Keep your finger on the legal world's pulse

A federal bench trial is commencing to address a lawsuit challenging the Trump administration's actions against faculty and students involved in pro-Palestinian demonstrations. Filed by various university associations, the lawsuit claims that the administration's policy infringes upon the First Amendment and the Administrative Procedure Act. The plaintiffs argue: “The policy's effects have been swift. Noncitizen students and faculty across the United States have been terrified into silence.” They assert that the policy has led to self-censorship and a withdrawal from public engagement among affected individuals. The government contends that the plaintiffs are misrepresenting the existence of a formal policy, claiming it is a “policy of their own creation.” However, the plaintiffs maintain that evidence will demonstrate the administration's systematic approach to targeting pro-Palestinian activists.

 

U.S. News

David Niemeyer, a partner at Skadden, Arps, Slate, Meagher & Flom, highlights the ongoing trend of M&A in the legal sector. The combined firm currently boasts 120 partners in America, with plans to expand to 140 within a year. Meanwhile, Donald "Donny" English Jr. has rejoined Morgan, Lewis & Bockius after an eight-year tenure at Jackson Lewis. The government's appeal of the Perkins Coie ruling may signal further actions in related law firm executive order cases. Additionally, several firms, including Hogan Lovells and Morrison & Foerster, have made recent partner and of counsel hires. Morris Manning's managing partner, Simon Malko, confirmed that the firm is in merger discussions with an Am Law 100 firm following the departure of around 60 lawyers this year.

 

Law

LawFuel looks at how legal professionals are facing alarming rates of burnout and depression, often overlooked by law firms that treat mental health as an afterthought. To effectively support their teams, firms must address barriers to care, such as long wait times and internalised stigma. Solutions include offering diverse support options, reducing friction in accessing care, and fostering a culture that normalises therapy. By prioritising mental health as a core value, firms can enhance employee well-being and retention, ultimately improving their reputation and performance in the industry.

 

LawFuel

General counsel are increasingly confronted with the complexities of new AI tools and workflows, all while striving to reduce outside counsel costs. Kathryn Lye highlights that these advanced legal technologies not only automate tasks but also serve as proactive collaborators, enhancing the efficiency of legal teams. The 48,000-member organisation has established the AI Center of Excellence for In-House Counsel to address the urgent need for cohesive legal guidance on AI. Furthermore, the Thomson Reuters 2025 Future of Professionals report indicates that investment in AI is notably higher in mainland Europe and the Middle East and Africa compared to the U.S. As Texas implements the Responsible Artificial Intelligence Governance Act, potential federal legislation may impact state regulations.

 

Law

Companies are currently facing numerous class action lawsuits regarding the alleged misuse of 401(k) assets that employees had forfeited. According to Michael Gennaro: "Corporate defendants have entered a new era of heightened risks and higher stakes in the valuation of class actions," as highlighted in the midyear report by Duane Morris. The U.S. Court of Appeals for the Sixth Circuit recently ruled against class certification, citing the district court's commonality analysis as overly general, which has sparked dissent among some judges. Additionally, a malpractice lawsuit has been filed against several law firms that profited from the $1.51bn Syngenta settlement.

 

Law

A consumer class action has been filed against Aetna Health Insurance and CVS Health, alleging that they compel healthcare providers to accept payments through prepaid debit cards that incur merchant fees, while denying requests for alternative payment methods. This lawsuit follows a previous antitrust case against Aetna, where it was accused of price-fixing to reduce payments to out-of-network providers, thereby increasing profits at the expense of physicians. As noted by Duane Morris: "Corporate defendants have entered a new era of heightened risks and higher stakes in the valuation of class actions." The outcome of this latest legal challenge could have significant implications for the healthcare payment landscape.

 

Law

The National Retail Federation has filed a lawsuit against New York state over a new law aimed at preventing retailers from using personal customer data for pricing, termed surveillance pricing. Gov. Kathy Hochul signed the first-in-the-nation law in May, saying the practice of charging different prices based on customers' willingness to pay was "opaque," and prevented those customers from comparison-shopping. The trade group argues that the law infringes on its members' constitutional rights and hampers their ability to use pricing algorithms for promotions, customer loyalty rewards, and potentially lower prices.

