Keep your finger on the legal world's pulse
5th May 2025
 
THE HOT STORY
Judge strikes down Trump order targeting Perkins Coie
U.S. District Judge Beryl Howell has ruled that Donald Trump’s executive order targeting Perkins Coie is unconstitutional, breaching First Amendment free speech protections and the Fifth Amendment’s due process guarantees. In a 102-page decision, Howell denounced the order as an abuse of presidential power for personal retaliation, stating: “Settling personal vendettas…is not a legitimate use of the powers of the U.S. government or an American President.” The order barred the firm’s access to federal agencies and threatened its clients’ contracts. Perkins Coie, which represented Hillary Clinton’s 2016 campaign, claimed it was targeted for political reasons and its pro-diversity policies. The Justice Department may appeal the ruling. Other firms have faced similar orders, with some suing and others reaching costly settlements with the Trump administration.
CASES
DOJ takes on states over climate laws
The Department of Justice (DOJ) has filed lawsuits against Hawaii, Michigan, New York, and Vermont, challenging their climate change initiatives as "unconstitutional" and "burdensome." The lawsuits focus on New York and Vermont's "climate superfund laws," which aim to hold fuel companies accountable for climate-related damages. The DOJ argues these laws violate the Clean Air Act and interfere with federal powers. NY State Senator Liz Krueger condemned the lawsuits, commenting: "We always knew that Big Oil & Gas would sue to avoid having to clean up the mess they made." Additionally, the DOJ seeks to prevent Hawaii and Michigan from pursuing legal action against fossil fuel companies for climate harms. Acting Assistant AG Adam Gustafson warned that state overreach in energy regulation harms national interests.
Diddy faces serious sex trafficking charges
Sean “Diddy” Combs is set to face trial in New York on serious charges of sex trafficking and racketeering. Jury selection is scheduled to commence, with opening statements expected next week. The 17-page indictment accuses Combs of a two-decade pattern of abusive behaviour, including manipulating women into drug-fuelled sexual performances termed “Freak Offs.” Prosecutors allege that Combs used his influence and violence to control women, with claims of beatings and even kidnapping. Combs maintains his innocence, asserting that all sexual activities were consensual. His attorney, Marc Agnifilo, acknowledged Combs' past issues but insisted that “all sexual activity between Combs, Cassie and other people was consensual.” If convicted, Combs could face decades in prison, marking a significant escalation in his long history of legal troubles.
Journalists clash with Ground Game LA
Journalists Ben Camacho and Cerise Castle have filed a federal copyright infringement lawsuit against Ground Game LA, alleging that the organisation has profited from their work without permission. The lawsuit claims that Ground Game has “maliciously and systematically” exploited their copyrighted journalistic works, including Castle's acclaimed series “A Tradition of Violence.” The dispute stems from a separation attempt in March 2024, which led to the journalists being cut off from Knock LA's systems. Ground Game LA counters with its own lawsuit, accusing Camacho and Castle of attempting to hijack the outlet.
TAX
Hunter Biden drops IRS tax return disclosure suit
Hunter Biden has voluntarily dismissed his lawsuit arguing the IRS was liable for damages after agency employees unlawfully disclosed confidential information from his tax returns. The former U.S. President's son agreed with the IRS last week to dismiss his claims, which accused agency personnel of illegally leaking his tax information and violating the Privacy Act by intentionally failing to secure that information in its records system. The lawsuit came as Hunter Biden was under a yearslong federal investigation for failing to pay his taxes and scrutiny from House Republicans for his business dealings abroad. He was later convicted of nine tax charges and three firearm possession charges, but Joe Biden pardoned him before he received his sentences.
REGULATION
Trump administration targets open banking rule
The Trump administration is set to revisit a Biden-era rule that permits customers to share sensitive bank data with third-party fintechs. The Consumer Financial Protection Bureau (CFPB) is contemplating modifications to the open banking rule, which has faced scrutiny from banks concerned about data breach liabilities. Steve Boms, President and CEO of FDATA North America, warned that “reopening this rulemaking means stalling financial innovation and prolonging uncertainty for both businesses and consumers in America.” The CFPB's ability to effectively manage this rulemaking is in question, especially after significant staff reductions. Meanwhile, fintech companies are advocating for the rule's expansion to include more financial products, fearing its potential elimination. The situation remains fluid as the CFPB's next steps are awaited.
Chinese labs could be banned from testing U.S. electronics
The Federal Communications Commission (FCC) is set to vote on May 22 to implement a rule that would prohibit Chinese laboratories deemed a national security risk from testing electronic devices for use in the U.S. FCC Chair Brendan Carr stated that this measure aims to close potential security loopholes by ensuring that only trustworthy labs are involved in the testing process. The proposed rule follows previous bans on telecommunications equipment from companies like Huawei and ZTE, and it may expand to include all labs in China and other foreign adversaries, while also requiring disclosure of licenses for entities with significant ties to these countries.
IML's $1.2bn scheme under fire
The FTC and the Nevada Attorney General have filed a lawsuit against International Markets Live Inc. (IML) for allegedly running a deceptive multilevel marketing scheme that generated over $1.2bn by exploiting young, often minority consumers. Tim Newman, a partner at Haynes Boone, said: "The filing highlights the more prominent enforcement role we expect state regulators to play in the coming years." The complaint alleges that IML's executives rewarded fraudulent practices, despite internal warnings, and that many consumers lost money while being promised significant earnings through trading. The lawsuit seeks permanent injunctive relief, consumer restitution, and civil penalties, as the scheme has attracted scrutiny from 21 global regulators.

