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Plus, lawsuits challenge corporate diversity pledges after Floyd protests, and the US average workweek has dropped by more than a half hour. Listen Print/Download All Articles In-House Counsel Monday, April 10, 2023 Inside: Leading the News Corporate Governance Suite at Table Labor & Employment Privacy & Data Security Insights Companies & Law Firms MOST ILLINOIS BIOMETRIC PRIVACY SUITS HIT EMPLOYERS, STUDY FINDS Illinois’ privacy framework has exposed businesses to massive costs, a new study shared exclusively with Bloomberg Law concludes. Employers using biometric timekeeping technology are especially at risk of litigation under the state’s Biometric Information Privacy Act, according to an analysis of 296 federal and 381 state court filings released by the Chamber of Progress. It found 88% of BIPA litigation arose from employer-employee disputes over biometric timekeeping. Read More Read more about state privacy laws: * Union Workers in ‘Uncharted Territory’ on Illinois Privacy Law * Iowa Enacts Most Business-Friendly State Privacy Law * Businesses Sue to Stay Enforcement of California Privacy Law LEADING THE NEWS THIS WEEK IN CHANCERY COURT: AT&T SUBPOENA, GEN DIGITAL SETTLES AT&T Inc. already has prevailed twice over the state of Delaware’s attempts to enforce an unclaimed funds subpoena against the telecom giant. Now, the Court of Chancery will consider another subpoena from the state issued in the wake of those AT&T legal victories. Read More ABORTION PILL TO BE BLOCKED NATIONWIDE UNDER JUDGE’S ORDER Competing orders issued Friday by a pair of federal judges on the FDA’s approval of mifepristone potentially sets up another politically seismic abortion ruling a year after the U.S. Supreme Court overturned Roe v. Wade. Read More IRS FACES FOUR HURDLES TO IMPLEMENTING ITS $80 BILLION PLAN The IRS finally has a blueprint for spending the $80 billion it got from the tax-and-climate law. The long-awaited document lays out key goals and timetables to boost taxpayer services, technology, and enforcement. But key details that lawmakers, former Treasury and IRS officials, and tax professionals were hoping to see are missing. And IRS observers see potential pitfalls the agency will have to avoid. Read More Exclusive BIDEN TARGETS RACE, GENDER IMPACTS WITH REGULATION PROPOSAL US officials would formally gauge how their health, pollution, and workforce policies help or harm racial and ethnic minority groups, under a proposal released by the Biden administration. Read More CANCER VICTIMS’ LAWYERS VOW TO FIGHT J&J PROPOSED SETTLEMENT Attorneys who have led the charge in litigating cancer claims against Johnson & Johnson denounced the company’s deal with talc claimants as a sham and disgrace to many people who say J&J’s products gave them cancer. Read More TESLA RACE BIAS DAMAGES AWARD SETS UP ANOTHER POST-TRIAL FIGHT A California federal jury’s decision giving $3.2 million to a former Tesla Inc. contractor in a long-running racial discrimination case opened a new legal question over whether the amount awarded for punitive damages in the case is in line with judicial precedent. Read More MCDONALD’S RISKS EMPLOYEE IRE BY JOINING TREND OF REMOTE LAYOFFS McDonald’s Corp. is the latest company asking staff to work from home during layoffs, a practice that has sparked criticism from other companies’ employees and management experts. Read More Deep Dive CONGRESS COULD BE YOUR NEXT WORKPLACE RETIREMENT PLAN SPONSOR A steady rise in states considering guaranteed workplace retirement savings laws has revived a debate over the potential for federal government intervention in covering American workers whose employers don’t already offer 401(k)s. Read More ACA PREVENTIVE SERVICES MANDATE CHALLENGERS APPEAL PARTIAL LOSS Documents Attached Employers who partially prevailed in a lawsuit to do away with the Affordable Care Act’s requirement that health plans must pay in full for certain preventive services are appealing on issues they lost. Read More Deep Dive BRANDS FLOCK TO CHICAGO COURT IN WAR ON INTERNET COUNTERFEITERS Harry Styles, the NBA, and other big-name brands have filed thousands of lawsuits