Keep your finger on the legal world's pulse
2nd October 2025
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THE HOT STORY
FTC operations affected by government shutdown
During the ongoing U.S. government shutdown, the Federal Trade Commission (FTC) has announced that it will not accept consumer fraud complaints or assist in blocking spam calls, significantly impacting its ability to enforce laws against deceptive business practices. The agency's fraud reporting website and telemarketing opt-out registry will be unavailable, although Wall Street dealmakers can still file for merger clearances, albeit without early approvals for non-competitive deals. With around 400 of its 1,180 employees potentially required to work without pay, the shutdown is expected to delay transaction reviews and create uncertainty in the regulatory environment.
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CORPORATE
Government shutdown poses challenge to IPO market's recovery
The U.S. government shutdown is poised to disrupt the IPO market's recovery. The Securities and Exchange Commission (SEC) will only operate with essential staff, halting the processing of IPO paperwork. This comes at a time when investor demand is strong, with $52.94bn raised from 263 listings so far this year, the highest amount since 2021. Experts warn that if the shutdown persists, it could delay upcoming deals and dampen market sentiment, although some believe IPO activity will eventually rebound once the situation stabilises.
In-house lawyer hiring surges
The number of in-house counsel has surged by 87% from 2008 to 2024, increasing from 78,000 to 145,000 attorneys, according to the Association of Corporate Counsel (ACC), referencing Bureau of Labor Statistics data. Veta Richardson, ACC president and CEO, said: “These findings affirm what our members have experienced firsthand: Corporations are increasingly valuing the vital role in-house legal teams play in business operations and strategy, especially solving problems related to regulatory compliance, ethics, privacy and risk.”
LAW
ABA House calls out law firm intimidation
During its annual meeting, the ABA House of Delegates adopted over 50 resolutions, including Resolution 509, which opposes government action punishing or threatening lawyers, law firms or other organizations for representation of clients or causes disfavored by the government. Other resolutions reaffirmed the ABA's commitment to the rule of law and civil rights, and urged governments to uphold constitutional principles. Resolution 514 called for legislation recognising a reporter’s privilege, while Resolution 517 supported the First Amendment rights of public employees. The House also addressed issues including community justice programs and the rights of individuals experiencing homelessness. Jonathan Cole, chair of the House, announced the next meeting will be on February 9 in San Antonio.
EMPLOYMENT LAW
White House warns layoffs are imminent if shutdown continues
White House spokeswoman Karoline Leavitt has said federal workers could start losing their jobs imminently as the U.S. government shutdown continues. "The president has directed his Cabinet and the Office of Management and Budget is working with agencies across the board to identify where cuts can be made and we believe that layoffs are imminent," Leavitt said. Vice President JD Vance nevertheless insisted no final decisions have been made about whether certain workers will be laid off or furloughed, although he acknowledged the situation could escalate quickly into layoffs if the shutdown drags on.
Board overseeing claims for sick nuclear workers is restored
The White House has reinstated the HHS Advisory Board on Radiation and Worker Health, which is crucial for approving medical claims from nuclear workers exposed to high radiation. The decision follows the board's suspension in January, which left many claims unresolved. Eligible workers can receive a $150,000 payment and medical insurance if they link their cancers to radiation exposure. Debbie Jordan, a pancreatic cancer survivor, expressed her relief, saying: "I have tears in my eyes thinking of everyone and how much help and hope it gives them." The board will operate until at least September 30, 2027.
DOJ probes Des Moines schools
The U.S. Department of Justice has launched an investigation into Des Moines Public Schools to assess potential violations of the Civil Rights Act of 1964 regarding race-based employment practices. The inquiry follows a 2021 recruitment programme aimed at increasing the hiring of teachers of color. Harmeet K. Dhillon, assistant attorney general, said: "DEI initiatives and race-based hiring preferences in our schools violate federal anti-discrimination laws." The district confirmed receipt of the DOJ's letter and says it is currently reviewing it.
LAWSUITS
Zillow accused of paying off Redfin in competition case
The U.S. Federal Trade Commission (FTC) has filed a lawsuit alleging that Zillow paid Redfin $100m to cease competing in the online apartment rental listings market, which the FTC claims reduces competition and could increase advertising costs for rental properties. Zillow defends the partnership, saying it benefits both renters and property managers, while asserting that the arrangement will enhance the availability of listings across platforms.
CYBERSECURITY
Google executives targeted by hackers
Google has reported that hackers have sent extortion emails to an unspecified number of executives, claiming to have stolen sensitive data from their Oracle business applications. The emails are said to be linked to a group associated with the ransomware gang cl0p, although Google said it "does not currently have sufficient evidence to definitively assess the veracity of these claims." The tech giant described the email campaign as "high-volume" but did not provide further details on the situation.
REGULATORY COMPLIANCE
Sephora faces penalty for waste mismanagement
Sephora is facing a significant fine for allegedly mishandling hazardous waste at its California locations. The company will pay nearly $78,000 as part of a total settlement of $775,000, which includes civil penalties and cost recovery. According to Sacramento County District Attorney Thien Ho: “Our office is committed to protecting both the public and the environment.” The complaint, filed by 24 district and city attorneys, claims Sephora failed to properly manage and document the disposal of damaged, returned, and expired products, which are classified as hazardous waste under state law. The judgment was settled in Sacramento County Superior Court and includes a $550,000 civil penalty, $200,000 for cost recovery, and $25,000 to the Environmental Enforcement and Training Account. Sephora operates over 2,700 stores globally, with more than 100 in California.
APPOINTMENTS
Holland & Knight makes security hire
Matthew Welling has joined Holland & Knight as a partner in its data strategy, security and privacy team in Washington, DC. With extensive experience in handling cybersecurity and data privacy incidents, Welling focuses on proactive counselling to mitigate technology-related risks. He also represents clients in regulatory, transactional, policy, and litigation matters within the energy sector at both state and federal levels, including before the Federal Energy Regulatory Commission. Welling previously worked at Crowell & Moring.
INTERNATIONAL
Former Deutsche Bank employees sue German lender
Five former Deutsche Bank employees are suing their ex-employer in London's High Court. The five were among a group of Deutsche bankers who were convicted in 2019, and then acquitted in 2022, over derivative deals that Italian prosecutors said helped Italian lender Monte dei Paschi hide losses in one of Italy's biggest financial scandals. Deutsche Bank said it was "aware that five individuals have threatened to file claims in the U.K. in the context of this matter. Deutsche Bank considers all such claims to be entirely without merit and will defend itself against them robustly."

 

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