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Supreme Court adds to its docket
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We’re still waiting on some decisions from the U.S. Supreme Court’s current term, but in the last few days the court selected several new cases to add to its next term beginning in October.
The court agreed to hear a bid by Nvidia to scuttle a securities fraud lawsuit accusing the artificial intelligence chipmaker of misleading investors about how much of its sales went to the volatile cryptocurrency industry. The justices took up Nvidia’s appeal made after a lower court revived a proposed class action brought by shareholders in California against the company and its CEO Jensen Huang.
The justices agreed earlier this month to hear a similar bid by Meta’s Facebook to dismiss a private securities fraud lawsuit accusing the social media platform of misleading investors in 2017 and 2018 about the misuse of its user data by the company and third parties. Facebook appealed after a lower court allowed a shareholder lawsuit led by Amalgamated Bank to proceed.
The high court also agreed to decide how difficult it should be for employers to prove in court that their workers qualify for exemptions from overtime pay and other legal protections granted by U.S. wage laws. The justices granted a petition by grocery distributor EMD Sales for review of a 4th Circuit ruling that imposed a higher bar on the company to show that sales representatives were exempt from overtime pay than any other appeals court has in a similar case.
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- The U.S. District Court for the Northern District of Texas, which has become a favored destination for conservatives suing to block President Joe Biden’s agenda, adopted a new rule that would automatically pause decisions by judges to transfer cases to other jurisdictions. A majority of judges on the court approved a rule that would stay for 21 days any decisions to transfer civil cases to courts outside of the jurisdiction of the 5th Circuit.
- Columbia University named University of Chicago law professor Daniel Abebe as the next dean of its law school. In addition to teaching, Abebe has been vice provost for academic affairs and governance, where he was tasked with clarifying the University of Chicago’s free speech policies. Abebe takes over amid a period of campus conflict over the war in Gaza.
- Russia’s espionage trial of detained Wall Street Journal reporter Evan Gershkovich, who denies charges of collecting secrets for the CIA, will be held behind closed doors, the trial court said. The first hearing is scheduled for June 26, the court said.
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That’s the number of states in which judges have blocked new U.S. Department of Education regulations from taking effect that extend sex discrimination protections under Title IX to LGBT students. U.S. District Judge Danny Reeves in Kentucky blocked the Biden administration from implementing in six Republican-led states a new rule protecting LGBT students from discrimination in schools and colleges based on their gender identities. Reeves’ ruling came days after another judge in Louisiana blocked the rule from taking effect in Louisiana, Mississippi, Montana and Idaho. Lawsuits by 16 other states challenging the rule are pending.
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Supreme Court Justice Clarence Thomas has adopted a legal theory that would eliminate a spate of recent lawsuits filed by groups that share his opposition to race-based diversity programs. Alison Frankel explains why Thomas’s newly-espoused skepticism about “associational standing” is likely, at the very least, to spark debate as lower courts consider lawsuits by anti-affirmative action groups.
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“This case presents a narrow disagreement over a few words.“
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- U.S. District Judge Patti Saris in Boston will hold a hearing after medical device company Magellan Diagnostics agreed to pay $42 million and plead guilty to resolve federal charges that it concealed a malfunction in its lead-testing devices that resulted in thousands of children and other patients receiving inaccurate, low test results. Magellan Diagnostics, now owned by Ohio-based Meridian Bioscience, has entered into a deferred prosecution agreement to resolve felony fraud conspiracy charges and agreed to plead guilty to two misdemeanors. The agreements are subject to Saris’ approval.
- Boeing CEO Dave Calhoun is slated to testify before a subcommittee of the U.S. Senate Committee on Homeland Security and Governmental Affairs about the company’s safety culture. The testimony comes as Boeing has faced numerous issues with its planes in recent months. Reuters reported last week that the company is investigating a new quality problem with its 787 Dreamliner after discovering that hundreds of fasteners have been incorrectly installed on the fuselages of some undelivered jets.
