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THE HOT STORY
Law firms caught in political crossfire
Recent developments have seen U.S. law firms navigating a complex political landscape, particularly following a federal judge's ruling that President Donald Trump's executive order targeting Perkins Coie was unconstitutional. Judge Beryl Howell condemned the administration for infringing on the firm's rights, stating: "The administration's attack on law firms sidelines this important check on abuse." In response to potential penalties, nine law firms have agreed to provide nearly $940m in pro bono legal services, raising concerns about the impact on vulnerable clients who rely on such aid. Critics argue that this shift in focus may detract from essential services for those in dire need, as firms may prioritise work aligned with the administration's agenda over traditional pro bono commitments. Kevin Curnin and Matthew Diller highlight the potential long-term consequences for legal aid and the communities it serves.
CASES
Trump's Justice Department targets rivals
The Justice Department's recent decision to charge U.S. Representative LaMonica McIver for her involvement in a confrontation at an immigration detention centre has sparked controversy. Acting U.S. Attorney Alina Habba announced the charges, accusing McIver of assaulting federal agents during the May 9 incident. McIver has dismissed the allegations as "absurd," claiming she is a victim of a politically motivated prosecution. Senator Cory Booker remarked: "We know there was political calculation," highlighting concerns over the use of law enforcement for political ends. McIver, who was overseeing conditions at the facility, stated: "I was there to do my job," defending her actions during the scuffle. The case raises questions about the impartiality of the Justice Department under the Trump administration, as it appears unafraid to target political opponents.
Senators probe Paramount's Trump lawsuit
Senators Elizabeth Warren, Bernie Sanders, and Ron Wyden have sent a letter to Shari Redstone, chair of Paramount Global, seeking clarity on the company's efforts to resolve a $20bn lawsuit from Donald Trump. The senators are concerned that any settlement attempts could breach federal anti-bribery laws. The lawsuit, stemming from CBS News' editing of a 60 Minutes interview with Kamala Harris, poses a significant hurdle for the proposed $8.4bn merger between Paramount and Skydance Media, which is pending approval from the U.S. Federal Communications Commission. A spokesperson for Paramount stated that the lawsuit is "completely separate from" the merger process.
Trump administration settles Babbitt lawsuit
The Trump administration has agreed to pay nearly $5m to settle a wrongful death lawsuit filed by Ashli Babbitt's family following her shooting during the Capitol riot on January 6, 2021. The settlement resolves a $30m federal lawsuit initiated by Babbitt's estate. The officer who shot Babbitt, an unarmed Air Force veteran, was cleared of wrongdoing, with the U.S. Attorney's office stating he acted in self-defence. The lawsuit claimed the officer failed to de-escalate the situation and did not provide warnings before firing, asserting that “Ashli posed no threat to the safety of anyone.” The settlement terms remain undisclosed as final details are being finalised.
Mother fights deportation for children
Carmen Guerrero Sandoval, a pregnant mother from Columbus, has initiated a lawsuit challenging a deportation order issued by a U.S. immigration court. The lawsuit, filed in U.S. District Court, argues that her deportation would infringe upon her children's rights, particularly her 9-year-old son, a U.S. citizen who requires special education services unavailable in Mexico. The lawsuit cites the Ninth and Fourteenth Amendments and international treaties, asserting that removing Sandoval would violate her children's rights and disrupt their familial relationship. Additionally, the case raises questions about the citizenship rights of her unborn child, who would be entitled to birthright citizenship if born in the U.S.
Teacher sues over anti-Israel bias
A Portland high school math teacher, identified as John Doe, has filed a lawsuit against the school district, teachers union, and school board, alleging discrimination for allowing the promotion of anti-Israel materials without a balanced perspective. The suit, filed in federal court by the Freedom Foundation, claims that the teacher, an Israeli Jew, faced a hostile environment and that his First Amendment rights were violated. He described the school as a “forum for one-sided, anti-Israel rhetoric,” noting that while Palestinian flags were displayed, his request to show an Israeli flag was denied. The lawsuit seeks to declare the actions of the district and union unconstitutional and demands damages for mental distress. 
INDUSTRY
Bondi vs Seltzer: a political showdown
In the upcoming D.C. Bar presidential election, candidates Brad Bondi and Diane Seltzer present contrasting political funding backgrounds. Bondi, a partner at Paul Hastings and brother of Attorney General Pam Bondi, has a history of donating over $60,000 to Republican causes since 2017, stating his aim to "unify the D.C. Bar and keep it nonpartisan." In contrast, Seltzer, principal at The Seltzer Law Firm, has focused on small donations to a Democratic-aligned hybrid PAC during the Trump era. Both candidates are vying to represent the 119,000 members of the mandatory bar, highlighting the influence of political contributions in their campaigns.

