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Good morning. Large law firms are anticipating more legal work tied to the U.S. Supreme Court’s ruling against affirmative action. Reporter Andrew Goudsward connects with law firm practice leaders about what they are hearing from clients. Plus, Kirkland is wrapped up in a subpoena fight with a former associate suing the firm for alleged bias; Hunter Biden has a court appearance today; and incoming law students are super confident about their academic performance. It’s Wednesday. Let’s go!
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The U.S. Supreme Court’s strike against affirmative action is expected to be a boon for U.S. law firms, as they respond to a rise in demand for advice about how to comply and guard against new legal challenges, our colleague Andrew Goudsward reports. Law school administrators and other industry experts have said the court’s ruling will hamper efforts to bolster diversity in the legal profession.
Large U.S. firms with higher education, anti-discrimination and employment practices said they’ve seen an uptick since the justices’ 5-4 ruling in June ending the consideration of race in college admissions. The ruling had no direct effect on employers, but attorneys told Reuters that corporations have also been seeking advice on their policies given the likelihood of lawsuits from groups emboldened by the ruling.
Attorneys said activity will likely ramp up as universities and companies reevaluate diversity policies and prepare for an anticipated wave of new lawsuits and investigations. WilmerHale’s Debo Adegbile, who chairs the firm’s anti-discrimination practice, said firms will guide companies and colleges “through this change.”
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- An anonymous in-house corporate lawyer should not be allowed to keep their identity out of an FDA public inspection report that will be publicly available, the DOJ told U.S. District Judge Amy Berman Jackson in D.C. The attorney, represented by Cooley, says releasing their identity in the report will cause reputational harm and threaten future job prospects. (Reuters)
- Former Kirkland associate Zoya Kovalenko wants a judge to bar her former law firm’s effort to get records from her prior firms in her lawsuit against Kirkland. Kovalenko is suing Kirkland for alleged workplace bias, which the firm has denied. In a filing, Kovalenko said Kirkland’s subpoenas to law firms Paul Hastings and Fish & Richardson are “invasive and harassing.” (Reuters)
- The Florida Supreme Court publicly reprimanded the judge who presided over the trial of Nikolas Cruz, who killed 17 people at Marjory Stoneman Douglas High School in Parkland in 2018, for appearing partial to the prosecution. A judicial ethics panel concluded in June that Broward County Circuit Judge Elizabeth Scherer violated judicial conduct rules during last year’s trial. (Reuters)
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AbbVie has faced more than 10 years of headaches from its decision to sue generic drugmaker Perrigo in an attempt to delay Perrigo’s competing testosterone gel. Most recently, major drug wholesalers have made the sham litigation against Perrigo a centerpiece of their antitrust case against AbbVie. We now know that AbbVie’s own in-house patent lawyers knew the Perrigo suit was a loser. Alison Frankel explains how, in an odd twist, AbbVie’s bid to preserve the confidentiality of its lawyers documents ended up highlighting precisely the most sensitive disclosures.
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“Simply put, Harvard is on the wrong side of history.“
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- More Biden administration federal court nominees will appear for their confirmation hearing before the U.S. Senate Judiciary Committee. The nominees include prosecutors Margaret Garnett for the Manhattan federal court and Brandy McMillion for the Eastern District of Michigan. Biden also nominated U.S. Magistrate Judge Jennifer Hall for Delaware’s U.S. district court, and Chief U.S. Magistrate Judge Karoline Mehalchick for the Middle District of Pennsylvania.
- President Joe Biden’s son Hunter Biden will make an initial appearance in federal court in Delaware to face misdemeanor tax and gun-related charges. The DOJ said Hunter Biden has agreed to plead guilty to two misdemeanor charges of willfully failing to pay income taxes and to enter into an agreement that could avert a conviction on a gun-related charge. The younger Biden has worked as a lobbyist, lawyer, consultant to foreign companies, investment banker and artist.