- The Colorado Supreme Court is scheduled to hear oral arguments in Masterpiece Cakeshop baker Jack Phillips’ appeal of a lower court’s ruling that he violated a state anti-discrimination law by not making a cake to celebrate a gender transition. The lawsuit was filed after Autumn Scardina, an attorney, tried to order her cake the same day the U.S. Supreme Court in 2017 agreed to hear Phillips’ challenge to the Colorado Civil Rights Commission’s conclusion he discriminated against a gay couple for whom he had refused to make a wedding cake. The Supreme Court in 2018 ruled in Phillips’ favor but on narrow grounds that stopped short of creating a free speech exemption to anti-discrimination laws, finding the commission was hostile toward Phillips’ Christian beliefs.
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Court calendars are subject to last-minute docket changes.
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- Tesla has sued its former supplier Matthews International in California federal court for allegedly stealing trade secrets related to Tesla’s battery-manufacturing process and sharing them with the electric-vehicle giant’s competitors. The lawsuit said Matthews owes damages that Tesla “conservatively estimates will exceed $1 billion” for misusing company trade secrets related to dry electrode battery manufacturing technology.
- Electric aircraft startup Zunum Aero has asked a federal judge in Seattle to add more than $234 million in damages and attorneys’ fees to a $72 million jury verdict it won against Boeing in a trade secrets case last month. Zunum told the court that it should enhance the award based on Boeing’s “willful and malicious” misuse of its secrets, order Boeing to pay $24.7 million of Zunum’s fees and add millions more in other damages and interest.
- Teva Pharmaceutical Industries said it is in active talks to settle a DOJ lawsuit alleging it used charities that help cover Medicare patients’ out-of-pocket drug costs as a means to pay kickbacks to boost sales of its multiple sclerosis drug Copaxone. Teva made the disclosure in a filing asking the 1st Circuit to put on hold its appeal set to be heard next month of a key ruling over what the government must prove to establish it violated the False Claims Act.
- A U.S. appeals court handed Michigan’s attorney general a jurisdictional victory in her bid to force Enbridge to stop operating the Line 5 oil pipeline underneath the Straits of Mackinac in the Great Lakes by allowing her to pursue her case in state rather than federal court. The 6th Circuit ruled the Canadian pipeline company waited too long to seek to have Democratic Attorney General Dana Nessel’s 2019 lawsuit removed to federal court when it tried to do so in late 2021.
- Texas, Louisiana and Mississippi are suing the U.S. government to block the Biden administration’s proposed rule that would require the offshore oil and gas industry to provide nearly $7 billion in funds to cover costs of dismantling old infrastructure. The rule, which would go into effect later this year, could hit around three quarters of operators in the Gulf of Mexico, according to the U.S. Bureau of Ocean Energy Management.
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- Milbank hired James Weingarten, the former chief trial counsel for the Bureau of Competition at the FTC, as a partner in the firm’s antitrust and competition group. (Milbank)
- Katie Weiss and Martin Eid joined King & Spalding’s finance and restructuring practice group as New York-based partners. They were previously at Milbank. (King & Spalding)
- Gibson Dunn hired partner Victoria “Tory” Lauterbach in D.C. Lauterbach, who was previously with Foley Hoag, will be part of the energy, regulation and litigation practice group. (Gibson Dunn)
- Morgan Lewis added Leonora Shalet as a partner from Schulte Roth & Zabel. Shalet, who is based in New York, joins the global private investment funds practice. (Morgan Lewis)
- Foley & Lardner hired partners Trey McDonald and James McFall from Jackson Walker for the firm’s business litigation and dispute resolution practice. McDonald is based in Houston and McFall is based in Dallas. (Foley)
- Wilson Elser hired partners Todd Jaworsky and Jane Young from McElroy Deutsch. Jaworsky and Young, who are based in Denver, are insurance coverage and defense litigation attorneys. (Wilson Elser)
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So-called “forever chemicals” PFOA and PFOS, as of July 8, will be listed as “hazardous substances” under the Comprehensive Environmental Response, Compensation & Liability Act, or CERCLA. The regulation of PFOA and PFOS as “hazardous substances” is likely to create uncertainty within the commercial real estate industry and have wide-ranging impacts for current property owners and for those engaged in buying, selling, financing, or developing affected properties, write Laura Boorman Truesdale, Pierce Werner and Mary Katherine Stukes of Moore & Van Allen.
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