DROPLETS
The Federal Trade Commission will no longer use its internal administrative process for antitrust conduct and consumer protection cases, shifting all such enforcement actions to federal court.
In a major policy shift, Federal Trade Commission Chairman Andrew Ferguson announced the agency will cease using its internal administrative process for anticompetitive conduct and consumer protection enforcement cases, opting instead to litigate them in federal court. Ferguson also signaled the FTC would move away from in-house adjudication for merger challenges to harmonize its approach with the Department of Justice.
This is a fundamental change for companies facing FTC scrutiny. The move from the agency's "Part 3" administrative tribunals to Article III courts introduces the Federal Rules of Civil Procedure, independent judicial oversight, and the potential for jury trials. The chairman cited the Supreme Court’s 2024 decision in SEC v. Jarkesy, which questioned the constitutionality of agency adjudication of private rights, as a key driver. This decision responds directly to a line of cases empowering targets of FTC actions to challenge the agency’s forum choice itself in federal court. Counsel should now anticipate that all future FTC litigation on conduct and consumer protecti
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The U.S. Securities and Exchange Commission has established a new regulatory sandbox, granting certain trading venues a five-year exemption from specific rules to facilitate trading in tokenized securities.
The U.S. Securities and Exchange Commission (SEC) has introduced a significant "Innovation Exemption" aimed at fostering development in the digital asset markets. This new rule provides a five-year period of regulatory relief for certain venues that facilitate the trading of tokenized securities. The measure is effectively a regulatory sandbox, allowing the SEC to observe market practices and gather data on this emerging technology while permitting market participants to experiment within defined guardrails without immediate enforcement of a full suite of existing securities regulations.
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The California Air Resources Board has deferred the initial reporting deadline for corporate greenhouse gas emissions to November 10, 2026, and clarified that Scope 3 reporting is not required for the first year.
The California Air Resources Board (CARB) has issued modified regulations and new guidance for its landmark Climate Corporate Data Accountability Act (SB 253), which compels large companies doing business in the state to report greenhouse gas (GHG) emissions. The first reporting deadline for Scope 1 and Scope 2 emissions has been deferred to November 10, 2026, and Scope 3 reporting is not required for the inaugural year. The updates also clarify rules on parent-level consolidation and exclude certain wholesale electricity and intercompany transactions. For 2026 only, companies have flexible reporting options, including using existing reports or a CARB template; some may only need to submit a letter stating they were not collecting data as of a key date. This regulation impacts public and private entities with over $1 billion in annual revenue, creating immediate compliance obligations. Counsel should advise affected clients to assess their 2026 reporting requirements and prepare submissions for the November deadline, while also monitoring parallel constitutional challenges to Califor
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The U.S. Securities and Exchange Commission has proposed eliminating the rule that mandates including shareholder proposals in company proxy materials, a move that would fundamentally alter corporate governance.
The U.S. Securities and Exchange Commission has proposed major amendments to the federal proxy rules, most notably the complete rescission of Rule 14a-8, which for decades has governed the inclusion of shareholder proposals in company proxy materials. The SEC's proposing release argues the rule exceeds its authority and improperly intrudes into state corporate law. If the rule is rescinded, the framework for shareholder proposals would likely shift to state law or company-specific governing documents, creating a new and potentially fragmented compliance landscape. The proposals also expand a company's discretionary authority to vote on shareholder proposals not included in its proxy materials. While the changes are not expected to be finalized for the 2027 proxy season, public companies and their counsel should monitor the rulemaking process closely. The proposals are now in a 60-day public comment period, and clients should anticipate increased engagement from investors on this topic, including proposals to amend bylaws to preserve shareholder proposal rights.
Vacating a $1B verdict against an ISP, the Supreme Court held that contributory copyright infringement requires intent that a service be used for infringement, not mere knowledge that infringing activity is occurring.
In Cox Communications, Inc. v. Sony Music Entertainment, the Supreme Court vacated a $1 billion contributory copyright infringement verdict against an internet service provider. The Court ruled that knowledge of infringing activity by users is insufficient to establish liability. Instead, a plaintiff must prove the provider intended its service be used for infringement. This intent can be shown either by evidence of inducement, such as advertising that encourages unlawful use, or by demonstrating the service is 'tailored to infringement' because it lacks substantial non-infringing applications.
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Based on a leaked draft, the "EU Kids Act" regulation would create a tiered system of access for minors, mandate safety-by-design, and introduce fines of up to 6% of global turnover for non-compliance.
The European Commission has announced a proposal for a new regulation, the "EU Kids Act," to create a unified framework for protecting minors online. The move, detailed in a leaked draft based on a September 17, 2026, announcement, would replace fragmented national laws with a directly applicable EU-wide instrument.
Sophisticated counsel should note the regulation's broad scope, affecting social media, app stores, online games, and AI chatbots, regardless of their location. Key provisions include mandatory, certified age verification and a "safety by design" obligation for all users under 18, which reverses the traditional burden of proof. The draft would prohibit "addictive design" features like infinite scrolling and autoplay, and it would impose strict, tiered access rules: a near-total ban for children under 13 and parent-managed accounts for those aged 13-15. Potential fines for non-compliance could reach 6% of global annual turnover.
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An EU court has for the first time upheld the European Commission's prohibition of a merger based on a pure "ecosystem" theory of harm, affirming the regulator's power to challenge acquisitions that entrench a dominant position.
The EU General Court upheld the European Commission’s 2023 decision to block Booking's acquisition of eTraveli, marking the first time a merger has been prohibited based on a pure “ecosystem” theory of harm. The Commission argued the deal would entrench Booking's dominant position in hotel online travel agencies (OTAs) by leveraging eTraveli's flight OTA business to create a hard-to-replicate travel ecosystem, a novel theory of "reverse leveraging."
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Federal banking regulators have proposed new guidance that would replace a more prescriptive 2023 framework, giving banks greater flexibility to manage third-party relationships and encouraging partnerships with fintechs.
U.S. federal banking agencies have jointly proposed new guidance intended to give banking organizations more flexibility in managing third-party risk. The proposal, which would replace a more prescriptive 2023 framework, moves away from detailed checklists toward broader, principles-based standards for due diligence, contract negotiation, and ongoing monitoring. Sophisticated counsel should note the agencies' explicit goal of encouraging responsible innovation and removing potential impediments to bank-fintech partnerships. The proposed guidance acknowledges the disparities in bargaining power between banks and their vendors and removes the formal concept of "critical activities," leaving it to institutions to assess risk. This signals a significant shift in supervisory posture, which may make it more difficult for examiners to issue adverse findings based on rigid interpretations. While many banks may wait for a final rule to overhaul their TPRM programs, the proposal suggests a more accommodating regulatory environment for new vendor relationships. Comments are due by November 16,
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Systems that autonomously select and purchase financial products for consumers could upend established principles of disclosure, liability, and fair lending.
An analysis by a legal academic, based on a forthcoming law review article, suggests that "agentic AI" is poised to move from assisting consumers to making financial decisions for them. These AI shopping agents could autonomously compare, select, and transact on products like credit cards, loans, and insurance policies, potentially increasing competition and reducing consumer switching costs. For financial institutions, however, this shift presents novel risks, as technology platforms could become the primary gatekeepers to customers. The development raises fundamental questions about the adequacy of existing legal frameworks built around human decision-making. Key issues include allocating liability when an AI agent errs, managing conflicts of interest when an agent is paid for referrals, and adapting disclosure and fair-lending laws for algorithmic consumers. Proposed safeguards include independent audits and "algorithmic nutrition labels" to ensure transparency and fairness. Financial services firms should monitor this trend, as it could fundamentally alter customer relationships
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The Federal Deposit Insurance Corporation has issued a notice of proposed rulemaking to significantly reform its framework for reviewing transactions under the Bank Merger Act.
The Federal Deposit Insurance Corporation (FDIC) board has approved a notice of proposed rulemaking (NPRM) to significantly reform its framework for reviewing bank merger transactions under the Bank Merger Act. The proposal represents a major effort to modernize the FDIC's approach, which has not been substantially updated in years, and reflects increased regulatory scrutiny of consolidation in the banking sector.
For financial institutions and their advisors, the proposed changes could have a profound impact on M&A strategy. The NPRM is expected to introduce more rigorous standards for evaluating a transaction's competitive effects, financial stability risks, and impact on the convenience and needs of communities served, including a focus on financial inclusion. This could lengthen review timelines, increase compliance burdens, and affect deal certainty for transactions under FDIC jurisdiction.
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A new memorandum from the NLRB's top prosecutor identifies key Biden-era, pro-labor precedents she will ask the agency's new Republican majority to overturn.
On August 26, 2026, National Labor Relations Board General Counsel Crystal S. Carey issued a memorandum (GC 26-04) outlining her prosecutorial priorities. The memo provides a punch list of significant, pro-labor NLRB precedents from the prior administration that she will ask the Board to overturn.
This development is important for employers because, with a recently cemented 3-1 Republican majority, the Board is now positioned to reverse years of precedent. The targeted rulings cover critical operational areas, including restrictions on severance agreements, the standard for evaluating neutral handbook policies, mandatory "captive audience" meetings, bargaining obligations, and expanded remedies for unfair labor practices. The GC's memo signals a major shift toward a more employer-friendly interpretation of federal labor law.
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A recent $14.1 million False Claims Act settlement is the latest in a series of DOJ enforcement actions targeting Medicare Advantage organizations and their vendors for improper diagnosis coding practices.
The Department of Justice is escalating its scrutiny of Medicare Advantage (MA) risk-adjustment coding, evidenced by a series of major False Claims Act (FCA) settlements. The latest involves a $14.1 million agreement with Complete Health Partners Holdings to resolve allegations it pressured providers to add unsupported diagnosis codes into patient electronic medical records to inflate risk scores and payments. This follows other recent nine-figure settlements against a health system, a national insurer, and an in-home assessment vendor for similar practices. Sophisticated clients in the MA ecosystem—including plans, provider groups, and their vendors—should take note of this clear enforcement priority. The DOJ is targeting programs that suggest diagnosis codes, particularly when those suggestions are not substantively reviewed by providers or lack clinical support. Compounding the risk, new OIG guidance expressly identifies EMR prompts for risk-adjusting diagnoses as potentially fraudulent. Affected organizations should re-evaluate their coding suggestion programs, incentive structur
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Peru's executive branch has asked Congress for 120 days of special legislative authority to enact dozens of reforms impacting finance, energy, mining, and infrastructure.
Peru’s executive branch has submitted a bill to Congress requesting delegated legislative powers for 120 days to pass 66 specific reforms across eight sectors. If approved, the government could bypass ordinary legislative procedure to enact significant changes impacting financial services, mining, energy, infrastructure, compliance, and labor law.
For investors and multinational companies, the proposed reforms present both opportunities and risks. Key measures include removing statutory caps on interest rates, modifying rules for mining concessions, streamlining environmental permits for major projects, and facilitating public-private partnerships. The proposal also has compliance implications, seeking authority to classify certain criminal organizations as terrorist entities—affecting AML and sanctions screening—and to ban the import of goods made with forced labor, which would create new supply-chain diligence obligations.
