Government Sues over “Alliance” Between American Airlines and JetBlue Airways
Posted by Raymond N. Barto on 09/30/2021
The Department of Justice and the attorneys general of six states have, together, filed an action challenging American Airlines's "Northeast Alliance Agreement" with its purported rival, JetBlue Airways. American is the largest of four airlines that collectively control over 80 percent of domestic air travel. JetBlue, on the other hand, is ...
Class Actions Against Alcohol Giants Continue to Gain Traction
Posted by Faruqi & Faruqi on 09/29/2021
A consumer in Illinois is challenging Anheuser-Busch's advertising of its new Cacti Agave Spiked Seltzer product, alleging that the product is mislabeled because it does not contain any agave spirits, such as tequila and mezcal. According to the lawsuit, the product, which was the result of a recent collaboration between rapper Travis Scott ...
HHS Releases Report to Address High Drug Prices
Posted by Kristyn Fields on 09/28/2021
In an effort to lower drug prices, the Department of Health and Human Services (HHS) released a report earlier this month entitled "Comprehensive Plan for Addressing High Drug Prices." The report outlines both legislative and administrative actions to lower drug pricing. Proposals that would require legislative action include: • Medicare ...
NYC Council Passes Six Bills To Protect Food Delivery Workers
Posted by Camilo Burr on 09/27/2021
On September 23, 2021, the New York City Council approved a package of legislation to improve the working conditions for approximately 65,000 to 80,000 food delivery workers employed by food delivery service apps such as Uber Eats, DoorDash, and Grubhub. The six bills will set a minimum wage for the delivery workers; prevent the apps from ...
SEC Orders KMS Financial Services to Pay $200,000 Penalty Over Failure to Adopt Written Policies and Procedures to Safeguard Customer Information and Records Against Cyberattacks
Posted by Faruqi & Faruqi on 09/20/2021
On August 30, 2021, the SEC ordered KMS Financial Services, Inc. ("KMS"), a dually registered broker-dealer and investment advisory firm with the SEC, to pay a penalty of $200,000 because KMS did not have written policies and procedures in place to safeguard customer information and records against cyberattacks and over a period spanning approximately ...
(Cleaned Up): A Proposal to Streamline Legal Citation Gains Acceptance
Posted by Adam Steinfeld on 09/17/2021
Legal language changes slowly. Even ignoring lawyers' penchant for Latin, plaintiffs still "come now" before the court to "witnesseth" their testimony. Pushes to conduct law in "plain English" started in the sixteenth century. A mere five hundred years later, there are signs of progress in one of the most hidebound of legal conventions: citation. ...
Third Circuit Decision Hands Plaintiffs a Victory Regarding the Relation-back Doctrine
Posted by Robert W. Killorin on 09/15/2021
In Southeastern Pennsylvania Transportation Authority v. Orrstown Financial Services, Inc., 2021 WL 3923389 (3d Cir. 2021), the Third Circuit Court of Appeals held that the relation-back doctrine outlined in Federal Rule of Civil Procedure 15(c) applies to statutes of repose, in addition to statutes of limitations. The case began in 2012 when ...
SEC Commissioner Raises Concerns Over “Information Bundling”
Posted by Faruqi & Faruqi on 09/13/2021
In a public statement issued on September 3, 2021, SEC Commissioner Caroline Crenshaw raised concerns about the SEC's longstanding practice of considering corporate benefits when assessing penalties against corporate wrongdoers. Crenshaw's statement, published on the heels of the SEC's announcement of an enforcement action against Kraft Heinz ...
An Employee May Maintain a Retaliation Claim Even if There Was No Underlying Discrimination
Posted by Taylor Crabill on 09/09/2021
Elements of a Retaliation Claim An employee who feels that he or she has been subjected to discrimination (including being subjected to a hostile work environment related to sexual harassment) may be hesitant to complain to a supervisor or Human Resources out of fear of retaliation. However, the employment laws provide protections to employees ...
California Superior Court Finds Proposition 22 Unconstitutional
Posted by Faruqi & Faruqi on 09/03/2021
As previously outlined here, on November 3, 2020, Californians passed a ballot initiative known as Proposition 22, or "the App-Based Drivers as Contractors and Labor Policies Initiative" ("Prop 22"), which asked voters to define app-based rideshare and delivery drivers as independent contractors, as opposed to employees. Prop 22 was a direct ...