over the past decade in a Chicago-based federal court to stop alleged online counterfeiters, using a strategy that’s now drawing more scrutiny from judges and academics. Read More Deep Dive OPEN BANKING RULE BACKERS PUSH CFPB TO EXPAND ELIGIBLE DATA SETS Document Attached The CFPB is facing pressure to expand coverage of its open banking rule to include mortgage, student and auto loan, and other credit accounts that advocates say will provide people with a more complete financial profile. Read More LAWSUITS CHALLENGE CORPORATE DIVERSITY PLEDGES AFTER FLOYD On the heels of more companies prioritizing their new diversity, equity and inclusion (DEI) initiatives in recent years, a growing number of lawsuits accuse them of falling short on their promises. Almost 40 suits have been filed against companies including Delta Air Lines and Wells Fargo in the last three years alleging misleading corporate statements about diversity and equity commitments, according to an analysis of Bloomberg Law data. Floyd Fallout: Many companies were quick to make to make statements and draft new policies on racial and gender inequality among employees after George Floyd’s murder in 2020. Those new policies have been cited in numerous employee and investor suits, with more expected if companies fail to fully integrate DEI pledges into their operations, experts said. More to Come: “I think you’re going to likely—at least for a while—continue to see that tested,” said Tyree Jones, chair of Reed Smith’s Global Labor and Employment Group.“Particularly as more companies too, sign on with very clear DEI goals and objectives and then, their employees or shareholders seek to hold them accountable for that.” Read More CORPORATE GOVERNANCE ILLUMINA CHALLENGES ‘UNCONSTITUTIONAL’ FTC ORDER ON GRAIL DEAL Documents Attached Illumina Inc. is appealing a Federal Trade Commission order to divest its $7 billion acquisition of cancer startup Grail. Read More MSG NETWORKS SETTLES INVESTORS’ CLAIMS OVER DOLAN-DRIVEN MERGER MSG Networks has reached a tentative settlement with investors who sued over a 2021 deal by billionaire James Dolan combining the broadcaster of games for the NBA’s New York Knicks with his Madison Square Garden Entertainment Corp., according to a court filing. Read More BAYER BEATS MERCK ON TALC LIABILITIES AFTER $14 BILLION DEAL Documents Attached Merck & Co. remains on the hook for asbestos-related liabilities involving talc product lines it sold to Bayer AG as part of a $14.2 billion deal, a Delaware judge ruled Monday. Read More ANALYSIS: SVB COLLAPSE, PROXY PREPARATION KEPT Q1 ACTIVISTS BUSY Activists launched the most Q1 investor activism campaigns since before the Covid-19 pandemic. Their efforts focused on two arenas: preparing for proxy season and targeting financial, biotech, and pharmaceutical companies after Silicon Valley Bank collapse. Read More TESLA PUTS STRICTER CAP ON MUSK’S BORROWING WITH PLEDGED SHARES Tesla Inc.’s board amended its policy around pledging shares, capping the total loan amount that Elon Musk can collateralize with his stake at the lesser of $3.5 billion or 25% of the value of the stock. Read More AMC, APE HOLDERS REACH $100 MILLION DEAL IN CONVERSION FIGHT Docket Attached AMC Entertainment Holdings Inc. has reached a roughly $100 million settlement with retail investors who challenged the company’s plan to hand over control to holders of preferred equity units known as APEs. Read More VMWARE, EXECUTIVES MUST DEFEND SUIT ON ACCOUNTING, INSIDER SALES Documents Attached VMware Inc. shareholders adequately alleged the cloud computing company manipulated its revenue while executives engaged in insider trading, a federal court ruled. Read More BILLIONAIRE GORES SUED OVER UNITED WHOLESALE MORTGAGE SPAC DEAL Documents Attached An investor sued private equity billionaire Alec Gores and other architects of United Wholesale Mortgage LLC’s blank-check merger, claiming they sold out ordinary shareholders because the deal’s lopsided structure gave them a windfall no matter how it fared. Read More EPSTEIN VICTIM SAYS JPMORGAN EXPLOITING STALEY ASSAULT CLAIM JPMorgan Chase & Co.was accused of exploiting a claim of sexual assault against