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A company that settled early in the SEC's enforcement sweep over off-channel communications is not entitled to a modification just because the agency later offered more lenient terms to other firms, the Fifth Circuit has ruled.
The U.S. Court of Appeals for the Fifth Circuit rejected a challenge from Apex Clearing Corp. after the SEC refused to modify a 2024 settlement. Apex was part of the SEC's industry sweep targeting failures to preserve off-channel business communications. The firm paid a $6 million penalty and agreed to retain an independent compliance consultant. Five months later, the SEC settled with other firms for similar violations on more favorable terms that did not require the same undertakings. Apex requested that its settlement be amended for equitable treatment, but the SEC denied the request.
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A joint statement from five federal agencies confirms that financial institutions can discuss the underlying facts of suspected fraud with customers without violating SAR confidentiality rules.
Five US financial regulators, including FinCEN and the Federal Reserve, issued a joint statement clarifying a key aspect of anti-money laundering compliance. The guidance confirms that banks can discuss the underlying facts, transactions, and documents related to suspected fraud with customers, even if the activity has led to a Suspicious Activity Report (SAR), so long as they do not reveal the existence of the SAR itself.
This resolves a significant operational tension for financial institutions, which often defaulted to silence when restricting or closing accounts to avoid violating the Bank Secrecy Act’s strict SAR confidentiality provisions. The statement explicitly permits notifying customers that an account action is related to suspected fraud or providing educational warnings about common schemes. This unified regulatory position gives institutions greater confidence in communicating transparently with customers, including those who may be victims of fraud. Compliance teams should review and update customer-facing scripts, internal policies, and staff training to align with t
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Private equity investors are targeting medical technology companies through carve-outs and take-private deals, navigating complex FDA regulatory hurdles and a shifting customer landscape to find value.
Private equity investment in the medical technology (MedTech) sector is becoming more concentrated, with deal value up 160% in the first half of 2026 over the prior year while deal volume rose only 5%. Investors are pursuing fewer, larger deals, focusing on two main strategies: carve-outs of non-core divisions from large strategic MedTech companies and take-private acquisitions of publicly traded firms whose long-term value may be underestimated by the market.
This trend creates significant opportunities for both PE clients and the large MedTech companies they transact with. For deal counsel, the shift requires a deeper, more nuanced approach to diligence. Success depends on understanding complex separation issues in carve-outs and navigating heightened FDA regulatory scrutiny. The FDA's new risk-based inspection program and focus on clinical trial reporting compliance can create significant valuation and liability risks if not addressed early in the M&A process.
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With non-compete agreements increasingly unenforceable, companies must build robust trade secret management programs to protect proprietary information when key employees depart.
As non-compete agreements become increasingly difficult to enforce, particularly in California, companies must shift their focus to affirmative trade secret protection programs. This guide explains that relying on standard employment agreements and NDAs alone is insufficient. Instead, effective protection requires a systematic approach to identifying, segmenting, and monitoring access to sensitive information before an employee's departure.
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The U.S. Court of Appeals for the Second Circuit has ruled that the limited partner exception to self-employment taxes requires a functional analysis of a partner’s role, not just their formal status.
The U.S. Court of Appeals for the Second Circuit, in Soroban Capital Partners LP v. Commissioner, affirmed a Tax Court holding that partners must lack managerial control to qualify for the "limited partner" exception from self-employment (SECA) taxes. The court rejected the argument that limited liability under state law was sufficient, instead endorsing the IRS's "functional analysis" test of a partner's actual role in the business.
This decision is a major setback for the investment funds industry, particularly for managers in New York, Connecticut, and Vermont. It aligns with a recently revised Fifth Circuit opinion, making a circuit split—and thus Supreme Court review—less likely. The ruling significantly strengthens the IRS's hand in its ongoing audit campaign targeting the use of the exception, which can represent a tax saving of up to 3.8% for high-income partners.
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In a major policy shift, the SEC has proposed eliminating the federal framework for including shareholder proposals in company proxy materials, deferring instead to state corporate law.
The SEC issued two proposing releases on September 16, 2026, that would significantly alter U.S. proxy rules. The primary proposal would rescind Rule 14a-8, which for decades has provided the federal framework requiring companies to include eligible shareholder proposals in their proxy materials. The SEC's stated rationale is that the rule exceeds its statutory authority and improperly intrudes into state corporate law. If adopted, the validity and inclusion of shareholder proposals would be determined by state law and a company's governing documents, ending the SEC's traditional gatekeeping role.
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A recent analysis showing providers win 85% of payment disputes, coupled with a sharp drop in filing fees, encourages broader use of the federal IDR process for underpaid out-of-network claims.
Healthcare providers are seeing high success rates in the No Surprises Act's Independent Dispute Resolution (IDR) process for out-of-network billing, creating new recovery opportunities. A 2025 analysis by Georgetown University found that providers prevailed in approximately 85% of all disputes, with median awards often representing significant multiples of the Qualifying Payment Amount (QPA), a benchmark based on median in-network rates. For sophisticated counsel, the key development is a recent and dramatic change in the cost-benefit analysis for pursuing these claims. In June 2026, the administrative fee to initiate an IDR dispute was reduced from $115 to $15 per party. This fee reduction, along with expanded rules for "batching" similar claims together, makes arbitration a more viable option for smaller underpayments that were previously cost-prohibitive to challenge. Providers should now reassess recurring underpayment patterns and individual claims to determine whether a revised IDR strategy could improve recovery efforts and reduce ongoing revenue loss from disputed payor reim
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The settlement with 40 states and the federal government resolves allegations Abbott defrauded Medicaid and other programs by selling products from plants that failed to meet safety standards.
Abbott Laboratories will pay approximately $384.2 million to resolve a whistleblower lawsuit alleging it defrauded government health programs. The settlement includes $348.7 million for the United States to resolve False Claims Act allegations and $35.5 million for 40 states to resolve claims related to their Medicaid programs. The lawsuit, originally filed in 2022, alleged that between 2018 and 2022, Abbott knowingly sold infant formula and nutritional products that were manufactured in facilities failing to meet federal and state safety and quality standards designed to prevent contamination.
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A new Australian law effective July 2027 will impose penalties of up to $100 million or 30% of turnover for unfair trading practices, including subscription models with unclear auto-renewal and cancellation terms.
Australia's Parliament has passed the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026, introducing a broad prohibition on unfair trading practices and specific new rules for subscription services, effective July 1, 2027. The law creates a significant new enforcement risk for businesses, with corporate violations attracting civil pecuniary penalties of the greater of $100 million, three times the benefit obtained, or 30% of adjusted turnover during the breach period. This marks a substantial shift from the prior Australian Consumer Law, under which some forms of misleading conduct did not carry financial penalties.
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A nationwide preliminary injunction prevents the Department of Homeland Security from eliminating the long-standing "duration of status" framework for F, J, and I nonimmigrants.
A U.S. district court in Massachusetts has issued a nationwide preliminary injunction, blocking a Department of Homeland Security (DHS) final rule that would have eliminated the "duration of status" (D/S) framework for students (F visa), exchange visitors (J visa), and foreign media representatives (I visa). The rule would have replaced the flexible D/S system, which lasts for the length of a program or assignment, with fixed admission periods requiring burdensome applications for extensions of stay.
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The Department of Energy requests public input on implementing a recent executive order authorizing it to prohibit or restrict foreign-produced equipment in the nation's bulk-power system on national security grounds.
The U.S. Department of Energy (DOE) is seeking public comment on the implementation of Executive Order 14421, which grants the agency broad authority to secure the nation's bulk-power system. The order, issued in August 2026 amid rising cybersecurity concerns, allows the Secretary of Energy to prohibit or impose mitigation measures on transactions involving foreign-produced electric equipment deemed to pose a national security risk. The authority extends to equipment already in operation, empowering DOE to order its monitoring, isolation, or removal.
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From January 2027, a new UK law will make it automatically unfair to dismiss an employee in order to replace them with a contractor or other non-employee.
A new provision, section 104K of the UK's Employment Rights Act, will take effect in January 2027, making a dismissal automatically unfair if the primary reason is to replace an employee's work with that of a non-employee, such as a contractor or consultant. This change is a significant development for employers, as claims for automatically unfair dismissal require no minimum service period and can result in uncapped compensation, with the burden of proof falling on the employer. It creates a major trap for businesses planning restructurings that involve outsourcing or shifting from permanent staff to flexible workers, even where the move has a strong commercial rationale. What might previously have been a defensible action could now lead to high-stakes litigation. Employers planning any UK workforce changes should now carefully document the business case for any redundancies, ensuring it is demonstrably separate from any decision to engage non-employees. The interaction between this new provision and existing TUPE transfer regulations remains uncertain and will likely be a key area
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Defense contractors face heightened False Claims Act enforcement for cybersecurity lapses even as the Department of War suspends new third-party certification rules.
The Department of Justice has continued its aggressive enforcement of cybersecurity standards for federal contractors, recently securing two False Claims Act (FCA) settlements for over $2.5 million combined. The cases, one prompted by a government audit and the other by a whistleblower, alleged that contractors misrepresented their compliance with NIST SP 800-171 cybersecurity controls. DOJ officials confirmed this is a growing priority, with 15 public cyber-fraud settlements totaling over $73.5 million in the last five years.
In a contrasting move, the Department of War announced a suspension of the CMMC Phase II rollout, which would have mandated third-party cybersecurity certifications. The department cited a need to reduce compliance costs and bureaucratic burdens, particularly for smaller businesses. This pause, however, does not eliminate the underlying contractual requirement for contractors to protect defense information per DFARS clause 252.204-7012.
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A new Field Assistance Bulletin directs the agency's NQTL compliance resources to network adequacy, medical necessity reviews, and separate treatment limitations.
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has issued new guidance narrowing its enforcement focus for the Mental Health Parity and Addiction Equity Act (MHPAEA). The bulletin directs the agency to prioritize compliance reviews of nonquantitative treatment limitations (NQTLs) in three specific areas: separate treatment limitations or exclusions, medical necessity review processes, and network adequacy standards. This development provides welcome clarity for group health plan sponsors and issuers navigating complex NQTL compliance following a pause in enforcement of a broader 2024 Final Rule. While the guidance signals a more collaborative agency posture, it does not alter underlying statutory obligations. Plan sponsors, insurers, and their third-party administrators should ensure their comparative analyses and documentation are robust and readily available for these three high-risk areas, as they are now the clear focus of EBSA’s oversight.
A new European Commission evaluation finds the automotive sector's antitrust block exemption is working well but flags unresolved issues around independent operators' access to vehicle data.
The European Commission has published its evaluation of the Motor Vehicle Block Exemption Regulation (MVBER), concluding the sector-specific antitrust framework is largely effective and relevant. The report, a key step before the regulation's May 2028 expiration, found the rules successfully protect most forms of competition in the automotive aftermarket.
However, the evaluation highlights a growing tension between vehicle manufacturers and independent service operators over access to in-vehicle data and technical information, a conflict intensified by the rise of connected and electric vehicles. While the Commission is unlikely to overhaul the entire regime, its findings signal that future rule changes will almost certainly focus on ensuring independent repairers and parts suppliers can compete effectively.
