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Good morning. Lots of law firm associates don’t feel like law school prepared them for the job, a new survey found. Plus, Google wants the U.S. government’s lawsuit over its digital advertising business thrown out; TikTok’s general counsel will step down from the role to focus on fighting efforts to force a U.S. sale of the app; and Warren Buffett’s real estate brokerage HomeServices reached a $250 million antitrust settlement. We have everything you need to know to start the week. Happy Monday!
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Nearly half of law firm associates said law school did not adequately prepare them for practice, a new survey found. Among the 546 junior associates surveyed by legal recruiting firm Major, Lindsey & Africa and legal data intelligence provider Leopard Solutions, 45% said law school did not sufficiently prepare them for their current role, our colleague Karen Sloan reports.
Thirty-one percent of respondents said their law firm experience didn’t meet their expectations coming out of law school, the study said. When asked what they would change about their law school experience, the most common answer was more practical skills and a greater focus on transactional practices.
Leopard Solutions CEO Laura Leopard attributed some of the dissatisfaction among the lawyers surveyed to the fact that many of them were in law school or began their law firm careers during the COVID-19 pandemic. “It’s clear that the lack of facetime and personalized training is still having an impact on their development,” Leopard said, noting that many associates have missed out on “vital” in-person training opportunities as a result of the pandemic.
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- Columbia Law School snagged the top spot among U.S. law schools for having the highest percentage of 2023 graduates who landed jobs at big law firms. These schools took the other top spots.
- An engineering and manufacturing company accused law firm Clark Hill of “recklessly” wiring $1.1 million to scammers who used hacked email accounts to intercept settlement funds. Sinacom North America sued the firm and one of its lawyers for being “duped by an obvious scam” and allegedly transferring money to a bank account that did not belong to Sinacom after an unknown third-party gave the firm fake wire transfer instructions.
- A former longtime Moody’s general counsel pleaded guilty to willfully failing to file federal income tax returns. John Goggins, who stepped down as Moody’s senior vice president and general counsel last fall, earned $54 million between 2018 and 2021 and failed to file federal income taxes during those years, New Jersey federal prosecutors said. He is scheduled to be sentenced on Sept. 6.
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That’s how many Tesla vehicles were at the heart of the electric vehicle maker’s major recall announced in December. U.S. auto safety regulators said they have opened an investigation into whether the company’s recall, to install new Autopilot safeguards, is adequate. The National Highway Traffic Safety Administration said it has identified concerns due to crash events after vehicles had the new safeguards installed and to “results from preliminary NHTSA tests of remedied vehicles.” The recall was Tesla’s largest ever, amounting to nearly all of its vehicles on U.S. roads.
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“You killed the story because it helped the candidate, Donald Trump?“
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—Prosecutor Joshua Steinglass asked former National Enquirer publisher David Pecker, who testified at Trump’s criminal trial that he suppressed a story about an alleged affair to help Trump’s 2016 presidential bid, even though it would have boosted sales of his tabloid. Pecker agreed with the prosecutor who asked whether it would have been “National Enquirer gold” to publish the story of former Playboy model Karen McDougal’s claim that she had an affair with Trump, but said he opted not to run the story because it would have hurt Trump’s chances of winning the election. The exchange bolstered previous testimony from Pecker.
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- Today, the FTC and lawyers for Coach parent Tapestry are set to meet in Manhattan federal court with U.S. District Judge Jennifer Rochon for a case management conference in the agency’s bid to block the company’s $8.5 billion deal to buy Michael Kors owner Capri. The FTC contends the tie-up would eliminate “direct head-to-head competition” between the flagship brands of the two luxury handbag makers. Tapestry CEO Joanne Crevoiserat said the FTC was “fundamentally misunderstanding the marketplace and the way consumers shop today.”
- Also today, a LGBTQ student group will ask the 5th Circuit to overturn a lower court judge who found it did not have an inherent constitutional right to hold a charity drag show on West Texas A&M University’s campus over the objections of the school’s president. U.S. District Judge Matthew Kacsmaryk, a former Christian legal activist, ruled that it was far from clear that drag shows were covered by the First Amendment’s protections for free expression.
