Keep your finger on the legal world's pulse

Donald Trump could be ordered to pay millions of dollars more to E. Jean Carroll at a second civil trial after the writer accused the former U.S. president of raping her decades ago. Another jury last May ordered Trump to pay Carroll $5m for sexually abusing her and defaming her. In the second trial, the jury must determine how much more Trump owes Carroll for similarly defaming her. Trump is appealing the $5m award and could appeal any award at the second trial. Trump has escalated his attacks on Carroll and branded the judge a "terrible, biased, irrationally angry Clinton-appointed judge." Trump is also facing multiple indictments and is a defendant in a civil fraud trial against the Trump Organization.

 

Reuters

U.S. News

The latest Legal Trends Report is here

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Dave Poston, CEO and GC of Poston Communications, looks at how law firms are grappling with the decision of whether to speak out on controversial issues, or to remain silent to prioritize their clients' interests. He contends that the recent Israel-Hamas conflict has intensified this dilemma, prompting law firm leaders to question their stance on various issues. Poston says it is crucial for law firms to understand their identity, embrace it, and attract clients who align with their mission and values. He explains that public opinion plays a significant role in determining which issues law firms should address, categorizing them into expected, accepted, to be determined, and not acceptable. By mapping potential scenarios, Poston says law firms can proactively decide whether to stand up, react, or stay silent. However, he warns that they must consider the impact on their team, clients, and the firm's reputation. Taking a client or endorsing an issue should align with the firm's commitments, and potential conflicts or negative reception should be carefully evaluated, according to Poston. In times of crisis, he says organizations must address concerns while acknowledging the limitations of their mission. Poston concludes that crisis communication is an ongoing effort, especially during an election year.

 

The Legal Intelligencer

Parabellum Capital, spun off from Credit Suisse, has closed a $754m fund for litigation finance. The fund is among the largest private pools raised for litigation finance and shows the rising popularity of the industry. Parabellum has committed two-thirds of the fund to 50 investments in commercial lawsuits. The firm does not disclose the investors or the specific lawsuits the fund is backing. The litigation finance industry managed $13.5bn in U.S. commercial litigation investments in 2022, up 9% from the previous year. Parabellum CEO Howard Sham sstated that the asset class is moving into a state of maturity. Parabellum's $754m fund includes insurance protection for around 20% of the investors. The insurance attracts leverage providers, allowing for further investment opportunities.

 

Bloomberg Law

Global markets are expected to see a resurgence in deal activity in 2024, driven by growing market confidence and stability, according to McDermott Will & Emery's Harris Siskind and Aymen Mahmoud. They say that financing markets are predicted to become more predictable, leading to a significant increase in deal activity. However, the pair warn that caution will remain as investors aim to limit risk. Siskind and Mahmoud believe that private credit is set to continue dominating the leveraged space, with credit funds raising record-breaking funds and financing large transactions. They add that the IPO market may reopen, but the availability of private capital will make it challenging. The pair conclude that overall, 2024 is anticipated to be a year of slightly fewer unknowns, with a return to high activity levels in global markets.

 

Bloomberg Law

Scientists from the U.S. Food and Drug Administration (FDA) have recommended that marijuana be reclassified as a less dangerous drug due to its lower potential for abuse compared to other substances. The FDA also found evidence supporting its use as a medical treatment. Currently classified as a Schedule I controlled substance, alongside heroin and LSD, the reclassification would allow for more research and provide benefits to cannabis businesses. The final decision lies with the Drug Enforcement Administration (DEA), which will go through a public comment period before making any changes. This recommendation aligns with the growing acceptance of marijuana, with 24 states, two territories, and Washington, D.C. legalizing it for recreational use, and 38 states allowing medical use. The FDA's findings highlight the need for a reevaluation of marijuana's classification and its potential benefits as a medical treatment.