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North Carolina and 11 local governments will receive $455 million, with another $135 million reserved to guarantee future cleanup work, to resolve claims of PFAS water contamination.
North Carolina's attorney general has secured a $590 million agreement with DuPont, Chemours, and sister company Corteva to resolve claims of widespread PFAS contamination from the Fayetteville Works plant. The settlement allocates $455 million to the state and eleven local governments over the next 10 to 15 years, with the state's $75 million share partly funding a new Emerging Contaminant Mitigation Fund to help local entities address water contamination. The remaining $380 million is designated for the local governments that had sued the companies.
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A foreign manufacturer's high-volume shipments through California ports, combined with a product design specific to the US market, are sufficient to establish specific personal jurisdiction.
The US Court of Appeals for the Ninth Circuit reversed a district court's dismissal of foreign manufacturers in a multidistrict litigation, holding that specific personal jurisdiction existed based on the companies' forum contacts. The panel found that Korean automakers Hyundai and Kia purposefully availed themselves of the California forum by directing over 70% of their US-bound vehicle shipments through California ports as the shippers of record. This conduct, combined with designing the vehicles specifically for the US market, satisfied the circuit's "stream-of-commerce-plus" test for jurisdiction.
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A guide to managing investor risk as governments in Sub-Saharan Africa increase state control over key minerals through higher taxes, local content rules, and expropriation.
This guide analyzes a growing wave of resource nationalism across Sub-Saharan Africa, where governments are asserting greater control over critical minerals vital for the global energy transition. It details specific measures recently implemented in countries like the DRC, Mali, Zambia, and Ghana, including increased royalty rates and taxes, mandatory state shareholdings, local processing requirements, export bans on raw materials, and outright license cancellations or nationalizations. Sophisticated counsel and their clients in the mining, energy, and finance sectors must understand this trend as it presents significant political and financial risks to new and existing large-scale investments, potentially disrupting project stability and supply chains. The guide advises investors to proactively mitigate these risks by negotiating stabilization clauses in host-state contracts, securing political risk insurance, and carefully structuring investments to leverage protections under bilateral investment treaties. Investors should monitor ongoing political and economic pressures, particula
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Germany's Federal Cartel Office found the league's fan-ownership rule may be justified in principle but is applied inconsistently, creating legal uncertainty for clubs and investors.
Germany's Federal Cartel Office (FCO) has closed its investigation into the Deutsche Fußball Liga's (DFL) "50+1" rule, which mandates that fan-owned parent clubs retain majority voting control. The FCO concluded the rule restricts competition by effect but could be justified by the public-interest goal of preserving the club-based character of the sport.
Sophisticated counsel should note the FCO's decision is not a full clearance. The justification for the rule depends on its consistent and non-discriminatory application, and the regulator identified significant failings. These include the "benefactor exemption" for corporate-owned clubs like Bayer Leverkusen and VfL Wolfsburg, insufficient oversight of fan access to voting membership, and the DFL's failure to enforce the rule during a critical internal vote on private equity investment.
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SEC Commissioner Hester Peirce issued a statement clarifying that crypto vaults and onchain lending strategies may be subject to federal securities laws depending on their specific structure and activities.
SEC Commissioner Hester Peirce issued a statement clarifying how federal securities laws may apply to decentralized finance (DeFi) products, specifically crypto vaults and on-chain lending strategies. While not a new rule, the statement serves as a significant warning to the industry that moving financial activities onto a blockchain does not remove them from the SEC's jurisdiction. Peirce emphasized a facts-and-circumstances analysis, noting that a vault could be deemed an "investment contract" under the Securities Act of 1933 or an "investment company" under the Investment Company Act of 1940, depending on its structure and management. Similarly, individuals or entities exercising discretion over asset allocation or lending terms could be considered "investment advisers." The key takeaway for clients is that the entire product stack requires analysis, not just the underlying crypto assets but also the functions performed by smart contracts and their deployers. The statement puts the onus on market participants to proactively consider their regulatory posture and signals increased S
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A proposed rule would eliminate the discretionary 60-day period for certain nonimmigrant workers to remain in the US after their job ends, requiring immediate departure or a pre-arranged alternative status.
The U.S. Department of Homeland Security (DHS) has proposed a rule to eliminate the 60-day discretionary grace period for many key nonimmigrant worker classifications, including H-1B, L-1, and O-1. Under current practice, this grace period allows workers whose employment has ended to secure new sponsorship, apply for a change of status, or arrange their affairs before departing the country. Eliminating this buffer would require affected workers to leave the U.S. immediately upon job loss unless they have an independent, pre-existing basis to remain. For employers, this change would heighten the stakes of termination decisions and could complicate recruitment of skilled workers already in the U.S. It would necessitate more proactive immigration planning around hiring and separation, potentially affecting notice periods and severance arrangements. The proposal is currently open for public comment until November 10, 2026. Employers of foreign nationals should monitor developments and consult counsel to prepare for potential shifts in compliance and talent management strategy.
The Second Circuit has affirmed that the limited partner exception to self-employment tax depends on a partner's functional role, not their formal title under state law.
The U.S. Court of Appeals for the Second Circuit has affirmed the Tax Court’s decision in Soroban Capital Partners v. Commissioner, strengthening the IRS’s position on the self-employment tax exception for limited partners. The court held that the exception under Internal Revenue Code § 1402(a)(13) requires a functional analysis of a partner’s role. Partners who run, manage, or otherwise exercise control over the partnership’s business do not qualify as “limited partners” for tax purposes, regardless of their formal designation under state law. Because Soroban’s principals exercised managerial control, their distributive income shares were subject to self-employment tax. This ruling has immediate consequences for investment funds, professional service firms, and other entities structured as limited partnerships, particularly within the Second Circuit. The court noted its standard was similar to one recently adopted by the Fifth Circuit, but counsel should monitor a similar pending case in the First Circuit, which could create a circuit split and tee up the issue for potential Supre
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The USPTO Director terminated inter partes review proceedings citing petitioner misconduct, with a parallel district court striking the same party's invalidity contentions in litigation.
In a coordinated action underscoring the high-stakes nature of conduct in patent challenges, the Director of the U.S. Patent and Trademark Office terminated multiple inter partes review (IPR) proceedings, and a federal district court struck the petitioner's parallel invalidity contentions. The Director's rare termination order was based on petitioner misconduct that violated the principles of Sotera Wireless, Inc. v. Masimo Corp., which addresses the use of proxies to circumvent statutory bars and other IPR rules. This development is critical for patent litigators and their clients, as it signals the USPTO's low tolerance for abuse of the IPR process. The parallel court order striking the invalidity defenses demonstrates that such misconduct can have severe, case-dispositive consequences in federal court, potentially precluding a defendant from challenging a patent's validity at trial. Patent challengers must now consider the heightened risk that questionable PTAB filing strategies could jeopardize their core defenses in infringement litigation. Conversely, patent owners have a power
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The UK's Competition and Markets Authority has published revised guidance on merger efficiencies, signaling a greater openness to such arguments from merging parties and potentially easing the path for deal approvals.
On September 3, 2026, the UK's Competition and Markets Authority (CMA) published final revised guidance on its assessment of merger efficiencies. The new guidance signals a significant shift toward greater openness to efficiency-based arguments from merging parties, a development driven by a government mandate to promote economic growth. While the core analytical framework remains, the revisions create a more favorable environment for deal-making by expanding on the types of efficiencies the CMA will consider, allowing more flexibility on the timeline for their realization, and clarifying evidentiary standards. The guidance notably states that the CMA will accept evidence generated after a merger is contemplated and assures parties that submitting an efficiencies defense does not concede the existence of a substantial lessening of competition. For sophisticated counsel, this marks a critical change in regulatory posture. Companies and their advisors should consider preparing and presenting efficiency claims earlier in the UK merger review process and explore the newly clarified role
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The court ruled that a state-law contract claim arising from a patent settlement does not create federal jurisdiction unless resolving it necessarily requires deciding a substantial question of patent law.
The US Court of Appeals for the Federal Circuit ruled it lacked jurisdiction over an appeal involving a patent settlement agreement, transferring the case to the Fifth Circuit. The dispute arose after T-Mobile declined to make a contingent payment to KAIFI LLC, arguing the patent claims at issue did not ‘survive’ reexamination in a way that preserved the original infringement theory. The court applied the Supreme Court’s Gunn v. Minton test, finding that KAIFI's state-law breach of contract claim did not necessarily require resolving a substantial patent-law issue. The term ‘survives’ could be interpreted under ordinary contract principles without delving into complex patent claim construction. This decision reinforces that the Federal Circuit’s jurisdiction is limited and does not automatically extend to all disputes related to patents. For corporate counsel and patent litigators, this highlights the importance of precise language in settlement agreements. It also serves as a crucial reminder that disputes over such agreements may be resolved in regional circuit courts, which have l
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With grid connection queues stretching for years, sophisticated parties are moving beyond fixed prices, using staged payments and financing conditionality to manage power uncertainty.
Soaring electricity demand from data centers, projected to more than double globally by 2030, is creating significant grid connection delays and uncertainty that are reshaping how development and M&A deals are structured. The primary challenge is the risk gap between a utility's 'accepted offer' for a connection and achieving an actual 'energised connection,' a process that can be derailed by years of delays and unforeseen infrastructure costs. Sophisticated investors and developers now manage this risk through evolving contractual mechanisms, including staged payments tied to grid milestones, financing contingent on firm connection dates, and energisation-based longstop dates. For counsel, this elevates the importance of deep diligence on connection offers to interrogate dates, cost allocation for grid reinforcements, and curtailment risks. Parties should monitor ongoing connection-queue reforms by regulators like FERC in the US and Ofgem in Great Britain, which could re-prioritize projects and alter development timelines.
Recent US court decisions have affirmed that AI cannot be an author and that training on copyrighted works may be fair use, prompting a legislative shift toward right-of-publicity laws to protect artists.
US courts continue to establish that works generated solely by AI lack the human authorship required for copyright protection, as affirmed by the D.C. Circuit in Thaler v. Perlmutter. At the same time, the use of copyrighted works to train AI models is being tested under the fair use doctrine, with some early rulings suggesting it may be permissible where the AI's output does not create a market substitute for the original content.
This legal uncertainty creates significant risk for both AI developers and content owners. Major rights-holders, including the RIAA, have filed high-profile infringement suits against AI music platforms like Suno and Udio, alleging unlawful copying of sound recordings for training purposes. For creators, copyright law has so far offered limited recourse against their work being ingested by AI systems.
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The Federal Deposit Insurance Corporation has proposed a rule to grant state-chartered banks the same preemption from host-state laws as national banks, even if they lack a physical branch in that state.
