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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WEDNESDAY, JULY 17, 2024 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

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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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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Platinum Co-Founder Dodges Prison For Bond Fraud Rap

By Stewart Bishop

Platinum Partners co-founder Mark Nordlicht on Tuesday was spared prison time for his five-year-old conviction over a purported scheme to defraud bondholders of a Texas oil and gas company, as a New York federal judge doubted that "such a weird case" would have any deterrent value.

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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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USPTO Provides Guidance On AI And Patent Eligibility

By Ryan Davis

The U.S. Patent and Trademark Office on Tuesday unveiled guidance for when inventions involving artificial intelligence are eligible for patents, saying the guidelines are aimed at "providing further clarity and consistency" on the issue.

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Dentons To Offer AI-Powered IP Risk Analysis With Tech Firm

By Lucia Osborne-Crowley

Law firm Dentons said Tuesday it has partnered up with an AI startup as part of its intellectual property service, saying the software will be able to speed up IP risk assessments for clients and flag when they need to speak further with a Dentons lawyer.

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Starboard Demands Change At Tinder Owner Match

By Al Barbarino

New York-based activist investor Starboard Value LP has amassed a 6.6% stake in Match Group Inc. and is pushing the company to go private if it can't make "value-enhancing" gains after its stock plummeted from its 2021 heyday, according to a letter published Tuesday by Starboard.

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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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ENFORCEMENT

Kaspersky To End US Operations After Commerce Dept.'s Ban

By Alyssa Aquino

A Russian cybersecurity and antivirus provider will begin closing U.S. operations and laying off workers Sunday, after the U.S. Department of Commerce banned it from selling its products in the U.S. or to U.S. citizens.

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LITIGATION

Apple's Slowed IPhone Derivative Deal OK'd After Tweaks

By Dorothy Atkins

A California federal judge said Tuesday she would approve Apple's non-monetary settlement to resolve a derivative-shareholder suit over claims it secretly slowed iPhones and award counsel $6 million in attorneys fees and expenses, after she rejected an earlier version of the deal because of the proposal's overbroad release of claims.

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Google Maps Antitrust Suit Deleted For Good

By Bryan Koenig

A California federal judge permanently dismissed a proposed class action targeting Google's Maps product, rejecting arguments that the company's terms of service barred third parties from using rival route guidance or places-of-interest tools with a Google-furnished map.

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Chancery Orders Illumina Docs Released In Grail Merger Fight

By Jeff Montgomery

Benefit fund shareholders of biotech giant Illumina Inc. won a Delaware Court of Chancery order on Tuesday for a rare, limited release of legal advice documents on Illumina's merger agreement with cancer-testing firm Grail Inc., a deal that has cost the company billions in fines and lost value.

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​​​​​​​Apollo's $1.85B Mining Co. Deal Sparks Del. Suit For Docs

By Jeff Montgomery

An investor sued a mining and logistics company in Delaware's Court of Chancery seeking documents regarding the firm's $1.85 billion go-private deal with affiliates of asset management giant Apollo, approved Tuesday by the mineral producer's stockholders, asserting that there are credible concerns over pre-transaction communications between its executives and Apollo about their jobs.

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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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Gilead Asks Calif. Supreme Court To Ax 'Disastrous' Decision

By Bonnie Eslinger

Gilead Sciences on Monday urged the California Supreme Court to overturn an appellate panel's decision that the company can't ditch claims it held back a safer HIV drug to maximize profits on an older medication, saying that holding manufacturers liable for non-defective products would "yield disastrous policy consequences."

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Delta's $16M Pay Stub Deal Scores Initial OK

By Irene Spezzamonte

A California federal judge signed off on a $16 million deal Tuesday settling a suit accusing Delta Air Lines of wage statement violations under the California Labor Code and Private Attorneys General Act, finding the deal fair and reasonable.

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JB Hunt To Pay $4.2M To End Wash. Pay Range Suit

By Abby Wargo

J.B. Hunt Transport will fork over $4.2 million to a class of 2,200 job applicants to settle a lawsuit accusing the freight company of failing to include salary ranges in job postings and violating Washington state law, according to a court order tentatively approving the deal.

