DROPLETS

The DOJ and DHS Trade Fraud Task Force has reported more than $1 billion in recoveries, penalties, forfeitures, and charged losses in under a year, and on July 14, 2026, DOJ announced a dedicated Global Trade & Commerce Enforcement Section within its National Fraud Enforcement Division. A companion Trade Enforcement Resource Guide identifies priority risk areas: misclassification, valuation omissions (assists, royalties, side payments), false origin and transshipment schemes, Section 301 and AD/CVD evasion, forced-labor sourcing, unsafe imports, and downstream participation by brokers, distributors, and resellers. The message is that customs noncompliance producing significant revenue loss will be treated as fraud, not as an administrative penalty matter. Importers should audit classification support, valuation methodologies, origin documentation, and supplier due diligence now, and consider prior disclosures where weaknesses are identified, before the new section develops a sustained case pipeline.

The U.S. has finalized three 50% tariffs on specific categories of Canadian goods under Section 338 of the Tariff Act of 1930, set to take effect August 19. Contrary to common industry assumptions, goods covered by the United States-Mexico-Canada Agreement (USMCA) will not qualify for exemptions from these new duties. Importers of affected Canadian products must immediately review their supply chains to identify covered items, assess the full financial impact of the new tariffs, evaluate alternative sourcing options, and confirm proper product classification to avoid unexpected duty liabilities when the tariffs go into effect.

CMS’s proposed CY 2027 OPPS rule implements Section 6225 of the Consolidated Appropriations Act, 2026, by adding 42 C.F.R. § 419.23 and standardizing how hospitals demonstrate provider-based status for off-campus outpatient departments. Main providers must obtain a location-specific NPI for each off-campus PBD, update PECOS, and submit an initial attestation between January 1, 2026 and December 31, 2027; subsequent attestations are required at intervals not exceeding five years. Timely submission satisfies the statutory requirement even if CMS has not issued a determination by January 1, 2028, providing relief from anticipated processing backlogs. CMS will use risk-based screening, with automated initial reviews and extended reviews—including documentation requests, site visits, and remote audits—for attestations flagged for incompleteness or elevated compliance risk across seven regulatory categories. Hospitals have 60 days to produce supporting documentation, and failure to comply may trigger repayment of OPPS claims. Comments are due August 31, 2026; providers should audit PBD inv

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On 3 July 2026, the European Commission adopted a delegated act revising the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD). Mandatory data points drop by over 60% and total data points by more than 70%, with the Commission projecting a 30% reduction in per-company reporting costs. A new fair-presentation requirement in ESRS 1 demands comparable, verifiable, understandable disclosures and entity-specific information where topical standards lack sufficient granularity, shifting more justification burden onto filers and assurance providers. Nonmaterial information is now generally prohibited unless required by other law, drawn from accepted frameworks, or needed by specific users. Double materiality (financial and impact) is retained, but a top-down assessment approach is permitted from FY 2026. Companies gain flexibility to use proxies and estimates for value chain data and may invoke an undue cost or effort relief. New phase-ins allow FY 2027 starters to omit anticipated financial effects for two years and quantitative

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The CFTC has withdrawn its prior proposed categorical ban on political event contracts and issued a June 2026 proposed rule that would exempt these contracts from its public interest prohibition, with comments due July 27, 2026, while retaining case-by-case authority to block specific contracts. Concurrently, the Senate has banned all senators and staff from trading prediction markets, a pending House bill would extend that ban to lawmakers’ families, and executive branch officials are already bound by ethics rules barring trades tied to their official duties. The CFTC has confirmed its enforcement division will prosecute insider trading, manipulation, and fraud on prediction market platforms. All parties with access to non-public government information, including campaigns, vendors, and financial market participants, should review trading restrictions and ethics guidance to mitigate compliance risk.