The Federal Deposit Insurance Corporation (FDIC) has proposed a rule that would significantly expand federal preemption for state-chartered banks operating across state lines. Under the proposal, an out-of-state state bank would be subject to the laws of a host state only to the same extent as a national bank, even if the state bank has no physical branch there. This change aims to establish parity between state and national bank charters, adapting a legal framework from an era of brick-and-mortar banking to today's increasingly digital financial services landscape. The FDIC cites a need to resolve legal uncertainty for state banks, highlighted by recent litigation over state laws like the Illinois Interchange Fee Prohibition Act. If adopted, the rule could reduce the regulatory compliance burden for state banks operating nationwide and may influence the strategic analysis of which charter type is more advantageous. The proposal is now open for public comment and could face legal challenges from state regulators concerned about the erosion of their authority.
A pending case challenges the IRS's position that the passive receipt of new tokens from a blockchain split is an immediate income event, arguing taxpayers lack the necessary "dominion and control."
The US Tax Court is considering a landmark case, Rogovy v. Commissioner, that will address for the first time whether new tokens received from a cryptocurrency "hard fork" generate taxable income. The IRS assessed a $25.5 million deficiency against a couple who passively received tokens from nine Bitcoin hard forks, citing its 2019 ruling that such an "airdrop" creates ordinary income if the taxpayer can exercise dominion and control.
Sophisticated clients and counsel care because this tests the application of fundamental tax principles to novel digital assets. The taxpayers argue they never had an accession to wealth because accessing the new tokens was technically complex, would have exposed their primary Bitcoin holdings (in offline "cold storage") to significant security risks, and that they were unaware of most forks when they occurred. A ruling for the taxpayer could undermine the IRS's guidance and create uncertainty for digital asset taxation. A ruling for the IRS would solidify tax obligations for millions of crypto holders who may not realize they have received, or have pr
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New guidance from the UK's Financial Conduct Authority effective September 1 clarifies that issues like bullying and harassment can breach its Conduct Rules, requiring firms to integrate regulatory assessments into HR investigations.
The UK's Financial Conduct Authority (FCA) has issued final guidance and an associated rule change clarifying how its framework applies to non-financial misconduct (NFM). Effective September 1, 2026, the new rules apply to all FCA-regulated firms and explicitly connect behaviors such as bullying, harassment, and discrimination to regulatory duties under the Conduct Rules and assessments of an individual's fitness and propriety.
For global financial services firms, the guidance means that what appears to be a standard employee relations issue may now carry significant UK regulatory weight. A complaint originating from a global reporting hotline or a US-based investigation could trigger mandatory, separate assessments under UK rules, even if the conduct occurred outside the office at a work-related event. An internal finding that a complaint is "unsubstantiated" for HR purposes may not resolve the regulatory question, as the FCA's fitness and propriety assessment follows a different standard.
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The latest CFIUS annual report reveals that while short-form 'declaration' filings are increasingly popular, their clearance rate fell to an all-time low of 66% in 2025.
The Committee on Foreign Investment in the United States (CFIUS) has released its annual report for calendar year 2025, revealing critical trends for cross-border transactions. While total filings increased moderately, the data shows a significant strategic shift for dealmakers. Short-form "declarations" grew in popularity, but their clearance rate dropped to an all-time low of 66%, down from 78% the prior year. Consequently, a higher percentage of parties (26%) who filed declarations were later required to submit a more extensive full "notice," lengthening their review timelines. The report also shows a continued, albeit reduced, use of mitigation agreements and sustained scrutiny of non-notified transactions, with CFIUS requesting filings for nine such deals after identifying them. For deal counsel, the declining success rate of declarations complicates filing strategy, requiring a more nuanced risk assessment between the faster, but increasingly uncertain, short-form process and the more laborious full notice. The data suggests that despite stated policy goals of streamlining alli
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The Federal Trade Commission will no longer use its internal administrative process for antitrust conduct and consumer protection cases, shifting all such enforcement actions to federal court.
In a major policy shift, Federal Trade Commission Chairman Andrew Ferguson announced the agency will cease using its internal administrative process for anticompetitive conduct and consumer protection enforcement cases, opting instead to litigate them in federal court. Ferguson also signaled the FTC would move away from in-house adjudication for merger challenges to harmonize its approach with the Department of Justice.
This is a fundamental change for companies facing FTC scrutiny. The move from the agency's "Part 3" administrative tribunals to Article III courts introduces the Federal Rules of Civil Procedure, independent judicial oversight, and the potential for jury trials. The chairman cited the Supreme Court’s 2024 decision in SEC v. Jarkesy, which questioned the constitutionality of agency adjudication of private rights, as a key driver. This decision responds directly to a line of cases empowering targets of FTC actions to challenge the agency’s forum choice itself in federal court. Counsel should now anticipate that all future FTC litigation on conduct and consumer protecti
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The Federal Trade Commission will no longer use its internal administrative process for antitrust conduct and consumer protection cases, shifting all such enforcement actions to federal court.
In a major policy shift, Federal Trade Commission Chairman Andrew Ferguson announced the agency will cease using its internal administrative process for anticompetitive conduct and consumer protection enforcement cases, opting instead to litigate them in federal court. Ferguson also signaled the FTC would move away from in-house adjudication for merger challenges to harmonize its approach with the Department of Justice.
This is a fundamental change for companies facing FTC scrutiny. The move from the agency's "Part 3" administrative tribunals to Article III courts introduces the Federal Rules of Civil Procedure, independent judicial oversight, and the potential for jury trials. The chairman cited the Supreme Court’s 2024 decision in SEC v. Jarkesy, which questioned the constitutionality of agency adjudication of private rights, as a key driver. This decision responds directly to a line of cases empowering targets of FTC actions to challenge the agency’s forum choice itself in federal court. Counsel should now anticipate that all future FTC litigation on conduct and consumer protecti
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An EU court has for the first time upheld the European Commission's prohibition of a merger based on a pure "ecosystem" theory of harm, affirming the regulator's power to challenge acquisitions that entrench a dominant position.
The EU General Court upheld the European Commission’s 2023 decision to block Booking's acquisition of eTraveli, marking the first time a merger has been prohibited based on a pure “ecosystem” theory of harm. The Commission argued the deal would entrench Booking's dominant position in hotel online travel agencies (OTAs) by leveraging eTraveli's flight OTA business to create a hard-to-replicate travel ecosystem, a novel theory of "reverse leveraging."
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A new European Commission evaluation finds the automotive sector's antitrust block exemption is working well but flags unresolved issues around independent operators' access to vehicle data.
The European Commission has published its evaluation of the Motor Vehicle Block Exemption Regulation (MVBER), concluding the sector-specific antitrust framework is largely effective and relevant. The report, a key step before the regulation's May 2028 expiration, found the rules successfully protect most forms of competition in the automotive aftermarket.
However, the evaluation highlights a growing tension between vehicle manufacturers and independent service operators over access to in-vehicle data and technical information, a conflict intensified by the rise of connected and electric vehicles. While the Commission is unlikely to overhaul the entire regime, its findings signal that future rule changes will almost certainly focus on ensuring independent repairers and parts suppliers can compete effectively.
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Germany's Federal Cartel Office found the league's fan-ownership rule may be justified in principle but is applied inconsistently, creating legal uncertainty for clubs and investors.
Germany's Federal Cartel Office (FCO) has closed its investigation into the Deutsche Fußball Liga's (DFL) "50+1" rule, which mandates that fan-owned parent clubs retain majority voting control. The FCO concluded the rule restricts competition by effect but could be justified by the public-interest goal of preserving the club-based character of the sport.
Sophisticated counsel should note the FCO's decision is not a full clearance. The justification for the rule depends on its consistent and non-discriminatory application, and the regulator identified significant failings. These include the "benefactor exemption" for corporate-owned clubs like Bayer Leverkusen and VfL Wolfsburg, insufficient oversight of fan access to voting membership, and the DFL's failure to enforce the rule during a critical internal vote on private equity investment.
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The UK's Competition and Markets Authority has published revised guidance on merger efficiencies, signaling a greater openness to such arguments from merging parties and potentially easing the path for deal approvals.
On September 3, 2026, the UK's Competition and Markets Authority (CMA) published final revised guidance on its assessment of merger efficiencies. The new guidance signals a significant shift toward greater openness to efficiency-based arguments from merging parties, a development driven by a government mandate to promote economic growth. While the core analytical framework remains, the revisions create a more favorable environment for deal-making by expanding on the types of efficiencies the CMA will consider, allowing more flexibility on the timeline for their realization, and clarifying evidentiary standards. The guidance notably states that the CMA will accept evidence generated after a merger is contemplated and assures parties that submitting an efficiencies defense does not concede the existence of a substantial lessening of competition. For sophisticated counsel, this marks a critical change in regulatory posture. Companies and their advisors should consider preparing and presenting efficiency claims earlier in the UK merger review process and explore the newly clarified role
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A new Australian law effective July 2027 will impose penalties of up to $100 million or 30% of turnover for unfair trading practices, including subscription models with unclear auto-renewal and cancellation terms.
Australia's Parliament has passed the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026, introducing a broad prohibition on unfair trading practices and specific new rules for subscription services, effective July 1, 2027. The law creates a significant new enforcement risk for businesses, with corporate violations attracting civil pecuniary penalties of the greater of $100 million, three times the benefit obtained, or 30% of adjusted turnover during the breach period. This marks a substantial shift from the prior Australian Consumer Law, under which some forms of misleading conduct did not carry financial penalties.
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Private equity investors are targeting medical technology companies through carve-outs and take-private deals, navigating complex FDA regulatory hurdles and a shifting customer landscape to find value.
Private equity investment in the medical technology (MedTech) sector is becoming more concentrated, with deal value up 160% in the first half of 2026 over the prior year while deal volume rose only 5%. Investors are pursuing fewer, larger deals, focusing on two main strategies: carve-outs of non-core divisions from large strategic MedTech companies and take-private acquisitions of publicly traded firms whose long-term value may be underestimated by the market.
This trend creates significant opportunities for both PE clients and the large MedTech companies they transact with. For deal counsel, the shift requires a deeper, more nuanced approach to diligence. Success depends on understanding complex separation issues in carve-outs and navigating heightened FDA regulatory scrutiny. The FDA's new risk-based inspection program and focus on clinical trial reporting compliance can create significant valuation and liability risks if not addressed early in the M&A process.
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A new memorandum from the NLRB's top prosecutor identifies key Biden-era, pro-labor precedents she will ask the agency's new Republican majority to overturn.
On August 26, 2026, National Labor Relations Board General Counsel Crystal S. Carey issued a memorandum (GC 26-04) outlining her prosecutorial priorities. The memo provides a punch list of significant, pro-labor NLRB precedents from the prior administration that she will ask the Board to overturn.
This development is important for employers because, with a recently cemented 3-1 Republican majority, the Board is now positioned to reverse years of precedent. The targeted rulings cover critical operational areas, including restrictions on severance agreements, the standard for evaluating neutral handbook policies, mandatory "captive audience" meetings, bargaining obligations, and expanded remedies for unfair labor practices. The GC's memo signals a major shift toward a more employer-friendly interpretation of federal labor law.
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From January 2027, a new UK law will make it automatically unfair to dismiss an employee in order to replace them with a contractor or other non-employee.
