A Washington federal judge temporarily blocked the Trump administration on Tuesday from terminating nearly $1 billion in K–12 mental health grants serving 15 states, finding that the plaintiff states are likely to prove the U.S. Education Department bypassed federal procedures when attempting to cut off the funds.
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WEDNESDAY, JULY 29, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

Ed Dept. Can't Cancel K–12 Mental Health Grants Worth $1B

By Ben Adlin

A Washington federal judge temporarily blocked the Trump administration on Tuesday from terminating nearly $1 billion in K–12 mental health grants serving 15 states, finding that the plaintiff states are likely to prove the U.S. Education Department bypassed federal procedures when attempting to cut off the funds.

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Judge Mulls Pausing Medicaid Work Rule For 'Frail' Recipients

By Julie Manganis

A Massachusetts federal judge said Tuesday he anticipates deciding by the end of the week whether the Trump administration will have to pause part of a new rule states must follow in determining whether medically frail Medicaid recipients are exempt from new work or school requirements.

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Teva Can't 'Literally Whine' Of Being Held To DOJ Admissions

By Bryan Koenig

A Pennsylvania federal judge has taken Teva to task for trying to avoid being held to its admissions of price-fixing in a $225 million settlement with the U.S. Department of Justice, ruling that Humana can use those admissions in one of the first bellwether trials in sprawling multidistrict litigation.

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No COVID Immunity For Mich. Hospitals In Malpractice Revival

By Susan Smiley

Just because a motion is unopposed doesn't mean it should be granted, Michigan appellate judges said in a published opinion Tuesday, reversing a trial court's decision that the Pandemic Health Care Immunity Act shielded Beaumont Hospital Farmington Hills from a medical malpractice suit.

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Analysis

340B Appellate Cases To Watch In The 2nd Half Of 2026

By Mark Payne

Drugmakers are pressing appellate judges in the back half of 2026 to strike down state laws blocking them from restricting 340B contract pharmacy arrangements. Law360 Healthcare Authority has the cases to watch.

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ENFORCEMENT & COMPLIANCE

Nursing Facility Pays $15M In Calif. AG's Understaffing Suit

By Gina Kim

Sweetwater Care and its affiliates agreed to resolve the California attorney general's consumer protection suit alleging they understaffed their skilled nursing facilities in more than 14,000 instances, exposing patients to neglect, abuse and injury with delayed care, while the defendants accepted nearly $200 million from Medicare and Medi-Cal.

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LITIGATION

NJ Nursing Home On Hook For Hypothermia Death Verdict

By Y. Peter Kang

A New Jersey appellate panel on Tuesday affirmed a $450,000 jury verdict against a nursing home accused of negligently keeping a resident's room like an "icebox," which caused her death from hypothermia, saying the verdict was supported by sufficient evidence.

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Ortho Practice Owes More Damages After Sex Bias Verdict

By P.J. D'Annunzio

A Pennsylvania-based orthopedic practice and a group of five female employees who accused the healthcare provider and its related entities of sex discrimination came to an agreement Tuesday on how much back and front pay should be awarded to the plaintiffs months after a federal jury awarded them $4.35 million.

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Eating Disorder Pros Group Ducks Antitrust Suit For Good

By Bryan Koenig

An Illinois federal judge permanently dismissed a proposed antitrust class action Monday accusing the International Association of Eating Disorder Professionals of forcing specialists into expensive group memberships to obtain important certification, concluding the plaintiffs haven't shown that the organization has the needed market power.

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Elevance Wins Initial Toss Of 401(k) Forfeiture Suit

By Kellie Mejdrich

Elevance Health won dismissal of a proposed class action from a worker who challenged forfeiture spending from an employee 401(k) plan, convincing an Indiana federal judge Tuesday that the allegations failed to state a claim for violating federal benefits law.

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Tribal Nonprofit Says Feds Wrongly Denied Washeteria Funds

By Crystal Owens

An Indigenous Alaskan corporation is suing the United States and Health and Human Services officials after it says they unlawfully rejected a funding agreement that would allow it to help provide access to clean drinking water, personal hygiene and healthcare services to rural villages and the city of Wales.

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Union Pacific Won't Hire Drivers Using Opioid Meds, Suit Says

By Holly DeMuth

Union Pacific Railroad Co. refuses to hire train drivers who take certain medications for opioid use disorder without evaluating their cases individually, in violation of the Americans with Disabilities Act, according to a proposed class action filed in Wisconsin federal court.