 
Law
EMPLOYMENT LAW
New Jersey targets gig economy misclassification
New Jersey is proposing new rules that could reclassify gig workers, such as drivers for Uber and Lyft, as employees rather than freelancers. The change aims to ensure that these workers receive benefits such as disability and family leave insurance, which they currently miss out on. Adam Busler, a labor attorney, said: “The [state] Department of Labor basically wants to eliminate the independent contractor relationship in almost every form.” The proposed rules, based on the “ABC test,” suggest that many gig workers do not meet the criteria for independent contractor status. If implemented, these regulations could significantly increase labor costs for companies relying on freelancers. The state has highlighted the issue of rampant worker misclassification, with a 2020 audit revealing over 7,000 misclassified workers.
Kohl's CEO sacked over ethics breach
Ashley Buchanan has been dismissed as chief executive of Kohl's after failing to disclose a personal relationship with a vendor, which led to a business arrangement on "highly unusual terms." An investigation revealed that Buchanan directed Kohl's to engage with a vendor founded by Chandra Holt, a former chief executive of Bed Bath & Beyond. The board's audit committee found that Mr Buchanan's actions violated the company's code of ethics, resulting in his forfeiture of equity awards and a requirement to reimburse a $2.5m signing bonus. Michael Bender has been appointed as interim CEO while Kohl's searches for a permanent replacement.
Amazon faces lawsuit over wrongful termination
Alexander Ramirez, a former package sorter at Amazon, has filed a federal lawsuit against the company, alleging wrongful termination after he reported COVID-19 symptoms and adhered to quarantine policies. The complaint, submitted in the U.S. District Court in New Jersey, claims that Amazon discriminated against him based on a perceived disability, violating the Americans with Disabilities Act. Ramirez seeks damages for lost wages, emotional distress, and punitive damages, demanding a jury trial. He asserts that despite following Amazon's guidelines, he was marked absent and ultimately terminated for missing shifts.
IMMIGRATION
International students rethink summer travel
International students in the U.S. are reconsidering their travel plans due to a wave of visa revocations and legal status terminations. Since late March, at least 1,220 students have had their visas revoked, with the actual number likely higher at 4,736. The Trump administration's crackdown has left many students feeling vulnerable, prompting colleges to advise against non-essential travel. Rishi Oza, an immigration lawyer, noted the growing anxiety among students, questioning: “Is this the character of the country we want?” As the situation evolves, students must weigh the risks of travel against their need to return home or visit family.
INTERNATIONAL
UAE embraces legal tech revolution
United Arab Emirates Prime Minister Sheikh Mohammed bin Rashid Al Maktoum has announced the approval of the establishment of a Regulatory Intelligence Office within the cabinet in a move that is indicative of a shift towards legal technology in the Middle East. “This new legislative system, powered by artificial intelligence, will change how we create laws, making the process faster and more precise,” the official WAM News Agency quoted Sheikh Mohammed as saying. “It will ensure that our legislative framework stands out, aligning our laws with the best global practices while staying true to the unique path of our rapid development.” Law.com says the UAE is adopting AI-friendly policies at the same time as the legal tech community prepares to revolutionise the industry in areas from contract management to arbitration.

 
Law
Tariff turmoil: Southeast Asia's legal landscape
Senior lawyers from Singapore, Vietnam, Malaysia, and Thailand have expressed concerns regarding the adverse effects of the Trump administration's tariffs on local legal markets. The tariffs have created significant uncertainty, dampening market optimism as countries engage in negotiations with the U.S. during a 90-day suspension. The ongoing trade tensions are challenging the legal landscape across Southeast Asia, impacting client advisement and overall market conditions.

 
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