- On Tuesday, Texas and three other Republican-led states will urge the 5th Circuit to strike down the SEC’s new rule that requires certain investment funds to reveal more about how they vote on shareholder ballots, including on pay packages for top executives. The SEC counters that the states don’t have legal standing to challenge the rule. “Petitioners are states, not funds, and the rule does not require them to do (or abstain from doing) anything,” the agency told the court.
- On Wednesday, Tesla is expected to ask a Delaware judge to reject a request for a $6 billion legal fee sought by the attorneys who voided Elon Musk’s $56 billion pay package as excessive. The fee implies an hourly rate of $288,888 for the work that each of the 37 lawyers, associates and paralegals spent on the case, according to documents filed in the Court of Chancery.
- Also on Wednesday, the 5th Circuit will consider whether to revive a lawsuit by the Pharmaceutical Research and Manufacturers of America and two other groups challenging a new program that allows Medicare to negotiate prices with drug companies for selected costly drugs. The ruling in February dismissing the lawsuit marked a victory for the Biden administration in its defense of the negotiation program, one of Biden’s signature initiatives.
- On Thursday, U.S. District Judge Valerie Caproni in Manhattan will hold a status conference in an antitrust lawsuit by sports promoter Relevent Sports seeking to open up the U.S. to official competitive soccer matches involving foreign clubs. Relevant is suing U.S. Soccer, which recently lost its effort at the U.S. Supreme Court to overturn a ruling that said it can be sued for following rules set by soccer’s international governing body FIFA. Relevant and FIFA have settled, but the terms haven’t been publicly disclosed.
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Court calendars are subject to last-minute docket changes.
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- Elon Musks’ SpaceX asked a Texas federal judge to block the NLRB from pursuing claims that the rocket maker required workers to sign illegal severance agreements, pending the outcome of the company’s second challenge to the agency’s structure. SpaceX filed a motion seeking a preliminary injunction in Waco federal court, arguing that the board’s in-house enforcement proceedings violate the U.S. Constitution and that the company should not have to face an NLRB complaint filed last month while the case plays out.
- A real estate brokerage owned by Warren Buffett’s Berkshire Hathaway said it reached a $250 million settlement of nationwide antitrust litigation that is expected to change how real estate agents are paid. HomeServices was the last remaining defendant in a case against the National Association of Realtors and four brokerages.
- A divided 2nd Circuit revived a 2021 New York state law intended to provide affordable high-speed internet service to low-income families, setting aside a permanent injunction and handing a defeat to service providers. In a 2-1 decision, the court said federal telecommunications law dating to the Great Depression did not preempt states from regulating broadband rates.
- The Biden administration can move forward with a lawsuit alleging Texas violated a U.S. environmental law by installing a 1,000-foot-long floating barrier in the Rio Grande river to deter illegal border crossings from Mexico. U.S. District Judge David Ezra in Austin ruled the DOJ’s claim that the string of buoys is covered by a law requiring states to get federal approval before obstructing navigable waterways was plausible enough to allow the lawsuit to proceed.
- A Colorado judge sentenced a paramedic convicted in the 2019 death of Elijah McClain to 14 months in a work-release program and four years of probation. The sentencing of Jeremy Cooper, who had faced up to three years in prison for his conviction last December of criminally negligent homicide, closes out the three trials around McClain’s death.
- The trial of internet personality Andrew Tate on human trafficking charges can go ahead, a Romanian court ruled, 10 months after he was first indicted. His representative said he would challenge that decision.
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As connected cars evolve, the balance between innovation and privacy becomes increasingly precarious. The benefits of these technologies must not overshadow the fundamental rights of individuals to control their personal information, writes Sara Jodka of Dickinson Wright. For privacy professionals, this means accurately drafting privacy policies that fully align with all downstream sharing and uses of consumer data.
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