Keep your finger on the legal world's pulse
13th August 2025
 
THE HOT STORY
Do Kwon pleads guilty to fraud
Kwon Do-hyung, commonly known as Do Kwon, the South Korean former businessman who was the co-founder and CEO of Terraform Labs, has pleaded guilty to two charges of conspiracy to defraud and wire fraud in a New York federal court. The plea follows accusations of misleading investors about the stability of TerraUSD, a stablecoin, in 2021. Kwon faces a maximum of 25 years in prison, but prosecutors may recommend a 12-year term if he accepts responsibility. He admitted: "What I did was wrong," acknowledging his false statements regarding the coin's value restoration. Kwon also faces additional charges in South Korea and has agreed to a civil fine of $80m with the U.S. Securities and Exchange Commission.
LAW
White House chip deal 'could expand' to other firms
White House press secretary Karoline Leavitt has indicated that the Trump administration could expand the 15% revenue-sharing agreement it has reached with Nvidia and AMD from sales of some of their chips to China. “I think it’s a creative idea and solution,” Leavitt said, adding that “perhaps it could expand in the future to other companies.” She said the Commerce Department is working through the “legality” and “mechanics” of the deal. Lawyers and experts who follow trade have warned that Trump's deal may be complicated because of existing laws that regulate how the government can charge fees for export licenses, CNBC notes.
EMPLOYMENT LAW
White university employee in racial discrimination case
Rochelle Hoffman, a former employee at UW-Eau Claire, has filed a lawsuit claiming she faced months of hostility and discrimination as a white woman while leading a department aimed at supporting students of color. Her attorney, Michael Fox, emphasized that the case was not politically motivated but rather a response to the university allegedly breaking the law. Hoffman said: "Despite facing unlawful discrimination in that DEI role as a white woman, I remain steadfast in my belief that high-quality, accessible education . . . is essential for all learners." The lawsuit follows a reorganization of the DEI division, which led to her appointment as interim director, sparking backlash from students and faculty regarding her race. The university has opted to settle the case, but details remain undisclosed.
LAWSUITS
Lawsuit threat for Fed chair over renovations
President Trump is contemplating a lawsuit against Federal Reserve Chair Jerome Powell regarding the management of renovations at the Fed's headquarters, which have reportedly escalated in cost from an initial estimate of $1.9bn to $2.4bn. White House officials have raised concerns about potential fraud and poor oversight in the renovation project, while Trump continues to pressure Powell to lower interest rates. “The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we've blown through Powell and the complacent Board,” Trump wrote on Truth Social.
Vanguard agrees settlement on mutual fund tax bills
Vanguard Group has reached a settlement in a lawsuit alleging that it imposed inflated tax bills on investors in its target-date funds, following a federal judge's rejection of a previous settlement. The new agreement, which was reached after private mediation, aims to resolve all claims, with preliminary approval expected by September 22. Vanguard expressed satisfaction with the settlement, while the specific terms remain undisclosed.
CASES
Shell loses legal claim against U.S. LNG operator Venture Global
U.S. liquefied natural gas supplier Venture Global has won an important arbitration case, defeating Shell’s claims that it broke contracts to profit from higher prices. A tribunal determined that the language in Venture Global’s contracts was clear, supporting the company’s assertion that it has consistently honored its agreements with customers.
New deal could see Greystar settle collusion allegations
The U.S. Justice Department has proposed a settlement with Greystar to resolve allegations of algorithmic collusion and anti-competitive practices in the rental market, which would prohibit the company from using pricing algorithms based on competitors' data. If approved, the settlement aims to provide "meaningful relief for renters affected by the alleged practices." Greystar maintains its innocence, saying that its use of RealPage's software complied with applicable laws.
LEGAL TECH
August secures $7m for legal AI
August, an AI venture founded by Columbia graduates Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker, has raised $7m in seed funding. The round was led by NEA and Pear VC, with participation from notable angel investors. August targets midsize law firms, offering automation solutions to reduce paperwork and overhead costs. The platform's modular AI adapts to local regulations, enhancing efficiency in tasks including contract review.
RISK
U.S. banks closed accounts 'due to reputational risk'
Industry sources have pushed back on President Donald Trump's assertion that he and his conservative supporters were denied banking services for political reasons, saying decisions by some major U.S. lenders, including JPMorgan Chase and Bank of America, to close accounts were based on rules around reputational risk, not politics. Spokespeople for both banks said they do not weigh political affiliations in banking decisions and welcomed Trump's efforts to change regulations introduced under the former President Joe Biden's administration.
TAX
Workers in Seattle cautiously embrace no tax on tips and overtime
Tyler Heller, an assistant manager at Central Co-op in Seattle, expressed cautious optimism about new tax provisions allowing workers to deduct tips and overtime pay. “We really need it here in the now,” he said, as he highlighted the potential financial relief. The tax breaks, effective from the 2025 tax year, permit deductions of up to $25,000 in tips and $12,500 in overtime pay, benefiting middle-income earners. However, concerns arise because the bill also cuts safety net programs like Medicaid, potentially affecting low-income workers. Critics, including Spencer Lemley, a barista, argue that the law favors higher earners and may disadvantage those relying on service charges instead of tips. The law is projected to cost about $121bn in tax revenue over the next decade, raising questions about its long-term impact on the workforce.
APPOINTMENTS
Rubenstein joins Polsinelli's data center team
David Rubenstein has joined Polsinelli PC as a shareholder in its data centre and infrastructure practice in Seattle, transitioning from a counsel role at K&L Gates. With a focus on data center development, Rubenstein has advised on over 40 projects nationwide, covering legal strategy, economic development, and tax incentives. His expertise includes negotiating bespoke development agreements with both public and private partners, as well as managing complex site requirements across various jurisdictions.
Funk goes to White & Case
T. Markus Funk has joined White & Case as a partner in its global litigation practice based in Chicago. Funk's expertise encompasses a wide range of complex litigation matters, including anticorruption, investigations, and regulatory proceedings. He represents various clients, including companies and executives, in issues such as product liability, defamation, and insider trading.
OTHER
Over half of older Americans plan to skip retirement
Many working Americans are delaying or forgoing retirement due to financial pressures and a desire for purpose. A survey by Asset Preservation Wealth & Tax found that 51% of respondents aged 65 to 99 plan to work indefinitely. Financial insecurity, rising living costs, and healthcare expenses are significant factors. Additionally, 40% of those surveyed indicated they wish to work for mental and physical wellness. The shift reflects a broader trend where work is intertwined with identity and well-being, making retirement seem less appealing.

 

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