Keep your finger on the legal world's pulse
15th August 2025
 
THE HOT STORY
Court strikes down Arkansas law
An Arkansas Federal District Court has ruled unconstitutional a state law mandating public schools to display a 16-by-20-inch poster of the King James version of the Ten Commandments. The court emphasized that the law violated the Establishment Clause of the Constitution, which prohibits the government from establishing a religion. The plaintiffs, including Jewish, Unitarian, atheist, and agnostic individuals, argued that the displays imposed a Christian interpretation of the Ten Commandments, conflicting with their beliefs. The court noted that the displays were not "passive" and forced students to engage with religious content. The ruling referenced a 1980 U.S. Supreme Court decision that invalidated a similar Kentucky statute, highlighting that the Ten Commandments encompass both religious duties and secular matters. The court criticized Arkansas's defense of the law as "intellectually dishonest," saying that the law was part of a broader strategy to introduce Christian doctrine into public education.
EMPLOYMENT LAW
Air Canada begins canceling flights ahead of potential strike
Air Canada began suspending flights on Thursday after the union representing its flight attendants issued a 72-hour strike notice. Canada's largest airline warned passengers without confirmed flights to not go to the airport, as suspensions will continue through that period. The Canadian Union of Public Employees (CUPE), which represents 10,000 Air Canada attendants, provided a strike notice on Wednesday after an impasse in contract talks. It said it has bargained in good faith but the company "refused to address" core issues, including proposals on wages and unpaid work. Air Canada's Chief Human Resources Officer Arielle Meloul-Wechsler said the carrier was "available to bargain at any time on the condition that the negotiation has substance."
Walmart dodges some claims in disability bias lawsuit
Walmart failed to beat claims brought by the Equal Employment Opportunity Commission (EEOC) that it violated federal law when it did not provide reasonable accommodations for Marvin Montoya and Raymond Moore, two deaf employees who both worked as overnight stockers at a location in Kansas. But Judge Toby Crouse of the U.S. District Court for the District of Kansas said in an order partially denying Walmart's summary judgment motion that there was “nothing to suggest” either employee was faced with the decision to resign or lose their job to support the EEOC's constructive discharge claim, Bloomberg Law reports.
LAWSUITS
Kroger settles lawsuit with C&S
Kroger has settled a lawsuit with C&S Wholesale Grocers related to the failed $25bn merger with Albertsons. Interim CEO Ron Sargent said: “We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward.” However, litigation continues with Albertsons, which is suing Kroger for a $600m breakup fee. The merger's failure was partly attributed to C&S, as regulators deemed it an insufficient competitor against Kroger. Albertsons is also seeking details regarding the abrupt resignation of Kroger's former CEO Rodney McMullen amid an ethics investigation, which it argues is relevant to the merger approval process.
Eli Lilly faces lawsuit over bribery claims
Texas Attorney General Ken Paxton has filed a lawsuit against Eli Lilly, accusing the drugmaker of bribing medical providers to prescribe its medications, including the GLP-1 drugs Mounjaro and Zepbound. Paxton said: "Big Pharma compromised medical decision-making by engaging in an illegal kickback scheme." This lawsuit follows previous actions by Paxton against drug manufacturers for fraud, including a case against insulin producers for price manipulation. Eli Lilly has not yet responded to the allegations.
CASES
Officials at Mexican state energy firm allegedly bribed by Texas businessmen
Two Texas businessmen, Ramon Rovirosa and Mario Avila, have been indicted for allegedly bribing officials at Mexico's state energy company Pemex with $150,000 and luxury items to secure contracts worth at least $2.5m. The U.S. Justice Department's indictment highlights ongoing corruption issues within Pemex. Rovirosa reportedly had ties to Mexican cartel members.
FIRMS
Texas law firm in wrongful firing lawsuit settlement
Texas law firm Roberts Markel Weinberg Butler Hailey has settled a lawsuit initiated by former executive Shawn Isakson, who alleged wrongful termination for refusing to falsify a woman's visa application at the request of the firm's managing shareholder. Judge David Hittner of the U.S. District Court for the Southern District of Texas dismissed the case on August 8, after retracting his previous summary judgment in favor of the firm. Hittner granted judgment to Roberts Markel after Isakson failed to respond to the firm's motion in a timely manner. The parties had already reached a settlement to conclude the dispute.
APPOINTMENTS
Forty-year veteran moves on to McDermott
Cadwalader Wickersham & Taft lawyer Ira Schacter is leaving after 40 years to join the newly-formed McDermott Will & Schulte. The transition follows the merger of McDermott Will & Emery with Schulte Roth & Zabel, which has created a combined entity of approximately 1,750 lawyers.
TECHNOLOGY
China’s open-source AI spurs U.S. alarm
China’s surge in open-source AI models - including DeepSeek, Qwen, and Moonshot - is challenging U.S. dominance in the global AI race. These models, free to use and modify, are rapidly gaining adoption, prompting responses from U.S. companies like OpenAI, which recently released its own open model, gpt-oss. U.S. officials fear China could set global AI standards, leveraging control for geopolitical advantage. Businesses favor open models for flexibility and data control. While Alibaba’s Qwen outperforms U.S. rivals in some areas, it demands more computing power. The fast-moving race may lead to consolidation, rewarding companies that build large, loyal user bases.
REGULATION
Activists want Trump to oppose limits on pesticide rules
In a letter, more than 200 activists from the "Make America Healthy Again" movement have urged President Donald Trump to reject limitations on pesticide regulations in the House's environmental appropriations bill. They warned that supporting liability shields for pesticide companies could jeopardize Republican support and potentially cost the party its House majority in the upcoming midterms. The letter stated: "Creating broad liability protections for pesticides is a losing issue for your party." The activists, including leaders from Moms Across America and Children's Health, are concerned about the health risks posed by pesticides and so-called "forever chemicals." The bill has passed a key committee but awaits full House consideration.
INTERNATIONAL
Singapore's luxury watch sale scandal unfolds
Singapore is preparing to auction luxury items seized from convicted money launderers in its largest case, valued at S$3bn. Deloitte will manage the sale of over 460 luxury goods, including watches from Richard Mille and Patek Philippe, and 58 gold bars. The items were part of a broader asset seizure, which also includes real estate and vehicles. Authorities have imposed penalties on major banks linked to the scandal. The government aims to prevent future money laundering by stripping offenders of directorships and investigating law firms involved.
OTHER
Starbucks Korea tells customers: no printers or PCs
Starbucks customers in South Korea have been asked to stop bringing "bulky items," including printers and desktop computers, into cafes to do their office work. Others have brought in partitions and more than one computer to mark their office territory. Starbucks said laptops, iPads, and mobile phones are still welcome but not items that "impact the shared space." BBC News notes that the growing trend of studying and working at cafes - cagongjok - has become a subject of intense debate in Korea. "Good job," said one Korean user on social media after the announcement. "Now that Starbucks has started, other cafes should follow suit".

 

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