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Montana’s top court today at a hearing will take up the state’s appeal of a landmark ruling that said it was violating the rights of young people to a clean environment by barring regulators from weighing the impacts on climate change when approving fossil fuel projects, our colleague Nate Raymond writes.
The Republican-led state will urge the Montana Supreme Court to conclude that the lawsuit by 16 young people should never have gone to trial in the first place because the youth lack legal standing to challenge a restriction on the ability of agencies to consider the impact of greenhouse gas emissions. The ruling last August by District Court Judge Kathy Seeley in Helena came in the closely watched case — the first lawsuit in the United States by young environmental activists challenging state and federal policies they say are exacerbating climate change to go to trial.
A series of youth-led climate lawsuits have taken aim at government policies at the state and federal level that they say encourage or allow the extraction and burning of fossil fuels and violate their rights under U.S. or state constitutions. Some of those cases have faltered. But the youth activists last month scored a victory when Hawaii agreed as part of a first-in-the-nation settlement to take action to decarbonize its transportation system by 2045.
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- 97-year-old Judge Pauline Newman, who was suspended from the Federal Circuit last year after being accused of unfitness due to cognitive and physical impairment related to her age, lost a lawsuit she had filed in a bid to return to work. U.S. District Judge Christopher “Casey” Cooper ruled against Newman’s claims that the Judicial Conduct and Disability Act, which sets out the process for removing judges, ran afoul of the U.S. Constitution.
- Three legal aid lawyers who represent indigent defendants in Long Island, New York, sued their union for the second time this year, alleging retaliation over their earlier lawsuit challenging a union resolution that accused Israel of “ethnic cleansing and genocide.” The lawsuit asked a Manhattan federal judge to stop the union from expelling or disciplining them.
- Several large firms this week announced new offices. Weil is opening offices in Los Angeles and San Francisco with a pair of private equity dealmakers from rival Latham. Alston & Bird opened offices in Chicago and Century City with a trio of partners from rival firm Sidley. Milwaukee-founded firm Michael Best expanded into California after absorbing a small Los Angeles firm.
- London-founded law firm Linklaters reported its highest ever revenue and profits, citing in part an uptick in deal work. Linklaters said it grew its revenue by 10% to a record high of 2.1 billion pounds ($2.69 billion) in its financial year ending April 30. The revenue bump was partially buoyed by growth in the U.S. market, where Linklaters saw a 24% revenue increase.
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One of the most notorious insider trading schemes in U.S. history has led to an unprecedented $75 million fight between drugmaker Pfizer and the U.S. Securities and Exchange Commission. At issue: money left over from SAC Capital’s record-setting $600 million insider trading settlement with the SEC. The key question: Was Pfizer subsidiary Wyeth a victim of the scheme because SAC traded on misappropriated Wyeth clinical data? Alison Frankel has the juicy details.
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“There seems to be a massive disconnect between the department’s view that this is a nothing burger and (the argument that) this is a monumental deal.“
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—5th Circuit Judge Andrew Oldham, who was on the appellate panel that heard arguments in a bid by 25 Republican-led states and oil drilling company Liberty Energy to block a U.S Department of Labor rule allowing socially conscious investing by employee retirement plans. The rule, which took effect in February 2023, allows 401(k) and other plans to consider environmental, social, and corporate governance (ESG) factors as a “tiebreaker” between two or more financially equal investment options. The circuit judges seemed to struggle with when a tiebreaker would come into play, and Oldham was skeptical of what he said was the DOJ’s argument that a tiebreaker would be rare and happen in “one in a trillion” cases.
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- The FTC’s new noncompete ban faces a second court challenge, after a federal judge in Texas last week partially blocked the rule. U.S. District Judge Kelley Brisbon Hodge in Philadelphia will take up a request from Pacific Legal Foundation to enjoin enforcement of the rule. The FTC will be defended by a team from the DOJ, including Rachael Westmoreland, Taisa Goodnature and Arjun Mody. Hodge said she will rule by July 23. About 30 million people, or 20% of U.S. workers, have signed noncompetes, according to the FTC.
- Actor Alec Baldwin’s criminal trial is slated to kick off with opening statements in a Santa Fe, New Mexico courthouse. Baldwin was charged with involuntary manslaughter over the 2021 fatal shooting of “Rust” cinematographer Halyna Hutchins on a New Mexico movie set. Hutchins’ death was Hollywood’s first on-set shooting fatality in three decades, and there is little or no precedent in U.S. history for an actor to face criminal prosecution for such a death.