The U.S. administration is advancing multiple overlapping policy initiatives to onshore pharmaceutical supply chains, including Section 232 national security investigations into finished pharmaceuticals and active pharmaceutical ingredients (APIs), updated Trade Agreements Act procurement disclosure requirements that may prioritize U.S.-origin components, and pending reauthorizations of GDUFA IV and PDUFA VIII that could tie user fee structures to manufacturing location. Recent tariff proposals for APIs and patented pharmaceuticals, paired with exemptions for generic drugs, biosimilars, and certain 505(b)(2) products, create a complex, shifting regulatory landscape. In-house counsel for U.S. life sciences manufacturers, product developers, and supply chain stakeholders should monitor these developments, audit supply chain origin compliance, and engage with policy negotiations to align manufacturing and procurement strategies with emerging requirements.

A recent NLRB Advice Memorandum concludes that noncompete agreements, on their face, do not violate Section 8(a)(1) of the National Labor Relations Act. The memo signals a shift from the more aggressive stance taken by the prior administration, which had pursued noncompetes as restraints on protected concerted activity. However, the memo cautions that noncompetes can still run afoul of the NLRA when their specific terms chill employees from discussing wages, working conditions, or engaging in collective action. Employers should audit existing noncompete language for overbroad provisions, particularly those restricting discussions about employment terms or limiting access to competitors in ways that interfere with Section 7 rights. State law restrictions remain unaffected.

Tennessee has enacted legislation restricting the use of non-compete agreements, conditioning enforceability on the employee earning at least $70,000 annually and applying rebuttable presumptions that cap reasonable durations. The law signals a broader trend of state-level pushback against broad restrictive covenants, following similar measures in California, Minnesota, and New York. Employers should audit existing agreements for covered employees, confirm compensation levels meet the threshold, and document the business justification for any duration exceeding the presumption. Severance, garden-leave, or customer non-solicitation provisions may offer workable alternatives where non-competes no longer fit.

A California appellate split has emerged over what plaintiffs must plead to establish Article III standing in Fair Credit Reporting Act suits. One court, following Limon v. Askins, applies a lenient standard that permits claims to survive demurrer and removal challenges, while another demands more concrete allegations of harm. The divergence creates forum-dependent outcomes for credit bureaus, furnishers, employers, and other consumer-facing entities. Defense strategy now requires venue-specific pleading attacks, careful removal timing, and early class-certification scrutiny. Companies facing FCRA exposure in California should audit pending matters, evaluate transfer options, and prepare for heightened motion practice until the Supreme Court of California or the Ninth Circuit resolves the conflict.

The SEC has issued a formal request for public comment on regulatory frameworks for novel exchange-traded funds (ETFs), with a submission deadline of August 31, 2026. The request seeks input on emerging ETF structures, including leveraged, inverse, actively managed, crypto-linked, and thematic products, focusing on disclosure, liquidity, and investor protection requirements. Affected market participants should review the SEC’s specific questions, submit tailored feedback addressing operational and compliance impacts of potential rules, and track subsequent rulemaking to adjust product roadmaps and compliance programs ahead of final regulations.

With H1 2026 traditional IPO proceeds near $114 billion and 65 pricings, Foley & Lardner sequences readiness across four phases. Months 12-9 cover PCAOB audits (two years for EGCs under the JOBS Act), ASC 606/718 accounting, 409A cheap-stock review, IP holding-structure tax planning, Section 382 NOL studies, GILTI/Pillar Two modeling, and board independence with an audit-committee financial expert. Months 9-6 address incorporation-state choice (Delaware versus Nevada, Texas, Florida amendments), full cap-table reconciliation, Rule 701 compliance, public-company equity plans, cybersecurity and FCPA diligence, M&A moratorium, and contract management. Months 6-3 require two practice quarterly closes, SOX 404 documentation, driver-based operating models, market-term executive compensation, clawback and 10b5-1 policies, and S-1 drafting. Months 3-0 cover confidential filing, exchange selection, D&O tower placement, and testing-the-waters preparation. Counsel should engage early given SEC staff dialogue requirements.

Republican congressional members recently queried CFPB Director Russell Vought on specific steps the bureau could take to limit its own regulatory and enforcement authority, per July 2026 reporting. The queries signal growing legislative interest in rolling back CFPB powers expanded in prior administrations, which could lead to scaled-back rulemaking, fewer enforcement actions, and revised supervisory expectations for covered consumer financial services firms. In-house counsel at regulated entities should monitor related legislative and administrative developments, assess potential compliance program gaps if CFPB oversight is reduced, and coordinate with industry groups to provide input on proposed changes.

