Major banking trade groups have urged the Federal Deposit Insurance Corp. to clarify its new rule on how banks should display digital branding about deposit insurance to online customers, saying their compliance efforts have been hampered by "significant ambiguity" in the rule.
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WEDNESDAY, JULY 17, 2024 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

Banks Say 'Ambiguity' Hampers FDIC's Digital Signage Rules

By Sarah Jarvis

Major banking trade groups have urged the Federal Deposit Insurance Corp. to clarify its new rule on how banks should display digital branding about deposit insurance to online customers, saying their compliance efforts have been hampered by "significant ambiguity" in the rule.

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6th Circ. Says Credit Union Can't Sue T-Mobile Over Cell Scam

By Katryna Perera

The Sixth Circuit on Tuesday ruled that a lower court was correct in tossing a lawsuit in which Michigan First Credit Union sued T-Mobile to recover the reimbursement fees the credit union paid to customers after they suffered unauthorized electronic transfers of money from their accounts due to cellphone scams.

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Ex-Goldman Banker Denies Bribe Charges After Extradition

By Elliot Weld

A former Goldman Sachs banker pled not guilty Tuesday before a Brooklyn federal magistrate judge to charges that he bribed Ghanaian officials, after losing an extradition battle in British courts.

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Green Dot Brass Hid Declining Biz And Fed Action, Suit Says

By Sydney Price

The top brass at prepaid debit card company Green Dot Corp. has been hit with a derivative shareholder suit, alleging they concealed the company's faltering core business and a proposed consent order from the Federal Reserve Board over internal controls while board members sold millions of dollars worth of shares at inflated prices.

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DIVERSITY SNAPSHOT

The 2024 Diversity Snapshot: What You Need To Know

By Xiumei Dong

Law firms' ongoing initiatives to address diversity challenges have driven another year of progress, with the representation of minority attorneys continuing to improve across the board, albeit at a slower pace than in previous years. Here's our data dive into minority representation at law firms in 2023.

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These Firms Have The Most Diverse Equity Partnerships

By Gerald Schifman

Law360’s law firm survey shows that firms' efforts to diversify their equity partner ranks are lagging. But some have embraced a broader talent pool at the equity partner level. Here are the ones that stood out.

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RISING STARS

Rising Star: King & Spalding's Jenny Pelaez

By Jon Hill

King & Spalding LLP's Jenny Pelaez has put in powerhouse litigation efforts that have helped NatWest and TD Bank beat financial benchmark-rigging claims, landing her a spot among the banking law practitioners under age 40 honored by Law360 as Rising Stars.

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POLICY & REGULATION

States, Legal Orgs. Urge Justices To Halt Biden's Debt Relief

By Ali Sullivan

A U.S. Supreme Court challenge to the Biden administration's latest student debt relief program received backing from seven Republican-led states and a trio of legal groups that assert the estimated $475 billion plan exceeds the executive branch's authority.

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ENFORCEMENT & COMPLIANCE

Ex-Mozambique Official Accused Of $2B Fraud As Trial Opens

By Frank G. Runyeon

Federal prosecutors told a Manhattan jury Tuesday that Mozambique's former finance minister took $7 million in bribes in a "corrupt" plot to enrich himself and defraud investors after $2 billion in state-backed development projects flopped.

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Former Ozy Media CEO Convicted Of Defrauding Investors

By Stewart Bishop

A New York federal jury on Tuesday convicted former Ozy Media CEO Carlos Watson of fraud and identity theft in a case alleging the charismatic startup founder lied to banks and investors to secure tens of millions of dollars in funding for the multimedia company.

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Florida's 'Mother Teresa' Pleads Guilty To $190M Ponzi Scheme

By Carolina Bolado

Johanna Garcia, the former MJ Capital CEO known as "Mother Teresa" in Florida, pled guilty Tuesday to one count in the indictment accusing her of running a $190 million investment Ponzi scheme through the company.