- Netflix will ask the 10th Circuit to dismiss allegations that it misused a clip from cameraman Timothy Sepi in its hit documentary series “Tiger King.” The court is reconsidering its March decision that Netflix may not have made fair use of a video of a eulogy that zookeeper Joe Exotic gave at his husband’s funeral. Netflix previously said that the decision would “inevitably have a chilling effect on documentarians and other creators.”
- Two fishermen represented by the libertarian legal group Pacific Legal Foundation will ask the 3rd Circuit to rule that the federal Mid-Atlantic Fishery Management Council’s members were unconstitutionally appointed and as a result had no authority to approve a rule implementing fishing-quota cuts. Circuit Judges Stephanos Bibas, Arianna Freeman and Marjorie Rendell will take up the case.
- Jontay Porter, the former Toronto Raptors forward who was banned from the NBA over a gambling scandal, is expected to plead guilty in Brooklyn federal court. In banning Porter, the NBA said he placed 13 bets on league games, including multi-game parlay bets that included one in which he wagered that the Raptors would lose.
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Court calendars are subject to last-minute docket changes.
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- Experts told our colleague Luc Cohen that Donald Trump faces long odds in his bid to reverse his conviction on criminal charges stemming from hush money paid to a porn star despite a landmark U.S. Supreme Court ruling recognizing broad presidential immunity from prosecution. The experts noted that the justices only shielded official acts, while much of the conduct at issue in the case predated Trump’s presidency and evidence from his time in office related to personal matters.
- Prosecutors are probing “additional violent sexual assaults” they say former Hollywood movie mogul Harvey Weinstein committed and intend to seek a new indictment after his previous conviction was overturned. Prosecutor Nicole Blumberg said in a hearing before Justice Curtis Farber in New York state criminal court in Manhattan that the additional assaults Weinstein allegedly committed were still within the statute of limitations to be charged as crimes.
- The U.S. Consumer Financial Protection Bureau asked U.S. District Judge Mark Pittman in Fort Worth to dissolve an injunction halting its new rule capping credit card late fees at $8, saying a pair of recent U.S. Supreme Court rulings undermine the industry-backed case challenging the regulation. The CFPB in a brief told Pittman that an injunction he issued blocking the rule rested entirely on an appeals court’s now-overturned ruling declaring the agency’s funding structure unconstitutional.
- Hunter Biden withdrew his motion seeking a new trial on federal gun charges after government prosecutors said it was based on a “laughable tale” and a misunderstanding of the appeals process. Lawyers for President Joe Biden’s son had said the 3rd Circuit did not give the trial court a mandate to proceed after dismissing his appeals, but prosecutors said the denial of Biden’s appeal was clearly stamped “certified order issued in lieu of mandate” under the clerk’s signature.
- LVMH-owned fashion label Marc Jacobs, artist Robert Fisher and the surviving members of rock band Nirvana will settle a lawsuit over the rights to the band’s “smiley face” logo, according to a document filed in California federal court. Nirvana sued Marc Jacobs in 2018 over the logo, saying the designer had been using a “virtually identical” logo without permission.
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- Former federal prosecutor Renato Mariotti joined Paul Hastings as a partner in Chicago from Bryan Cave Leighton Paisner. (Reuters)
- Akin added white-collar and government investigations partner Gerald Moody in D.C. from the DOJ, where he was assistant chief of the Foreign Corrupt Practices Act unit. (Akin)
- Polsinelli hired Chad Landmon to chair the firm’s Hatch-Waxman and biologics practice. Landmon, who is based in D.C., was previously at Axinn, Veltrop & Harkrider. (Polsinelli)
- Jonathan Olsen joined Sidley as a partner in the M&A and venture capital practices. Olsen, who is based in San Diego, was previously at Goodwin Procter. (Sidley)
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The benefits afforded debtors in bankruptcy are so compelling that businesses have initiated bankruptcy proceedings without experiencing insolvency or imminent financial distress. But with no express guidance under the Bankruptcy Code and no bright line ruling from the courts, the door is open for creditors to challenge bankruptcy cases filed in these circumstances, write Joseph Cioffi, Massimo Giugliano and Christine DeVito of Davis+Gilbert.
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Correction: An Industry Moves item on July 9 misstated where new Honigman partner Saloni Sahara worked previously. She was at Hogan Lovells.
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