former private banking chief Jes Staleyto intimidate a victim suing the bank over its ties to Jeffrey Epstein. Read More WORKER RELIGIOUS ACCOMMODATION TEST SET FOR TOP COURT DO EMPLOYERS need to do more to accommodate the needs of religious workers? The US Supreme Court on April 18 will hear arguments in the case of an Evangelical Christian postal carrier in Pennsylvania who says he was forced out of a job for refusing to work on Sundays. The case seeks to overturn a 1977 ruling on the requirements of federal job discrimination laws. In the latest episode of our Cases and Controversies podcast, Joshua Matz, a partner at Kaplan Hecker & Fink LLP, joins Greg Stohr and Lydia Wheeler to discuss Groff v. DeJoy. Listen Here Subscribe to Cases and Controversies on Apple Podcasts, Spotify, Google Podcasts, Stitcher, Megaphone, or Audible. SUITE AT TABLE AT&T, VERIZON LEGAL CHIEFS RECEIVED $20 MILLION LAST YEAR AT&T Inc. and Verizon Communications Inc. gave almost $20 million in total compensation to their top lawyers last year, according to securities filings. Read More SIDLEY, WINSTON LEAD LEGAL FIELD FOR BASEBALL’S GROWING UNION The Major League Baseball Players Association paid nearly $3.7 million to law firms and other external legal services providers last year, according to a newly filed financial statement. Read More FORMER TESLA, APPLE LAWYER LOOKS TO REVAMP SCHOOL TRANSPORTATION Having spent more than 20 years working for entrepreneurs that revolutionized the personal electronics and automotive sectors, Lynn Miller is now taking on the decades-old yellow bus industry. Read More MOLSON COORS LEGAL CHIEF LEAVES COMPANY AFTER YEAR IN ROLE Molson Coors Beverage Co.'s top lawyer Anne-Marie D’Angelo has left the company a little more than a year after coming aboard to succeed the beer giant’s longtime legal chief. Read More AMERICANS SHAVE A HALF-HOUR OFF WORKWEEK, IN PROBLEM FOR FED The average US workweek has dropped by more than a half hour over the last three years, according to new research by former Bureau of Labor Statistics Commissioner Katharine Abraham and her University of Maryland colleague Lea Rendell. But that’s meant a shortfall of labor – equivalent to 2.4 million employees, according to the paper. That shortfall adds to pressures in a hot jobs market that Fed Chair Jerome Powell and his colleagues have been trying to cool, in an effort to bring down an inflation rate that’s more than double their 2% goal. Read More LABOR & EMPLOYMENT Column PUNCHING IN: DOL DEFENDS ITS AUTHORITY TO REGULATE OVERTIME PAY Documents Attached Attorneys for the US Labor Department are defending a Trump-era update to overtime rules to preserve the agency’s authority to regulate OT. Meanwhile, states and New York City are pursuing legislation to expand anti-discrimination statutes. Read More UNIONS REPORT KEY MEMBERSHIP GAINS IN 2022, FILINGS SHOW Several large US unions saw double-digit growth in 2022 at the same time employers were weathering a tight labor market and a wave of worker dissatisfaction, according to a Bloomberg Law analysis of new federal filings from the previous calendar year. Read More GAP BETWEEN US BLACK AND WHITE UNEMPLOYMENT DROPS TO RECORD LOW The gap between the Black and White unemployment rate — a closely watched benchmark of inequality in the labor market — shrank to its narrowest level on record in March as African Americans saw outsize gains in employment. Read More UNITED ESCAPES SUPREME COURT REVIEW OF FMLA RETALIATION CASE Documents Attached The US Supreme Court declined to examine a former United Airlines Inc. worker’s claim that a lower court applied the wrong legal standard to her lawsuit accusing the airline of illegally firing her for taking leave under the Family and Medical Leave Act. Read More AMAZON MUST PAY WISCONSIN JOBLESS BENEFIT TAX FOR GIG WORKERS Documents Attached Amazon Logistics Inc. must pay unemployment insurance taxes for more than 1,000 Wisconsin delivery drivers despite claiming that these gig workers aren’t classified as employees. Read More PRIVACY & DATA SECURITY APPLE, GOOGLE NOTCH EARLY WIN AGAINST SEARCH CONSPIRACY CLAIMS Documents Attached Apple Inc. and Google parent Alphabet