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LITIGATION

$4.5M Davis Wright Deal In Ore. Fraud Suit Gets Final OK

By Sydney Price

An Oregon federal judge has fully adopted a magistrate judge's recommendation to sign off on a $4.5 million deal resolving investor claims against law firm Davis Wright Tremaine LLP for its work representing entities involved in an alleged real estate securities fraud scheme, while two banks were dismissed from the case.

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Santander Says Boston Tow Policy Violates Its Rights

By Julie Manganis

Boston's policy of allowing tow companies to auction off vehicles to cover the cost of towing and storage violates the due process rights of lenders who hold a security interest, Santander Consumer USA said in a complaint filed on Monday in federal court.

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Rocket Cos. Investors Drop CEO Retweet Claims From Suit

By Emilie Ruscoe

Investors in mortgage lender Rocket Companies have dropped certain proposed class action claims against the company's CEO, telling a Michigan federal judge that they would no longer accuse the executive of securities fraud over a March 2021 retweet.

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EB-5 Investors Seek Sanctions Over 'Flight Risk' Defendant Info

By Rae Ann Varona

Two dozen Chinese investors who alleged that $13.2 million worth of their investments in a Hawaii resort went missing has urged an Illinois federal judge to sanction developers for not giving them important case information, including contact information for one defendant who they said is an "obvious flight risk."

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Brief

Full 4th Circ. Won't Hear Student Loan Biz's Sealed Docs Case

By Travis Bland

The Fourth Circuit on Tuesday declined to grant a full court rehearing to a student loan provider that wanted to shield court filings from a filmmaker after a panel found he had a First Amendment right to the information.

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DEALS

Latham-Led Warehouse Giant Launches Potential $3.6B IPO

By Tom Zanki

Cold-storage warehouse giant Lineage Inc. on Tuesday set a price range on an estimated $3.6 billion initial public offering, represented by Latham & Watkins LLP and underwriters counsel Goodwin Procter LLP, bolstering the near-term IPO pipeline.

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PEOPLE

Former CFPB Counsel Joins Davis Wright In DC

By Adrian Cruz

Davis Wright Tremaine LLP announced that a former senior counsel with the Consumer Financial Protection Bureau joined the firm's financial services group as a Washington, D.C.-based partner.

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EXPERT ANALYSIS

What FTX Case Taught Us About Digital Asset Recoverability

FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.

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'Outsourcing' Ruling, 5 Years On: A Warning, Not A Watershed

A New York federal court’s 2019 ruling in U.S. v. Connolly, holding that the government improperly outsourced an investigation to Deutsche Bank, has not undercut corporate cooperation incentives as feared — but companies should not completely ignore the lessons of the case, say Temidayo Aganga-Williams and Anna Nabutovsky at Selendy Gay.

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Big Business May Come To Rue The Post-Administrative State

Many have framed the U.S. Supreme Court’s recent decisions overturning Chevron deference and extending the window to challenge regulations as big wins for big business, but sand in the gears of agency rulemaking may be a double-edged sword, creating prolonged uncertainty that impedes businesses’ ability to plan for the future, says Todd Baker at Columbia University.

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Series

Serving In The National Guard Makes Me A Better Lawyer

My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.

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LEGAL INDUSTRY

Analysis

3 Reasons Why 2nd Menendez Bribery Case Was The Charm

By Carla Baranauckas

Nearly seven years after the government's first bribery case against longtime U.S. Sen. Robert Menendez collapsed in a hung jury, prosecutors avenged that loss Tuesday by sealing a conviction on a new round of corruption charges.

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Menendez Guilty Of 'Shocking Corruption,' Urged To Resign

By Cara Salvatore, Pete Brush and Carla Baranauckas

A New York federal jury found U.S. Sen. Robert Menendez guilty on Tuesday of taking gold bars, cash and a Mercedes-Benz as bribes from three businessmen, handing a victory to the government on its second try to convict the embattled New Jersey Democrat on corruption charges and prompting calls for his resignation.