 
Law
Squires set for pivotal confirmation hearing
John Squires, nominated by President Donald Trump to lead the U.S. Patent and Trademark Office, is scheduled to appear before the Senate Judiciary Committee for his confirmation hearing at 10:15 a.m. today. Squires, an intellectual property attorney at Dilworth Paxson LLP, will be joined by three other nominees: Stanley Woodward Jr. for associate attorney general, T. Elliot Gaiser for assistant attorney general, and Joseph Edlow for director of U.S. Citizenship and Immigration Services. This hearing is a significant step in Squires' path to leadership at the PTO.
LAW
Time's running out for data compliance
Companies must urgently review their compliance with a new Department of Justice (DOJ) rule regarding personal data storage and usage, with a deadline set for July 8. Violations could lead to severe civil and criminal penalties, including fines of up to $1m and potential prison sentences of 20 years. The rule restricts U.S. firms from sharing sensitive personal data with foreign adversaries, including China, Russia, and Iran. John Carlin, a partner at Paul Weiss, emphasised the importance of compliance, stating, “specific facts may alter an analysis” depending on the scenario. Companies are encouraged to use the grace period to assess their data practices and amend contracts as necessary. The DOJ has also provided a compliance guide to assist firms in navigating these new requirements.
FIRMS
Law firms rethink diversity post ruling
In the wake of the Supreme Court's 2023 affirmative action decision, many law firms have chosen to downplay or eliminate their diversity initiatives, particularly following punitive executive orders from Donald Trump. However, Susman Godfrey has taken a contrary approach by expanding its annual prize for law students of colour, despite being specifically targeted by Trump's order. Bloomberg Law reporter Tatyana Monnay discussed this bold move on the podcast, On The Merits, highlighting that the firm's confidence may have been bolstered by a federal judge's unfavorable response to the Justice Department's arguments against them.
EMPLOYMENT LAW
OSHA rule change sparks legal storm
The recent changes to the U.S. Occupational Safety and Health Administration (OSHA) rules regarding workplace inspections have raised concerns about potential legal challenges. Legal observers warn that states adhering to the Biden-era regulations may face lawsuits if the Trump administration retracts these policies. As one observer noted: "States that moved to comply with the regulation issued by OSHA in March 2024 will be left to defend it." This shift in federal priorities could create a complex legal landscape for states that have already adopted the updated rules.
Washington state revises pay transparency law
Washington state's pay transparency law, signed by Governor Bob Ferguson, is set for revisions that will limit damages for plaintiffs and provide employers with a grace period to rectify violations. The law, which mandates salary ranges in job postings, has led to numerous class action lawsuits against companies like Adidas and Home Depot. Ferguson stated: "We are ensuring that the law is fair for both employees and employers." Washington joins at least 11 other states and Washington, D.C., in implementing such pay transparency requirements.
TIAA faces lawsuit over retirement mismanagement
Teachers Insurance & Annuity Association of America (TIAA) is facing a proposed class action lawsuit filed by plan participant Brian Byrne, who alleges that the company mismanages its employees' retirement plans. The complaint, lodged in the U.S. District Court, claims that TIAA offers high-cost share classes of its proprietary, in-house managed funds, despite cheaper alternatives being available. Byrne argues that this practice results in "unnecessary waste of assets," leading to millions of dollars in excessive fees that ultimately harm workers' retirement savings.
REGULATION
SEC shakes up crypto regulations
The recent actions by the SEC regarding high-profile securities violations against cryptocurrency companies indicate a notable change in the regulation of digital assets in the U.S. The SEC's settlements and dismissals suggest a future focus on prosecuting fraud and safeguarding retail investors, moving away from previous enforcement strategies centred on market structure. This shift has led to speculation that the cryptocurrency industry may be entering a phase of free enterprise. However, experts emphasise the necessity for clear legislation to define the rules governing the industry, which is anticipated to be developed in the coming year.

 
Law
Verizon bows to FCC pressure
Democratic FCC Commissioner Anna Gomez has publicly condemned Verizon for conceding to Republican Chairman Brendan Carr's demands, stating: "This is shameful. Capitulation breeds capitulation." The FCC held Verizon's $20bn acquisition of Frontier Communications in limbo until the company agreed to eliminate its DEI programmes. This aggressive tactic by Carr suggests that future major mergers, including the $8bn merger of Skydance and CBS-owner Paramount and Charter Communications' $22bn acquisition of Cox Communications, may face similar scrutiny.

 
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