Keep your finger on the legal world's pulse

Paramount Global has agreed to pay $16m to settle a legal dispute with U.S. President Donald Trump regarding an interview it broadcast on CBS with former Vice President Kamala Harris. Trump filed a lawsuit last October, alleging the network had deceptively edited an interview that aired on its 60 Minutes news program with his presidential election rival to "tip the scales in favor of the Democratic party." Paramount said it would pay to settle the suit, but with the money allocated to Trump's future presidential library, and not paid to him "directly or indirectly." The company noted the settlement does not include a statement of apology or regret. CBS previously said the case was "completely without merit" and had asked a judge to dismiss it. A spokesman for Mr. Trump’s legal team said the settlement was “another win for the American people” delivered by the president, who was holding “the fake news media accountable,” adding “CBS and Paramount Global realized the strength of this historic case and had no choice but to settle.” 

 

BBC News

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New York Times

The U.S. Department of Justice (DOJ) and FBI have announced an arrest and indictments related to North Korea's "IT worker" program, which saw North Koreans secure remote IT jobs at over 100 U.S. companies. The North Koreans allegedly stole around $900,000 in cryptocurrency from a Georgia-based firm and sensitive data from a California defence contractor. Zhenxing “Danny” Wang and Kejia Wang, both U.S. citizens, were indicted as part of the operation, according to the DOJ. Zhenxing Wang was arrested in New Jersey, while Kejia Wang remains free. The two men, along with four other unnamed U.S. “facilitators,” assisted the North Koreans by procuring and operating laptops used by the overseas workers, created financial accounts to receive money earned by the workers to be sent back to North Korea, and created shell companies to make the workers appear more authentic, Reuters reports.

 

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Reuters

A federal judge has blocked Trump administration plans to overhaul the U.S. Department of Health and Human Services by reorganizing several of its agencies and substantially cutting workforce numbers. An injunction on moving forward with the plans was issued by U.S. District Judge Melissa DuBose in Providence, Rhode Island at the behest of a group of Democratic-led states which challenged an announcement made by HHS Secretary Robert F. Kennedy Jr. in March to consolidate agencies and dismiss 10,000 of the department's employees. "The Executive Branch does not have the authority to order, organize, or implement wholesale changes to the structure and function of the agencies created by Congress," DuBose wrote.

 

Reuters

In a 6-3 ruling, the U.S. Supreme Court has upheld the federal E-rate program, which provides essential internet funding for schools and libraries. The case, Federal Communications Commission v. Consumers' Research, addressed the constitutionality of the $9bn Universal Service Fund's funding mechanism. In the court's majority opinion, Justice Elena Kagan wrote: “For nearly three decades, the work of Congress and the Commission in establishing universal-service programs has led to a more fully connected country. And it has done so while leaving fully intact the separation of powers integral to our Constitution.” The decision was met with dissent from Justice Neil Gorsuch, who argued it violated the Constitution's separation of powers. The ruling is crucial for the education sector, as over 106,000 schools benefited from E-rate funding, impacting more than 54m students.

 

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Washington Post

A judge in Brooklyn has thrown out Chinese telecommunications company Huawei Technologies' bid to dismiss most of a federal indictment accusing it of attempting to steal technology secrets from U.S. rivals, and misleading lenders about its work in Iran. In a 52-page decision, U.S. District Judge Ann Donnelly said she found sufficient allegations in the 16-count indictment that Huawei engaged in racketeering to expand its brand, stole trade secrets from six companies, and committed bank fraud.

 

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Reuters

The Supreme Court has asked the Trump administration for its views on whether the justices should take up Bayer's appeal to sharply limit lawsuits which claim that the company's Roundup weedkiller causes cancer and potentially avert billions of dollars in damages. Bayer has called on the justices to hear its appeal of a lower court's decision to uphold a $1.25m verdict awarded by a St. Louis jury in a case in Missouri state court in which a plaintiff sued after being diagnosed with non-Hodgkin's lymphoma he attributed to his exposure to Roundup. Bayer CEO Bill Anderson described the court's request as "an encouraging step," adding "When courts permit companies to be punished under state law for following federal law, it makes companies like ours a prime target of the litigation industry and threatens farmers and innovations that patients and consumers need for their nutrition and health."

 

Reuters

Lululemon has filed a lawsuit against Costco, claiming the retailer is selling unauthorized knockoffs of its athleisure clothing, including pants priced at $128, while Costco's Kirkland brand offers similar items for around $8. The Vancouver-based company argues that Costco's actions have unlawfully exploited its brand reputation and misled consumers into thinking these products are authentic. Lululemon said:  “one of the purposes of selling ‘dupes' is to confuse consumers . . . into believing that the ‘dupes' are (Lululemon's) authentic products when they are not”. The lawsuit seeks monetary damages and an injunction to stop Costco from selling these items. Lululemon has previously taken legal action against other brands, including Peloton, and is currently facing challenges in the market. Shares are down 37% this year.

 

Billings Gazette

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CBS News

The U.S. Senate has voted down a proposed 10-year ban on states regulating artificial intelligence models.  Major AI companies, including Alphabet's Google and OpenAI, had expressed support for Congress taking AI regulation out of the hands of states to free innovation from a variety of local requirements. Senator Maria Cantwell, the top Democrat on the Commerce Committee, said: "we can't just run over good state consumer protection laws. States can fight robocalls, deepfakes and provide safe autonomous vehicle laws." Arkansas Governor Sarah Huckabee Sanders said: "We will now be able to protect our kids from the harms of completely unregulated AI."

 

Financial Times

Reuters

Karen Dunn's new spinoff boutique has poached two more partners from Paul Weiss, one of a number of firms which made a deal with President Trump to rescind a punitive executive order in exchange for free legal services. Meredith Dearborn's exit marks the complete transition of ex-Paul Weiss attorneys who are defending Google against antitrust allegations over Android app distribution to Dunn Isaacson Rhee. Erin Morgan is the eleventh Paul Weiss partner to join the spinoff boutique.

 

Bloomberg Law

Tim Finley, a former attorney with the U.S. Department of Justice, has joined Baker McKenzie as a partner in its antitrust and consumer protection practice in Washington, D.C. He will collaborate with Creighton Macy, the global antitrust chair, who also has a background in the DOJ.

 

Law

Standard Chartered Bank is facing a $2.7bn lawsuit over its alleged role in enabling fraud. Liquidators who are seeking to recoup misappropriated funds from Malaysia's sovereign wealth fund 1MDB have filed legal proceedings in Singapore. Liquidators allege Standard Chartered Bank chose to overlook obvious red flags in relation to the transfer of funds, resulting in the losses. "According to this lawsuit, the transfers demonstrate serious breaches and control failings which ultimately enabled the theft of public funds by people operating at the highest levels of the Malaysian government during that period," they said.

 

Reuters

The San Francisco Standard reports on how Bay Area companies are hiring etiquette coaches for their Gen Z employees as return-to-office policies have brought in the demographic for the first time, and in many cases after years of working and attending school remotely. Local etiquette coach Rosalinda Randall has said enquiries have risen 50% over the last two months, and "are a variation on the same complaint: Gen Z employees are treating the office like an extension of their homes." Jim Rettew, interim CEO at Yerba Buena Center for the Arts, observes of Gen Z: “They’re great at challenging authority and the status quo, but sometimes I just want someone to buckle down and follow orders.”

 

San Francisco Standard