A new provision, section 104K of the UK's Employment Rights Act, will take effect in January 2027, making a dismissal automatically unfair if the primary reason is to replace an employee's work with that of a non-employee, such as a contractor or consultant. This change is a significant development for employers, as claims for automatically unfair dismissal require no minimum service period and can result in uncapped compensation, with the burden of proof falling on the employer. It creates a major trap for businesses planning restructurings that involve outsourcing or shifting from permanent staff to flexible workers, even where the move has a strong commercial rationale. What might previously have been a defensible action could now lead to high-stakes litigation. Employers planning any UK workforce changes should now carefully document the business case for any redundancies, ensuring it is demonstrably separate from any decision to engage non-employees. The interaction between this new provision and existing TUPE transfer regulations remains uncertain and will likely be a key area
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A new Field Assistance Bulletin directs the agency's NQTL compliance resources to network adequacy, medical necessity reviews, and separate treatment limitations.
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has issued new guidance narrowing its enforcement focus for the Mental Health Parity and Addiction Equity Act (MHPAEA). The bulletin directs the agency to prioritize compliance reviews of nonquantitative treatment limitations (NQTLs) in three specific areas: separate treatment limitations or exclusions, medical necessity review processes, and network adequacy standards. This development provides welcome clarity for group health plan sponsors and issuers navigating complex NQTL compliance following a pause in enforcement of a broader 2024 Final Rule. While the guidance signals a more collaborative agency posture, it does not alter underlying statutory obligations. Plan sponsors, insurers, and their third-party administrators should ensure their comparative analyses and documentation are robust and readily available for these three high-risk areas, as they are now the clear focus of EBSA’s oversight.
The Department of Energy requests public input on implementing a recent executive order authorizing it to prohibit or restrict foreign-produced equipment in the nation's bulk-power system on national security grounds.
The U.S. Department of Energy (DOE) is seeking public comment on the implementation of Executive Order 14421, which grants the agency broad authority to secure the nation's bulk-power system. The order, issued in August 2026 amid rising cybersecurity concerns, allows the Secretary of Energy to prohibit or impose mitigation measures on transactions involving foreign-produced electric equipment deemed to pose a national security risk. The authority extends to equipment already in operation, empowering DOE to order its monitoring, isolation, or removal.
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The California Air Resources Board has deferred the initial reporting deadline for corporate greenhouse gas emissions to November 10, 2026, and clarified that Scope 3 reporting is not required for the first year.
The California Air Resources Board (CARB) has issued modified regulations and new guidance for its landmark Climate Corporate Data Accountability Act (SB 253), which compels large companies doing business in the state to report greenhouse gas (GHG) emissions. The first reporting deadline for Scope 1 and Scope 2 emissions has been deferred to November 10, 2026, and Scope 3 reporting is not required for the inaugural year. The updates also clarify rules on parent-level consolidation and exclude certain wholesale electricity and intercompany transactions. For 2026 only, companies have flexible reporting options, including using existing reports or a CARB template; some may only need to submit a letter stating they were not collecting data as of a key date. This regulation impacts public and private entities with over $1 billion in annual revenue, creating immediate compliance obligations. Counsel should advise affected clients to assess their 2026 reporting requirements and prepare submissions for the November deadline, while also monitoring parallel constitutional challenges to Califor
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North Carolina and 11 local governments will receive $455 million, with another $135 million reserved to guarantee future cleanup work, to resolve claims of PFAS water contamination.
North Carolina's attorney general has secured a $590 million agreement with DuPont, Chemours, and sister company Corteva to resolve claims of widespread PFAS contamination from the Fayetteville Works plant. The settlement allocates $455 million to the state and eleven local governments over the next 10 to 15 years, with the state's $75 million share partly funding a new Emerging Contaminant Mitigation Fund to help local entities address water contamination. The remaining $380 million is designated for the local governments that had sued the companies.
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Federal banking regulators have proposed new guidance that would replace a more prescriptive 2023 framework, giving banks greater flexibility to manage third-party relationships and encouraging partnerships with fintechs.
U.S. federal banking agencies have jointly proposed new guidance intended to give banking organizations more flexibility in managing third-party risk. The proposal, which would replace a more prescriptive 2023 framework, moves away from detailed checklists toward broader, principles-based standards for due diligence, contract negotiation, and ongoing monitoring. Sophisticated counsel should note the agencies' explicit goal of encouraging responsible innovation and removing potential impediments to bank-fintech partnerships. The proposed guidance acknowledges the disparities in bargaining power between banks and their vendors and removes the formal concept of "critical activities," leaving it to institutions to assess risk. This signals a significant shift in supervisory posture, which may make it more difficult for examiners to issue adverse findings based on rigid interpretations. While many banks may wait for a final rule to overhaul their TPRM programs, the proposal suggests a more accommodating regulatory environment for new vendor relationships. Comments are due by November 16,
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Systems that autonomously select and purchase financial products for consumers could upend established principles of disclosure, liability, and fair lending.
An analysis by a legal academic, based on a forthcoming law review article, suggests that "agentic AI" is poised to move from assisting consumers to making financial decisions for them. These AI shopping agents could autonomously compare, select, and transact on products like credit cards, loans, and insurance policies, potentially increasing competition and reducing consumer switching costs. For financial institutions, however, this shift presents novel risks, as technology platforms could become the primary gatekeepers to customers. The development raises fundamental questions about the adequacy of existing legal frameworks built around human decision-making. Key issues include allocating liability when an AI agent errs, managing conflicts of interest when an agent is paid for referrals, and adapting disclosure and fair-lending laws for algorithmic consumers. Proposed safeguards include independent audits and "algorithmic nutrition labels" to ensure transparency and fairness. Financial services firms should monitor this trend, as it could fundamentally alter customer relationships
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The Federal Deposit Insurance Corporation has issued a notice of proposed rulemaking to significantly reform its framework for reviewing transactions under the Bank Merger Act.
The Federal Deposit Insurance Corporation (FDIC) board has approved a notice of proposed rulemaking (NPRM) to significantly reform its framework for reviewing bank merger transactions under the Bank Merger Act. The proposal represents a major effort to modernize the FDIC's approach, which has not been substantially updated in years, and reflects increased regulatory scrutiny of consolidation in the banking sector.
For financial institutions and their advisors, the proposed changes could have a profound impact on M&A strategy. The NPRM is expected to introduce more rigorous standards for evaluating a transaction's competitive effects, financial stability risks, and impact on the convenience and needs of communities served, including a focus on financial inclusion. This could lengthen review timelines, increase compliance burdens, and affect deal certainty for transactions under FDIC jurisdiction.
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A joint statement from five federal agencies confirms that financial institutions can discuss the underlying facts of suspected fraud with customers without violating SAR confidentiality rules.
Five US financial regulators, including FinCEN and the Federal Reserve, issued a joint statement clarifying a key aspect of anti-money laundering compliance. The guidance confirms that banks can discuss the underlying facts, transactions, and documents related to suspected fraud with customers, even if the activity has led to a Suspicious Activity Report (SAR), so long as they do not reveal the existence of the SAR itself.
This resolves a significant operational tension for financial institutions, which often defaulted to silence when restricting or closing accounts to avoid violating the Bank Secrecy Act’s strict SAR confidentiality provisions. The statement explicitly permits notifying customers that an account action is related to suspected fraud or providing educational warnings about common schemes. This unified regulatory position gives institutions greater confidence in communicating transparently with customers, including those who may be victims of fraud. Compliance teams should review and update customer-facing scripts, internal policies, and staff training to align with t
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SEC Commissioner Hester Peirce issued a statement clarifying that crypto vaults and onchain lending strategies may be subject to federal securities laws depending on their specific structure and activities.
SEC Commissioner Hester Peirce issued a statement clarifying how federal securities laws may apply to decentralized finance (DeFi) products, specifically crypto vaults and on-chain lending strategies. While not a new rule, the statement serves as a significant warning to the industry that moving financial activities onto a blockchain does not remove them from the SEC's jurisdiction. Peirce emphasized a facts-and-circumstances analysis, noting that a vault could be deemed an "investment contract" under the Securities Act of 1933 or an "investment company" under the Investment Company Act of 1940, depending on its structure and management. Similarly, individuals or entities exercising discretion over asset allocation or lending terms could be considered "investment advisers." The key takeaway for clients is that the entire product stack requires analysis, not just the underlying crypto assets but also the functions performed by smart contracts and their deployers. The statement puts the onus on market participants to proactively consider their regulatory posture and signals increased S
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The Federal Deposit Insurance Corporation has proposed a rule to grant state-chartered banks the same preemption from host-state laws as national banks, even if they lack a physical branch in that state.
The Federal Deposit Insurance Corporation (FDIC) has proposed a rule that would significantly expand federal preemption for state-chartered banks operating across state lines. Under the proposal, an out-of-state state bank would be subject to the laws of a host state only to the same extent as a national bank, even if the state bank has no physical branch there. This change aims to establish parity between state and national bank charters, adapting a legal framework from an era of brick-and-mortar banking to today's increasingly digital financial services landscape. The FDIC cites a need to resolve legal uncertainty for state banks, highlighted by recent litigation over state laws like the Illinois Interchange Fee Prohibition Act. If adopted, the rule could reduce the regulatory compliance burden for state banks operating nationwide and may influence the strategic analysis of which charter type is more advantageous. The proposal is now open for public comment and could face legal challenges from state regulators concerned about the erosion of their authority.
New guidance from the UK's Financial Conduct Authority effective September 1 clarifies that issues like bullying and harassment can breach its Conduct Rules, requiring firms to integrate regulatory assessments into HR investigations.
The UK's Financial Conduct Authority (FCA) has issued final guidance and an associated rule change clarifying how its framework applies to non-financial misconduct (NFM). Effective September 1, 2026, the new rules apply to all FCA-regulated firms and explicitly connect behaviors such as bullying, harassment, and discrimination to regulatory duties under the Conduct Rules and assessments of an individual's fitness and propriety.
For global financial services firms, the guidance means that what appears to be a standard employee relations issue may now carry significant UK regulatory weight. A complaint originating from a global reporting hotline or a US-based investigation could trigger mandatory, separate assessments under UK rules, even if the conduct occurred outside the office at a work-related event. An internal finding that a complaint is "unsubstantiated" for HR purposes may not resolve the regulatory question, as the FCA's fitness and propriety assessment follows a different standard.
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The U.S. Securities and Exchange Commission has established a new regulatory sandbox, granting certain trading venues a five-year exemption from specific rules to facilitate trading in tokenized securities.
The U.S. Securities and Exchange Commission (SEC) has introduced a significant "Innovation Exemption" aimed at fostering development in the digital asset markets. This new rule provides a five-year period of regulatory relief for certain venues that facilitate the trading of tokenized securities. The measure is effectively a regulatory sandbox, allowing the SEC to observe market practices and gather data on this emerging technology while permitting market participants to experiment within defined guardrails without immediate enforcement of a full suite of existing securities regulations.
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Defense contractors face heightened False Claims Act enforcement for cybersecurity lapses even as the Department of War suspends new third-party certification rules.
