Buy Now, Regret Later
In recent years, "Buy Now, Pay Later" (BNPL) services have surged in popularity, offering consumers a seemingly easy way to spread out payments for everything from clothing and electronics to furniture and travel. Promising interest-free installments and instant approval, companies like Afterpay, Klarna, and Affirm have reshaped how people ...
Winklevoss-led Crypto Exchange, Gemini, To Pay CFTC $5M For Statements About Bitcoin Futures Contract
Earlier this month, crypto exchange Gemini Trust Company, LLC ("Gemini"), led by Tyler and Cameron Winklevoss, agreed to pay $5 million to the U.S. Commodity Futures Trading Commission ("CFTC") to resolve claims regarding alleged misrepresentations about certain aspects of the company's proposed bitcoin futures contract. The CFTC sued Gemini ...
Wall Street’s Short Kings
There has been a recent trend toward activist short selling. Rather than shorting stocks simply because they are overvalued, activist short sellers focus on corporate fraud. The activist short sellers are a mixture of well-known activist investors and firms, such as Muddy Waters Research, Citron Research, and Hindenburg Research, led by investors ...
National Labor Relations Board Demands “Love Is Blind” Reclassify Participants as Employees in Complaint
On December 11, 2024, the National Labor Relations Board ("NLRB") issued a complaint demanding that Netflix's hit reality television show Love Is Blind reclassify its participants as employees, who are afforded more robust federal and State legal protections and must be paid an hourly wage, including overtime. The complaint also outlines provisions ...
DOL Issues Guidance to Prevent Harassment in the Construction Industry
On November 21, 2024, the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP), which holds contractors responsible for complying with laws prohibiting harassment and discrimination on the basis of race, color, sex, sexual orientation, gender identity, religion, national origin, disability, or veteran status, released ...
The Conservative Case for Class Actions
In the wake of the recent U.S. presidential election, The Conservative Case for Class Actions by Professor Brian T. Fitzpatrick of Vanderbilt Law School is more relevant than ever for anyone who is interested in class actions. A member of the Federalist Society since his first semester of law school, Professor Fitzpatrick reminds us that conservatism ...
It’s the Most Flummoxing Time of the Year
Thanksgiving is now in the rear-view, leaves have all-but-dropped, and temperatures are following suit. And like clockwork, businesses large and small are advertising their own drops: lower prices on goods and gifts, just in time for the winter holiday season. As consumer purchasing heats up, Americans are also opening their wallets—and ...
Court Goes All In: District of Massachusetts Decision Declining to Dismiss DraftKings NFT Lawsuit Lays The Groundwork For Potential Impactful Trial
The U.S. District Court for the District of Massachusetts denied defendants' DraftKings Inc. ("DraftKings") and its officers Jason D. Robins, Jason K. Park and Matthew Kalish's (collectively "Defendants") motion to dismiss a securities class action lawsuit arising out of their alleged failure to properly register its non-fungible tokens ("NFTs").[1] ...
The SEC Adopts New Rules On Penny Stocks
For cinema lovers, the Securities and Exchange Commission ("SEC") appears to have addressed financial issues reminiscent of those touched in the 1999 satirical comedy, Office Space—i.e., impact of fractional pennies—and 2013 black comedy, The Wolf of Wall Street—i.e., volatile penny stocks. On September 18, 2024, the SEC adopted amendments ...
FARUQI & FARUQI LLP NOTCH IMPORTANT WIN FOR PLAINTIFFS AT THIRD CIRCUIT
On November 7, the Third Circuit Court of Appeals issued an Order in Huertas v. Bayer US LLC, No. 23-2178, reversing the District of New Jersey's prior ruling dismissing the plaintiffs' claims related to Bayer's Lotrimin and Tinactin antifungal spray products "contaminated with benzene," which "has been labeled a human carcinogen and linked ...
New York City Bill Would Allow Time Off Work for Pet Care
On Wednesday, October 23, 2024, New York City councilmembers Shaun Abreu and Tiffany Cabán introduced a bill, Int. 1089-2024, that would guarantee paid time off to care for pets or service animals. If approved, the bill would take effect 120 days after it becomes law. If enacted, the legislation would make New York City one of few U.S. cities ...
Investor Surveys: Key to Accurate Materiality Assessments in Securities Class Actions
A material misstatement in connection with a securities transaction is illegal under federal securities laws. Information is deemed to be material for purposes of Rule 10b-5 if a reasonable investor would have considered a statement or omission significant in making investment decisions. Thus, the concept of a "reasonable investor" is central ...
Six States Put Increases to Minimum Wage and Paid Sick Leave to a Vote
On November 5, 2024, six states will put more than the next presidential nominee to a vote. Specifically, voters in Alaska, Arizona, California, Massachusetts, Missouri, and Nebraska will decide whether to increase their States' minimum wages and provide more paid sick days, or a combination of both. The various proposals that will appear ...
SEC Goes After “Pig Butchering Scams” In First Of Its Kind Lawsuits
On September 17, 2024, the U.S. Securities and Exchange Commission ("SEC") filed two first-of-their-kind securities fraud lawsuits against those behind a pair of "pig butchering schemes" that allegedly solicited investments in fake cryptocurrency platforms NanoBit Limited ("NanoBit") and CoinW6 to scam victims out of nearly $3 million. According ...
New York City EMS Workers and Unions Granted Class Status in Race and Sex Bias Lawsuit
On Tuesday, September 24, 2024, U.S. District Judge Analisa Torres granted a motion to certify a group of emergency medical services ("EMS") workers of the EMS Bureau of the Fire Department of the City of New York ("FDNY") as a class in their lawsuit against the city alleging discriminatory pay practices, suppression of wages, and denial of ...
New Court Ruling on FMLA Interference Clarifies Employers Can Violate Law Without Actually Denying Employee Requests
In a significant development, the Second Circuit Court of Appeals has expanded the interpretation of the Family and Medical Leave Act (FMLA), ruling that employers can violate the law simply by discouraging employees from exercising their rights, even if the employee's request for leave is ultimately granted. This ruling, outlined in the case ...
Maryland Becomes First State on the East Coast to Implement Heat Protections for Workers
On September 30, 2024, Maryland will implement a new extreme heat standard, which affords employees more workplace protections when the heat index exceeds 80, 90, and 100 degrees. When temperatures exceed 80 degrees Fahrenheit, Maryland workers must be provided with at least 32 oz of water in an accessible area and shaded breaks. When temperatures ...
CHIPMAKER NVIDIA UNDER INVESTIGATION OVER ANTITRUST CONCERNS
Over the past several years, the California-based company Nvidia has grown to become one of the largest companies on the planet. Nvidia is known for making computer chips called "graphics processing units" or "GPUs" that power many computer programs—from video games to cryptocurrency mining and advanced AI models. As of this writing, the ...
No Such Thing as a Free Lunch: The Concealed Risks of “Risk-Free” Trials
It seems every product these days comes with an offer of a "risk-free" trial. These enticing offers, often for pricey products or subscription services, are sometimes called "free trials," or "risk-free guarantees." In our modern economy, our email inboxes and social media feeds runneth over with these ads. But the devil, in the form of recurring ...
Shaquille O’Neal Must Defend Some Allegations In Suit Over Astrals Project NFTs
On August 16, 2024, Judge Moreno of the Southern District of Florida ruled that legendary basketball player Shaquille O'Neal must face some allegations in a proposed securities class action regarding his promotion of Astrals Project nonfungible tokens ("NFTs"). Astrals was a project involving a collection of 10,000 NFT 3D avatars. The court ...