New Hampshire Judge Rules in Favor of SEC, Finding Blockchain Tokens Were Securities
On November 7, the U.S. Securities and Exchange Commission obtained summary judgment in a case against LBRY Inc., a blockchain-based publisher and content-sharing platform. This is one of the latest cases testing what constitutes a security under the federal securities laws. In granting summary judgment, U.S. District Judge Paul J. Barbadoro ...
Jury Awards Plaintiff $366 Million for Retaliation
Retaliation is the most frequent alleged basis of discrimination. Retaliation is when an employer takes an adverse action against an employee for engaging in protected activity. Protected activities include, but are not limited to, filing a complaint, answering questions during an employer investigation, resisting sexual advances or intervening ...
Collapse Of FTX Cryptocurrency Exchange Prompts Investigations
On November 11, 2022, Bahamas-based FTX, one of the world's largest cryptocurrency exchanges, filed for bankruptcy and its founder, Sam Bankman-Fried, stepped down as CEO. This was a stunning turn of events for a company valued at $32 billion earlier this year and whose logo appeared on everything from Formula 1 racecars to the Miami Heat's ...
NYC Transparency Law to Take Effect on November 1, 2022
As previously outlined here and here, in January 2022, the New York City Council enacted an amendment to the New York City Human Rights Law, requiring employers to list minimum and maximum salary ranges in job postings. The new law, which goes into effect on November 1, 2022, reflects an effort by the City to combat gender and race-based pay ...
REGULATING CRYPTO: A SECURITY OR A COMMODITY?
In light of recent events that have occurred in the crypto world – the collapse of FTX, a cryptocurrency exchange which was forced to file for bankruptcy after suffering an $8 billion dollar shortfall, and the recent court decision in Securities and Exchange v. LBRY, Case No. 21-cv-260-PB, 2022 WL 16744741 (D. N.H. Nov. 7, 2022), where the ...
Sam Bankman-Fried Is Charged With Fraud and Illegal Campaign Contributions
The United States Attorney for the Southern District of New York charged disgraced FTX founder Sam Bankman-Fried ("SBF") with eight criminal counts, including conspiracy and wire fraud, for allegedly misusing billions of dollars in customers' funds prior to the collapse of his "House of Cards" cryptocurrency empire.[1] The indictment, unsealed ...
Second Circuit Reaffirms New York Labor Law’s Protections against Retaliation for Political (and Other) Activities Outside of Work
The Second Circuit Court of Appeals recently revived a lawsuit alleging the bank unlawfully fired an employee for engaging in political activities outside of work, thereby reaffirming the validity of and legitimate protections provided by a rarely invoked provision of the New York Labor Law ("NYLL"). In Truitt v. Salisbury Bank and Trust Company, ...
Private Messaging Costs Big Banks almost $2 Billion in Penalties
Several Wall Street banks were financially penalized earlier this month for the use of private messaging and encrypted chats by their employees. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission settled with units of Bank of America, Goldman Sachs, Nomura and eight other financial services giants with ...
The Rise in Age Discrimination Law Suits in America
The Age Discrimination in Employment Act (ADEA) prohibits employment discrimination against individuals 40 years or older. To prove age discrimination, an employee must establish that (1) he or she is in the protected age class; (2) he or she was subjected to an adverse employment action; (3) he or she was qualified for the job; and (4) a ...
Despite Relatively Few Employment Law Cases on the Docket, the U.S. Supreme Court’s Upcoming Term Could Have Major Implications in the Workplace
In recent years, the U.S. Supreme Court's docket has seemingly been jam-packed with employment law cases of massive consequence each and every term. The upcoming term, however, is uncharacteristically light in this regard. Nevertheless, it is highlighted by several disputes that could have massive implications in employment law—some dealing ...
