for the District of Colorado

United States District Court for the District of Utah