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Judges Press Amazon On Its Duty To Guard Against Suicide

By Greg Lamm

Washington appellate judges on Tuesday challenged Amazon's argument that the e-commerce giant should be free from liability for selling sodium nitrite that buyers used to kill themselves, with one judge asking what other use a "small bottle" of nearly pure poison would have.

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Tesla Says Chinese Co. Sells 'Dangerous' Charging Adapter

By Emily Field

Tesla said on Monday that a Chinese company sells a "dangerous" charging adapter that lets owners of non-Tesla electric vehicles charge at its network, saying in a suit filed in California federal court that the device could injure consumers and damage the power infrastructure.

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Ex-CBD Cos. GC Says Owner Hasn't Paid What Deal Promised

By Adrian Cruz

The former general counsel of several CBD companies has told a Pennsylvania federal judge that their owner failed to keep up her end of a settlement agreement that ended his suit to obtain over $600,000 in back pay and benefits he and his wife felt they were owed.

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Coinbase Scales Back Its SEC Request For Gensler Docs

By Aislinn Keely

Crypto exchange Coinbase said it will narrow its request for the communications of U.S. Securities and Exchange Commission Chair Gary Gensler after the New York federal judge overseeing its enforcement suit warned that seeking private emails would be a "tough road to hoe."

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PEOPLE

Universal Music Exec Joins Pierson Ferdinand In Los Angeles

By Christine DeRosa

Alison Finley had always loved music, but she didn't know she could be an attorney in the industry until her first year at New York Law School when she walked into a panel on music.

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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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Corporate Pro Joins Kirkland After Role In Private Equity

By Lynn LaRowe

Kirkland & Ellis LLP has strengthened its corporate practice in Houston with a partner who came aboard following an in-house role at private equity firm Stonepeak.

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EXPERT ANALYSIS

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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How To Survive Shareholder Activism

In an era where shareholder activism is on the rise, companies must identify weaknesses, clearly communicate strategies, update board composition and engage with shareholders consistently in order to avoid disruptive shareholder activism and safeguard the interests of both the company and its shareholders, say J.T. Ho at Orrick and Greg Taxin at Spotlight Advisors.

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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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A Look At State AGs Supermarket Antitrust Enforcement Push

The ongoing antitrust intervention by state attorneys general in the proposed Kroger and Albertsons merger suggests that states are straying from a Federal Trade Commission follow-on strategy in the supermarket space, which involved joining federal investigations or lawsuits and settling for the same divestment remedies, say attorneys at Troutman Pepper.

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Series

After Chevron: Piercing FEMA Authority Is Not Insurmountable

While the Federal Emergency Management Agency's discretionary authority continues to provide significant protection from claims under the Administrative Procedure Act, Loper Bright is a blow to the argument that Congress gave FEMA unfettered discretion to administer its own programs, says Wendy Huff Ellard at Baker Donelson.

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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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$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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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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LAW FIRMS IN TODAY'S NEWS