Inc. scored a preliminary court win against claims they colluded to divide up the online search advertising market. Read More BIDEN’S ANTI-HACKING DREAM TEAM ROILED BY INTERNAL STRIFE CLAIMS Last month the Biden administration proposed some of the most aggressive measures to fight cyberattacks. They would require businesses to beef up defenses and hold software makers more accountable for security breaches. Noticeably missing that day was the architect behind the plan: Chris Inglis, America’s first cyber director. Read More Deep Dive DIGITAL DOLLAR DEVELOPMENT STIRS TRANSACTION-TRACKING TENSIONS The future of a US digital dollar will likely hinge on protecting privacy while tracking transactions, as efforts continue to make virtual payments as simple as handing over a $20 bill. Read More ABORTION PRIVACY RIGHTS PROPOSAL CLEARS WHITE HOUSE REVIEW An HHS plan to better protect the privacy rights of people seeking abortions amid a slew of state-level restrictions has cleared White House review. Read More INSIGHTS PERSPECTIVES FROM LEGAL PRACTITIONERS, LAW PROFESSORS AND OTHER THOUGHT LEADERS STATES START TO REGULATE AI-BASED HIRING WITHOUT FEDERAL GUIDANCE By Paul Daugherity, Bruce Liebman, and Kevin Yombor of Kaufman, Dolowich & Voluck States are moving to regulate use of artificial intelligence to prevent bias and ensure applicants’ consent, while the federal government has been sluggish about issuing guidance, Paul Daugherity, Bruce Liebman, and Kevin Yombor of Kaufman, Dolowich & Voluck say. Read More CORPORATE AMERICA IS READY FOR A NEW TYPE OF IN-HOUSE LAWYER By Aarash Darroodi of Fender Musical Instruments Corp. Aarash Darroodi, general counsel of Fender, makes a spirited case for rethinking the mold of corporate America’s in-house lawyer. He says today’s counsel should fully embed in all business operations and join strategic conversations. Read More Opinion WOMEN LAW PARTNERS ACHIEVE LANDMARK MAJORITY AT PERKINS COIE By Laura Zagar of Perkins Coie Laura Zagar, managing partner at Perkins Coie’s San Francisco office, shares how her law firm has successfully elevated female leaders to achieve a majority of women partners there. Zagar describes the firm’s inclusive culture and the importance of supportive male allies. Read More STATES MOVE TO PROTECT MINORS ONLINE WITH PATCHWORK OF NEW LAWS By Nerissa Coyle McGinn of Loeb & Loeb Loeb & Loeb partner Nerissa Coyle McGinn analyzes child data privacy laws across states, with a look at where new legislation is emerging and Federal Trade Commission priorities to protect minors online. Read More Opinion INVEST IN YOUR TOP PERFORMERS OR RISK LOSING THEM AFTER LAYOFFS By Anna Sanders of VOYlegal Economic uncertainty may nudge law firms towards layoffs, but firms can act strategically to avoid unnerving their top performers and encourage retention, VOYlegal’s Anna Sanders says. Read More COMPANIES Mentioned in this issue Accenture PLC Alphabet Inc Amazon.com Inc AMC Entertainment Holdings Inc Apple Inc AT&T Inc Bayer AG Bed Bath & Beyond Inc eBay Inc GameStop Corp Illumina Inc Intel Corp JBS SA Johnson & Johnson JPMorgan Chase & Co Legal & General Group PLC Lyft Inc McDonald's Corp Merck & Co Inc Microsoft Corp MSG Networks Inc NIKE Inc PepsiCo Inc Starbucks Corp Symantec Corp Tesla Inc Twitter Inc United Continental Holdings Inc VMware Inc LAW FIRMS Mentioned in this issue Altshuler Berzon Beasley Allen Bernstein Litowitz Bredhoff & Kaiser Cohen Weiss and Simon Cole Schotz Covington & Burling Debevoise & Plimpton Fenwick & West Friedman & Anspach Grant & Eisenhofer Greer Burns & Crain Hemenway & Barnes Holland & Knight K&L Gates Kaufman Dolowich & Voluck Levin Papantonio Loeb & Loeb Miller & Chevalier Morrison & Foerster O'Melveny & Myers Outten & Golden Perkins Coie Pillsbury Winthrop Shaw Pittman Proskauer Rose Richards Layton & Finger Robbins Arroyo Robbins Geller Sanford Heisler Sharp Saul Ewing Arnstein & Lehr Sidley Austin Steptoe & Johnson (DC) Sullivan & Cromwell Weil Gotshal Williams & Connolly Winston & Strawn Zuckerman Spaeder 1801 South Bell Street, Arlington, VA 22202 Copyright 2023 Bloomberg Industry Group, Inc. and Bloomberg LP Contact Us Privacy Policy Terms of Service