Keep your finger on the legal world's pulse

A U.S. bankruptcy judge has approved a $7m independent investigation into potential fraud at First Brands, the bankrupt auto parts maker accused of misusing invoice factoring to raise short-term cash. Allegations include double-selling invoices and withholding payments meant for financial institutions. The company has over $10bn in liabilities and is suing its founder Patrick James for allegedly misappropriating hundreds of millions of dollars - claims he denies. Judge Christopher Lopez tasked the U.S. DOJ’s bankruptcy watchdog with appointing the examiner, stressing the need for a fast, focused investigation.

 

Reuters

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Sarah Spitalnick, a straight white woman, has dropped her lawsuit against King & Spalding regarding a diversity fellowship, leading the 4th U.S. Circuit Court of Appeals to dismiss her appeal with prejudice on November 14. The joint stipulation of dismissal, filed on November 13, did not clarify if a settlement was reached. Spitalnick claimed she was discouraged from applying for the fellowship due to a job advertisement that specified candidates must have an ethnically or culturally diverse background or be part of the LGBT community. Her lawsuit alleged violations of Title VII of the Civil Rights Act of 1964 and Section 1981 of the Civil Rights Act of 1866. U.S. District Judge James K. Bredar dismissed her case earlier this year, citing a lack of evidence that she was prepared to apply for the fellowship.

 

ABA Journal

The House Judiciary Committee has advanced the Protecting Our Courts from Foreign Manipulation Act of 2025 (HR 2675), which aims to restrict non-U.S. investors from financing American lawsuits. The bill, passed with a 15-11 vote, prohibits sovereign wealth funds and foreign governments from funding U.S. litigation, either directly or indirectly. Rep. Ben Cline (R-Va.) said: “My bill safeguards the integrity of our judicial system.” The proposal would also require other non-American investors to disclose their participation.

 

Bloomberg Law

Spirit Airlines has reached tentative agreements with its pilot and flight attendant unions for pay and benefit cuts as part of its Chapter 11 restructuring. The Air Line Pilots Association agreed to an 8% pay cut and reduced retirement contributions from 16% to 8%, with gradual restorations starting in 2028. Flight attendants will retain base pay and healthcare, but overtime and ground holding pay will be trimmed, with improvements set for 2027. The agreements, pending member and court approval, will take effect in 2026 and revert to original terms once the airline posts a 7.5% pre-tax margin over three quarters.

 

Reuters

Fidelity Technology Group is suing Broadcom, alleging the tech firm is threatening to cut off access to essential VMware virtualization software after acquiring VMware and changing its licensing terms. Fidelity said its systems rely heavily on the software, and loss of access could trigger “massive outages,” blocking customer account access and disrupting trades. Broadcom is pushing Fidelity to purchase bundled software instead of renewing its existing contract. Fidelity, managing $17.5trn in assets, says migration would take up to two years. The lawsuit claims breach of contract and seeks court intervention.

 

Reuters

Greystar has agreed to a $7m settlement with nine states over allegations of using rent-setting algorithms that inflate housing costs. The settlement, filed in a North Carolina federal court, follows antitrust lawsuits against RealPage and similar companies. California Attorney General Rob Bonta said: "Colluding to drive up prices is illegal." As part of the agreement, Greystar will cease using software that relies on confidential data from other landlords. The company previously settled a class-action lawsuit for $50m and reached a nonmonetary deal with the Department of Justice.

 

U.S. News

Federal Reserve Governor Stephen Miran has called for a reworking of Wall Street regulations before policymakers weigh other economic questions around the central bank’s balance sheet. “For many years, financial regulation mostly moved in one direction, increasingly restricting the banking sector,” Miran said, going on to observe that there was regulatory over-reach following the 2008 financial crisis, which caused many traditional banking activities to migrate away from the regulated sector. “While I have no bias against nonbank financial companies, credit allocation should be driven by market forces, not regulatory arbitrage,” he said.

 

Bloomberg

The Federal Communications Commission (FCC) is investigating whether the BBC’s editing of a speech delivered by President Donald Trump in a Panorama documentary breached US regulations. FCC chairman Brendan Carr has written to executives at the BBC and to the heads of U.S. broadcasters PBS and NPR to find out whether the report was aired in the U.S. PBS and NPR distribute BBC programming in the U.S.

 

Financial Times

The Daily Telegraph

Laura Brank has joined BCLP as a partner in its corporate transactions practice in Washington, DC. A seasoned corporate and finance lawyer, Brank specializes in M&A, focusing on emerging markets and cross-border transactions. She provides counsel to multinational corporations, investment funds, banks, and high-net-worth individuals on intricate corporate and finance issues, including corporate governance and compliance, particularly regarding international sanctions. Brank previously worked at Dechert.

 

Bloomberg Law

Poe, Quora's AI platform, has launched a group chat feature allowing up to 200 users to collaborate using over 200 AI models. This functionality enables interactive experiences, such as planning trips or brainstorming projects. Users can start group chats from the app's home screen, with real-time chat history syncing across devices. Quora developed the feature over six months and aims to enhance it based on user feedback. The company said: "The space of potential group interactions mediated by AI is vast and currently under-explored."

 

Techcrunch

U.K. lawmakers are being actively targeted by Chinese state agents with lucrative job offers on LinkedIn, according to security agency MI5. An espionage alert issued to MPs, peers and parliamentary staff by security services identified two LinkedIn profiles, which it said are used on behalf of the Chinese Ministry of State Security (MSS). House of Commons Speaker Lindsay Hoyle circulated the alert, which warned that two "recruitment head-hunters" are "known to be using" profiles on the career-focused social network "to conduct outreach at scale" for the Chinese security services. The message from Hoyle to lawmakers went on to say: "Their aim is to collect information and lay the groundwork for long-term relationships, using professional networking sites, recruitment agents and consultants acting on their behalf."

 

BBC News

CNN

Politico

The Times

Meta has begun notifying young Australians to download their digital histories and delete their accounts from Facebook, Instagram, and Threads ahead of a new law banning accounts for users under 16. The Australian government mandated that platforms must exclude users younger than 16 starting December 10th. Meta informed thousands of young users via SMS and email, saying: “We will start notifying impacted teens today to give them the opportunity to save their contacts and memories.” With an estimated 350,000 Australians aged 13 to 15 on Instagram, the company is taking steps to comply with the law. Meta's vice president, Antigone Davis, emphasized the need for a more accurate age verification system, suggesting that app stores should collect age information during sign-up. Dany Elachi, founder of Heaps Up Alliance, supported the age restriction, observing: “Children under the age of 16 are better off in the real world.”

 

AP News

BBC News

Reuters

Sydney Morning Herald