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Good morning. The NLRB said SpaceX is forum shopping, and the agency wants to move the company’s lawsuit against it from Texas to California. Plus, Jewish students accused Harvard of allowing “rampant” antisemitism on campus, and passengers on the Alaska Airlines jet that lost a panel mid-flight are now suing. Welcome to Friday!
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The National Labor Relations Board said that rocket and satellite maker SpaceX’s lawsuit claiming the agency’s structure is unconstitutional was improperly filed in Texas, where the company believed it would be more likely to win a favorable ruling. The case tees up a new dispute over whether Texas, a favored destination for Republican officials and conservative groups challenging regulation, is the appropriate forum, our colleague Daniel Wiessner writes.
The NLRB’s lawyers made their forum-shopping claim in their first filing since SpaceX sued the board last week in Brownsville, Texas. The board said the case has no connection to the state and should be transferred to Los Angeles, near SpaceX’s headquarters. SpaceX’s Morgan Lewis lawyers did not immediately respond to a request for comment.
The lawsuit came one day after the board issued a complaint accusing the company of illegally firing eight engineers who were critical of Musk. Most of the fired engineers worked at SpaceX headquarters in Hawthorne, California, and the NLRB case will proceed before an administrative judge in Los Angeles, the board said. SpaceX operates a launch facility in Boca Chica, Texas, which is near Brownsville.
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- California state court judge Marian Gaston, nominated by President Joe Biden for the federal bench in San Diego, withdrew her name from further consideration, becoming the third nominee to publicly do so this week. Gaston declined to comment.
- An Iowa law requiring an equal number of men and women from each of its congressional districts to serve on a commission that vets applicants to the state’s highest courts was ruled unconstitutional. Chief U.S. District Judge Stephanie Rose sided with a male former Republican state lawmaker who wanted to seek election in 2025 to a seat on the commission that by law can only be held by a woman.
- A Texas law firm whose attorneys were disciplined for mishandling hundreds of lawsuits over hurricane damage has vowed not to spend the fees it received from those cases and others, as part of an agreement with two litigation funders suing the firm for unpaid loan debts.
- Law School Admission Council President Kellye Testy will step down this summer to become the executive director of the Association of American Law Schools. Testy has led the council since 2017 and oversaw a number of key changes to the LSAT.
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That’s the fine imposed on law firm Clyde & Co after it acknowledged breaches of money laundering regulations relating to a long-standing client. The London-founded firm, facing scrutiny by the Solicitors Regulation Authority, accepted that it failed to conduct adequate due diligence on a shipping industry company that was not publicly named. SRA Chief Executive Paul Philip said the fine “should be a wake-up call.”
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The 8th Circuit ruled on Wednesday that the Chinese government and related defendants must face Missouri’s accusations of hoarding face masks and other protective medical equipment in anticipation of COVID’s spread across the world. Alison Frankel explains why two judges on the appellate panel accepted the Missouri AG’s argument that China’s purported market manipulation is not shielded by the Foreign Sovereign Immunities Act, even though the 8th Circuit refused to revive the state’s other allegations.
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“We do not have confidence that justice was done.“
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—Chief Justice Kimberly Budd of the Massachusetts Supreme Judicial Court, in a ruling that said a man who was convicted of first-degree murder in 2013 deserves a retrial after his criminal defense lawyer, who has since died, failed to stay awake during his trial. The defense lawyer, who had litigated dozens of murder cases, “fell asleep repeatedly at trial,” the Massachusetts Supreme Judicial Court said. The court found the defendant was deprived of his constitutional right to counsel.
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- U.S. Customs is due to determine whether Apple’s redesigned Apple Watches infringe certain patents owned by medical technology company Masimo. The decision could allow Apple to sell the redesigned watches despite an import ban implemented by the International Trade Commission in the companies’ patent dispute. The Federal Circuit last month paused the import ban after Apple filed an emergency request with the court.
- Defense lawyers for Alex Mashinsky, founder of crypto lender Celsius, face a deadline in Manhattan federal court to file motions in the criminal fraud case against him. Mashinsky has pleaded not guilty to fraud charges that he misled customers and artificially inflated the value of his company’s proprietary crypto token.
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Court calendars are subject to last-minute docket changes.
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- The 4th Circuit will come together as a full court to reconsider a three-judge panel’s decision that said Maryland’s licensing requirements for people seeking to buy handguns were unconstitutional. Lawyers for Maryland had asked the court to take up the case, after a 2-1 panel said the law violated the right to keep and bear arms.
- Walmart in a federal court settlement will pay $60,000 to an employee at an Iowa store who says she was denied a promotion to a management position because she has young children. The deal between Walmart and the EEOC means there will be no trial, which had been slated to begin last week.
- A U.S. judge declined to block an NCAA college-sports rule that bars prospective athletes from competing if they’ve earlier been part of a professional sports league. Two brothers sued the sports governing body over the restriction.
- Oyster harvesters and environmental groups challenged federal approvals for a $2.9 billion wetlands restoration project in Louisiana, arguing the U.S. government failed to properly consider impacts the project could have on rare birds, turtles and other ecosystems before signing off on it.
- Biotech company Regeneron alleged in a new lawsuit that rival Amgen’s proposed biosimilar of Regeneron’s blockbuster eye drug Eylea violates its patent rights. Regeneron asked the court to block Amgen’s version of Eylea, which earned Regeneron $6.26 billion in U.S. sales in 2022. Amgen declined to comment.
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- Dinsmore & Shohl launched a new office in Houston with a team plucked from rival Lewis Brisbois, becoming the latest U.S. law firm to enter the Houston legal market. (Reuters)
- Jenner added Stephanie Sebor as a Chicago-based partner focused on environmental and workplace health and safety. Sebor was previously at Winston & Strawn. (Jenner)
- Vinson & Elkins hired tax partner Jorge Medina in Los Angeles from Shearman & Sterling. He focuses on renewable energy and energy transition assets. (Vinson & Elkins)
- Kilpatrick Townsend brought on New York-based partner Elizabeth Guidi, who advises on tax components of transactions. She previously was at Dechert. (Kilpatrick)
- Willkie added energy finance and transactions partner Dale Smith in Houston. He most recently was at Mayer Brown. (Willkie)
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