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BANKRUPTCY

3rd Circ. Upholds Alecto Health's Small-Biz Ch. 11 Plan

By Emlyn Cameron

The Third Circuit affirmed Tuesday that hospital owner Alecto Healthcare Services' streamlined Chapter 11 and the resulting plan confirmation withstood an appeal by a creditors' group.

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EXPERT ANALYSIS

Where The Justices Aligned In Appellate Authority Ruling

The real story of the U.S. Supreme Court’s recent ruling in T.M. v. University of Maryland Medical System Corp., finding that a doctrine designed to curtail duplicative litigation prevents federal district courts from reviewing state court decisions, is in how the justices together revisited an obscure, century-old jurisdictional doctrine, says Alex Dimitrief at Zeughauser Group.

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Rare DOJ Military Bias Suit Shows Peril Of Co. Admissions

Although the government rarely litigates Uniformed Services Employment and Reemployment Rights Act claims against private employers, Opara v. UV Memory Care demonstrates that it will do so when an employer's own admissions build the case, potentially resulting in significant compliance obligations and long-term consequences, says Bradford Kelley at Littler.

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LEGAL INDUSTRY

How Does In-House Pay Compare? Take The Law360 Survey

How do in-house salaries vary across industries, roles, and organizational revenue? What compensation tools are companies using to lure top talent? Help Law360 Pulse answer these questions and more in this year's In-House Compensation Survey.

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Simpson Thacher Hung Client Out To Dry, Jury Hears

By Madison Arnold

A legal ethics expert told a Florida jury Wednesday that he believes Simpson Thacher & Bartlett LLP's actions when representing Patriot National Inc. constitute legal malpractice leading up to the insurance services company declaring bankruptcy.

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Senate Postpones Critical Vote For AG Nominee Blanche

By Courtney Bublé

The committee vote on acting Attorney General Todd Blanche's bid to take the permanent role, slated for Thursday, was postponed after Sens. John Cornyn, R-Texas, and Thom Tillis, R-N.C., were not fully on board.

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GOP Bill To Curb Judge Shopping May Have Limited Effect

By Courtney Bublé

A Senate Republican has introduced legislation that he says will fix the judge shopping issue, but court observers don't think it will make much of a difference.

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King & Spalding Told To End 'Shenanigans' In Bid To Exit Case

By Brian Steele

The individual defendants in a $300 million fraud lawsuit have accused King & Spalding LLP of appellate "shenanigans" while it seeks to exit the case due to an alleged ethics conflict, claiming the firm has falsely denied representing corporate clients despite an attorney's appearance suggesting otherwise.

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9th Circ. Vacates Orrick Win In Stock Transfer Deal Dispute

By Hailey Konnath

The Ninth Circuit on Wednesday reversed a lower court's finding that Orrick Herrington & Sutcliffe LLP can't be held liable in a battle over a stock transfer agreement gone awry, ruling that California law does allow a party to the transfer to pursue equitable indemnity in the case.

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DOJ Wants To Let Immigration Judges Fine For Contempt

By Britain Eakin

The Executive Office for Immigration Review proposed a rule Wednesday that would allow immigration judges to impose civil monetary penalties for contempt on attorneys, their noncitizen clients and witnesses, operationalizing a power that has lain dormant since 1996.

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Legal Aid Union Alleges Unlawful Incentives To Break Strike

By Andrea Keckley

The Neighborhood Defender Services of Harlem union announced on the third workday of its strike Tuesday that it has filed unfair labor practice charges with the National Labor Relations Board, accusing its management of offering unlawful incentives to cross the picket line.

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Former Trump Lawyer Officially Takes The Helm At SDNY

By Hailey Konnath

James McDonald, a former Sullivan & Cromwell LLP partner who represented President Donald Trump in his appeal of his criminal conviction, was sworn in as U.S. attorney for the Southern District of New York on Wednesday after McDonald's predecessor Jay Clayton departed to serve as director of national intelligence.

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2nd Circ. Backs Ex-Shkreli Atty's 401(k) Restitution Deal

By Lauren Berg

A New York trial judge erred in rejecting a retirement-fund garnishment deal that would have protected Martin Shkreli's convicted former lawyer from tax penalties, the Second Circuit ruled Wednesday.