The Department of Justice has continued its aggressive enforcement of cybersecurity standards for federal contractors, recently securing two False Claims Act (FCA) settlements for over $2.5 million combined. The cases, one prompted by a government audit and the other by a whistleblower, alleged that contractors misrepresented their compliance with NIST SP 800-171 cybersecurity controls. DOJ officials confirmed this is a growing priority, with 15 public cyber-fraud settlements totaling over $73.5 million in the last five years.
In a contrasting move, the Department of War announced a suspension of the CMMC Phase II rollout, which would have mandated third-party cybersecurity certifications. The department cited a need to reduce compliance costs and bureaucratic burdens, particularly for smaller businesses. This pause, however, does not eliminate the underlying contractual requirement for contractors to protect defense information per DFARS clause 252.204-7012.
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A recent analysis showing providers win 85% of payment disputes, coupled with a sharp drop in filing fees, encourages broader use of the federal IDR process for underpaid out-of-network claims.
Healthcare providers are seeing high success rates in the No Surprises Act's Independent Dispute Resolution (IDR) process for out-of-network billing, creating new recovery opportunities. A 2025 analysis by Georgetown University found that providers prevailed in approximately 85% of all disputes, with median awards often representing significant multiples of the Qualifying Payment Amount (QPA), a benchmark based on median in-network rates. For sophisticated counsel, the key development is a recent and dramatic change in the cost-benefit analysis for pursuing these claims. In June 2026, the administrative fee to initiate an IDR dispute was reduced from $115 to $15 per party. This fee reduction, along with expanded rules for "batching" similar claims together, makes arbitration a more viable option for smaller underpayments that were previously cost-prohibitive to challenge. Providers should now reassess recurring underpayment patterns and individual claims to determine whether a revised IDR strategy could improve recovery efforts and reduce ongoing revenue loss from disputed payor reim
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A nationwide preliminary injunction prevents the Department of Homeland Security from eliminating the long-standing "duration of status" framework for F, J, and I nonimmigrants.
A U.S. district court in Massachusetts has issued a nationwide preliminary injunction, blocking a Department of Homeland Security (DHS) final rule that would have eliminated the "duration of status" (D/S) framework for students (F visa), exchange visitors (J visa), and foreign media representatives (I visa). The rule would have replaced the flexible D/S system, which lasts for the length of a program or assignment, with fixed admission periods requiring burdensome applications for extensions of stay.
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A proposed rule would eliminate the discretionary 60-day period for certain nonimmigrant workers to remain in the US after their job ends, requiring immediate departure or a pre-arranged alternative status.
The U.S. Department of Homeland Security (DHS) has proposed a rule to eliminate the 60-day discretionary grace period for many key nonimmigrant worker classifications, including H-1B, L-1, and O-1. Under current practice, this grace period allows workers whose employment has ended to secure new sponsorship, apply for a change of status, or arrange their affairs before departing the country. Eliminating this buffer would require affected workers to leave the U.S. immediately upon job loss unless they have an independent, pre-existing basis to remain. For employers, this change would heighten the stakes of termination decisions and could complicate recruitment of skilled workers already in the U.S. It would necessitate more proactive immigration planning around hiring and separation, potentially affecting notice periods and severance arrangements. The proposal is currently open for public comment until November 10, 2026. Employers of foreign nationals should monitor developments and consult counsel to prepare for potential shifts in compliance and talent management strategy.
A guide to managing investor risk as governments in Sub-Saharan Africa increase state control over key minerals through higher taxes, local content rules, and expropriation.
This guide analyzes a growing wave of resource nationalism across Sub-Saharan Africa, where governments are asserting greater control over critical minerals vital for the global energy transition. It details specific measures recently implemented in countries like the DRC, Mali, Zambia, and Ghana, including increased royalty rates and taxes, mandatory state shareholdings, local processing requirements, export bans on raw materials, and outright license cancellations or nationalizations. Sophisticated counsel and their clients in the mining, energy, and finance sectors must understand this trend as it presents significant political and financial risks to new and existing large-scale investments, potentially disrupting project stability and supply chains. The guide advises investors to proactively mitigate these risks by negotiating stabilization clauses in host-state contracts, securing political risk insurance, and carefully structuring investments to leverage protections under bilateral investment treaties. Investors should monitor ongoing political and economic pressures, particula
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With grid connection queues stretching for years, sophisticated parties are moving beyond fixed prices, using staged payments and financing conditionality to manage power uncertainty.
Soaring electricity demand from data centers, projected to more than double globally by 2030, is creating significant grid connection delays and uncertainty that are reshaping how development and M&A deals are structured. The primary challenge is the risk gap between a utility's 'accepted offer' for a connection and achieving an actual 'energised connection,' a process that can be derailed by years of delays and unforeseen infrastructure costs. Sophisticated investors and developers now manage this risk through evolving contractual mechanisms, including staged payments tied to grid milestones, financing contingent on firm connection dates, and energisation-based longstop dates. For counsel, this elevates the importance of deep diligence on connection offers to interrogate dates, cost allocation for grid reinforcements, and curtailment risks. Parties should monitor ongoing connection-queue reforms by regulators like FERC in the US and Ofgem in Great Britain, which could re-prioritize projects and alter development timelines.
The latest CFIUS annual report reveals that while short-form 'declaration' filings are increasingly popular, their clearance rate fell to an all-time low of 66% in 2025.
The Committee on Foreign Investment in the United States (CFIUS) has released its annual report for calendar year 2025, revealing critical trends for cross-border transactions. While total filings increased moderately, the data shows a significant strategic shift for dealmakers. Short-form "declarations" grew in popularity, but their clearance rate dropped to an all-time low of 66%, down from 78% the prior year. Consequently, a higher percentage of parties (26%) who filed declarations were later required to submit a more extensive full "notice," lengthening their review timelines. The report also shows a continued, albeit reduced, use of mitigation agreements and sustained scrutiny of non-notified transactions, with CFIUS requesting filings for nine such deals after identifying them. For deal counsel, the declining success rate of declarations complicates filing strategy, requiring a more nuanced risk assessment between the faster, but increasingly uncertain, short-form process and the more laborious full notice. The data suggests that despite stated policy goals of streamlining alli
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The USPTO Director terminated inter partes review proceedings citing petitioner misconduct, with a parallel district court striking the same party's invalidity contentions in litigation.
In a coordinated action underscoring the high-stakes nature of conduct in patent challenges, the Director of the U.S. Patent and Trademark Office terminated multiple inter partes review (IPR) proceedings, and a federal district court struck the petitioner's parallel invalidity contentions. The Director's rare termination order was based on petitioner misconduct that violated the principles of Sotera Wireless, Inc. v. Masimo Corp., which addresses the use of proxies to circumvent statutory bars and other IPR rules. This development is critical for patent litigators and their clients, as it signals the USPTO's low tolerance for abuse of the IPR process. The parallel court order striking the invalidity defenses demonstrates that such misconduct can have severe, case-dispositive consequences in federal court, potentially precluding a defendant from challenging a patent's validity at trial. Patent challengers must now consider the heightened risk that questionable PTAB filing strategies could jeopardize their core defenses in infringement litigation. Conversely, patent owners have a power
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The court ruled that a state-law contract claim arising from a patent settlement does not create federal jurisdiction unless resolving it necessarily requires deciding a substantial question of patent law.
The US Court of Appeals for the Federal Circuit ruled it lacked jurisdiction over an appeal involving a patent settlement agreement, transferring the case to the Fifth Circuit. The dispute arose after T-Mobile declined to make a contingent payment to KAIFI LLC, arguing the patent claims at issue did not ‘survive’ reexamination in a way that preserved the original infringement theory. The court applied the Supreme Court’s Gunn v. Minton test, finding that KAIFI's state-law breach of contract claim did not necessarily require resolving a substantial patent-law issue. The term ‘survives’ could be interpreted under ordinary contract principles without delving into complex patent claim construction. This decision reinforces that the Federal Circuit’s jurisdiction is limited and does not automatically extend to all disputes related to patents. For corporate counsel and patent litigators, this highlights the importance of precise language in settlement agreements. It also serves as a crucial reminder that disputes over such agreements may be resolved in regional circuit courts, which have l
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A foreign manufacturer's high-volume shipments through California ports, combined with a product design specific to the US market, are sufficient to establish specific personal jurisdiction.
The US Court of Appeals for the Ninth Circuit reversed a district court's dismissal of foreign manufacturers in a multidistrict litigation, holding that specific personal jurisdiction existed based on the companies' forum contacts. The panel found that Korean automakers Hyundai and Kia purposefully availed themselves of the California forum by directing over 70% of their US-bound vehicle shipments through California ports as the shippers of record. This conduct, combined with designing the vehicles specifically for the US market, satisfied the circuit's "stream-of-commerce-plus" test for jurisdiction.
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Based on a leaked draft, the "EU Kids Act" regulation would create a tiered system of access for minors, mandate safety-by-design, and introduce fines of up to 6% of global turnover for non-compliance.
The European Commission has announced a proposal for a new regulation, the "EU Kids Act," to create a unified framework for protecting minors online. The move, detailed in a leaked draft based on a September 17, 2026, announcement, would replace fragmented national laws with a directly applicable EU-wide instrument.
Sophisticated counsel should note the regulation's broad scope, affecting social media, app stores, online games, and AI chatbots, regardless of their location. Key provisions include mandatory, certified age verification and a "safety by design" obligation for all users under 18, which reverses the traditional burden of proof. The draft would prohibit "addictive design" features like infinite scrolling and autoplay, and it would impose strict, tiered access rules: a near-total ban for children under 13 and parent-managed accounts for those aged 13-15. Potential fines for non-compliance could reach 6% of global annual turnover.
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Peru's executive branch has asked Congress for 120 days of special legislative authority to enact dozens of reforms impacting finance, energy, mining, and infrastructure.
Peru’s executive branch has submitted a bill to Congress requesting delegated legislative powers for 120 days to pass 66 specific reforms across eight sectors. If approved, the government could bypass ordinary legislative procedure to enact significant changes impacting financial services, mining, energy, infrastructure, compliance, and labor law.
For investors and multinational companies, the proposed reforms present both opportunities and risks. Key measures include removing statutory caps on interest rates, modifying rules for mining concessions, streamlining environmental permits for major projects, and facilitating public-private partnerships. The proposal also has compliance implications, seeking authority to classify certain criminal organizations as terrorist entities—affecting AML and sanctions screening—and to ban the import of goods made with forced labor, which would create new supply-chain diligence obligations.
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The U.S. Securities and Exchange Commission has proposed eliminating the rule that mandates including shareholder proposals in company proxy materials, a move that would fundamentally alter corporate governance.
The U.S. Securities and Exchange Commission has proposed major amendments to the federal proxy rules, most notably the complete rescission of Rule 14a-8, which for decades has governed the inclusion of shareholder proposals in company proxy materials. The SEC's proposing release argues the rule exceeds its authority and improperly intrudes into state corporate law. If the rule is rescinded, the framework for shareholder proposals would likely shift to state law or company-specific governing documents, creating a new and potentially fragmented compliance landscape. The proposals also expand a company's discretionary authority to vote on shareholder proposals not included in its proxy materials. While the changes are not expected to be finalized for the 2027 proxy season, public companies and their counsel should monitor the rulemaking process closely. The proposals are now in a 60-day public comment period, and clients should anticipate increased engagement from investors on this topic, including proposals to amend bylaws to preserve shareholder proposal rights.
