Keep your finger on the legal world's pulse

U.S. Treasury Secretary Scott Bessent voiced confidence that the Supreme Court will uphold former President Trump's use of the 1977 IEEPA law to justify tariffs aimed at correcting trade deficits and halting fentanyl imports. A recent 7–4 appeals court ruling deemed most Trump-era tariffs illegal but allowed them to stand temporarily. Bessent stated: “I’m confident the Supreme Court will uphold... the president’s authority to use IEEPA.” He emphasized the fentanyl crisis and ballooning trade deficits as valid emergencies. As a backup, he cited the Smoot-Hawley Act's Section 338.

 

Reuters

The U.S. Department of Labor (DOL) is set to establish a national database for unemployment insurance (UI) claims to combat fraud, expanding its access to sensitive claimant information. This initiative, outlined in a Federal Register notice, builds on previous efforts to gather confidential data. The DOL aims to enhance oversight by requiring states to disclose UI claim data, a move that could centralise fraud risks. Meanwhile, the U.S. Conference of Catholic Bishops is challenging the Equal Employment Opportunity Commission's Pregnant Workers Fairness Act, seeking to limit abortion-related accommodations. Christine Bestor Townsend noted that the absence of charges under the PWFA indicates a lack of immediate threat from the regulation.

 

Bloomberg Law

Decentralised Autonomous Organisations (DAOs) are facing significant legal challenges regarding their capacity to sue or be sued. As James Walker from Perkins Coie notes: "DAOs have faltered when they haven't argued their capacity to sue or be sued." Currently, only California courts have addressed these issues, with no definitive rulings on DAOs' legal status. The lack of uniform regulations complicates matters, as DAOs must navigate varying state laws to establish their legal standing. Bloomberg Law highlights the importance of structuring DAOs appropriately to mitigate risks and ensure they can protect their interests in litigation. Without a clear legal framework, DAO members may face personal liability for the organisation's obligations.

 

Bloomberg Law

Bloomberg Tax

Abbe Lowell, a seasoned attorney and former DOJ lawyer, has built a reputation as a formidable defender of high-profile clients, including Senator Bob Menendez and Hunter Biden. In May 2025, he established Lowell & Associates, a boutique law firm aimed at representing those targeted by the Trump administration. His most notable case this summer is Cook v. Trump, where he represents Lisa Cook, the first Black woman on the Federal Reserve Board, in a lawsuit challenging Trump's attempt to dismiss her. Lowell argues that Trump's claims of “for cause” dismissal lack constitutional merit. Described as “relentless” and “exhausting,” Lowell thrives on complex legal challenges, advocating for his clients in both court and the media.

 

LawFuel

KPMG is expanding its legal business nationally by establishing a presence in Arizona, a move that is likely to attract attention from major law firms. Tom Greenaway, principal at KPMG Law U.S., stated that the firm has been building co-counsel relationships with attorneys in states with stricter ownership regulations since receiving approval to operate in Arizona. He said: “What this market really needed was tech-enabled legal service providers to take some of that high-volume.” This expansion aims to offer services that KPMG already provides globally.

 

Bloomberg Tax

OpenAI Inc. recently secured a significant victory against Open Artificial Intelligence Inc. and its founder, Guy Ravine, in a trademark dispute. The case highlighted the importance of adhering to intellectual property laws amidst rapid technological advancements. The U.S. District Court for the Northern District of California granted OpenAI's motion for summary judgment, reinforcing that "making false representations to the USPTO can lead to cancellation of a registration." Ravine, who had attempted to register the OpenAI mark, faced rejection due to the descriptive nature of the mark and his failure to demonstrate use in commerce. The court ruled that Ravine's later use of the mark constituted trademark infringement, as he entered OpenAI's market segment with similar products. This case serves as a crucial reminder for companies to understand trademark use and protection limits. The case is OpenAI Inc. v. Open Artificial Intelligence Inc., N.D. Cal., No. 23-cv-03918, 7/21/25.