Abrams & Bayliss

Ackermann & Tilajef

Akin Gump

Andrews & Springer

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

C.A. Goldberg PLLC

Cahill Gordon

Carlton Fields

Chamberlain Hrdlicka

Cleary Gottlieb

Clifford Chance

Coburn & Greenbaum

Cohen Milstein

Continental PLLC

Cooley LLP

Corrie Yackulic Law Firm

Cravath Swaine

Crowell & Moring

Cuneo Gilbert

Davis & Wright

Davis Wright Tremaine LLP

Dechert LLP

Dentons

Diaz Reus

Ellis George LLP

Esler Stephens

Esner Chang

Farella Braun

Finger & Slanina

Finnegan

Fragomen Del Rey

Freed Kanner

Fullerton Beck

Gibbons PC

Glancy Prongay

Grant & Eisenhofer

Gross Klein

Herbert Smith Freehills

Hogan Lovells

Holland & Knight

Hunton Andrews

Irell & Manella

Jones Day

Kahn Swick

Kasowitz Benson

Keker Van Nest & Peters

Kershaw Talley

Kirkland & Ellis

Knobbe Martens

Kudman Trachten

Larkins Vacura

Law Offices of Daniel Weltin

Levy Small

Lozano Smith

Manning & Kass

Morella & Associates

Morgan Lewis

Morrison Foerster

Munger Tolles

Nelson Mullins

Nematzadeh PLLC

Nichols Kaster

Nossaman LLP

O'Melveny & Myers

Orrick Herrington

Paternoster Farnell

Paul Hastings

Pearson Warshaw

Perkins Coie

Pierson Ferdinand LLP

Potter Anderson

Riley Safer

Roig Lawyers

Saveri & Saveri

Schneider Wallace

Scopelitis Garvin

Seed IP

Selendy Gay

Shutts & Bowen

Squire Patton

Sterne Kessler

Stoll Berne

Sullivan & Cromwell

Summit Law Group

Talmadge Fitzpatrick

The Law Firm of Cesar de Castro

Tostrud Law Group

Trammell PC

Troutman Pepper

Vinson & Elkins

Wachtell Lipton

Waymaker LLP

WeissLaw LLP

White & Case

Willkie Farr

WilmerHale

Wilson Sonsini

Withersworldwide

Wong Fleming

Young Conaway

Zuber Lawler

​Bottini & Bottini

COMPANIES IN TODAY'S NEWS

AO Kaspersky Lab

Ahold Delhaize

Albertsons Cos. Inc.

Alphabet Inc.

Amazon.com Inc.

American Civil Liberties Union

Apple Inc.

Black Elk Energy LLC

C&S Wholesale Grocers

Chevron Corp.

Coinbase Global Inc.

Cornell University

Cottrell Inc.

Delhaize Group

Delta Air Lines Inc.

Deutsche Bank AG

Food Lion LLC

GRAIL Inc.

Getty Images Holdings Inc.

Gilead Sciences Inc.

Google LLC

Green Dot Corp.

Hannaford Brothers Co.

Illumina Inc.

J.B. Hunt Transport Services Inc.

King Soopers

LinkedIn Corp.

Live Nation Entertainment Inc.

Match Group LLC

Match.com Inc.

McKinsey & Co. Inc.

Mercedes-Benz USA LLC

Microsoft Corp.

National Collegiate Athletic Association

National Rifle Association of America

New York City Bar Association

New York Law School

Pacific Premier Bancorp Inc.

Platinum Partners LP

Regents of the University of California

Riverview Bancorp Inc.

Roadrunner Transportation Systems Inc.

Safeway Inc.

Space Exploration Technologies Corp.

Starboard Value LP

Stonepeak Infrastructure Partners

Stop & Shop Supermarket Co.

Tesla Inc.

The Goldman Sachs Group Inc.

The Golub Corp.

U.S. Silica Holdings Inc.

Universal Music Group NV

YouTube Inc.

eBay Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Supreme Court

Commodity Futures Trading Commission

Consumer Financial Protection Bureau

Delaware Court of Chancery

Equal Employment Opportunity Commission

European Commission

Federal Bureau of Investigation

Federal Communications Commission

Federal Deposit Insurance Corp.

Federal Emergency Management Agency

Federal Reserve System

Federal Trade Commission

Food and Drug Administration

National Labor Relations Board

New York Attorney General's Office

Office of the Comptroller of the Currency

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

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

U.S. Civilian Board of Contract Appeals

U.S. Court of Appeals for the Federal Circuit

U.S. Department of Commerce

U.S. Department of Health and Human Services

U.S. Department of Homeland Security

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 Columbia

U.S. District Court for the District of Oregon

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 Southern District of Florida

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

U.S. District Court for the Western District of Pennsylvania

U.S. Environmental Protection Agency

U.S. Patent and Trademark Office

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

United States District Court for the Eastern District of Wisconsin

World Health Organization