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DOJ Wants New Judge In Fired Court-Appointed US Atty's Suit

By Jack Karp

A lawsuit from the Seattle U.S. attorney who was swiftly fired from his post by President Donald Trump shortly after being appointed to it by a federal court should be reassigned to a different judge, the administration has told a Washington federal court.

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Segal McCambridge Settles Fired Secretary's Age Bias Suit

By Grace Elletson

Law firm Segal McCambridge Singer & Mahoney Ltd. has struck a deal to end a New York federal court suit from a former secretary who said her colleagues mistreated her because of her age, according to a Wednesday court filing.

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Comey Rips '86 47' Case, Says Warrants 'Misstated Facts'

By Lauren Berg

James Comey is taking another angle in his effort to dismiss an indictment stemming from a picture of seashells he posted on Instagram, telling a North Carolina federal judge that the government is pursuing the "vindictive" case because of President Donald Trump's "deep-seated animosity" toward the former FBI director.

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COMPANIES IN TODAY'S NEWS

AbbVie Inc.

Affordable Care LLC

Brooklyn Defender Services

Burke Inc.

Cottrell Inc.

Elevance Health Inc.

George Washington University

Gerald Holdings LLC

Getty Images Holdings Inc.

Glenmark Pharmaceuticals Ltd.

HDR Global Trading Ltd.

Humana Inc.

IHS Markit Ltd.

Instagram Inc.

LinkedIn Corp.

McDonald's Corp.

Patriot National Inc.

Pharmaceutical Research & Manufacturers of America

Retrophin Inc.

Rothman Orthopaedic Institute

Sandoz International GmbH

Teva Pharmaceutical Industries Ltd.

Travere Therapeutics Inc.

Union Pacific Corp.

University of Maryland Medical System

University of Miami

Volkswagen AG

Zeughauser Group LLC

LAW FIRMS IN TODAY'S NEWS

Burns Charest

Cohen & Wolf

Conrad & Scherer

Console Mattiacci

Cooley LLP

Cowdery Murphy

Crystal Pettiford Law

Dughi Hewit

Dunn Law Firm

Gibson Dunn

Goodwin Procter

HGT Law

HKM Employment Attorneys

Hawks Quindel

Healy LLC

Hobbs Straus

Holtzman Vogel

Hooper Lundy

Kasowitz LLP

Katten Muchin

King & Spalding

L'Abbate Balkan

Lamb McErlane

Lennon Murphy

Littler Mendelson

Lowey Dannenberg

Lynch Carpenter

Markun Zusman

Morgan Lewis

Morris James

Munger Tolles

Orrick Herrington

Powers Pyles

Pretzel & Stouffer

Procaccini Law Group

Reed Smith

Rivkin Radler

Schneider Wallace

Segal McCambridge

Simpson Thacher & Bartlett

Stearns Weaver

Stember Cohn

Sullivan & Cromwell

Wiggin & Dana

Williams & Connolly

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Attorney General's Office

California Department of Justice

California Supreme Court

Centers for Medicare & Medicaid Services

Commodity Futures Trading Commission

Equal Employment Opportunity Commission

Executive Office for Immigration Review

Federal Bureau of Investigation

Indian Health Service

Internal Revenue Service

Judicial Conference of the United States

National Labor Relations Board

New Jersey Attorney General's Office

New Jersey Court

New York State Assembly

Office of the Director of National Intelligence

Texas Workforce Commission

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

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

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

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

U.S. Bankruptcy Court for the District of Delaware

U.S. Court of Appeals for the First Circuit

U.S. Court of Appeals for the Fourth Circuit

U.S. Court of Appeals for the Ninth Circuit

U.S. Court of Appeals for the Second Circuit

U.S. Court of Appeals for the Tenth Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Education

U.S. Department of Health and Human Services

U.S. Department of Justice

U.S. Department of Labor

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

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

U.S. District Court for the District of Columbia

U.S. District Court for the District of Delaware

U.S. District Court for the District of Maryland

U.S. District Court for the District of Massachusetts

U.S. District Court for the Eastern District of North Carolina

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

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

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 Texas

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

U.S. Supreme Court

United States District Court for the District of Nevada

United States District Court for the Southern District of Indiana

United States District Court for the Western District of Wisconsin

Wage and Hour Division

Washington Attorney General's Office