RECENT FIRST CIRCUIT DECISION ADDS TO CIRCUIT SPLIT OVER APPLICATION OF SECURITIES LAWS TO FOREIGN CONDUCT
Posted by Faruqi & Faruqi on 09/02/2021
In Morrison v. National Australia Bank Ltd., 561 U.S. 247 (2010), the Supreme Court rejected extraterritorial application of federal securities laws. The Court held that the federal securities laws reach only (1) transactions in securities listed on domestic exchanges and (2) domestic transactions in other securities. Since the decision in ...
NYSE Revisits Related Party Transaction Approval Requirements
Posted by Faruqi & Faruqi on 08/31/2021
On August 19, 2021, the New York Stock Exchange ("NYSE") filed a Rule Proposal to immediately amend Section 314.00 of the NYSE Listed Company Manual ("Section 314.00"). The amendment modifies the definition of related party transactions to include the value and materiality thresholds contained in Item 404 of Regulation S-K of the Securities ...
SEC Increases Disclosure Requirements for China-Based IPOs in the U.S.
Posted by Katherine M. Lenahan on 08/06/2021
On July 30, 2021, the U.S. Securities and Exchange Commission ("SEC") announced new disclosure requirements that will make it more difficult for China-based companies to launch initial public offerings ("IPOs") in the U.S. SEC Chair Gary Gensler stated that the new requirements were prompted in part by recent changes in China, which "include ...
Judiciary Employees to Receive Same Protections Against Discrimination as Private Sector Employees
Posted by Camilo Burr on 08/05/2021
On Thursday, July 29, 2021, a bipartisan group of U.S. lawmakers introduced the Judiciary Accountability Act of 2021 which would afford approximately 30,000 federal judiciary workers the same rights and protections against discrimination, sexual harassment, and other misconduct given to other workers in the private and government sectors. ...
New York Attorney General Finds that Governor Cuomo Sexually Harassed Female Staffers and Retaliated against Whistleblower
Posted by Faruqi & Faruqi on 08/03/2021
In February 2021—on the heels of reports that New York State may have undercounted COVID-related nursing home deaths by thousands—the public learned of allegations by multiple female staffers that New York State Governor Andrew Cuomo subjected to them to sexual harassment. This resulted in a probe led by Attorney General Letitia James, ...
8-K TRADING GAP ACT INTRODUCED TO ADDRESS LOOPHOLE GIVING CORPORATE INSIDERS AN UNFAIR TRADING ADVANTAGE
Posted by Faruqi & Faruqi on 08/02/2021
On July 15, 2021, Senator Chris Van Hollen (D-MD), a member of the Senate Banking, Housing and Urban Affairs Committee, and Congresswoman Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, introduced the 8-K Trading Gap Act of 2021 (the "Act"). The Act is designed to close an existing loophole which allows ...
SEC Chair Asks Staff to Develop Rule on Mandatory Climate Change Disclosures by the End of 2021
Posted by Faruqi & Faruqi on 07/29/2021
Speaking at a webinar hosted by the Principles for Responsible Investment on Wednesday, July 28, 2021, Securities and Exchange Commission ("SEC") Chair Gary Gensler indicated that he wants the SEC to develop a rule mandating disclosure of climate risks by the end of the year. According to Gensler, investors are demanding more information on ...
Biden Mandates Vaccination or Masks for Federal Workers
Posted by Camilo Burr on 07/24/2021
On Thursday, July 29, 2021, President Biden directed more than 4 million federal workers to get the vaccine or wear a mask on the job and get tested one to two times a week while being subjected to travel restrictions. The announcement comes as the Biden administration seeks to inoculate more Americans against COVID-19 as the number of Americans ...
SEC Settles Charges against First American Financial Corporation over Cybersecurity Vulnerability
Posted by Faruqi & Faruqi on 07/23/2021
On June 15, 2021, the SEC settled its charges against First American Financial Corporation ("First American"), a real estate company, in the amount of $487,616, for its "disclosure controls and procedures violations related to disclosures made in connection with a cybersecurity vulnerability involving the company's 'EaglePro' application for ...
Sexual Harassment Likely to Increase as Employees Return to the Office
Posted by Taylor Crabill on 07/15/2021
In 2020, as the Coronavirus pandemic forced millions of employees to work remotely, the number of charges filed with Equal Employment Opportunity Commission related to sexual harassment dropped by nearly 1,000.[1] This summer, many employees are beginning to return to the office, meaning they will be spending hours interacting with their coworkers ...