The Latest

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  Merrill Lynch to pay $20M to settle racial discrimination case

  Four ex-Merrill advisers and more than 1,000 class-action participants allege Merrill has not afforded Black advisers the same opportunities as their White counterparts. Merrill denies these claims.

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  Employer to pay nearly $40K after DOJ finds its job ad requested White candidates

  The Civil Rights Division’s Immigrant and Employee Rights Section started its investigation last year, following media buzz around Arthur Grand’s racist job description.

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  FTC leans on aggressive view of ‘unfair practices’ as it joins DOJ in call for roll-up information

  Private equity firms could be in the crosshairs as the agencies, trying to spot market concentration, ask the public to inform them of serial acquisitions.   

  Emerging Issues

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  Opinion

  How deputy GCs can position themselves for the top legal job

  One tip: Try not to become overly specialized, but if you are siloed, try to expand the scope of that silo across as many business functions as possible.

  Hiring/Talent

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  Ex-Heartland Tri-State CEO pleads guilty to embezzling $47M in crypto

  Shan Hanes also stole money from his church and a local investment club, according to court documents. Both have since disbanded. He faces 30 years in prison.

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  Uvalde families sue Meta, Activision Blizzard and gun manufacturer

  One of the new lawsuits claims Instagram allowed a gun manufacturer to market to teens, calling the platform “the firearm industry’s best advertiser.”

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  Company touts remnant assets as a cash generator for GCs

  Older, larger companies with lots of M&A behind them tend to have an extensive portfolio of assets lying dormant that are ripe for monetization, executives at an asset buyer say.

  Legal Operations

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  Legal GenAI tools mislead 17% of time: Stanford study

  Specialized legal applications are better than a general purpose tool like ChatGPT but whether they save time, given the oversight they need, is a question, an academic study says.

  Legal Technology

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  American Airlines pilot’s anti-ESG lawsuit certified as class action

  The size of the certified class is expected to exceed 100,000, according to court documents, as the airline is accused of violating its ERISA duties.

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  SEC clarifies intent of cybersecurity breach disclosure rules

  The rules require notification of “material” breaches, but some early filers have reported incidents that appear to fall short of the regulatory threshold. 

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  DOL overtime expansion ‘unlawful,’ business groups argue

  The plaintiffs filed a lawsuit in the same court that enjoined an Obama-era overtime rule, saying “the Department has done it again.”

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  Workers’ fears are driving FTC antitrust policy, Khan says

  Employees and small businesses are too often afraid a false move will lead to their ruin if they run afoul of Amazon or other companies that have a stranglehold over markets, the agency chair says.

  Emerging Issues

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  Tesla shareholders cite floundering performance in bid against Musk pay package

  The group also claims the EV maker’s board is stacked with directors who have close personal ties to the CEO.

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  In-house counsel neck-deep in J&J’s ‘fraudulent’ two-step talc maneuver, complaint says

  Although they aren’t named as individual defendants, company lawyers are material witnesses and their communications not privileged, a proposed class action lawsuit against Johnson & Johnson says. 

  Lawsuits and Litigation

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  SEC fines NYSE’s parent $10M for failing to report cyberattack

  The settlement sheds light on the costs of cyberattacks that can include penalties for non-compliance with timely disclosure requirements after the events occur.

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  Ex-Citi employee was fired for refusing to fudge data to OCC, she says

  Kathleen Martin said the pressure came from Anand Selva "almost as soon as he got promoted" to chief operating officer last year. The bank denies the allegations.

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  Opinion

  Let’s avoid legal patchwork for credit card surcharging

  “All parties in the payments ecosystem would benefit greatly from state laws that provide clarity and consistency between jurisdictions,” write two legal professionals.

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  Colorado AI law puts risk management front and center

  Companies that follow accountability and disclosure practices benefit from a rebuttable presumption that they exercised reasonable care and an affirmative defense against prosecution.

  Compliance

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  How GenAI will help GCs drive faster deal cycles

  In this and other ways, the technology is refashioning in-house legal leaders into strategic business enablers, consultants say.  

  Legal Technology

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  Jury should decide if employee’s objection to COVID-19 vaccine was based on religious beliefs, court says

  While the sales representative at the center of the case cited the Bible and raised concerns about “aborted fetal cells,” she also demonstrated medical concerns, the Ohio district court said.

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  CFPB to treat BNPL loans like credit cards

  “Whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under longstanding laws and regulations,” CFPB Director Rohit Chopra said.

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  Minnesota becomes 5th state with packaging EPR recycling law

  Gov. Tim Walz signed a budget bill that includes language to set up an extended producer responsibility system. A producer responsibility organization is set to be appointed by January 2025.

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  Citi fined $78.4M over 2022 flash crash error

  A Citi trader had meant to sell a basket of equities at $58 million but mistakenly created a $444 billion basket, regulators said. About $189 billion of the trade went on the market.

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  Courts can’t dismiss cases while they’re in arbitration, SCOTUS says

  Smith v. Spizzirri resolves a circuit split over whether the Federal Arbitration Act requires courts to keep a case on the docket while arbitration is pending. 

  Lawsuits and Litigation

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  Q&A

  Approaching compliance under multiple climate reporting regulations

  Companies may need to reorganize as climate disclosure mandates take shape, says Tim Mohin, a partner and director at Boston Consulting Group.

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