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Corporate
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December 05, 2023
SEC Chair Warns Businesses Against AI Washing: 'Don't Do It'
U.S. Securities and Exchange Commission Chair Gary Gensler on Tuesday cautioned business owners not to "AI wash," or mislead investors as to their true artificial intelligence capabilities, comparing the practice to "greenwashing" and saying that securities laws require "full, fair and truthful disclosure."
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December 05, 2023
Big Bank CEOs Bemoan Basel III Ahead Of Senate Grilling
Chief executives of some of the nation's biggest banks will be sounding the alarm about proposed capital requirement hikes when senators question them on Capitol Hill on Wednesday, with JPMorgan's Jamie Dimon warning of dire potential consequences that will "fundamentally alter the U.S. economy."
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December 05, 2023
Trump's Broker & Club Member Touts Mar-A-Lago's $1B Value
A Florida real estate broker and member of Donald Trump's Mar-a-Lago club took the stand Tuesday in New York state court to defend the former president's valuation of the property, saying it was worth more than $1 billion based on his billions in sales experience and "gut" feelings.
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December 05, 2023
9th Circ. Says Coinbase Can Arbitrate Fraud Transfer Action
A Ninth Circuit panel on Tuesday held that cryptocurrency exchange Coinbase can arbitrate claims from a class of its customers alleging it failed to curb unauthorized transfers, ruling that a provision delegating any dispute arising out of their customer agreements to an arbitrator is not unconscionable.
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December 05, 2023
Macy's Recruits Ex-Hanes, Neiman Marcus Atty For CLO Role
A seasoned chief legal officer who has worked in-house for several well-known retail companies, including Hanes, Neiman Marcus and Levi Strauss & Co., is set to be the next top lawyer at Macy's, the department store chain said Tuesday.
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December 05, 2023
Investors Sue Smith & Wesson Brass Over Assault Rifle Biz
Smith & Wesson's directors and senior executives place their own "greed" and "political concerns" above the interests of the company and its stockholders by ignoring the liabilities of marketing AR-15 rifles that are used to perpetrate mass shootings, according to a Nevada state lawsuit filed Tuesday by a group of Catholic sisters.
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December 05, 2023
9th Circ. Throws Out Tinder Age Bias Settlement Again
The Ninth Circuit held Tuesday that a revised $5.2 million settlement between Tinder and users accusing it of age bias still doesn't hold up, ruling that the class representative has a conflict of interest and failed to vigorously litigate on behalf of the proposed class before agreeing to the deal.
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December 05, 2023
LinkedIn, Zoom May Be Enforcers' Next Recordkeeping Target
Financial firm communications on platforms like LinkedIn and Zoom may be an upcoming focus for regulators after a spate of enforcement actions over off-channel communications via WhatsApp and other texting applications, according to a report released Tuesday.
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December 05, 2023
Cleaning Co. Quashes Salesman-Turned-Atty's Firing Suit
A lawyer who juggled his role as a Michigan county's top prosecutor with a full-time job as a sales manager lost a wrongful termination suit against his former employer Tuesday, with a judge saying concerns the prosecutor voiced about an illegal bid-rigging scheme didn't hold much water given that he took part in the alleged scheme.
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December 05, 2023
6th Circ. Seems Split On Chrysler Worker's Firing Bias Suit
The Sixth Circuit appeared to grapple Tuesday with a worker's push to revive his suit claiming Chrysler-maker FCA US LLC fired him because it saw him as disabled, with one judge seeking more detail from the worker and another pressing FCA on contradictory testimony.
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December 05, 2023
Intel Seeks New Trial In $1B VLSI Case After Ax Of $2B Verdict
After the Federal Circuit vacated a $2.18 billion verdict against Intel Corp. in a patent dispute with VLSI Technology LLC, Intel told a Texas federal judge that the ruling means a new trial is also needed in a $948 million case over a different VLSI microchip patent.
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December 05, 2023
Seyfarth Adds Ex-Goldman Sachs Benefits Atty As Partner
Seyfarth Shaw LLP said Tuesday that it has added the longtime in-house legal chief over Goldman Sachs' executive compensation and employee benefit plans as a partner in the New York office.
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December 05, 2023
1st Circ. Open To Reviving Whole Foods BLM Retaliation Suit
The First Circuit on Tuesday appeared willing to consider at least partially reversing Whole Foods' pretrial win on retaliation claims brought by three former employees who say the grocery chain disciplined and later fired them for wearing Black Lives Matter masks at work.
