Keep your finger on the legal world's pulse

The U.S. Consumer Financial Protection Bureau and ​the Department of Justice have withdrawn guidance - issued by former President Joe Biden in 2023 - which expressly prohibited lenders from discriminating against immigrants and ‌non-citizens. "The withdrawal of this joint guidance really underscores the Trump administration's two key priorities: A harder line on immigration and ⁠a continued effort to scale back enforcement of the federal fair lending laws," observed Lori Sommerfield, a partner at Troutman Pepper Locke.

 

Reuters

A U.S. judge has cleared Orsted, the world’s largest developer of offshore wind farms, to resume work on its $5bn Revolution Wind project off the coast of Rhode Island. The U.S. Interior Department had ordered a 90-day suspension of work, citing undisclosed national security concerns, but District Judge Royce C. Lamberth said the Danish company's project, which is almost 90% complete, "would be irreparably harmed" unless work was allowed to continue during the legal fight. In a statement, Orsted said “the project will resume construction work as soon as possible, with safety as the top priority, and to deliver affordable, reliable power to the Northeast.”

 

Bloomberg

CNBC

New York Times

Central bank governors from 11 major institutions, including the European Central Bank, Bank of England, and Bank of Canada, have issued a joint statement backing U.S. Federal Reserve Chair Jay Powell as he faces a criminal investigation into a $2.5bn Fed headquarters renovation. The show of solidarity comes amid concerns that the probe, launched by the Trump administration, threatens the Fed’s independence. Mr. Powell has called the investigation a political pretext to undermine monetary policy autonomy.

 

Financial Times

Reuters

Pacific Gas and Electric Company (PG&E) has reached a settlement of $100m in a shareholder lawsuit stemming from the company's liability for the 2017 and 2018 California wildfires. This resolution reflects ongoing efforts to address liabilities while maintaining investor confidence. Legal experts suggest the settlement may influence future corporate governance practices in the utility sector.

 

Reuters

A judge has ruled that John Sarcone, the acting U.S. Attorney for Northern New York, was unlawfully serving in his position, impacting his ability to obtain tax return information in a criminal investigation. U.S. District Judge Lorna G. Schofield said that Sarcone's past and future actions are "void or voidable." The ruling coincided with Schofield's decision to disqualify Sarcone from overseeing investigations into New York Attorney General Letitia James. In a separate ruling, Schofield denied Sarcone's request for a court order to access IRS tax return information, emphasizing that only officials in specific positions can make such applications. The decision reflects a broader trend, as courts in New Jersey, Nevada, and California have similarly found that acting U.S. attorneys appointed without Senate confirmation lack lawful authority.

 

ABC News

U.S. News & World Report

The Supreme Court is to consider invalidating the Federal Communications Commission’s system for imposing financial penalties in a case involving AT&T and Verizon Communications which stems from FCC claims that the wireless carriers illegally shared access to customers’ location data and did not take adequate measures to protect against unauthorized disclosure. Bloomberg notes that the Trump administration is defending the regulator’s adjudication system, saying it gives companies and individuals an adequate right to make their case to a jury before they have to pay any penalties.

 

Bloomberg

Maria Hadley, a former employee of the Trump National Golf Course in Bedminster, N.J., has filed a lawsuit alleging sexual harassment and retaliation. The suit, filed in New Jersey Superior Court, claims that women were forced to wear uniforms that were too small and faced various forms of misconduct. The lawsuit names the golf course, club manager Patricio Neira, and general manager David Schutzenhofer, among others. It also alleges that management retaliated against Hadley for raising concerns, including cutting her hours and denying her a bonus. Hadley eventually resigned from her position after feeling ignored by human resources, according to the lawsuit.

 

NJ.com

John Buretta, previously the chair of the investigations and regulatory enforcement practice at Cravath Swaine & Moore, has taken on a new role leading the litigation practice at Paul Hastings. He will co-chair the practice with Kwame Manley, who is based in Washington, D.C. In an interview, Buretta said: “Kwame is based in DC and I'm based in New York - that really gave great coverage for the two areas that generate disputes.” 

 

Bloomberg Law

CDR

Law

The U.K. government has announced that a new law will come into force this week making it a criminal offense to create or request non-consensual intimate images, including AI deepfakes, and plans to criminalize companies that supply AI tools which are used in the creation of such images. U.K. Prime Minister Sir Keir Starmer has warned social media firm X about its AI tool Grok, saying that if it cannot control the AI chatbot, "we will." He added that the social media site could lose the "right to self regulate." Meanwhile, U.K. media regulator Ofcom has launched a formal investigation into X over a feature of Grok which has been used to create "deeply disturbing" images. The regulator said it launched the probe having reviewed the available evidence "as a matter of urgency." Ofcom said the investigation will look to establish whether X has failed to comply with its legal obligations under the Online Safety Act.

 

BBC News

Daily Mail

The Times

The International Court of Justice (ICJ) is hearing a landmark case brought by The Gambia which accuses Myanmar of deliberately trying to destroy its minority Muslim population. Myanmar has previously denied the allegations. Dawda Jallow, the foreign minister of the Muslim majority, West African nation, said he had reviewed "credible reports of the most brutal and vicious violations imaginably inflicted upon a vulnerable group."

 

BBC News

U.S. President Donald Trump said Monday that countries "doing business" with Iran will be subject to a 25% tariff on trade with the U.S., a move that could hit major economies such as China, Russia and India. The threat follows reports from human rights groups that hundreds of people have been killed in a brutal crackdown on protests against the Iranian regime that intensified over the weekend. Mr Trump has previously warned that the U.S. could intervene if Iran’s government uses violence against the protesters. The latest proclamation did not define what qualifies as "doing business" with Iran, raising questions regarding how these additional tariffs could work, exactly which countries would be targeted and whether services and not just goods would face higher duties.

 

CNN

Bloomberg

Financial Times

Politico