News from 2016
Attorney: ‘Very likely’ CFPB will finalize proposed arbitration rules before Obama’s departure
President-Elect Donald Trump and Vice President-Elect Mike Pence are to be inaugurated Jan. 20. The Consumer Financial Protection Bureau is expected to issue its final set of rules prohibiting arbitration clauses that prevent class action lawsuits by then.
U.S. releases findings targeting Louisiana's treatment of the mentally disabled
WASHINGTON (Legal Newsline) — The U.S. Justice Department released its findings Dec. 21 that Louisiana unnecessarily relies on nursing facilities to provide services to people with mental health disabilities. This alleged conduct violates the community integration mandate of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C.
NeuStar agrees to $180,000 SEC penalty after alleged whistleblower laws violations
WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Dec. 19 that Virginia-based NeuStar Inc. has agreed to pay $180,000 to settle allegations involving severance agreements that forbade whistleblowing.
SEC bans several market participants from penny sock industry
WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Dec. 16 that it has barred several market participants from the penny stock industry for their roles in alleged sham initial public offerings (IPOs) of microcap stocks that defrauded investors.
Morgan Stanley pays $7.5 million SEC fine to resolve alleged customer violations
WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Dec. 20 that Morgan Stanley & Co. LLC has agreed to pay $7.5 million after allegations it used trades involving customer cash to lower the firm’s borrowing costs in violation of the SEC’s Customer Protection Rule.
True Entertainment to pay $411,000 after allegations of not paying employees overtime
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Dec. 19 that True Entertainment LLC, a television production company, has agreed to pay $411,000 in restitution to hundreds of employees who allegedly failed to receive overtime pay despite routinely working more than 40 hours per week.
U.S. examines allegations of Sixth Amendment violations by Orange County DA's Office
WASHINGTON (Legal Newsline) — The U.S. Justice Department announced Dec. 15 that it has opened a civil pattern-or-practice case against the Orange County District Attorney’s Office and the Orange County Sheriff’s Department.
FTC to mail 20,000 checks to alleged victims of Tax Club scheme
WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced Dec. 16 that it will mail more than 20,000 checks totaling about $18 million to the alleged victims of the Tax Club scheme that targeted people attempting to start home businesses.
Six national retailers agree to stop using on-call shift scheduling tactics
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Dec. 20 that six major retailers have agreed to stop using on-call shift scheduling after an inquiry by a multistate coalition of attorneys general.
Odebrecht, Braskem to pay combined $3.5 billion after allegations of international bribery
WASHINGTON (Legal Newsline) — The U.S. Justice Department announced Dec. 21 that Odebrecht S.A. (Odebrecht), a global construction conglomerate based in Brazil, and Braskem S.A. (Braskem), a Brazilian petrochemical company, will pay a total of $3.5 billion after allegations of bribing government officials around the world. The settlement resolves charges with authorities in the United States, Brazil and Switzerland.
Princeton University reaches agreement with DOJ, will strengthen its ADA-related policies
WASHINGTON (Legal Newsline) — The U.S. Justice Department announced Dec. 19 that Princeton University has settled allegations related to its treatment of students with mental health disabilities and its policies and practices for requesting reasonable modifications, withdrawals and leaves of absences.
SEC settles with CEO of Wilson-Davis & Co. for alleged SEC market structure rule violations
WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Dec. 16 that it settled cease-and-desist proceedings against the CEO of Wilson-Davis & Co., a Utah-based broker-dealer for alleged violations of SEC market structure rules.
DOJ to require AMC to divest 15 theaters before completing $1.2 billion acquisition of Carmike Cinemas
WASHINGTON (Legal Newsline) — The U.S. Justice Department announced Dec. 20 that it will require AMC Entertainment Holdings Inc. to divest theaters in 15 local markets in order to finalize its $1.2 billion acquisition of Carmike Cinemas Inc.
Plaintiff claims Newman's Own unjustly profits off 'all-natural' label on pasta sauce
BROOKLYN (Legal Newsline) – A class action lawsuit filed Dec. 2 by a New York resident alleges the high-profile pasta sauce producer Newman's Own Inc. falsely advertises that its products are made with "all natural" ingredients.
Will FDA guidance, or lack thereof, affect food and beverage litigation?
The U.S. Food and Drug Administration says it does not approve food labels before they are put on the market.
Consumer claims makers of Old Charter bourbon falsely advertises spirit's age
WHITE PLAINS, N.Y. (Legal Newsline) – A New York City man has filed suit against three major liquor manufacturers alleging that they strategically utilized inferior ingredients to make their product but continued to charge consumers and advertise the spirits as if it was of the same premium quality.
Attorneys fees added when factoring maximum punitive damages in California case
LOS ANGELES (Legal Newsline) – A California appellate court recently held attorneys fees could be applied to the state's 10:1 punitive-to-compensatory damages limit while weighing in on a case involving a life insurance company’s alleged fraud against a disabled veteran.
Calif. lawmaker glad to see advocates targeting alleged use of trans fats
SAN FRANCISCO (Legal Newsline) -- Pinnacle Foods - the maker of such well-known products as Swanson pot pies, Hungry-Man frozen meals and Duncan Hines cake mixes - is facing a class action suit in California, alleging the company engages in false advertising in the promotion of some of its food products.
New York law firm accuses Georgia company of fraud
ATLANTA (Legal Newsline) — A New York law firm is suing Georgia company, alleging fraud.
Stockholder alleges Everyday Health violated federal law
NEW YORK (Legal Newsline) — A stockholder is suing a health business and its board, alleged violation of federal law.