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December 05, 2023
Virtu Attacks SEC's 'Hypothetical' Information Security Suit
Virtu Financial Inc. is fighting a U.S. Securities and Exchange Commission lawsuit accusing a subsidiary of failing to safeguard certain client information from its own in-house traders, arguing that the case should be dismissed because the regulator has not alleged that any Virtu employees actually accessed or misused that information.
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December 05, 2023
7th Circ. Signals Issue With $540M Motorola Trade Secret Win
Seventh Circuit judges reviewing Motorola's $540 million win in a mobile radio trade secret case suggested Tuesday part of the verdict might come undone, with one judge saying the calculation of foreign sales was a thorny problem in the case.
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December 05, 2023
Jackson Urges High Court To Dispose Of Automatic Vacaturs
U.S. Supreme Court Justice Ketanji Brown Jackson on Tuesday again criticized a procedural mechanism that obligates the justices to vacate lower court opinions and offered up an alternative analysis they could use to decide whether to vacate rulings by the lower courts.
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December 05, 2023
Calif. Justice Asks 'What's Consumer To Do?' In Lemon Fight
California Supreme Court justices on Tuesday doubted Chrysler's arguments that a consumer who traded her lemon vehicle with a third party must deduct its trade-in value from restitution she's entitled to under the Song-Beverly Act, noting Chrysler repeatedly refused to buy back her Jeep, with one justice asking, "What's the consumer to do?"
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December 05, 2023
Justices Wary Of Repatriation Tax Review Consequences
U.S. Supreme Court justices questioned a Washington couple's counsel about their challenge to the one-time repatriation tax during oral arguments Tuesday, with some suggesting that a ruling in the couple's favor would upend other parts of the federal tax code.
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December 05, 2023
Cos. Deny Liability For Nooses Found At Conn. Amazon Site
Amazon.com Inc. wants out of a federal lawsuit filed by a group of electricians over the display of eight nooses at a Connecticut job site, arguing that the Black and Latino plaintiffs are suing under an anti-discrimination law that only applies when parties are under contract.
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December 05, 2023
X Corp. Calls TM Suit 'A Shakedown' That Must Be Dismissed
Elon Musk's X Corp., the company formerly known as Twitter, has asked a Florida federal judge to dismiss a complaint from X Social Media LLC, calling the suit "a shakedown masquerading as trademark infringement and unfair competition claims."
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December 05, 2023
Panera Hit With Second 'Charged Lemonade' Death Suit
Panera Bread Co. is being sued in Delaware state court over claims that its "Charged Lemonade" drink is responsible for a patron's death, less than two months after it was hit with a similar suit in federal court over another patron's death.
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December 05, 2023
Ancora Sides With Trian As Disney Board Battle Brews
Activist investment firm Ancora Holdings Group said Tuesday that it backs the appointment of Nelson Peltz to The Walt Disney Company's board, days after Peltz's Trian Fund Management LP said the storied entertainment company had declined to consider him for the post.
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December 05, 2023
Drug Co. Aceragen OK'd For Chancery-Overseen Liquidation
Biopharmaceutical company Aceragen Inc. secured a Delaware Court of Chancery go-ahead for its bankruptcy-alternative liquidation under a court-supervised assignment for the benefit of creditors in favor of a NovaQuest Capital Management affiliate.
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December 05, 2023
JetBlue-Spirit Deal Trial Wraps As Judge Mulls Middle Ground
While hearing closing arguments in a monthlong bench trial, a Massachusetts federal judge weighed Tuesday whether he could strike a balance between permanently barring a proposed $3.8 billion merger between JetBlue Airways Corp. and Spirit Airlines and letting the deal go through as is.
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December 05, 2023
Allen & Overy Private Equity Pro Rejoins Kirkland In Austin
Kirkland & Ellis LLP has strengthened its corporate practice with an Austin-based partner from Allen & Overy LLP's Los Angeles office who previously practiced with Kirkland as an associate.
Expert Analysis
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7 Critical Copyright And AI Questions Courts Need To Address
U.S. courts have yet to rule on many copyright issues regarding generative artificial intelligence technologies, so developers and users should consider several questions when evaluating risks, developing risk mitigation plans and making decisions about particular use cases, say John Delaney and Sean West at Perkins Coie.
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How Purdue High Court Case Will Shape Ch. 11 Mass Injury
The U.S. Supreme Court's recent arguments in Harrington v. Purdue Pharma, addressing the authority of bankruptcy courts to approve nonconsensual third-party releases in Chapter 11 settlement plans, highlight the case's wide-ranging implications for how mass injury cases get resolved in bankruptcy proceedings, says George Singer at Holland & Hart.