 

Bloomberg Law

Bloomberg Law looks at how years of legal disputes have arisen over the federal government's plan to transfer sacred tribal land in Arizona to a copper mining company, highlighting disparities in the application of U.S. religious protections. Indigenous and environmental groups have initiated several lawsuits against the U.S. Forest Service to safeguard Oak Flat, a 6.7-square-mile area vital for Western Apaches' religious ceremonies. As one academic noted: “The law hasn't caught up to that respect that is necessary in order to protect these interests adequately.” The ongoing challenges reflect the complexities of balancing Indigenous rights with commercial interests.

 

Bloomberg Law

A class action lawsuit has been filed against Capricor Therapeutics by Levi & Korsinsky. The lawsuit, initiated on July 17, 2025, alleges that Capricor misled investors about the efficacy of its therapeutic products, resulting in financial losses. This case highlights ongoing scrutiny in the biotech sector regarding transparency and investor relations.

 

Markets Insider

Treasury Secretary Scott Bessent is preparing a defense brief for the Supreme Court to uphold tariffs imposed by the Trump administration. This legal maneuver anticipates a potential ruling on the tariffs' legality, which could have significant implications for U.S. trade policy and economic stability. The case underscores the ongoing legal debates surrounding executive power and international trade regulations.

 

Benzinga

The House Oversight and Government Reform Committee has withdrawn its subpoena for former FBI Director Robert Mueller, citing his health issues, including Parkinson's disease. Mueller was initially subpoenaed as part of the investigation into Jeffrey Epstein. This development highlights the challenges faced by congressional investigations when key witnesses are unable to testify due to health constraints.

 

The Hill

U.S. banking regulators are scaling back exams and disciplinary actions, signaling a more lenient stance under President Trump. Agencies like the OCC and Federal Reserve are focusing on core financial risks, reducing attention to reputational, climate, and diversity-related issues. Banks are receiving fewer formal notices and more informal guidance. “The OCC is reexamining its supervisory approach,” the agency stated, aiming to balance risk with economic growth. Critics warn the softer oversight could repeat past supervisory failures, while industry leaders like JPMorgan's Jamie Dimon claim regulators have become “unfair and unjust.”

 

Reuters

Senators Ron Wyden and Elizabeth Warren questioned UnitedHealth over alleged aggressive loan repayment tactics after its tech unit, Change Healthcare, suffered the largest U.S. healthcare data breach. They raised concerns that providers were threatened with withheld payments unless loans—totaling over $9bn—were repaid immediately. UnitedHealth stated it has worked collaboratively with providers post-breach and remains open to “reasonable repayment arrangements.” The ransomware attack disrupted claims processing nationwide, prompting emergency financial aid to affected providers.

 

Reuters

Carly E. Grey and Michael Mahoney from Ogletree Deakins discuss a proposal by the Treasury Department and IRS to update the outdated “line of business” test for tax-free fringe benefits. The new regulations aim to replace the Enterprise Standard Industrial Classification Manual with the North American Industry Classification System (NAICS), which is updated every five years. This change is crucial as it will help ensure that employee discounts and no-additional-cost services remain tax-exempt under Section 132. The proposal includes defining lines of business by NAICS four-digit codes and aligning with existing IRS forms to simplify compliance. Employers are advised to reassess their NAICS classifications and update their payroll systems accordingly. As Grey notes: “A more granular classification system may prompt auditors to challenge aggressive aggregation positions.”

 

Bloomberg Tax

The California Office of Tax Appeals has recently solidified its authority to challenge regulations from the state's other tax agencies, following an opinion from Attorney General Rob Bonta. This decision, which had been anticipated for over two years, allows the tribunal to potentially expand its influence. As Bonta stated, the office now has the power to "strike down regulations" issued by these agencies. Taxpayer groups and practitioners are keenly observing how the tribunal will exercise this newfound authority in its upcoming opinions.

 

Bloomberg Tax