Keep your finger on the legal world's pulse
20th January 2025
 
THE HOT STORY
Former Trump aides have a a warning for administration newbies
Many staffers who worked in Donald Trump’s first administration realized the need for an attorney when they found themselves before congressional committees and grand juries, NBC News reports. Former senior administration officials and veteran Washington advisers are warning incoming administration staff members to weigh the threat of an expensive legal defense and consider purchasing a form of legal insurance that would provide them a lawyer if needed. In a cautionary move, Trump’s transition has briefed some incoming administration staffers on the need to price and buy professional liability insurance, according to sources. “You need legal representation if you’re facing people who have the arms of the government at their disposal,” said a former White House official. “It’s very intimidating when you don’t have people on your side to tell you what you can do and what circumstances you might be walking into.”
LAW
TikTok returns in U.S. after brief ban
President-elect Donald Trump has announced plans to issue an executive order to delay the enforcement of a law banning TikTok in the U.S. TikTok was briefly taken offline due to the law, which requires the app to separate from its Chinese owner, ByteDance. Following Trump's statement on Truth Social, web-hosting companies like Oracle and Akamai restored TikTok for millions of users. However, TikTok's future remains uncertain as Apple and Google have yet to reinstate the app in their stores. Legal experts warn that the tech giants could face significant penalties if they assist TikTok before it complies with the law. Arkansas Senator Tom Cotton emphasized the potential liabilities, saying: "Any company that hosts, distributes, services, or otherwise facilitates communist-controlled TikTok could face billions of dollars of ruinous liability under the law." The situation continues to evolve amid ongoing discussions between TikTok and the incoming administration.
CASES
Procter & Gamble faces greenwashing lawsuit
Procter & Gamble faces a proposed class action lawsuit from eight consumers who allege the company misled Charmin buyers with false environmental claims. The lawsuit, filed in Seattle federal court, asserts that Procter & Gamble sources most of its wood pulp for Charmin from the Canadian boreal forest, employing harmful logging methods that contradict its environmental commitments, including the "Keep Forests as Forests" campaign. The complaint states: "The company must be held accountable for its egregious environmental destruction." The lawsuit seeks restitution and punitive damages for violations of consumer protection laws across 28 U.S. states and Washington, D.C., and aims to prevent Procter & Gamble from making misleading environmental claims. In response to shareholder pressure, the company has pledged to enhance transparency regarding its wood-pulp suppliers by mid-2025.
Tech groups challenge new CFPB rule on payment apps
Two technology trade groups, NetChoice and TechNet, have filed a lawsuit against the U.S. Consumer Financial Protection Bureau (CFPB) to block a new rule that grants the agency supervisory authority over payment apps and digital wallets from large non-banks. The groups argue that the CFPB has not demonstrated any consumer risks that justify the rule, which affects companies processing over 50m transactions annually. Chris Marchese, director of litigation at NetChoice, said: "The bureau failed to show what consumer risks the rule was even meant to alleviate in its haste to dream up a problem in search of a solution." The CFPB aims to provide consumers using major tech companies for payments with protections similar to those at banks. The case is TechNet et al v CFPB et al, U.S. District Court, District of Columbia, No. 25-00118.
Supreme Court lawyer facing tax evasion and other charges
Supreme Court lawyer Tom Goldstein has been indicted in Maryland on federal tax evasion charges after allegedly failing to declare millions of dollars won at poker games. He is also charged with using law firm money to pay debts and making false statements to two mortgage lenders. Goldstein’s own lawyers, John Lauro and Christopher Kise of Continental, issued a statement saying “Mr. Goldstein is a prominent attorney with an impeccable reputation. We are deeply disappointed that the government brought these charges in a rush to judgment without understanding all of the important facts.” They noted that Mr Goldstein intends to contest the charges in court.
Bayer to pay $100m over PCB school claim
Bayer has been ordered to pay $100m to four people who alleged that toxic chemicals known as PCBs at a Seattle-area school led to health problems. The firm was found not to be liable for injuries claimed by a further 11 individuals. Henry Jones, an attorney for the plaintiffs remarked: "Every case is different and the juries are clearly working very hard to try to get things right for the generational harm caused by PCBs." Reuters notes that following Bayer's acquisition of Monsanto in 2018, lawsuits over PCBs, and claims that weedkiller product Roundup caused cancer, have hit the company's share price.
EMPLOYMENT LAW
Former executive sues Tesla over remote work change
Mike Tully, a former Tesla executive, has filed a lawsuit against the company after claiming it reneged on a promise that his role would remain remote. Tully, who left Bank of America for Tesla, was assured by Associate General Counsel Charles Lee that relocation was not required. However, two months into his employment, Tully was told he must move to either Fremont or Texas, or face termination. Tully's wife threatened divorce if he relocated, which was said to exacerbate his medical conditions, including Crohn's disease. Despite seeking accommodations, he was fired shortly after. Tully is now seeking damages and injunctive relief against Tesla for their alleged unfair practices.
CYBERSECURITY
WhatsApp accounts of government ministers worldwide targeted by hackers
Russian state-linked hackers, identified as Star Blizzard, have targeted government officials globally through deceptive emails which invite them to join WhatsApp groups. The U.K.'s National Cyber Security Centre (NCSC) has linked the hacking unit to the FSB, the principal security agency of Russia, saying it aims to "undermine trust in politics in the U.K. and likeminded states." Victims receive emails impersonating U.S. officials, leading them to click on a QR code that grants hackers access to their WhatsApp accounts. Microsoft observed: “The threat actor can gain access to the messages in their WhatsApp account and have the capability to exfiltrate this data.” Although the campaign appears to have slowed, Microsoft advises vigilance against such phishing attempts, especially for those in targeted sectors.
REGULATION
Biden administration posts last-minute rule to curb low-value shipments
The Biden administration has issued proposed rules to limit duty-free imports under the $800 "de minimis" threshold, denying exemptions for low-value shipments of goods subject to other punitive U.S. tariffs. This is a setback for e-commerce firms like Shein and Temu, which exploit the de minimis threshold to ship millions of small packages daily to U.S. customers. The rules also require small package shippers to include 10-digit Harmonized Tariff Schedule classifications for exemption claims. The goal of the move is to ensure equal opportunities for American businesses and to uphold U.S. laws. 
OTHER
Apple is pulling its AI-generated notifications for news
Apple has suspended a new artificial intelligence (AI) feature that drew criticism and complaints for making repeated mistakes in its summaries of news headlines. The tech giant had been facing mounting pressure to withdraw the service, which sent notifications that appeared to come from within news organizations' apps. "We are working on improvements and will make them available in a future software update," an Apple spokesperson said. The feature had inaccurately summarized headlines from the BBC, the New York Times and the Washington Post, according to reports from journalists and others on social media. The BBC had complained to Apple about the technology after it created false headlines stating that Luigi Mangione, who is charged with the murder of the CEO of UnitedHealthcare, had shot himself. CNN notes that this week, the Apple feature incorrectly summarized a Washington Post notification, stating falsely: “Pete Hegseth fired; Trump tariffs impact inflation; Pam Bondi and Marco Rubio confirmed.” None of these statements are true.

 

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