Boeing and Former CEO Settle with SEC for $201 Million Over Charges of Misleading Investors about Safety of 737 MAX Aircraft that Killed 346 People
Last month, the Securities and Exchange Commission ("SEC") issued a Cease-and-Desist Order against Boeing Co. (NYSE: BA) and its former CEO, Dennis A. Muilenburg, both of whom agreed to pay civil money penalties to the SEC in the amounts of $200 million and $1 million, respectively, regarding the SEC's charges that Boeing and Muilenburg misled ...
SEC REQUESTS PUBLIC COMMENT ON PROPOSAL FOR 24-HOUR SECURITY EXCHANGE
On September 1, 2022, the Securities and Exchange Commission ("SEC") called for public comments on a proposal to create a 24-hour securities exchange. Currently, no securities exchange registered with the SEC allow investors to trade between 8:00 p.m. and 4:00 a.m. Eastern time. The proposal comes from 24X National Exchange LLC ("24X"), which ...
New Jersey to Ban Non-Disparagement Language in Employment Related Settlement Agreements
On September 30, 2022, the New Jersey Assembly took a step toward allowing employees who endured discrimination, retaliation, or harassment at the workplace to speak about their experiences on the job. Specifically, New Jersey lawmakers advanced a bill barring settlement agreements in employment related cases from including language that require ...
NY Dept. of Financial Services’ first enforcement action against a crypto company, and what it means for crypto trading
On August 2, the New York Department of Financial Services issued a $30 million consent order against Robinhood Crypto LLC, a wholly owned subsidiary of Robinhood Markets Inc., which offers cryptocurrency trading. DFS' order states that Robinhood failed to maintain a compliant anti-money laundering program, an appropriate transaction monitoring ...
Regulations May Be Coming For Cryptocurrency ‘Staking’
John Wu, the President of Ava labs, believes that securities regulations for cryptocurrencies utilizing "staking" could be coming in the future. This comes on the heels of Securities and Exchange Commission Gary Gensler signaling that the recent Ethereum "Merge" could lead to securities regulation.[1] [1] Lydia Beyoud, SEC Chair Gensler Raises ...
SEC Seeks To Obtain Penalties Greater Than A Defendants’ Gain
The U.S. Securities and Exchange Commission ("SEC") is seeking a ruling in the Ninth Circuit Court of Appeals upholding a fine larger than what a defendant individually gained from an allegedly illegal scheme. According to Bloomberg Law, the SEC obtained a ruling in SEC v. Imran Husain, et al., No. 16-cv-03250 (C.D. Cal.), that imposed "a ...
Garden Leave Slowly Gains Traction in the United States
A non-compete agreement is an agreement or clause in a contract specifying that an employee must not work for a competitor or enter into business in competition with the employer during or after employment. Non-competes are used to protect company trade secrets and client relationships. Eleven states in the United States ban non-competes for ...
SEC’s Draft Fiscal Years 2022-2026 Strategic Plan Is Available for Public Comment
On August 24th of this year, the Securities and Exchange Commission ("SEC") released for public comment its draft strategic plan for the fiscal years 2022 to 2026. Prepared pursuant to the Government Performance and Results Modernization Act of 2010, the draft strategic plan lists three primary goals: • Protecting working families against ...
New York City Passes Landmark AI Bias Law, with Similar Legislation Across the Country Likely on the Rise
New York City will soon enact novel legislation, Local Law Int. No. 1894-A, aimed at curbing bias in hiring and promotion decisions aided by artificial intelligence ("AI"), which has increasingly been employed by businesses in recent years. The new law, which requires employers to conduct an independent audit of the automated tools they use, ...
Fourth Circuit Holds that Transgender People Suffering from Gender Dysphoria are Entitled to Protections Under American with Disabilities Act
The Fourth Circuit recently held that people suffering from gender dysphoria qualify for protections under the American with Disabilities Act ("ADA"). The ADA protects people who suffer from disabilities. Under the ADA, "disability" is broadly defined to include "a physical or mental impairment that substantially limits one or more major life ...