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New York
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September 12, 2025
Mass. AG Says KalshiEX Running Betting Platform In Disguise
Online "prediction market" KalshiEX LLC was hit on Friday with a lawsuit by Massachusetts regulators alleging the New York-based company is running what amounts to an unlicensed sports betting platform.
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September 12, 2025
McGinn Smith Cos. To Pay $44M To End Obama-Era SEC Suit
The U.S. Securities and Exchange Commission's long-running litigation over the McGinn Smith Ponzi scheme has wrapped up after a federal judge entered a $44.2 million judgment against entities accused of running a $125 million fraud that went bust in 2010.
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September 12, 2025
Family Of Businessman Must Face $80M Tax Scheme Claims
A theater businessman's descendants and extended family cannot avoid claims by the U.S. accusing them of knowingly engaging in an $80 million tax shelter scheme to sell their shares of the family holding company, a New York federal judge ruled, declining to toss the suit.
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September 12, 2025
Liberty Wins Defense Reimbursement In Crane Damage Row
A subcontractor's insurer must reimburse a Liberty Mutual unit for roughly $477,000 in defense costs stemming from settled litigation over property damage from an unsecured crane, a New York federal court ruled Friday, finding that a self-insured retention only applied with respect to the subcontractor.
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September 12, 2025
Broker Wants DC Circ. View Of FINRA Constitutionality Claim
A broker-dealer representative has asked the D.C. Circuit to review a lower court's refusal to block an enforcement action against him from the Financial Industry Regulatory Authority despite his claims that the pending in-house hearing is unconstitutional under the U.S. Supreme Court's Jarkesy decision.
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September 12, 2025
2nd Circ. OKs Verdict In DEA Bribe Case But Nixes Forfeiture
The Second Circuit on Friday affirmed the convictions of a pair of ex-Drug Enforcement Administration agents over a bribery scheme but overturned an order requiring both to forfeit funds, saying it would constitute a double payment for the same crime.
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September 12, 2025
Fed. Circ. Backs $3.5M Award In Wallet Gadget Patent Case
The Federal Circuit held Friday that it won't undo Dynamite Marketing's $3.5 million win in a suit in which a jury found that WowLine Inc. infringed a patent covering the Wallet Ninja, upholding awards for both damages and attorney fees.
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September 12, 2025
Off The Bench: NCAA Athlete Ban, WNBA Sun Controversy
In this week's Off The Bench, the NCAA administered permanent bans to three basketball players, and two high-profile politicians warned the WNBA that it could be at risk of violating antitrust laws if it interferes in the sale of the Connecticut Sun.
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September 12, 2025
NY Judge Keeps Cayuga Citizen's 911 Bias Claims Alive
A federal judge has dismissed a New York tribe's Civil Rights Act claims against two of the state's counties, while leaving in play a tribal council member and citizen's allegations in the dispute over 911 access, saying he plausibly asserted discrimination.
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September 12, 2025
Under Armour Gets Win In Outlet Store Price Suit
A New York federal judge on Thursday axed a consumer's potential class action alleging that Under Armour promises lower costs of products sold in its outlet stores while actually charging inflated prices, saying that she didn't claim that what she bought was defective.
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September 12, 2025
Firm Says Lender In 'Falsified' Loan Suit Wasn't A Client
Pullman & Comley LLC has told a Connecticut state judge it should not have to face a New York lender's claims in a legal malpractice case accusing the multistate law firm of failing to flag allegedly falsified $16.2 million loan documents because the plaintiff was not its client.
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September 12, 2025
Another Investor Settles In $2.1B Danish Tax Fraud Case
A U.S. investor and two of his alleged pension plans have settled claims by Denmark's tax agency accusing them of participating in a $2.1 billion scheme that fraudulently claimed refunds on tax withheld from stock dividends, with a New York federal court dismissing the allegations.
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September 12, 2025
NYC Eviction Counsel Program Struggles To Meet Its Goals
More than half the households eligible for New York City's Right to Counsel program are not receiving legal representation in eviction cases, with representation rates for all households that appear in court peaking at just over half of tenants in 2022 before falling to roughly one-third of citywide tenants in 2024, according to a report.
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September 11, 2025
Ex-Two Sigma Quant Rigged Models For $23M Profit, Feds Say
A former Two Sigma Investments quantitative analyst was hit Thursday with criminal charges and a civil enforcement action for allegedly manipulating the hedge fund's algorithmic models used to forecast securities performance in order to snag a $23 million payday while causing $165 million in harm to clients.