A company that settled early in the SEC's enforcement sweep over off-channel communications is not entitled to a modification just because the agency later offered more lenient terms to other firms, the Fifth Circuit has ruled.
The U.S. Court of Appeals for the Fifth Circuit rejected a challenge from Apex Clearing Corp. after the SEC refused to modify a 2024 settlement. Apex was part of the SEC's industry sweep targeting failures to preserve off-channel business communications. The firm paid a $6 million penalty and agreed to retain an independent compliance consultant. Five months later, the SEC settled with other firms for similar violations on more favorable terms that did not require the same undertakings. Apex requested that its settlement be amended for equitable treatment, but the SEC denied the request.
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In a major policy shift, the SEC has proposed eliminating the federal framework for including shareholder proposals in company proxy materials, deferring instead to state corporate law.
The SEC issued two proposing releases on September 16, 2026, that would significantly alter U.S. proxy rules. The primary proposal would rescind Rule 14a-8, which for decades has provided the federal framework requiring companies to include eligible shareholder proposals in their proxy materials. The SEC's stated rationale is that the rule exceeds its statutory authority and improperly intrudes into state corporate law. If adopted, the validity and inclusion of shareholder proposals would be determined by state law and a company's governing documents, ending the SEC's traditional gatekeeping role.
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The U.S. Court of Appeals for the Second Circuit has ruled that the limited partner exception to self-employment taxes requires a functional analysis of a partner’s role, not just their formal status.
The U.S. Court of Appeals for the Second Circuit, in Soroban Capital Partners LP v. Commissioner, affirmed a Tax Court holding that partners must lack managerial control to qualify for the "limited partner" exception from self-employment (SECA) taxes. The court rejected the argument that limited liability under state law was sufficient, instead endorsing the IRS's "functional analysis" test of a partner's actual role in the business.
This decision is a major setback for the investment funds industry, particularly for managers in New York, Connecticut, and Vermont. It aligns with a recently revised Fifth Circuit opinion, making a circuit split—and thus Supreme Court review—less likely. The ruling significantly strengthens the IRS's hand in its ongoing audit campaign targeting the use of the exception, which can represent a tax saving of up to 3.8% for high-income partners.
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The Second Circuit has affirmed that the limited partner exception to self-employment tax depends on a partner's functional role, not their formal title under state law.
The U.S. Court of Appeals for the Second Circuit has affirmed the Tax Court’s decision in Soroban Capital Partners v. Commissioner, strengthening the IRS’s position on the self-employment tax exception for limited partners. The court held that the exception under Internal Revenue Code § 1402(a)(13) requires a functional analysis of a partner’s role. Partners who run, manage, or otherwise exercise control over the partnership’s business do not qualify as “limited partners” for tax purposes, regardless of their formal designation under state law. Because Soroban’s principals exercised managerial control, their distributive income shares were subject to self-employment tax. This ruling has immediate consequences for investment funds, professional service firms, and other entities structured as limited partnerships, particularly within the Second Circuit. The court noted its standard was similar to one recently adopted by the Fifth Circuit, but counsel should monitor a similar pending case in the First Circuit, which could create a circuit split and tee up the issue for potential Supre
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A pending case challenges the IRS's position that the passive receipt of new tokens from a blockchain split is an immediate income event, arguing taxpayers lack the necessary "dominion and control."
The US Tax Court is considering a landmark case, Rogovy v. Commissioner, that will address for the first time whether new tokens received from a cryptocurrency "hard fork" generate taxable income. The IRS assessed a $25.5 million deficiency against a couple who passively received tokens from nine Bitcoin hard forks, citing its 2019 ruling that such an "airdrop" creates ordinary income if the taxpayer can exercise dominion and control.
Sophisticated clients and counsel care because this tests the application of fundamental tax principles to novel digital assets. The taxpayers argue they never had an accession to wealth because accessing the new tokens was technically complex, would have exposed their primary Bitcoin holdings (in offline "cold storage") to significant security risks, and that they were unaware of most forks when they occurred. A ruling for the taxpayer could undermine the IRS's guidance and create uncertainty for digital asset taxation. A ruling for the IRS would solidify tax obligations for millions of crypto holders who may not realize they have received, or have pr
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Vacating a $1B verdict against an ISP, the Supreme Court held that contributory copyright infringement requires intent that a service be used for infringement, not mere knowledge that infringing activity is occurring.
In Cox Communications, Inc. v. Sony Music Entertainment, the Supreme Court vacated a $1 billion contributory copyright infringement verdict against an internet service provider. The Court ruled that knowledge of infringing activity by users is insufficient to establish liability. Instead, a plaintiff must prove the provider intended its service be used for infringement. This intent can be shown either by evidence of inducement, such as advertising that encourages unlawful use, or by demonstrating the service is 'tailored to infringement' because it lacks substantial non-infringing applications.
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Recent US court decisions have affirmed that AI cannot be an author and that training on copyrighted works may be fair use, prompting a legislative shift toward right-of-publicity laws to protect artists.
US courts continue to establish that works generated solely by AI lack the human authorship required for copyright protection, as affirmed by the D.C. Circuit in Thaler v. Perlmutter. At the same time, the use of copyrighted works to train AI models is being tested under the fair use doctrine, with some early rulings suggesting it may be permissible where the AI's output does not create a market substitute for the original content.
This legal uncertainty creates significant risk for both AI developers and content owners. Major rights-holders, including the RIAA, have filed high-profile infringement suits against AI music platforms like Suno and Udio, alleging unlawful copying of sound recordings for training purposes. For creators, copyright law has so far offered limited recourse against their work being ingested by AI systems.
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With non-compete agreements increasingly unenforceable, companies must build robust trade secret management programs to protect proprietary information when key employees depart.
As non-compete agreements become increasingly difficult to enforce, particularly in California, companies must shift their focus to affirmative trade secret protection programs. This guide explains that relying on standard employment agreements and NDAs alone is insufficient. Instead, effective protection requires a systematic approach to identifying, segmenting, and monitoring access to sensitive information before an employee's departure.
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A recent $14.1 million False Claims Act settlement is the latest in a series of DOJ enforcement actions targeting Medicare Advantage organizations and their vendors for improper diagnosis coding practices.
The Department of Justice is escalating its scrutiny of Medicare Advantage (MA) risk-adjustment coding, evidenced by a series of major False Claims Act (FCA) settlements. The latest involves a $14.1 million agreement with Complete Health Partners Holdings to resolve allegations it pressured providers to add unsupported diagnosis codes into patient electronic medical records to inflate risk scores and payments. This follows other recent nine-figure settlements against a health system, a national insurer, and an in-home assessment vendor for similar practices. Sophisticated clients in the MA ecosystem—including plans, provider groups, and their vendors—should take note of this clear enforcement priority. The DOJ is targeting programs that suggest diagnosis codes, particularly when those suggestions are not substantively reviewed by providers or lack clinical support. Compounding the risk, new OIG guidance expressly identifies EMR prompts for risk-adjusting diagnoses as potentially fraudulent. Affected organizations should re-evaluate their coding suggestion programs, incentive structur
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The settlement with 40 states and the federal government resolves allegations Abbott defrauded Medicaid and other programs by selling products from plants that failed to meet safety standards.
Abbott Laboratories will pay approximately $384.2 million to resolve a whistleblower lawsuit alleging it defrauded government health programs. The settlement includes $348.7 million for the United States to resolve False Claims Act allegations and $35.5 million for 40 states to resolve claims related to their Medicaid programs. The lawsuit, originally filed in 2022, alleged that between 2018 and 2022, Abbott knowingly sold infant formula and nutritional products that were manufactured in facilities failing to meet federal and state safety and quality standards designed to prevent contamination.
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Grade 3 — worth a glance, not the full analysis.
- IRS Notice 2026-53 Updates 45Z Clean Fuel Credit Rules and GREET Model
IRS Notice 2026-53 updates emissions pathways, feedstock restrictions, and compliance requirements for the Section 45Z clean fuel production credit, incorporating One Big Beautiful Bill Act changes and DOE's updated 45ZCF-GREET model.
- 2026 Midterm Elections: Healthcare Policy Outlook for 2027 and Beyond
Holland & Knight analyzes how congressional control post-2026 midterms will shape healthcare policy implementation, oversight and legislative priorities through 2028.
- FinCen Extends Minnesota GTO Until February 2027
Financial institutions in Hennepin and Ramsey Counties must now report international transfers of $3,000+ with extensive beneficiary information through February 2027.
- OHCA revises PE-MSO reporting threshold to 10% in emergency regulations
California's health care affordability office finalizes emergency rules implementing AB 1415, doubling the private equity ownership trigger from 5% to 10% and narrowing MSO filing requirements.
- EU publishes EN 301 549 V4.1.1 as principal technical standard for EAA compliance
European standards bodies released the first comprehensive compliance framework for the European Accessibility Act, updating ICT accessibility requirements to align with WCAG 2.2 and introducing new real-time text obligations.
- 2nd Circ clarifies no religious animus needed for failure-to-accommodate claims
The Second Circuit amended its Bergin decision, clarifying employees need not prove religious animus to sustain Title VII failure-to-accommodate claims but must show denial was motivated by desire to avoid the accommodation.
- Federal Court Pauses DHS Duration of Status Rule for F, J, I Nonimmigrants
A Massachusetts federal court blocked DHS from replacing duration-of-status with fixed admission periods for F-1, J-1, and I nonimmigrants, temporarily sparing employers new extension filing burdens.
- Congress Proposes HUSTLE Act for Tax-Advantaged NIL Investment Accounts
The HUSTLE Act would amend federal tax law to allow college athletes to contribute up to $19,000 of NIL earnings annually to tax-advantaged investment accounts, with withdrawals taxed as capital gains upon graduation.
- Startups Pivot Patent Strategy From Volume to Value
High-tech startups are advised to pursue high-quality, licensing-ready patents with a focus on vertical AI applications, reflecting a strategic shift toward monetization amid changing PTAB dynamics.
- Oregon's Producer Responsibility Recycling Law Survives Challenge
A federal court rejected a constitutional challenge to the state's extended producer responsibility law, a model other states may follow for shifting recycling costs to manufacturers.
- Arizona AG Sues L'Oréal Over Hair Relaxer Cancer Risk
Arizona's AG has filed a consumer fraud suit against L'Oréal, alleging it failed to warn that its chemical hair relaxers contain carcinogens linked to a higher risk of uterine and ovarian cancers.
- New Jersey Disparate Impact Lending Rules Challenged
A federal lawsuit seeks to block New Jersey's 2025 disparate impact rules for mortgage lending, alleging they unlawfully relax causation standards and shift burdens of proof.
- Trademark Clearance in Film/TV: Permission vs Forgiveness
Entertainment lawyers outline non-legal factors production companies should weigh when deciding whether to seek trademark owner consent or rely on legal defenses.