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Mitigating Antitrust Risk Amid Increased Dealmaking Scrutiny
While deals continue to get done despite a 60% increase in significant merger investigations in the U.S. last year as agencies moved away from settlements, private equity firms should identify and assess potential antitrust risks and develop strategies to mitigate them early in the deal process, say attorneys at Dechert.
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Opinion
Legal Profession Gender Parity Requires Equal Parental Leave
To truly foster equity in the legal profession and to promote attorney retention, workplaces need to better support all parents, regardless of gender — starting by offering equal and robust parental leave to both birthing and non-birthing parents, says Ali Spindler at Irwin Fritchie.
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Business Takeaways From Biden's Global Labor Rights Memo
President Joe Biden's recent memorandum on protecting worker rights is one of the most expansive statements the administration has made regarding international labor rights policy, and reflects several points of which businesses should take note, including the government’s interest in working with the private sector on these issues and a notable focus on the transition to clean energy, say Tom Plotkin and Pegah Nabili at Covington.
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'Manufacturing' Amid Mass. Adoption Of Single-Sales Factor
Massachusetts’ recent adoption of single-sales-factor apportionment will benefit companies that have a greater in-state physical presence, reinforce the importance of understanding market-sourcing rules, and reduce the manufacturing classification's importance to tax apportionment, though the classification continues to be significant to other aspects of taxation, say attorneys at McDermott.
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Opinion
Activist Short-Sellers Are The Dark Knights Of Wall Street
While so-called activist short-sellers have been subject to increased scrutiny in recent years, these investors work in the shadows like Batman to expose fraud on Wall Street, often generating leads that may move regulators to take action, say attorneys at Labaton Sucharow.
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New Regs Will Strengthen Voluntary Carbon Offset Market
Voluntary carbon offsets are a vital tool for organizations seeking to achieve net-zero greenhouse gas emissions — and recent efforts by the U.S. Commodity Futures Trading Commission, the U.S. Department of Agriculture, the state of California and others are essential to enhancing the reliability and authenticity of carbon credits, says David Smith at Manatt.
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2nd Circ. Defamation Ruling May Chill NY Title IX Reports
The Second Circuit’s recent decision, holding accusers in Connecticut Title IX sexual misconduct cases are not immune to defamation claims, means that New York higher education institutions should reassess whether their disciplinary hearing procedures both protect due process and encourage victim and witness participation, says Nicole Donatich at Cullen and Dykman.
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Series
Writing Thriller Novels Makes Me A Better Lawyer
Authoring several thriller novels has enriched my work by providing a fresh perspective on my privacy practice, expanding my knowledge, and keeping me alert to the next wave of issues in an increasingly complex space — a reminder to all lawyers that extracurricular activities can help sharpen professional instincts, says Reece Hirsch at Morgan Lewis.
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What Lawyers Must Know About Calif. State Bar's AI Guidance
Initial recommendations from the State Bar of California regarding use of generative artificial intelligence by lawyers have the potential to become a useful set of guidelines in the industry, covering confidentiality, supervision and training, communications, discrimination and more, say attorneys at Debevoise.
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Industry Must Elevate Native American Women Attys' Stories
The American Bar Association's recent research study into Native American women attorneys' experiences in the legal industry reveals the glacial pace of progress, and should inform efforts to amplify Native voices in the field, says Mary Smith, president of the ABA.
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Title IX Grievance Rules Raise Due Process Questions
The U.S. Department of Education’s proposed Title IX regulations for campus disciplinary proceedings would ease the administrative burden on institutions, but raise fairness and due process questions that will likely lead to follow-on litigation, say Markus Funk and Christopher Wilkinson at Perkins Coie.
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A Year-End Look At Florida's Capital Investment Tax Credit
Notwithstanding the Walt Disney Co.’s feud with Gov. Ron DeSantis this year, Florida's capital investment tax credit will continue to make the state a favored destination for large corporations, particularly in light of the new federal alternative minimum tax and the Pillar Two top-up tax, says Alan Lederman at Gunster.
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Crypto, Audit Cases Dominate SEC's Enforcement Focus In '23
Attorneys at Covington examine the U.S. Securities and Exchange Commission's fiscal year 2023 enforcement results, which marked the SEC's third consecutive year of increasing enforcement activity since Chair Gary Gensler took over in 2021 — this time driven by a focus on combating cryptocurrency-related scams and enforcing recordkeeping compliance.