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September 11, 2025
Khalil Asks 3rd Circ. To Affirm His Release From ICE Detention
Mahmoud Khalil, the pro-Palestinian activist whom immigration officials are seeking to deport, urged the Third Circuit on Wednesday to affirm his release from immigration detention, saying a lower court got it right in several decisions that led to his release.
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September 11, 2025
2 NY Fertility Clinics Must Face Suit Over Destroyed Eggs
A New York federal judge on Thursday greenlit for trial a suit accusing two fertility clinics of negligently allowing a woman's eggs to be destroyed due to alleged mishandling, saying the claims can be considered ordinary negligence rather than medical malpractice.
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September 11, 2025
Industrial Tech Co. Sanctioned For Deleted Texts In Title VII Suit
A New York federal judge has sanctioned ultrasonic testing company Sonotec after two of its staff members were found to have deleted text messages about a former employee who is pursuing sexual harassment retaliation claims against the company, finding they should have known litigation was imminent at the time they erased the correspondence.
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September 11, 2025
SEC Fights Musk's Bid To Send Twitter Case To Texas
The U.S. Securities and Exchange Commission is challenging Elon Musk's attempt to have a lawsuit over his purchase of Twitter shares moved to Texas, arguing Thursday that there was "no question" that the case belonged in Washington, D.C.
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September 11, 2025
SEC Drops Suit Against Nikola Founder After Trump's Pardon
The U.S. Securities and Exchange Commission on Thursday ended its civil enforcement action in New York federal court against Nikola founder Trevor Milton months after he was pardoned by President Donald Trump for his securities fraud conviction on charges of lying to boost the company's stock on Wall Street.
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September 11, 2025
Insulin Makers Ask 2nd Circ. To Rethink Collusion Claims
Sanofi-Aventis US, Eli Lilly & Co., Novo Nordisk Inc. and AstraZeneca Pharmaceuticals LP are asking for a rehearing after a Second Circuit panel revived a proposed class action from safety-net hospitals and clinics accusing the companies of increasing insulin drug costs by agreeing to limit participation in a discount program.
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September 11, 2025
Dental Supply Co.'s $84M Price-Fixing Deal Gets Final OK
Dental supply company Dentsply Sirona Inc. and its investors have gotten final approval for an $84 million deal resolving consolidated shareholder class action claims that the company hurt investors by concealing a price-fixing scheme and a distributor's inventory buildup.
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September 11, 2025
NY Judge Lets Baosheng IPO Suit Proceed But Drops Auditors
A New York federal judge has ruled that investors can move forward with claims that Baosheng Media misled them by failing to disclose an investigation by Chinese authorities ahead of its initial public offering, but found they'd failed to state a claim against the auditor defendants in the suit.
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September 11, 2025
Insurer, Firearms Co. Drop Ghost Gun Coverage Dispute
A firearms retailer and its insurer have resolved a dispute over coverage for three underlying government suits alleging that the company contributed to gun violence by selling unfinished components used to assemble so-called ghost guns, according to a New York federal court filing.
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September 11, 2025
NY Cannabis Regulators Back Hold On Proximity Rule
New York cannabis regulators on Wednesday signaled support for marijuana stores' proposal to temporarily halt enforcement of a recent regulatory reinterpretation about store location requirements that threatens to upend more than a hundred cannabis businesses.
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September 11, 2025
AI Co. Employee Says Complaining Of Sex Bias Got Her Fired
An artificial intelligence software developer fired a data scientist after she complained that colleagues had minimized her contributions, held her to different standards than male co-workers and subjected her to unwanted sexual advances, according to a lawsuit filed in New York federal court.
Expert Analysis
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Shareholder Takeaways From NY Internal Affairs Doctrine Suit
A May New York Court of Appeals decision in Ezrasons v. Rudd involving Barclays — affirming the state's "firmly entrenched" internal affairs doctrine — is a win for all corporate stakeholders seeking stability in resolving disputes between shareholders and directors and officers, say attorneys at Sadis & Goldberg.
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Move Beyond Surface-Level Edits To Master Legal Writing
Recent instances in which attorneys filed briefs containing artificial intelligence hallucinations offer a stark reminder that effective revision isn’t just about superficial details like grammar — it requires attorneys to critically engage with their writing and analyze their rhetorical choices, says Ivy Grey at WordRake.