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Trump Special Prosecutor Ruling Could Find Favor On Appeal

By Carolina Bolado

When U.S. District Judge Aileen Cannon dismissed the criminal case against former President Donald Trump in Florida over what she said was an unconstitutional appointment of a special prosecutor, she staked out a position that few other jurists have taken, but that could find support among some appellate judges, experts said.

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Ex-Trump Counsel Has Advice For GOP On Judicial Noms

By Courtney Bublé

A former Trump White House official who worked on judicial nominations has advised a potential future Republican administration to be aggressive, proactive and not to compromise on circuit court picks.

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Smirnov Wants David Weiss DQ'd After Trump Docs Ruling

By Hailey Konnath

Former FBI informant Alexander Smirnov said Monday that a Florida federal judge's order disqualifying the special prosecutor in the Donald Trump classified documents case means special counsel David Weiss should also be disqualified from Smirnov's case, according to a motion filed in California federal court.

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Fed. Circ. OKs Judge Connolly's Fine Against IP Biz Owner

By Andrew Karpan

A precedential ruling from the Federal Circuit on Tuesday found that Delaware's top judge has the right to fine a Texas paralegal who is the sole owner of patent litigation outfit Backertop Licensing LLC $200 a day for refusing to show up in court as part of the judge's investigation into whether Backertop and others hid their connection to big-name intellectual property consulting firm IP Edge.

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Musk Says X, SpaceX Moving To Texas Over Calif. Gender Law

By Lauren Berg

Elon Musk took to X Tuesday to announce he will be moving the headquarters of the social media company and his astronautics company, SpaceX, out of California to Texas, after Golden State Gov. Gavin Newsom signed a bill that bars policies mandating that teachers notify parents about students' gender identity.

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Tesla Swaps Cravath Out, WilmerHale In For Antitrust Defense

By Lauren Berg

WilmerHale has taken over from Cravath Swaine & Moore LLP as counsel for Tesla in a proposed class action in California federal court alleging the company runs an unlawful monopoly on parts for its electric vehicles.

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ACLU Legal Director Leaving For Expanded Georgetown Role

By Kevin Penton

The American Civil Liberties Union's national legal director plans to step down from a role he has held for eight years, the organization confirmed Tuesday.

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Groups Slam UC Berkeley's 'Misreading' Of Antisemitism Case

By Jake Maher

Jewish organizations suing the University of California, Berkeley, and its law school for allegedly tolerating an antisemitic culture on campus fought to keep their suit alive this week in the face of a motion to dismiss, maintaining their claims are ripe despite UC Berkeley's "bold misreading" of the case.

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COMPANIES IN TODAY'S NEWS

American Bankers Association

American Bar Association

American Civil Liberties Union

American Honda Finance Corp.

Ardent Health Services Inc.

Asian Americans Advancing Justice

Bank Policy Institute

Chevron Corp.

Consumer Bankers Association

Cornell University

Cottrell Inc.

Credit Suisse Group AG

Deutsche Bank AG

Early Warning Services LLC

Ethereum GmbH

Green Dot Corp.

HSBC Holdings PLC

Heathrow Airport Holdings Ltd.

JPMorgan Chase & Co.

LinkedIn Corp.

MasterCard Inc.

McKinsey & Co. Inc.

Mercedes-Benz USA LLC

Morgan Stanley

NASDAQ Inc.

National Rifle Association of America

National Taxpayers Union

Nelnet Inc.

New York City Bar Association

Norges Bank Investment Management

Pacific Premier Bancorp Inc.

Public Citizen Inc.

Regents of the University of California

Renaissance Capital

Riverview Bancorp Inc.

Roadrunner Transportation Systems Inc.

Rocket Cos.

Rocket Mortgage LLC

Santander Consumer USA Inc.

Space Exploration Technologies Corp.

StoneTurn Group LLP

T-Mobile US Inc.

TD Securities Inc.