- Today’s the deadline for any objections to Facebook’s plan to pay $725 million to resolve claims that it allowed British political consulting firm Cambridge Analytica and other third parties access to consumers’ personal information in violation of privacy protections. Meta, represented by lawyers from Gibson Dunn, did not admit liability. In a court filing, the plaintiffs’ attorneys at Keller Rohrback and Bleichmar Fonti & Auld said the objections were a “tiny percentage” of the estimated class of 250 million U.S. Facebook users. The attorneys have estimated that class members on average will receive $35. The attorneys for the class are seeking $181 million in legal fees.
- In Manhattan federal court, U.S. District Judge Lewis Kaplan will weigh prosecutors’ claim that indicted FTX founder Sam Bankman-Fried has engaged in witness tampering and that he and others should be barred from making public statements likely to interfere with a fair trial. In a filing, prosecutors argued Bankman-Fried shared certain documents with the New York Times in an effort to malign the credibility of a key government witness. In a filing, Bankman-Fried’s lawyers denied he had done anything improper. Bankman-Fried has pleaded not guilty to various charges tied to the collapse of FTX.
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Court calendars are subject to last-minute docket changes.
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- OxyContin maker Purdue Pharma may proceed with a bankruptcy settlement that protects its Sackler family owners from lawsuits, despite a potential U.S. Supreme Court appeal in the case, the 2nd Circuit said. The DOJ’s bankruptcy watchdog had asked the court to pause its approval of the bankruptcy plan to allow time for a potential appeal to the U.S. Supreme Court. (Reuters)
- The New York Federal Reserve was sued by a Puerto Rican bank that said its access to the U.S. central banking system could be improperly cut off following a federal crackdown on banks with links to Venezuela. Banco San Juan Internacional, represented by Abbe Lowell of Winston & Strawn, said in a complaint filed in Manhattan federal court that the Fed’s New York branch informed the bank this year that its “master account,” which lets banks access the Fed’s electronic payment systems, would be terminated due to concerns about its compliance with U.S. sanctions and anti-money laundering rules. (Reuters)
- The billionaire investor Leon Black was sued by an autistic woman who says he raped her in the disgraced financier Jeffrey Epstein’s mansion in Manhattan in 2002, when she was 16. The woman, who is suing as Jane Doe, is seeking damages for Black’s alleged violation of a New York City law against gender-motivated violence. Black’s lawyer Susan Estrich said Black had never met Doe and called the lawsuit frivolous. (Reuters)
- The EPA agreed to consider new nationwide rules to cut smog-forming nitrogen oxide emissions from new gas power plants, according to a proposed settlement with environmental groups filed in California federal court. The settlement comes after the Sierra Club and Environmental Defense Fund sued the agency last year claiming the EPA has a duty to review new power plant emission limits every eight years under the Clean Air Act, but hadn’t updated limits for nitrogen oxides since 2006. (Reuters)
- Video-game maker Activision is suing internet personality Anthony Fantano in Los Angeles federal court, seeking a declaration that syncing his viral audio clip to one of its TikTok videos did not violate his publicity rights or imply that he endorsed the company. Activision said TikTok’s terms of service allowed it to use the audio and that a reasonable person would not think that he endorsed Activision or the video. (Reuters)
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- Goodwin hired Nicole Peppe and Luke Bagley as Boston-based private investment funds partners from Cooley. (Reuters)
- Sidley added Joshua Samek in the firm’s Miami office as a partner focused on M&A, private equity and capital markets. He previously was co-chair of DLA Piper’s Florida corporate practice. (Sidley)
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The U.S. Supreme Court’s 5-4 ruling in June in Mallory v. Norfolk Southern Railway will affect the ability of consumers, employees and others to sue businesses outside of their home state, write Kyle Jacob and Jim McLoughlin of Moore & Van Allen. The court held that businesses could be sued in a state where they are registered, even if the alleged wrong did not occur there. The dissenting justices said the ruling departed from a century of precedent.
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