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21st February 2025
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THE HOT STORY
Fired federal workers face uphill legal battle
U.S. government employees facing job losses due to President Donald Trump's ongoing federal workforce purge will encounter significant challenges in seeking legal recourse. The primary avenue for contesting firings is the Merit Systems Protection Board, whose work has been hindered by Trump's attempts to exert control over independent agencies. Many employees may hesitate to pursue legal action due to the complex process and associated costs. "It will take lots of encouragement to get these people to challenge their terminations," observed Michael Fallings, an Austin, Texas-based lawyer who represents federal employees. The board's rulings favor employees in only 2.4% of cases, and the lengthy appeals process often results in workers finding new employment before their cases are resolved. Trump's recent actions to consolidate control over the board could further diminish employees' chances of success in challenging firings.
REGULATORY COMPLIANCE
The top legal risks shaping compliance in 2025

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LAWSUITS
Target faces Florida lawsuit over diversity claims
Target is facing a lawsuit from the State Board of Administration of Florida, which oversees public pension funds that own Target stock. The lawsuit alleges that Target concealed risks associated with its diversity and social initiatives, resulting in a backlash that negatively impacted its stock price. Florida claims that Target misled investors and its core customer base, particularly working families, regarding its environmental, social, and governance mandates. The lawsuit cites a "disastrous" Pride Month campaign in May 2023, which led to the removal of some LGBTQ-themed merchandise due to in-store confrontations. In response to the backlash, Target announced on January 24th that it would end its diversity, equity, and inclusion initiatives this year, joining other companies like Walmart and Amazon in scaling back such efforts.
Landmark N.J. school segregation lawsuit moves to trial
The ongoing lawsuit against New Jersey's Department of Education, initiated in 2018 by a coalition including the Latino Action Network and the NAACP, underscores the persistent issue of school segregation based on neighborhood and zip code. Mediation efforts have failed, prompting the case to proceed to trial. Plaintiffs argue that the current system of school districting exacerbates segregation, despite existing laws against it. Javier Robles, executive director of Latino Action Network, expressed his frustration over the lack of progress, saying: "We are disappointed that an agreement could not be reached." A recent ruling by Superior Court Judge Robert Lougy confirmed that the state has not adequately addressed segregation, although it did not mandate changes to residency laws.
WADA drops lawsuit against critics
The World Anti-Doping Agency (WADA) has withdrawn a lawsuit and ethics complaint against critics in the United States regarding its handling of a doping case involving Chinese swimmers. The U.S. Anti-Doping Agency (USADA) announced that the defamation lawsuit filed in Switzerland and an ethics complaint against former U.S. drug czar Rahul Gupta have been dropped. USADA CEO Travis Tygart said that this decision represents “complete vindication for us both.” WADA's letter to its executive committee indicated that while the agency believed the lawsuit would succeed, it deemed it futile to engage with those unwilling to accept evidence. The controversy stemmed from WADA's decision not to sanction Chinese swimmers who tested positive, citing contamination. Gupta remarked that the dropped claims “clearly demonstrate the meritless and politically motivated claims” pursued by WADA leaders against the United States.
Trial begins for founder of start-up acquired by JPMorgan
Charlie Javice has pleaded not guilty to securities fraud, wire fraud, bank fraud and conspiracy over JPMorgan's $175m acquisition of her college financial aid start-up Frank. Prosecutor Rushmi Bhaskaran claimed that Javice and co-defendant Olivier Amar, the start-up's chief growth officer, bought fake student data to satisfy demands from JPMorgan. Jose Baez, a lawyer for Javice, said the bank simply had "buyer's remorse" over the transaction.
CASES
Legal action begins over fatal collision
The wife of Casey Crafton, who died in last month's mid-air collision between an American Airlines jet and a Black Hawk helicopter near Washington, D.C., has initiated legal claims against the Federal Aviation Administration (FAA) and the U.S. Army, seeking $250m from each. Rachel Crafton's claims, filed under the Federal Tort Claims Act, allege negligence that contributed to the crash, which resulted in the deaths of 67 individuals. Crafton's lawyer, Robert Clifford, said: “The families are filing this to achieve their goal of taking the first step towards what the whole world knows will be eventual litigation.” Investigations revealed potential issues such as understaffing at the air traffic control tower and communication failures.