- hybrid-power-platforms-reshape-data-center-energy-deals
Lawyers advise data center developers on structuring integrated power platforms co-locating generation, storage, and nuclear solutions.
- UK litigation funding faces regulatory overhaul after PACCAR ruling
The UK government's commitment to legislate following the PACCAR decision marks a shift from self-regulation to statutory oversight of litigation funders, affecting parties in group actions.
- SEC Opens Nonpublic Review to ABS Issuers in Two-Tier Expansion
The SEC's Division of Corporation Finance has extended voluntary nonpublic draft registration statement review to ABS issuers filing Forms SF-1 and SF-3, establishing a two-tier framework for initial versus repeat filings.
- Banking Agencies Propose Revised Third-Party Risk Management Guidance
Federal banking regulators propose new interagency guidance replacing 2023 third-party risk rules, shifting to risk-based supervision allowing banks to tailor oversight to actual risk profiles.
- Senate Committee Advances CFPB Director Nomination
The Senate Banking Committee has advanced the nomination of Brian Johnson to lead the Consumer Financial Protection Bureau, sending the matter to the full Senate for a confirmation vote.
- MA AG Moves to Permanently Ban Debt Collector
A proposed consent judgment would permanently bar a debt buyer and its affiliates from all collection activities in Massachusetts and impose a suspended $650,000 penalty.
- UK Universities Face Insolvency Without a Safety Net
Existing UK restructuring tools are ill-suited for the unique challenges of higher education institutions, creating significant legal uncertainty as the sector faces growing financial pressure.
- Unimplemented consultant billing review can establish FCA knowledge
A South Carolina federal court ruled that unresolved consultant audit findings may prove hospital knowledge of billing violations under the False Claims Act, while dismissing individual officials.
- Texas AG Wins Partial Judgment Against TikTok Over Child Safety Claims
Texas AG Ken Paxton secured partial summary judgment against TikTok for allegedly misrepresenting its platform's safety features for children, marking a significant victory in state-level enforcement against social media companies.
- ADGM Proposes Tax on Undeveloped Commercial Land
The Abu Dhabi Global Market has issued a consultation paper for a new regulation that would impose a 2% annual fee on the value of vacant commercial plots to discourage land-banking.
- NZ Consults on Tax Residency for Investor Visa Holders
New Zealand's Inland Revenue has released draft guidance on when purchasing a home could trigger tax residency for Active Investor Plus visa holders.
- Fed. Cir. Finds PTAB Use of Extra-Petition Prior Art Was Harmless Error
The Federal Circuit affirmed a PTAB obviousness finding, ruling the Board's use of a prior-art reference not cited in the IPR petition was harmless error because the conclusion was independently supported by other, properly raised grounds.
- Federal Circuit Finds Preambles Limiting in Spinal Implant Patent Appeal
The court affirmed a non-infringement judgment, holding that preambles for a "universal" implant system were limiting because the claim bodies depended on them for antecedent basis and essential meaning.
- Workplace drug tests show rising marijuana and cocaine positivity rates
Quest Diagnostics data shows marijuana hair-test positivity jumped from 9.5% in 2021 to 15.1% in 2025, as employers navigate evolving federal reclassification and state legalization frameworks.
- FTC Launches New Rule Guidance Program for Businesses
The FTC's Bureau of Consumer Protection has created a formal mechanism for businesses to seek answers on ambiguous rules, but the agency cautions that questions and responses may be used against submitters in litigation.
- Federal Court Halts 'Fixed Stay' Rule for Foreign Students
A Massachusetts federal district court has issued a nationwide injunction, pausing a DHS rule that would have replaced the flexible 'duration of status' framework with a fixed four-year limit for nonimmigrant students and exchange visitors.
- Data Center Build Complexities Rise With AI Demands
Lawyers advising data center developers must address tightening regulations, surging public opposition, and AI-driven technical requirements that test construction contracts and dispute mechanisms.
- SEC Exam Division Flags Adviser Compliance Review Flaws
A new SEC Risk Alert details common deficiencies in investment adviser annual compliance reviews, signaling key areas of focus for future examinations.
- OHCA expands PE, MSO transaction reporting requirements
California's OHCA is finalizing emergency regulations expanding PE and MSO disclosure obligations in healthcare transactions, with comments due around September 23.
- SEC Proposes Modernization of Proxy Solicitation Rules
The SEC has issued a proposal to modernize rules governing proxy solicitation, potentially affecting how public companies communicate with and solicit shareholder votes.
- Australian Administrators Can Override Shareholder Rights
Under Australia's Corporations Act, a company administrator's statutory power to dispose of assets is not constrained by the company's constitution, listing rules, or other member approval requirements that would otherwise apply.
- OECD releases Pillar Two guidance on conditional taxes, GIR updates
The OECD Inclusive Framework issued Administrative Guidance clarifying that conditional domestic minimum top-up taxes applying only to IIR/UTPR-subject MNEs will not be treated as Covered Taxes.
- FCC proposes allowing satellites to connect via Wi-Fi spectrum
The FCC's August 2026 NPRM would let consumer Wi-Fi and Bluetooth devices communicate directly with satellites using unlicensed spectrum, expanding direct-to-device connectivity.
- Cross-Border M&A: Governing Law vs. Local Law
A guide for dealmakers explains that a contract's governing-law clause does not override mandatory local laws affecting employment, data privacy, or antitrust in a target's home jurisdiction.
- USCIS updates public charge guidance for I-485 applications
USCIS has issued updated guidance for adjustment of status applications filed on or after Sept. 18, 2026, changing how the agency evaluates public charge inadmissibility through a totality-of-circumstances test.
- DOL narrows mental health parity enforcement to three focus areas
Plan sponsors should review NQTL documentation for MH/SUD exclusions, medical necessity criteria, and network adequacy as DOL signals targeted enforcement approach through September 2026 bulletin.
- Supply chain resilience: legal strategies for geopolitical disruption
Hogan Lovells guidance analyzes force majeure, hardship doctrines, and dispute resolution options for companies navigating trade route volatility from Middle East conflicts.
- Prediction Market Operators Face Municipal Class Actions
Baltimore's CPO lawsuits against Kalshi and Polymarket, NYC's marketing probe, and consolidating class actions create multi-track exposure independent of federal preemption.
- JASTA September 28 deadline looms for post-9/11 terrorism claims
Companies face potential JASTA liability wave as the September 28, 2026 statute of limitations deadline approaches for aiding-and-abetting claims stemming from 2001-2016 injuries.
- DOL Issues Three New FLSA Opinion Letters on Meals, Volunteers, Tips
The Department of Labor released three opinion letters providing guidance on bona fide meal periods, exempt employee volunteering at nonprofits, and tip pool participation for compliance with the Fair Labor Standards Act.
- DOL Prioritizes Three NQTL Categories for MHPAEA Enforcement
Employers must maintain complete NQTL comparative analyses for group health plans despite DOL's announcement focusing enforcement on specific mental health parity categories.
- BMS Files First BPCIA Case for Opdivo Biosimilar Against Amgen
Bristol-Myers Squibb has filed the first BPCIA litigation targeting Amgen's proposed Opdivo (nivolumab) biosimilar ABP 206 in Delaware federal court, asserting seven patents from its $5.9B annual revenue drug.
- CBP CAPE Phase 3 for IEEPA Tariff Refunds Deploys October 6
CBP will launch Phase 3 of its CAPE system on October 6, 2026, enabling importers to file declarations for IEEPA tariff refunds on finally liquidated entries ordered for reliquidation by the CIT.
- DOE Opens Rulemaking on Foreign Bulk Power Equipment Restrictions
The Department of Energy has initiated a rulemaking process with an October 9, 2026 RFI deadline to consider restrictions on foreign-sourced bulk power equipment, signaling upcoming compliance obligations for energy sector participants.
- France releases revised pay transparency bill for EU directive
France unveiled a revised draft law on September 10, 2026 implementing the EU Pay Transparency Directive, with clarifications on remuneration definitions, employer response timelines, and expanded refusal grounds.
- CSBS, NYDFS Sharpen Focus on AI in Financial Services
The Conference of State Bank Supervisors and New York's DFS have each issued new guidance for financial institutions on identifying and managing risks associated with artificial intelligence.
- Russia places temporary management on Auschan Nestlé FM Logistic Bati Logistics
Russian President imposes temporary asset management on four foreign companies including Nestlé amid ongoing sanctions tensions.
- Every Company Needs an AI Use Policy
Goodwin outlines a three-part governance agenda for companies to manage AI risks as adoption accelerates and regulatory pressure intensifies globally.
- EB-5 Deals No Longer Slowed by Investor Fundraising
Some EB-5 Regional Centers now use balance-sheet capital to fund hospitality and other real estate projects, eliminating fundraising delays and making the timeline similar to a conventional loan closing.
- Banking Agencies Propose Stricter Third-Party Risk Management Rules
FDIC, OCC, Federal Reserve, and NCUA propose more prescriptive third-party risk management guidance requiring board-approved policies and detailed due diligence frameworks.
- UK reports 395% surge in AI-enabled fraud as government commits £550M
AI-generated deepfakes, voice cloning and synthetic identities are driving a sharp rise in UK fraud reports, prompting a major new enforcement strategy and £550 million investment.
- SDNY upholds NY social media content moderation disclosure law
Southern District of New York rejected X Corp.'s challenge to a New York state law requiring social media platforms to disclose their content moderation policies.
- $604M verdict against C.H. Robinson hinges on broker control, not carrier vetting
A Texas jury found freight broker C.H. Robinson vicariously liable as a "borrowed employer" of a truck driver in a fatal accident, marking a distinct legal theory from post-Montgomery negligent-selection claims.
- UK government launches corporate reporting reform consultation
The UK Government published a consultation on September 7, 2026 proposing sweeping changes to simplify corporate reporting, including moving financial reporting requirements from the Companies Act 2006 to accounting standards.
- DOL Clarifies Non-Compensable Travel During Meal Periods
A recent DOL opinion letter outlines specific circumstances under which employee travel during meal breaks of less than 30 minutes may be treated as non-compensable time.
- Data center power complexity demands hybrid energy strategies
AI-driven data center demand is straining power infrastructure, requiring developers to combine grid connections with on-site generation, battery storage and private PPAs.
- Firm Urges AI Literacy for Music Industry Stakeholders
Citing governance requirements in the EU AI Act, a firm commentary outlines the need for tool, rights, metadata, ethical, and business literacy for all participants in the AI-driven music ecosystem.
- SEC proposes proxy rule changes to cut delivery, filing requirements
SEC's Proxy Solicitation Modernization proposal would eliminate annual report delivery mandates, remove 20-business-day proxy waiting periods, shorten broker-search to five days, and rescind exempt solicitation notice rules.
- UAE Employment Termination Traps for US Employers
US employers in the UAE face significant legal risks when terminating employees due to different employment law regimes, mandatory gratuity, and limited settlement agreement protections.
- DOL Signals Enforcement Focus for Mental Health Parity Rules
A new Department of Labor bulletin signals that enforcers will prioritize nonquantitative treatment limitations related to treatment exclusions, medical necessity reviews, and network adequacy.