Keep your finger on the legal world's pulse

Skadden, Arps, Slate, Meagher & Flom has reached a deal with the Trump administration to dedicate at least $100m in free legal services and to review its hiring practices to avoid an executive order from the White House like the ones issued to other major legal institutions in recent weeks. The deal was announced just after Jenner & Block and WilmerHale sued the administration in an attempt to block executive orders that would halt the firms’ business with the government and revoke the security clearances of its attorneys. AP News says the contrasting approaches reflect divisions within the legal community on whether to fight or negotiate with the White House.

 

AP News

Bloomberg

Reuters

Laguna Beach has officially established its own legal department, appointing Megan Garibaldi as city attorney following a unanimous City Council vote. Previously, the city relied on contracted legal services, costing between $2.4m and $2.5m annually. The new in-house model is projected to reduce costs to approximately $2.1m. Mayor Alex Rounaghi said: “I think anytime you can save $400,000 a year and ensure a faster and more effective legal support system, it's a good move.” The legal department will consist of Garibaldi, two assistant city attorneys, and a paralegal, with Garibaldi earning an initial salary of $297,000. The transition from the previous contractor, Best Best & Krieger, will be coordinated by Aggie Nesh, the city's director of human resources and risk management. Garibaldi's start date is set for April 28.

 

Los Angeles Times

The IRS Criminal Investigation (IRS-CI) division has launched a new initiative called Feedback in Response to Strategic Threat to enhance collaboration with financial institutions in combating financial crimes. This program aims to expedite subpoena requests and improve data sharing, helping banks detect and report crimes related to drug trafficking and human smuggling. IRS-CI Chief Guy Ficco stated: "Public-private partnerships thrive when everyone mutually benefits.” Recent statistics revealed that from 2022 to 2024, the IRS identified $21.1bn in fraud linked to tax and financial crimes, seized $8.2bn in assets, and recovered $1.4bn for victims. Lauren Kohr, IRS-CI's strategic engagement adviser, emphasized the importance of Bank Secrecy Act data, saying: "It’s really one of the sharpest tools law enforcement has to trace fraud." The initiative comes amid discussions to raise reporting thresholds for suspicious activity reports. 

 

U.S. News & World Report

None of the top 20 U.S. law firms have so far offered their “unconditional support” to an effort by Perkins Coie to fight sanctions imposed by the Trump administration.

 

Financial Times

President Donald Trump has signed an executive order abolishing union rights at more than two dozen federal agencies and offices, including the entirety of the Departments of Defense, Veterans Affairs, State and Justice, and parts of Homeland Security, Health and Human Services, Interior, Energy and Commerce, among others. The move is a major expansion of the Trump administration’s efforts to shrink the federal government. The White House cited national security concerns for terminating workers’ ability to bargain collectively, although the order applies at agencies with both direct and indirect links to national security. “President Trump is taking action to ensure that agencies vital to national security can execute their missions without delay and protect the American people,” the White House said. Later in the day, eight federal agencies including the departments of Defense, Justice, Homeland Security, and Veterans Affairs sued in Waco, Texas, federal court asking a judge to declare their union contracts void under Trump’s executive order.

 

U.S. News

Washington Post

A U.S. judge has temporarily allowed Labor Department grant recipients to continue their diversity, equity, and inclusion programs while considering a longer-lasting injunction against the Trump administration's restrictions on "equity-related grants." U.S. District Judge Matthew Kennelly ruled that the requirement for grantees to certify they do not operate DEI programs violated their First Amendment rights. The ruling is in response to a lawsuit filed by Chicago Women in Trades, a nonprofit  that helps prepare women for work in skilled construction trades and has several contracts with the Department of Labor. Kennelly said: "The impact of this provision on CWIT and other grantees is likely to result in self-censorship."

 

ABC News

U.S. News

A federal judge has deemed the extreme heat conditions in Texas prisons unconstitutional, potentially leading to a mandate for the state to invest billions in air conditioning. U.S. District Judge Robert Pitman highlighted the indifference of the Texas prison system towards dangerous conditions, saying: “Texas is the largest prison system in the country and the judge found it to be acting in an unconstitutional manner.” With over 130,000 inmates, only a third of Texas's prison units are fully air-conditioned. The ruling may influence similar lawsuits across the U.S., as advocates push for better conditions in prisons facing extreme heat. The Texas Department of Criminal Justice has requested $118m to install air conditioning for an additional 16,000 beds.

 

The Columbian

U.S. News

A landmark human trafficking lawsuit has been filed in California by four Indonesian fishermen against U.S. canned seafood giant Bumble Bee Seafoods. The plaintiffs allege forced labor and abuse aboard Chinese-owned vessels in Bumble Bee's supply chain, detailing withheld wages, physical mistreatment, and threats to their families. The case, believed to be the first of its kind against an American seafood company, aims to prompt systemic reform in the $350bn global seafood industry. The fishermen seek measures to ensure decent working conditions, including prohibiting transshipment and requiring vessels to return to port regularly. The lawsuit also aims to shed light on the role of staffing agencies in perpetuating these abuses.

 

South China Morning Post

The Supreme Court is currently deliberating the future of the $9bn Universal Service Fund (USF), which includes the $4bn E-rate program offering essential internet services to schools. The case, Federal Communications Commission v. Consumers' Research, hinges on whether Congress and the Federal Communications Commission violated the Constitution when giving power to a private nonprofit company following the enactment of the Telecommunications Act of 1996 to administer the USF. The challengers argue that the funding structure resembles an unconstitutional tax, while supporters emphasize the program's critical role in providing services to rural communities and schools. Justice Elena Kagan highlighted the program's importance, noting it offers “essential” telecommunications services. 

 

Education Week News

Nicole Castle has joined Vinson & Elkins as a partner in its antitrust practice in New York, enhancing the firm's capabilities in class action antitrust cases and multidistrict litigation. Previously with McDermott Will & Emery, Castle brings extensive experience in cartel prosecutions, antitrust counselling on transactions, and managing electronically stored information.

 

Bloomberg Law

The U.S. Department of Justice has launched a deregulatory task force. The DOJ's Anticompetitive Regulations Task Force will gather public comment from businesses, consumers and advocacy groups on state and federal regulations that could pose barriers to competition, and advocate against such rules. Abigail Slater, who leads the DOJ's antitrust division, said: "This Antitrust Division will stand against harmful barriers to competition whether imposed by public regulators or private monopolists."

 

Reuters

Large companies in the EU which supply the American government have been told to comply with an executive order from President Donald Trump banning diversity, equity and inclusion programs. Companies with U.S. government contracts have been told to confirm their compliance in a questionnaire entitled "Certification Regarding Compliance With Applicable Federal Anti-Discrimination Law." The demand was sent out to firms by the U.S. embassy in Paris. The document said: “Department of State contractors must certify that they do not operate any programs promoting DEI that violate any applicable anti-discrimination laws and agree that such certification is material for purposes of the government’s payment decision and therefore subject to the False Claims Act.” The French foreign trade ministry said in a statement: “American interference in the inclusion policies of French companies — such as threats of unjustified tariffs — is unacceptable . . . France and Europe will defend their companies, their consumers, and also their values.” The letter was first reported by Les Échos newspaper.

 

Financial Times

New York Times

Reuters