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Good morning. The U.S. Supreme Court is considering the case of a Christian evangelical letter carrier who sued the U.S. Postal Service over his refusal to work on Sundays, taking up a debate over whether religious people are more deserving of weekend time off than others. Plus, Dominion Voting Systems’ defamation claims against Fox Corp head to trial today, and Fox shareholders are demanding company records in what could be a prelude to their own lawsuits. It’s a busy Tuesday –let’s go!
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First Liberty Institute/Handout via REUTERS
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The U.S. Supreme Court this morning is set to take up an appeal from an evangelical Christian former mail carrier whose workplace rights case against the U.S. Postal Service has spurred a debate over whether religious people are more legally deserving than others to weekend days off from work, Andrew Chung reports.
Aaron Streett of Baker Botts will argue for Gerald Groff, who sued the USPS over his refusal to work on Sundays. Groff is challenging a 3rd Circuit ruling that said USPS was not required to exempt him from delivering Amazon packages on Sundays, when he observes the Sabbath. Streett will face off against U.S. Solicitor General Elizabeth Prelogar.
A ruling favoring Groff could “give a preference to the religious because they get to stay home on their Sabbath or their day of rest,” Boston University law school professor Michael Harper told Chung. Another lawyer for Groff, Alan Reinach, said “the whole point of religious accommodation is you have to make special or favored arrangements in order to have an inclusive workforce.”
Groff’s case attracted a substantial number of friend-of-the-court briefs. Wilmer Hale filed a brief for the American Hindu Coalition backing Groff. O’Melveny represents Airlines for America in supporting the USPS. The Becket Fund for Religious Liberty and other groups also filed amicus briefs. The case could give the Supreme Court another chance to widen religious rights in the era of Chief Justice John Roberts.
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Law school administrators are flagging what they say are potential errors in the upcoming U.S. News & World Report rankings related to graduate employment data — which could change the top 14 preview list it released last week. U.S. News planned to publish its full graduate school rankings on April 18 but said on Friday it would delay that release until April 25 to address an “unprecedented number of inquiries from schools.” (Reuters)
- Williams & Connolly partner Robert Shaughnessy and Susan Shaughnessy agreed to a $7.3 million judgment to resolve a DOJ civil tax liability lawsuit filed against them in D.C. federal court. The government had rejected several prior settlement offers, court records show. The Shaughnessys and a lawyer representing them did not immediately respond to messages seeking comment. (Reuters)
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Ron Klain, former Biden White chief of staff, will return to O’Melveny, where he worked in the late 1990s and early 2000s after serving in the Clinton White House. He will lead the strategic counseling and crisis management practice, working from the firm’s D.C. and New York offices. (Reuters)
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Longtime First Amendment litigator Robert Corn-Revere has left Davis Wright to serve in the newly created post of chief counsel at Foundation for Individual Rights and Expression. Corn-Revere was already a member of its advisory council. (Reuters)
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At an extraordinary hearing scheduled to take place this week in federal court in New Jersey, defense lawyers for two former executives of Cognizant Technology Solutions will have a chance to question DOJ lawyers and the company’s outside counsel from DLA Piper about whether the government “outsourced” the criminal investigation that led to the executives’ indictments. For the defendants, former Cognizant general counsel Steven Schwartz and former president Barry Coburn, the hearing is a long-shot bid to dispose of the DOJ’s entire Foreign Corrupt Practices Act case by claiming violations of their Fifth Amendment rights. But for the Justice Department, the hearing could have consequences well beyond this case, with DOJ lawyers telling U.S. District Judge Kevin McNulty that the defendants’ “flawed and unprecedented” theories “would seriously hamper the government’s ability to investigate and prosecute corporate crime.” Alison Frankel explains the potentially dramatic stakes for both sides.
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“Crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity.“
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Anti-abortion groups face a 12 p.m. Eastern deadline today at the U.S. Supreme Court to respond to the Biden administration’s bid to pause a Texas federal judge’s order that would bar sales of the abortion pill mifepristone during the pendency of a legal challenge to its regulatory approval. Justice Samuel Alito last week temporarily halted lower court rulings from the 5th Circuit and U.S. District Judge Matthew Kacsmaryk that set limits on access to mifepristone. Alito’s order was not on the merits of the dispute but instead gave time to the high court to weigh the Biden’s administration effort to keep the drug on the market and widely accessible while the U.S. government’s appeal is pending. The Supreme Court is expected to make an announcement before 11:59 p.m. Eastern on Wednesday.
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Bankrupt Johnson & Johnson subsidiary LTL will ask a U.S. bankruptcy judge in New Jersey to impose a long-term pause of tens of thousands of lawsuits alleging that J&J’s baby powder and other talc products cause cancer. The talc lawsuits have been on hold since the company first filed for bankruptcy in 2021, but plaintiffs argue that they should be allowed to continue their lawsuits now that an appeals court ruled that the bankruptcy was improper. The talc company’s second bankruptcy — filed two hours after its first case was dismissed — has reopened the legal battle over the bankruptcy’s legitimacy and its impact on already-filed lawsuits. J&J has maintained that its talc products are safe.