Three decisions shape post-Grenfell liability. In Mulalley v Sto, the High Court quantified a contractor's s.149 Building Safety Act contribution claim against a cladding supplier at £1.77m (87.5% of £2.03m recoverable loss), confirming that default judgment does not relieve a claimant of proving loss and that causation analysis can sharply reduce recoverable remedial costs. The court also enforced a Building Liability Order under s.130 against a foreign parent. In Clerkenwell Lifestyle v HG Construction, the court enforced an adjudicator's decision, holding that informal emails using the word 'agree' did not vary JCT completion dates and that defences not raised in adjudication cannot ground later natural justice challenges. Finally, the First-tier Tribunal granted a full Remediation Contribution Order under s.124 BSA, ruling that the s.120 test is single-stage (risk, not separate defect analysis) and that decision-makers may choose among reasonable remediation routes even if cheaper alternatives existed; litigation costs were excluded.

The UK has introduced a new securities transfer tax covering transfers of UK-issued and UK-linked listed securities, unlisted securities, derivatives, and eligible collective investment vehicle interests, with liability assigned to either transferors or transferees depending on the specific structure of each transaction. In-house counsel should first map their organization’s UK-related securities holdings and pending transactions to quantify potential tax exposure, update standard transaction documentation to include clear tax allocation and indemnity terms, and partner with external tax advisors to build compliant reporting and payment processes to avoid penalties for non-compliance.

The Department of Justice filed suit against UV Memory Care, an assisted-living facility, alleging violations of the Uniformed Services Employment and Reemployment Rights Act (USERRA), which protects service members from discrimination and guarantees reemployment rights. The case is notable because DOJ USERRA actions against private employers are uncommon; most USERRA claims proceed as private litigation. The complaint reportedly relies heavily on the employer's own internal communications to establish discriminatory intent, underscoring how written policies, emails, and HR notes can become damaging evidence. For in-house counsel, the takeaway is concrete: review USERRA compliance programs, train managers on protected military status, audit reemployment timelines, and counsel HR teams to document accommodation and reinstatement decisions carefully. Federal contractors should reassess affirmative-action obligations under the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) in parallel.

The interagency Trade Fraud Task Force has published a formal enforcement resource guide outlining its investigation priorities, protocols, and compliance expectations for entities subject to U.S. customs and trade laws. The guide consolidates existing enforcement authorities and signals the Task Force will use these outlined benchmarks as a standard when auditing trade compliance programs, assessing voluntary disclosures, and pursuing enforcement actions for common violations including misclassification, incorrect valuation, and origin fraud. In-house counsel should conduct a gap analysis of their organization’s current trade compliance practices against the guide’s requirements, update internal policies and training to align with the new expectations, and ensure their teams are prepared to respond to Task Force inquiries consistent with the outlined framework.

The July 2026 IP Litigator article co-authored by BakerHostetler’s Susan Kayser and Keehle Amicon analyzes the recent Apollo v. Sol de Janeiro decision, which set new limits on trade dress protection for consumer product packaging amid surging dupe product markets. The piece outlines how the ruling narrows the scope of protectable packaging trade dress, and provides practical guidance for brand teams to assess enforceability of existing packaging trade dress, adjust dupe product enforcement strategies, and mitigate litigation risk when pursuing or defending related trade dress claims.

The European Data Protection Board has issued new guidelines on anonymisation techniques, with direct implications for pharmaceutical, biotech, and medical device companies handling patient-level data in the EU. The guidance distinguishes anonymisation from pseudonymisation, sets expectations for technical and organisational safeguards, and warns that re-identification risk can render 'anonymised' datasets personal data under the GDPR. Companies relying on anonymised datasets for clinical research, real-world evidence, or cross-border analytics should audit current methodologies, document residual risk assessments, and update data-sharing agreements. The guidelines also affect secondary uses of clinical trial data and biobank materials, where regulators increasingly scrutinise whether true anonymisation has been achieved. In-house counsel should coordinate with privacy officers and data scientists to confirm compliance before the EDPB finalises its position.