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EDNY Ruling May Limit Some FARA Conspiracy Charges
Though the Eastern District of New York’s recent U.S. v. Sun decision upheld Foreign Agents Registration Act charges against a former aide to New York Gov. Kathy Hochul, its recognition of an affirmative legislative policy to exempt some officials may help defendants charged with related conspiracies, say attorneys at ArentFox Schiff.
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9th Circ. Has Muddied Waters Of Article III Pleading Standard
District courts in the Ninth Circuit continue to apply a defunct and especially forgiving pleading standard to questions of Article III standing, and the circuit court itself has only perpetuated this confusion — making it an attractive forum for disputes that have no rightful place in federal court, say attorneys at Gibson Dunn.
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How Cos. Can Prep For Calif. Cybersecurity Audit Regulations
As the California Privacy Protection Agency Board finalizes cybersecurity audit requirements, companies should take six steps to prepare for the audit itself and to build a compliant cybersecurity program that can pass the audit, say attorneys at Covington.
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Series
Competing In Modern Pentathlon Makes Me A Better Lawyer
Opening myself up to new experiences through competing in modern Olympic pentathlon has shrunk the appearance of my daily work annoyances and helps me improve my patience, manage crises better and remember that acquiring new skills requires working through your early mistakes, says attorney Mary Zoldak.
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NY Case Shows How LLC Agreements Can Be Amended
The New York Court of Appeals in Behler v. Tao recently held that a merger clause contained in an amended limited liability company agreement superseded and extinguished an alleged oral agreement between the parties, highlighting the importance of determining early how and when an LLC agreement may be amended, says Kerrin Klein at Olshan Frome.
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If Justices Accept, Maxwell Case May Clarify Meaning Of 'US'
If the U.S. Supreme Court agrees to take up Ghislaine Maxwell’s appeal, it could clarify the meaning of “United States” in the context of plea agreements, and a plain language interpretation of the term would offer criminal defendants fairness and finality, say attorneys at Kudman Trachten.
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Series
Law School's Missed Lessons: Teaching Yourself Legal Tech
New graduates often enter practice unfamiliar with even basic professional software, but budding lawyers can use on-the-job opportunities to both catch up on technological skills and explore the advanced legal and artificial intelligence tools that will open doors, says Alyssa Sones at Sheppard Mullin.
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How AI May Reshape The Future Of Adjudication
As discussed at a recent panel at Texas A&M, artificial intelligence will not erase the human element of adjudication in the next 10 to 20 years, but it will drive efficiencies that spur private arbiters to experiment, lead public courts to evolve and force attorneys to adapt, says Christopher Seck at Squire Patton.
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When Legal Advocacy Crosses The Line Into Incivility
As judges issue sanctions for courtroom incivility, and state bars advance formal discipline rules, trial lawyers must understand that the difference between zealous advocacy and unprofessionalism is not just a matter of tone; it's a marker of skill, credibility and potentially disciplinary exposure, says Nate Sabri at Perkins Coie.
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2 NY Rulings May Stem Foreign Co. Derivative Suits
In recent decades, shareholders have challenged the internal affairs doctrine by bringing a series of derivative actions in New York state court on behalf of foreign corporations, but the New York Court of Appeals' recent rulings in Ezrasons v. Rudd and Haussmann v. Baumann should slow that trend, say attorneys at Cleary.
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Despite Rule Delay, FTC Scrutiny Looms For Subscriptions
Even though the Federal Trade Commission has delayed its click-to-cancel rule that introduces strict protocols for auto-renewing subscriptions, businesses should expect active enforcement of the new requirements after July, and look to the FTC's recent lawsuits against Uber and Cleo AI as warnings, say attorneys at Holland & Knight.
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Colo. Antitrust Law Signals Growing Scrutiny Among States
Colorado's recently enacted Uniform Antitrust Pre-Merger Notification Act makes it the second state to add such a requirement, reflecting a growing trend and underscoring the need for merging parties to plan for a more complex and multilayered notification landscape for deals, say Puja Patel and Noa Gur-Arie at Cleary.
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AGs Take Up Consumer Protection Mantle Amid CFPB Cuts
State attorneys general are stepping up to fill the enforcement gap as the Trump administration restructures the Consumer Financial Protection Bureau, creating a new regulatory dynamic that companies must closely monitor as oversight shifts toward states, say attorneys at Cozen O’Connor.