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At the U.S. Supreme Court, the justices will consider reviving two lawsuits accusing pharmacy operators of overbilling government health insurance programs for prescription drugs, in a ruling that comes from the 7th Circuit. The central question in both cases is whether companies can shield themselves from whistleblower fraud lawsuits by pointing to an “objectively reasonable” interpretation of the law that supports their conduct — regardless of whether they actually believed that interpretation in good faith at the time. Tejinder Singh of Sparacino represents the plaintiffs, and Carter Phillips of Sidley will argue for Safeway and SuperValu. Both companies have denied defrauding Medicare and Medicaid. The dispute could have broad implications for whistleblowers and the government’s ability to go after fraud.
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SEC Chair Gary Gensler will appear before the House Financial Services Committee for an oversight hearing and defend the agency’s rulemaking and policing of market misconduct, according to his prepared testimony. Gensler, who has led the agency since early 2021, called the SEC’s rulemaking work “grounded in legal authorities granted by Congress.” Republican lawmakers have accused the SEC of overstepping its authority. Some in the finance industry also have said the SEC is going too far in its reforms and not taking time for industry feedback.
Court calendars are subject to last-minute docket changes.
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- The U.S. Supreme Court weighed whether to allow Salesforce’s Slack Technologies to avoid a lawsuit over its 2019 direct listing in a case that could undermine the ability of shareholders to sue companies for alleged misstatements when they go public. The justices seemed open to Slack’s view that Section 11 of the Securities Act, which lets plaintiffs sue for falsities in a registration statement if they bought “such security,” refers to registered, not unregistered, shares. (Reuters)
- E-cigarette company Juul and its former largest investor, Marlboro-maker Altria, settled claims by the state of Minnesota that they fueled teen vaping addiction. The settlement terms, which will be made public within 30 days, came as a trial in the case was nearing its end. Juul and Altria have faced thousands of similar lawsuits around the country. The companies have disputed plaintiffs’ claims. (Reuters)
- The 9th Circuit said Berkeley, California, cannot ban natural gas hookups in new buildings because a federal law preempts its rule, siding with a challenge from the state’s restaurant industry. The court said Berkeley’s 2019 ban on new gas hookups effectively barred appliances that use the fuel and that the U.S. Energy Policy Conservation Act preempts such a move. (Reuters)
- Broadway producer Garth Drabinsky lost his lawsuit asserting antitrust and other claims against the actors’ union Equity over its placement of him on a “do not work” list. A Manhattan federal judge concluded the union, whose lawyers included a team from Winston & Strawn, was immune from antitrust provisions. (Reuters)
- Grunge-music pioneers Soundgarden and Vicky Cornell, the widow of lead singer Chris Cornell, settled a legal dispute over the late singer’s unreleased recordings. In statements posted on Instagram, they said the “amicable” settlement marked a new partnership between Soundgarden and Cornell’s estate that will allow fans to “hear the final songs that the band and Chris were working on.” (Reuters)
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Weil added energy partner Omar Samji to the firm’s Houston office. Samji was previously at Shearman & Sterling, where he led the energy innovation team. His departure is the latest in a string from Shearman. (Reuters)
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Mintz Levin hired Andrew Hulsh, who advises middle-market private equity funds, to join its New York office. Hulsh was previously with Troutman Pepper. (Reuters)
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Quinn Emanuel hired False Claims Act litigator Michael Shaheen as a D.C.-based partner. He arrives at the firm from Crowell. (Reuters)
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Allen & Overy added Palo Alto-based partner Helen Christakos as head of the firm’s U.S. privacy and data security group. Christakos was previously at Fenwick. (Allen & Overy)
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Simpson Thacher added Amanda Allexon as a D.C.-based financial institutions partner. She was previously at Wachtell. (Simpson Thacher).
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Mayer Brown added New York-based banking and finance partner Jason Friedman from Gibson Dunn. Friedman focuses on leveraged finance and private credit transactions. (Mayer Brown)
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Eckert Seamans hired commercial litigation partner Jonathan Hugg in Philadelphia from Schnader Harrison Segal & Lewis, where he was co-leader of the financial services litigation group. (Eckert Seamans)
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K&L Gates hired two Sydney, Australia-based partners: Stuart Broadfoot, who focuses on tax; and James Durnall, who joins the energy, infrastructure and resources group. Broadfoot was previously at King & Wood Mallesons, and Durnall joins the firm from Bird & Bird. (K&L Gates)
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Cooley brought on Steve Flores as a Chicago-based partner focused on compensation and benefits. He arrives at the firm from Winston & Strawn. (Cooley)
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