Federal appeals court backs student gender identity rights
A federal appeals court has upheld a Massachusetts school district's policy allowing students to decide if their parents should be informed about their gender transitions. The U.S. Court of Appeals for the 1st Circuit said that the policy “plausibly creates a space for students to express their identity without worrying about parental backlash.” The case, Foote v. Ludlow School Committee, arose when an 11-year-old student, identified as B.F., began questioning their gender identity. The court emphasized that while parents have rights in their children's upbringing, the school’s protocol does not equate to medical treatment. The ruling reflects a broader trend of legal support for transgender students amid ongoing debates over parental rights and educational policies.
EMPLOYMENT LAW
Supreme Court tackles 'reverse' discrimination case
A former employee in Ohio's youth corrections system claims she faced discrimination for being heterosexual after being demoted and denied a promotion in 2019. Marlean Ames said "I was straight and pushed aside," as she claimed that her gay supervisor favored less qualified gay candidates over her. A ruling in her favor by the Supreme Court, which has a 6-3 conservative majority, could make it easier for non-minorities to pursue claims of illegal bias - often called "reverse" discrimination - under a landmark federal anti-discrimination law. The NAACP Legal Defense & Educational Fund supports Ames' claim.
Supreme Court tackles 'reverse' discrimination case
A former employee in Ohio's youth corrections system claims she faced discrimination for being heterosexual after being demoted and denied a promotion in 2019. Marlean Ames said "I was straight and pushed aside," as she claimed that her gay supervisor favored less qualified gay candidates over her. A ruling in her favor by the Supreme Court, which has a 6-3 conservative majority, could make it easier for non-minorities to pursue claims of illegal bias - often called "reverse" discrimination - under a landmark federal anti-discrimination law. The NAACP Legal Defense & Educational Fund supports Ames' claim.
APPOINTMENTS
Simpson Thacher expands Boston office
Simpson Thacher & Bartlett has enhanced its Boston office by hiring two partners: Zachary Hafer from Cooley and Yonatan Levy from Ropes & Gray. Hafer brings experience from his time as an Assistant U.S. Attorney, focusing on internal and government investigations. Levy, who has over a decade of experience, will bolster the private funds practice, advising on fund formation and management. Alden Millard, chair of the executive committee, observed: “These additions underscore our commitment to Boston and will enhance our capabilities to address clients’ transactional, regulatory, enforcement and disputes needs in the region.”
FIRMS
Reed Smith expands in L.A.
Reed Smith has relocated to a larger office at City National Plaza in Downtown Los Angeles after more than 20 years at its previous location on South Grand Avenue. The firm, which merged with Crosby Heafey in 2002, required additional space to accommodate its 47 staff and 63 attorneys. The new office spans 41,200 square feet, making it the firm's largest in California, just slightly larger than its former premises.

 
Law
Law firms ramp up their regional offerings
Leaders from global and regional law firms anticipate a significant increase in investment deals between Asia and the Middle East, driven by both regions' robust financial capabilities. An HSBC report forecasts that investment will reach $36bn annually by 2035, with two-way goods trade expected to more than double from approximately $950bn in 2022 to over $1.9trn by 2035. This predicted surge in investment is prompting law firms to enhance their regional services to capitalise on emerging opportunities.

 
Law
OTHER
Spending all day on your feet can take its toll
An Associated Press report takes a look at how spending all day standing can take a toll on a worker’s body, and considers whether spending all day on your feet at work could be an occupational hazard. A review by the National Institute for Occupational Safety and Health found that standing for long periods can precipitate lower back pain, fatigue, muscle pain and leg swelling, and it can also heighten the risk of cardiovascular problems and pregnancy complications. Unionized workers at the Barnes & Nobles store in Manhattan's Union Square have made access to chairs and the right to sit down under certain conditions a part of their negotiations for their first contract.

 

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