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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.

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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

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