Keep your finger on the legal world's pulse

The American Bar Association’s lawsuit challenging President Donald Trump’s attacks on law firms can move forward after a federal judge rejected the Justice Department’s motion to dismiss the case. The ABA plausibly alleged “a realistic threat of sanctions to establish its standing,” Judge Amir Ali ruled. Ali said the ABA's suit "details at length the chilling effect the alleged policy has had on firms and lawyers," including claims that law firms have declined ​to take on some matters that challenge the Trump administration out of fear of retaliation. ABA President Michelle ​Behnke said the organization was "confident in the soundness" of its lawsuit. "The ABA believes this case is crucial to defending our members’ ​rights to represent clients of their choice and the public’s right to secure counsel of choice," Behnke said.

 

Law

Bloomberg Tax

Law

Reuters

A majority of Supreme Court justices appeared skeptical of the Trump administration’s attempt to end automatic citizenship for those born in the country, in oral arguments ahead of a ruling that is expected by early July. The case, which tests what it means to be an American, could affect an estimated 250,000 children born to undocumented immigrants and temporary visitors each year. The administration says Trump's order, which would restrict birthright citizenship to babies with at least one parent who is a U.S. citizen or green-card holder, would not apply retroactively, but Democrats say it would also strip millions of current Americans of their citizenship, as well as their ability to vote and obtain passports. Chief Justice John Roberts dismissed contentions by President Donald Trump’s top Supreme Court lawyer, Solicitor General D. John Sauer, that the U.S. faced a “new world” in which so-called birth tourism was undermining the historic understanding of the nation. “Well, it’s a new world,” Roberts said. “It’s the same Constitution.”

 

Chicago Sun Times

ABA Journal

Bloomberg

Financial Times

Los Angeles Times

Treasury Secretary Scott Bessent has launched a new anti-fraud whistleblower program. Managed by the Financial Crimes Enforcement Network, the goal of the program is to recover hundreds of billions of dollars in stolen taxpayer funds and reward the tipsters who help the federal government find the money. “Individuals located in the United States or abroad who provide information may be eligible for awards if the information they provide leads to a successful enforcement action that results in monetary penalties exceeding $1,000,000,” stated one of the confidential Treasury documents obtained by The New York Post.

 

New York Post

The Baltimore Sun

A federal judge in Manhattan has ruled that former Twitter investors can pursue their case against Elon Musk as a class action. The investors accuse Musk of delaying the disclosure of his initial Twitter investment, causing them financial loss by selling their shares at depressed prices. Investors led by the Oklahoma Firefighters Pension and Retirement System said Musk ignored a March ​24, 2022 deadline set by Securities and Exchange Commission rules to reveal he owned 5% of Twitter shares, and waited 11 more days before disclosing a 9.2% stake.

 

Reuters

A federal judge has mandated the University of Pennsylvania to provide records about its Jewish employees. The Trump administration claims the requested lists are part of a U.S. Equal Employment Opportunity Commission (EEOC) investigation into antisemitic discrimination at the university. U.S. District Judge Gerald Pappert said that while employees can opt out of the EEOC investigation, the agency "needs the opportunity to talk to them directly to learn if they have evidence of discrimination." The university is appealing the decision, emphasizing its commitment to combating antisemitism while raising concerns about privacy and First Amendment rights. The EEOC's investigation has been precipitated by several antisemitic incidents on campus, including vandalism and hate speech. The investigation aims to determine if the work environment is hostile for Jewish employees.

 

Los Angeles Times

U.S. News

A U.S. federal judge has overturned a jury verdict that found Lululemon infringed a Nike patent related to sneaker manufacturing, ruling instead that the patent was invalid and dismissing a $355,450 damages award. The judge concluded the patent covering knitting techniques for shoe uppers would have been obvious to someone skilled in the field, undermining Nike’s claim. The case stemmed from Nike’s 2023 lawsuit alleging Lululemon’s Chargefeel, Strongfeel, and Blissfeel footwear breached its intellectual property, with Nike previously seeking a share of revenues from the products. The decision marks a significant legal win for Lululemon, which said it has now prevailed in all jurisdictions in the dispute, although a separate patent case between the two companies, relating to Lululemon’s Mirror home gym, remains ongoing.

 

Blooomberg Law

Reuters

A U.S. appeals court has ruled that the IRS can immediately pursue $371m in restitution from former tax lawyer Paul Daugerdas, rejecting his latest legal challenge more than a decade after his conviction in a major tax fraud case. The court found that the IRS has the authority to independently assess and collect restitution, including setting its own payment terms, regardless of a criminal court’s schedule. Daugerdas, who was convicted in 2013 for orchestrating fraudulent tax shelters that cost the U.S. over $1.6bn in lost revenue, had argued against the IRS’s separate civil action. The ruling means the full amount is now due immediately, despite earlier arrangements for gradual repayment following his release from prison in 2024.

 

Reuters

The Trump administration has proposed new rules allowing alternative assets such as private equity, private credit, and cryptocurrencies to be included in 401(k) retirement plans, aiming to broaden investment options and potentially enhance returns and diversification for savers. The move, led by the Department of Labor, would ease longstanding restrictions and provide guidance and legal protections for plan trustees evaluating these more complex and less liquid investments. While industry groups have welcomed the proposal as a way to unlock new capital and improve retirement outcomes, critics warn of higher fees, valuation challenges, and liquidity risks for retail investors. The rule will undergo a 60-day consultation period, with final adoption still pending.

 

Reuters

Washington Post

Sean Bosack has joined Nixon Peabody as a partner in its complex disputes practice in Providence. He specializes in representing corporations and individuals in various legal matters, including complex commercial disputes, securities fraud, antitrust issues, healthcare fraud, and white-collar criminal defense. Bosack also advises on internal investigations related to fraud and corporate governance. Previously, he was with Godfrey & Kahn.

 

Bloomberg Law

An appeal by the Chartered Institute of Legal Executives (CILEX) against the U.K. High Court decision - known as Mazur - regarding unauthorized legal practitioners and litigation has been upheld. The decision means that non-solicitors and barristers can go back to handling litigation activities the way they did before the September 2025 ruling. At the Court of Appeal, Sir Colin Birss said unauthorized individuals can carry out litigation tasks on behalf of an authorized lawyer, so long as the authorized individual had in place “appropriate arrangements for the supervision of and delegation to the unauthorized person.”

 

Law

Law Society Gazette

Legal Cheek

Legal Futures

The Independent

Amnesty International has raised concerns that the upcoming World Cup in the U.S., Canada, and Mexico may become a "stage for repression." In its report, called "Humanity Must Win", the organization urged FIFA and the host nations to take immediate action to safeguard the rights of fans and players. Amnesty highlighted the US's "human rights emergency" under the Trump administration, citing issues including mass deportations and aggressive ICE operations. Steve Cockburn, Amnesty's head of economic and social justice, said: "While FIFA generates record revenues from the 2026 World Cup, fans, communities, players, journalists and workers cannot be made to pay the price . . . It is these people - not governments, sponsors or FIFA - to whom football belongs, and their rights must be at the center of the tournament."

 

France 24