 

U.S. News

Washington state AG Bob Ferguson has filed a lawsuit to block the proposed $25bn merger between grocery chains Kroger and Albertsons. Ferguson argues that the merger would harm consumers and lead to higher prices. Kroger and Albertsons have over 300 locations in Washington state, accounting for more than half of its grocery sales. The lawsuit has been endorsed by the United Food & Commercial Workers, Local 3000, which represents employees of both companies. Kroger, based in Cincinnati, and Albertsons, based in Boise, Idaho, have pushed back the timeline for closing the deal due to ongoing dialogue with regulators. The closure is now expected to occur in the first half of Kroger's fiscal year. The companies claim that the merger will result in lower prices for consumers. Last year, Kroger and Albertsons announced plans to sell over 400 stores and assets to C&S Wholesale Grocers to address concerns about market dominance. The merger is seen as necessary for the companies to compete with major players like Walmart and Amazon in the grocery business.

 

The Columbian

U.S. News

Starbucks is facing a lawsuit alleging deceptive claims of "100% ethical" sourcing of its coffee and tea. The National Consumers League (NCL) filed the lawsuit, accusing Starbucks of relying on farms and cooperatives that commit labor and human rights violations. The NCL seeks an order to stop deceptive advertising and require a corrective campaign. Starbucks, known for marketing itself as an ethical company, defends against the claims. The lawsuit cites instances of poor labor practices, including a complaint against Starbucks in Brazil and sexual abuse at a plantation in Kenya. Starbucks took action in response to the incidents but continues to face scrutiny. The company states its commitment to ethical sourcing through its Coffee and Farmer Equity (C.A.F.E.) Practices. Investigations into preferred farms and cooperatives have revealed further issues. Starbucks remains engaged with its supply chain partners to meet human rights standards.

 

New Jersey Herald

A Black woman hired by a Utah school district to investigate racial harassment complaints has filed a discrimination lawsuit against the district. Joscelin Thomas, a former coordinator in the Davis School District's equal opportunity office, alleges that she experienced discrimination from district officials. The lawsuit claims that Thomas was treated differently than her white colleagues and subjected to a hostile work environment. The district had previously been ordered by the U.S. Department of Justice to address reports of racial harassment following a federal investigation. The investigation found that Black students had been disciplined more harshly than their white peers and had experienced racial slurs and derogatory comments. Thomas' attorney hopes that the lawsuit will force the district to make systemic changes. The district has not commented on the specifics of the lawsuit.

 

Missoulian

Faculty leaders of the Los Angeles Community College District are calling for an overhaul and a "survivor-centered approach" to how the system responds to sexual harassment complaints. They are also seeking an independent review of the system's sexual harassment policies. The call for change comes after a professor was awarded $10m in a sexual misconduct case against a high-ranking administrator. The district's Academic Senate has approved a resolution calling for improvements in preventing and investigating harassment complaints. The district is appealing the verdict and faces other ongoing lawsuits related to retaliation and discrimination. The district has implemented improvements based on recommendations from a 2018 task force. Faculty leaders are considering a vote of no confidence if concerns are not adequately addressed. The district has reaffirmed its commitment to a harassment-free environment and has acknowledged past shortcomings in handling complaints. Efforts have been made to improve the system's response to complaints, including hiring compliance investigators and implementing a centralized system for tracking complaints.

 

 

Los Angeles Times

The Securities and Exchange Commission (SEC) has agreed to postpone the civil trial against Terraform Labs and co-founder Do Kwon, who are accused of orchestrating a $40bn cryptocurrency fraud. The regulator requested the delay to allow Kwon to be extradited and attend the trial. The SEC argued that a modest adjournment was justified based on Kwon's lawyer's statements that Kwon wanted to attend, agreed to extradition, and could be in the United States by mid-March. The SEC also opposed separate trials for Terraform and Kwon, stating that the cases were virtually the same. U.S. District Judge Jed Rakoff will decide on the trial date, with the SEC requesting April 15. Kwon's lawyer sought a delay until at least March 18. The SEC alleges that Terraform and Kwon deceived investors about the stability of TerraUSD and its connection to a Korean mobile payment app.

 

Reuters