Tesla Inc.

The Goldman Sachs Group Inc.

The Royal Bank of Scotland Group PLC

Toronto-Dominion Bank

Venmo LLC

Wells Fargo & Co.

YouTube Inc.

LAW FIRMS IN TODAY'S NEWS

Akin Gump

ArentFox Schiff

Arnold & Porter

Atheria Law

Atkinson Andelson

Baker Botts

Baker Donelson

Berry Appleman

Best Best & Krieger

Blank Rome

Boies Schiller

Bookoff McAndrews

Buchalter APC

Buckley LLP

Cahill Gordon

Carlton Fields

Chamberlain Hrdlicka

Cleary Gottlieb

Clifford Chance

Coburn & Greenbaum

Consumer Litigation Associates

Continental PLLC

Cooley LLP

Cravath Swaine

Crowell & Moring

Cuneo Gilbert

Davis & Wright

Davis Wright Tremaine LLP

Diaz Reus

Ellis George LLP

Esler Stephens

Farella Braun

Finger & Slanina

Finnegan

Fragomen Del Rey

Freed Kanner

Fullerton Beck

Gibbons PC

Glancy Prongay

Goodwin Procter

Gross Klein

Hogan Lovells

Holland & Knight

Holzman Law PLLC

Honigman LLP

Hunton Andrews

Irell & Manella

Jones Day

Kasowitz Benson

Keker Van Nest & Peters

King & Spalding

Knobbe Martens

Kozyak Tropin

Kudman Trachten

Labaton Keller

Larkins Vacura

Latham & Watkins

Lozano Smith

Manning & Kass

Morganroth & Morganroth

Morrison Foerster

Munger Tolles

Nelson Mullins

Norris McLaughlin

Nossaman LLP

O'Melveny & Myers

Orrick Herrington

Paternoster Farnell

Paul Hastings

Pearson Warshaw

Perkins Coie

Powers Pyles

Riley Safer

Roig Lawyers

Saveri & Saveri

Schneider Wallace

Seed IP

Selendy Gay

Shutts & Bowen

Squire Patton

Sterne Kessler

Stoll Berne

Sullivan & Cromwell

Summit Law Group

The Law Firm of Cesar de Castro

Tostrud Law Group

Venable LLP

Waymaker LLP

White & Case

Willkie Farr

WilmerHale

Wilson Sonsini

Withersworldwide

Wong Fleming

Zuber Lawler

​Bottini & Bottini

GOVERNMENT AGENCIES IN TODAY'S NEWS

Commodity Futures Trading Commission

Consumer Financial Protection Bureau

Equal Employment Opportunity Commission

Federal Bureau of Investigation

Federal Communications Commission

Federal Deposit Insurance Corp.

Federal Reserve System

Federal Trade Commission

Missouri Attorney General's Office

National Labor Relations Board

Office of the Comptroller of the Currency

U.S. Attorney's Office

U.S. Attorney's Office for the Eastern District of New York

U.S. Attorney's Office for the Southern District of Florida

U.S. Attorney's Office for the Southern District of New York

U.S. Bankruptcy Court for the District of Delaware

U.S. Civilian Board of Contract Appeals

U.S. Court of Appeals for the Federal Circuit

U.S. Court of Appeals for the Fourth Circuit

U.S. Court of Appeals for the Sixth Circuit

U.S. Department of Education

U.S. Department of Health and Human Services

U.S. Department of Justice

U.S. Department of the Treasury

U.S. District Court for the Central District of California

U.S. District Court for the District of Massachusetts

U.S. District Court for the District of Oregon

U.S. District Court for the Eastern District of Michigan

U.S. District Court for the Eastern District of New York

U.S. District Court for the Northern District of California

U.S. District Court for the Northern District of Illinois

U.S. District Court for the Southern District of Florida

U.S. District Court for the Southern District of New York

U.S. Environmental Protection Agency

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

United States District Court for the Eastern District of Wisconsin