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Good morning. Here’s what you need to know today: The U.S. Supreme Court’s ruling in Jarkesy, which limited some U.S. agency enforcement proceedings, is already getting cited in cases involving the NLRB and the U.S. Labor Department. Plus, U.S. District Judge Reed O’Connor is stepping away from the lawsuit X brought against advertisers, and a hockey player is accusing the NCAA of blocking Canadians from playing at top tier U.S. colleges. It’s Wednesday – we’re glad you’re here.
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High court’s Jarkesy ruling already rearing its head
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The U.S. Supreme Court’s June ruling in SEC v. Jarkesy, which limited some U.S. agency enforcement proceedings, is already popping up in several new court filings, our colleagues have found. The Supreme Court decision only directly impacts the SEC, but is widely expected to lead courts to block other agencies from handing down penalties in administrative cases.
This week, after the 9th Circuit asked how the ruling impacted the NLRB’s fight with Macy’s over claims it illegally locked out workers after a strike, the NLRB argued that the ruling has no effect on its powers to remedy illegal labor practices.
And last week, Comcast filed a lawsuit claiming that U.S. Department of Labor proceedings in cases involving financial whistleblower claims are unconstitutional. The communications company is facing an administrative proceeding at the department launched by executives who claim they were effectively fired after blowing the whistle on alleged deficiencies in the company’s securities filings.
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- U.S. District Judge Reed O’Connor in Fort Worth, Texas, who was assigned to hear a lawsuit filed last week by Elon Musk’s social media platform X against the World Federation of Advertisers and others, removed himself from the case following reports that he owned shares of Tesla, another Musk company. O’Connor did not give a reason in his one-paragraph recusal filing.
- U.S. judges have broad power to restore market competition and punish companies that hold illegal monopolies, the FTC told a California judge who is weighing proposed reforms to Google’s app store Play, in a friend-of-the-court filing. The FTC did not take sides in the case.
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That’s how much U.S. Customs and Border Protection has agreed to pay to settle class action claims that the agency sidelined pregnant employees and stunted their careers, according to the plaintiffs’ lawyers at Cohen Milstein Sellers & Toll and Gilbert Employment Law. As part of the deal with more than 1,000 CBP officers and agriculture specialists, the agency will also overhaul its employment policies. The EEOC must approve the settlement before it can go forward, Daniel Wiessner reports.
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Even in the dog days of summer, writes Alison Frankel, civil procedure nerds can find excitement in a U.S. Supreme Court dispute over the proper jurisdiction for a class action by pet owners who claim they were duped into buying premium-priced prescription pet food that actually contains no medication. Frankel has an analysis of a new friend-of-the-court brief from nearly two dozen state AGs across the political spectrum. They’re siding with the pet owners, arguing that federalism and the U.S. Constitution preclude federal courts from hearing lawsuits that have been amended to ditch all references to federal law.
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- U.S. District Judge James Donato in San Francisco will resume an evidentiary hearing that will help him craft a court order imposing reforms on Google’s app store Play. Epic Games last year persuaded a jury that Google unlawfully stifled competition through restrictions on Android device app downloads and payments to developers for in-app transactions. Google has denied any wrongdoing.
- U.S. District Judge Robert Shelby in Salt Lake City will hear a bid by the tech industry trade group NetChoice to block a state law that restricts how minors can use social media. The judge last month dismissed one claim out of several in NetChoice’s lawsuit against the state, which alleges the law, set to take effect in October, is unconstitutional under the First Amendment.
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>>> Court calendars are subject to last-minute docket changes.
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- Chief U.S. District Judge Derrick Watson in Hawaii dismissed a lawsuit that sought to block Alaska Airlines’ plan to buy Hawaiian Airlines for $1.9 billion, a deal the consumer plaintiffs said would cut routes and raise prices. Watson said in an order that the airline passengers who brought the case had not shown they have legal standing to sue over the merger.
- The NCAA is unlawfully denying current and former Canadian Hockey League players the opportunity to skate for U.S. university teams, costing them potentially millions of dollars in scholarships and other revenue, according to a new proposed class action. The lawsuit said the NCAA has unfairly boycotted players from the Canadian Hockey League, a junior league for 16-to-20-year-olds.
- A Jewish former employee of Intel sued the chipmaker, saying he was fired after complaining that the senior executive he reported to openly celebrated antisemitism, Hamas and terrorism against Israel. The plaintiff, a former vice president of engineering using the pseudonym John Doe, said Intel fired him after he complained about the executive’s sharing of anti-Israel online posts.
- U.S. District Judge Nancy Brasel dismissed a lawsuit by nine private training companies that sought to block Minnesota from continuing to provide free state‐certified nursing assistant programs. Brasel rejected arguments from Twin Cities Safety and other plaintiffs that the state could be sued for restricting competition in the market, saying the program was immune from antitrust challenges.
- Amgen sued Samsung’s biologics unit in New Jersey federal court over its proposed biosimilar versions of Amgen’s blockbuster bone drugs Prolia and Xgeva.
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- Sheppard Mullin hired partner Camille Vasquez, a lawyer who helped actor Johnny Depp secure a $15 million jury verdict in his defamation trial against his ex-wife Amber Heard. Vasquez and partners Leo Presiado, Andrew Crawford, Jessica Meyers and Samuel Moniz join from Brown Rudnick. (Reuters)
- Edward O’Callaghan, a former high-ranking DOJ official who helped oversee the federal investigation of Russian meddling in the 2016 presidential election, is joining Cahill to lead a new congressional investigations practice. He most recently was at WilmerHale. (Reuters)
- Baker Botts brought on M&A partner Rebecca Seidl in Houston as leader of the firm’s critical minerals and metals subsector. Seidl arrives from Mayer Brown. (Baker Botts)
- Winston & Strawn picked up litigation partner Alexandra Chopin in D.C. from Squire Patton Boggs. (Winston & Strawn)
- Davis Polk added fund formation partners Andrew Ahern, Alisa Waxman and Luke Eldridge in New York from Debevoise. (Davis Polk)
- Courtney Malveaux joined McGuireWoods as a partner in its Richmond, Virginia. He most recently co-led the workplace safety and health practices at Jackson Lewis. (McGuireWoods)
- Akin added private capital partner Payson Lyman in Boston from Kirkland. (Akin)
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