Keep your finger on the legal world's pulse

The Trump administration likely broke the law by stripping 50,000 transportation security officers of the ability to unionize and bargain over their working conditions, said U.S. District Judge Marsha Pechman in Seattle, Washington, as she blocked the U.S. Department of Homeland Security from canceling a union contract covering Transportation security Administration (TSA) officers, who staff checkpoints at U.S. airports and other transportation hubs, pending the outcome of a lawsuit by the American Federation of Government Employees (AFGE) and other unions. Pechman said Homeland Security Secretary Kristi Noem had not explained why she was reversing an Obama-era conclusion that unionization would benefit TSA officers and also the public they serve. "The Noem Determination appears to have been undertaken to punish AFGE and its members because AFGE has chosen to push back against the Trump Administration’s attacks to federal employment in the courts," observed Pechman.

 

Fox Business

Reuters

President Trump's sweeping tax-and-spending bill includes a provision that would limit federal courts' power to enforce contempt orders against the government. The provision bars courts from enforcing contempt unless plaintiffs post a monetary bond - a requirement rarely met in cases against the government. Critics argue this would weaken judicial authority and allow government agencies to defy court orders without consequence. The measure follows a White House directive encouraging agencies to demand bonds to deter frivolous lawsuits. While no contempt orders have yet been issued against the Trump administration, judges have warned officials risk contempt for ignoring rulings. The provision applies retroactively and has drawn bipartisan concern, with Democrats urging its removal. If enacted, it could make it harder for courts to hold the government accountable.

 

Reuters

A federal judge has intervened to protect the legal status of international college students in the U.S., blocking the Trump administration's attempts to revoke their visas. District Judge Jeffrey S. White issued a nationwide order on May 22, saying that the administration has “wreaked havoc” on the lives of these students. The ruling prevents the administration from detaining students based on their immigration status while a related case is ongoing. White emphasized the need for stability to allow students to continue their studies without fear. Assistant Secretary Tricia McLaughlin criticized the ruling, claiming it undermines the president's powers.

 

NJ.com

Google parent company Alphabet is to spend at least $500m over the next 10 years on rebuilding its global compliance structure to settle with shareholders suing it for alleged antitrust violations. The changes include creating a standalone board committee to oversee risk and compliance, which was previously the responsibility of the Alphabet board's audit and compliance committee. Alphabet has also said it would create a senior vice president-level committee to address regulatory and compliance issues and a compliance committee consisting of Google product team managers and internal compliance experts. “Over the years, we have devoted substantial resources to building robust compliance processes," the company said. "To avoid protracted litigation we're happy to make these commitments." Google denied wrongdoing in agreeing the settlement. 

 

Financial Times

Reuters

CVS and Express Scripts have filed lawsuits against an Arkansas law that prohibits pharmacy benefit managers (PBMs) from owning or operating pharmacies in the state. The legislation, signed by Gov. Sarah Huckabee Sanders, aims to protect independent pharmacies, particularly in rural areas, from the influence of PBMs. However, Express Scripts warned that the law could lead to “devastating consequences” and confusion for patients regarding their prescription medications. CVS stated that the law would threaten its 23 retail pharmacies in Arkansas, calling it an “assault on free commerce.” Arkansas Attorney General Tim Griffin defended the law, asserting that it aims to curb the excessive power of PBMs and protect consumers.

 

US News and World Report

Wolters Kluwer has announced its acquisition of Brightflag, a provider of software for in-house legal departments, for €425m (approximately $482m). The transaction is one of the largest in recent legal technology history, following Thomson Reuters' acquisition of Casetext for $650m in 2023. Ian Nolan, CEO and co-founder of Brightflag, expressed enthusiasm about the partnership, saying: "Wolters Kluwer shares our vision for leveraging advanced technology to enhance legal operations." Brightflag's clientele includes notable companies such as Dropbox, Ironclad, and Lufthansa.

 

Bloomberg Law

U.S. lawyer Richard Bednar has been sanctioned after it was discovered that he used ChatGPT to generate a brief containing false citations, including a non-existent case. The court emphasised that while artificial intelligence can be a useful legal research tool, attorneys must ensure the accuracy of their filings. Mr Bednar was ordered to pay the respondent's attorney fees, refund client fees, and donate $1,000 to the legal non-profit And Justice for All.

 

Bloomberg Law

Foley & Lardner has launched its 27th office, in Nashville, focusing on the thriving health care and life sciences sectors. The firm has recruited three partners from Holland & Knight to spearhead the new location. Daljit Doogal, Foley's chairman and CEO, said: "We have been eyeing Nashville for a while, because of its growing economy and strong health care and life sciences industry." The expansion follows the firm's recent opening in Raleigh, North Carolina, where it hired a team from K&L Gates.

 

Law

LawFuel

The U.S. government has secured a $78.3m judgment against Michael D. Brown, a California man with a decade of tax liabilities from 2001 to 2014. Judge Fred W. Slaughter of the U.S. District Court for the Central District of California ruled in favor of the government, allowing them to enforce the judgment and collect interest since November 2022. Brown has claimed that the IRS has been “harassing” him for years and has filed a notice of appeal against the judgment.

 

Bloomberg Tax

Erin Sweeney has joined Ogletree Deakins as a shareholder in Portland, Oregon, focusing on workplace activism, collective bargaining, and grievance proceedings. Her expertise extends to representing employers in petition hearings and unfair labor practise cases, as well as defending employment-related claims in various courts. Previously, Sweeney was with Littler Mendelson.

 

Bloomberg Law

Fresnillo, one of the U.K.'s largest mining groups, has been ordered to pay up to $630m to the El Bajio community in Mexico for illegally mining gold from their land. The demand follows a court ruling that mandated the company to return the gold or compensate the community. Fresnillo's recent statements to investors do not disclose the purported liability. Chief executive Octavio Alvidrez described the valuation as "grossly deficient in technical and legal aspects," asserting that it is merely an opinion rather than a court ruling. A court hearing is scheduled to facilitate a settlement between the parties involved.

 

The Times

Federal Emergency Management Agency (FEMA) employees were left confused after David Richardson, the head of the U.S. disaster agency since early last month, said during a briefing that he had not been aware that the U.S. has a hurricane season. The country's hurricane season officially began on Sunday and lasts through November. Reuters reports that it was not clear to staff whether Richardson meant his comment to be taken literally, as a joke, or in some other context. Richardson said during the briefing that there would be no changes to FEMA's disaster response plans despite having told staff to expect a new plan in May, a source said. The National Oceanic and Atmospheric Administration recently said that this year's season could bring as many as 10 hurricanes.

 

CNN

Reuters

Washington Post