 

Reuters

The U.S. Supreme Court has agreed to hear two consolidated cases that could significantly impact state-run transportation systems operating across state lines. The court will determine if the New Jersey Transit Corporation (NJ Transit) qualifies as an “arm of the state” entitled to interstate sovereign immunity in negligence lawsuits filed outside New Jersey. The issue arises from conflicting rulings in New York and Pennsylvania regarding NJ Transit’s liability for injuries caused by its services. NJ Transit argues that the differing legal standards create an “untenable situation,” where the same entity's immunity varies by geography. The Supreme Court's decision, expected by June 2026, could establish a national precedent on the sovereign immunity of state-created entities.

 

Jurist

The Trump administration has initiated investigations into health care organisations, allowing providers to refuse care for transgender patients based on religious or moral grounds. The Department of Health and Human Services (HHS) is focusing on the University of Michigan Health system following claims from former employee Valerie Kloosterman, who alleged she was dismissed for seeking a religious exemption from providing gender-affirming care. Elizabeth Sepper, a professor at the University of Texas, stated that the Church Amendments primarily cover objections to abortions and sterilizations, not gender-affirming care. Kloosterman's attorney, Kayla Toney, expressed satisfaction with HHS's commitment to enforcing federal statutes protecting religious health care providers. The investigations signal a shift in HHS's approach, potentially complicating the treatment of transgender patients while prioritising the rights of health care workers.

 

The Columbian

A new legal case has been filed with the potential to overturn the landmark decision in Wickard v. Filburn, which has long been a cornerstone in the expansion of federal regulatory powers under the Commerce Clause. The case challenges the extent of these powers and could significantly reshape the legal landscape by limiting federal authority over economic activities. This development is critical for legal professionals monitoring shifts in constitutional law and federal regulatory reach.

 

The Hill

Celebrities including Jane Fonda and Cynthia Nixon are urging Amazon to address claims that pregnant warehouse workers are denied reasonable accommodations, causing health risks and miscarriages. A letter signed by several public figures accuses Amazon of violating the Pregnant Workers’ Fairness Act, despite the company stating most pregnancy-related requests are granted. The letter cites nearly 150 worker reports of unsafe tasks and mistreatment. It follows broader criticism of Amazon's working conditions ahead of Prime Day, though Amazon insists injury rates have declined.

 

Los Angeles Times

The Senate is poised to vote on a Republican bill that would eliminate tax credits for clean energy, imposing new taxes on wind and solar projects while promoting coal production. Sen. Ron Wyden (D-OR) criticized the plan, stating it is “a death sentence for America's wind and solar industries,” and warning it could lead to increased utility bills and jeopardize renewable energy projects. The bill aims to cut “hundreds of billions of dollars” from the Green New Deal, according to Senate Finance Committee Chair Mike Crapo (R-ID), who claims it will save taxpayers money. However, environmental advocates, including Mattea Mrkusic from Evergreen Action, argue that the legislation will “lock in higher household energy bills” and harm job growth in the clean energy sector. Princeton Professor Jesse D. Jenkins expressed disbelief at the bill's aggressive timeline for ending clean energy incentives, calling it “insanity.”

 

US News and World Report

The British Court of Appeal has reinforced the U.K. litigation funding industry by upholding litigation funding agreements (LFAs) in the case of Commercial and Interregional Card Claims Ltd v Mastercard and others. This decision follows the Supreme Court’s 2023 PACCAR ruling, which had previously rendered traditional LFAs unenforceable. The court dismissed an appeal from major companies including Sony, Visa, Mastercard, and Apple, which challenged the validity of LFAs based on funding multiples. Sir Julian Flaux, Chancellor of the High Court, clarified that LFAs calculated as a multiple of funding are not damages-based agreements (DBAs), which are prohibited in collective proceedings. Dorothea Antzoulatos, founder of Charles Lyndon, remarked on LinkedIn, “This is a great result and will bring certainty to funders.” The judgment also confirmed that percentage-based return clauses do not invalidate agreements, despite potential conflicts of interest.

 

The Global Legal Post

Russia has introduced a new type of investment account with withdrawal guarantees to attract foreign investors, as outlined in a decree signed by President Vladimir Putin. The initiative comes in response to the significant impact of international sanctions that have frozen Western investors' assets and hindered foreign investment in the Russian market. The new accounts will allow foreign investors to make investments in various forms, including roubles, foreign currency, stocks, and bonds, and there are plans to ease capital controls further.

 

Reuters