Keep your finger on the legal world's pulse

U.S. federal prosecutors allege lawyers from elite Wall Street firms supplied confidential information to an insider trading ring that generated tens of millions of dollars in illicit profits. Nineteen people were arrested, including attorney Nicolo Nourafchan, who federal prosecutors in Boston said was at the center of the decade-long scheme. Nourafchan worked from 2013 to 2023 at law firms including Sidley Austin, Latham & Watkins and Goodwin Procter. The firms were not identified in the indictment, but it described corporate deals that they had previously announced they worked on. “The trading on unannounced financial news alleged here not only violated the securities laws, but it also took advantage of the ​special access and ethical duties that come with a law license," U.S. Attorney Leah Foley said.

 

Financial Times

Reuters

SEC.gov

Chief Justice John Roberts has said unpopular court decisions are based solely on the law. “I think, at a very basic level, people think we're making policy decisions, we're saying we think this is how things should be, as opposed to what the law provides . . . I think they view us as purely political actors, which I don't think is an accurate understanding of what we do,” Roberts said to a conference of judges and lawyers from the 3rd U.S. Circuit in Pennsylvania. The report notes that Roberts' words came at a time of low public confidence in the court, and about a week after it handed down a decision that hollowed out the Voting Rights Act.

 

U.S. News

Michael Bacon, the former Wells Fargo chief security officer who helped expose the bank’s fake accounts scandal, is appealing a decision to slash his whistleblower award by over $100m.

 

Financial Times

The Trump administration has launched a lawsuit against Denver and the city's police department to overturn an assault weapons ban that has been in effect since 1989. The action follows Denver officials' refusal to comply with the Department of Justice's request to repeal the ordinance. “The Constitution is not a suggestion and the Second Amendment is not a second-class right,” acting Attorney General Todd Blanche said. “Denver's ban on commonly owned semi-automatic rifles directly violates the right to bear arms.”  Mayor Mike Johnston responded: “Our answer is hell no . . . No, we will not roll back a common sense policy that has kept weapons of war off of these city streets for 37 years. No, we will not put first responders at greater risk every time they respond to a dangerous incident No, we will not go back to a time when folks are worried about walking into movie theaters or grocery stores or public elementary schools.”

 

Bloomberg Law

U.S. News

The Florida Education Association (FEA) has filed a lawsuit against the Department of Education, claiming that the disparity in funding between public and private schools receiving taxpayer vouchers violates the state constitution. The lawsuit, supported by parents and civil rights organizations, alleges that nearly $5bn in taxpayer funds are directed to private institutions that lack the same oversight as public schools. FEA President Andrew Spar said: “With this lawsuit we are simply asking for accountability, transparency and a basic set of educational standards.” The lawsuit also highlights that public schools face extensive regulations, while private schools operate under significantly fewer. The legal challenge follows the 2023 expansion of voucher programs, which critics argue has led to public schools being “asked to do more with less.”

 

TCPalm

Florida Phoenix

Bradenton.com

Orlando Sentinel

The California Supreme Court has leaned toward Gilead Sciences in a case considering drugmakers' "duty to innovate." Foster City, California-based Gilead is appealing lower court rulings that said ‌patients using its HIV drug ‌can pursue negligence claims over its decision to stop developing an alternative drug ⁠that had ⁠fewer side effects. Several ​justices suggested to the HIV patients' lawyer that finding Gilead failed to ⁠use reasonable care could stifle innovation, or require juries to review case-by-case retrospectively how drugmakers should develop new products. A decision against Gilead could change product liability law.

 

Reuters

U.S. federal prosecutors have charged a stock-lending operator with running a $450m fraud. An April grand jury indictment which was unsealed on Monday alleges Vladimir Sklarov - who claimed to have connections to the illustrious Astor family and lent money to billionaires - sold stock through lies and misrepresentations, and defrauded a victim of at least $450m through a loan deal. Names of companies that Sklarov used to advertise the lending included Bentley Rothschild, Cornelius Vanderbilt Capital Management and Shearson Lehman.

 

Financial Times

Department of Justice

Wall Street Journal

The Securities and Exchange Commission (SEC) has proposed allowing publicly traded companies to replace quarterly earnings reports with twice-yearly filings, marking a major potential shift in corporate reporting requirements that have existed for more than five decades. The proposal, backed by SEC Chair Paul Atkins and long supported by President Donald Trump, would end the requirement for companies to publish detailed financial results every quarter within 45 days of the end of each reporting period. Companies choosing semiannual reporting would instead disclose results twice a year by selecting the option in their annual SEC filings.

 

Financial Times

Reuters

The Accountant Online

The Securities and Exchange Commission (SEC) has delayed the launch of more than two dozen proposed prediction-market ETFs as it seeks further clarity on product structure and investor disclosures. Fund managers including Roundhill, Bitwise, and GraniteShares had planned to introduce ETFs tied to real-world events such as elections, recessions, and commodity prices, but regulatory scrutiny over mechanics, risks, and potential insider trading concerns has postponed approvals. The delay is expected to be temporary.

 

Reuters

Paul Weiss Rifkind Wharton & Garrison has appointed Andrea E. Smith as a partner in its Houston office's litigation department. Smith transitions from Gibson Dunn. She previously co-chaired Gibson Dunn's transnational litigation practice, and has represented major clients such as Chevron, Dole, and Lockheed Martin. Smith defended Chevron in over 30 climate change lawsuits and represented Dole in pesticide exposure litigation. Jay Cohen, co-head of Paul Weiss' litigation department, said that Smith's hire “significantly expands our ability to serve existing and new clients across the region.”

 

Bloomberg Law

Guatemalan President Bernardo Arévalo has appointed Gabriel Estuardo García Luna as the country's new attorney general and head of the prosecutor's office, putting an end to a years-long struggle with former top prosecutor Consuelo Porras, who has been sanctioned by 40 countries for obstructing anti-corruption efforts. Porras' office had repeatedly sought to block Arévalo's appointment. “The Public Ministry is getting a new authority who does not come to serve a president, the government of the day, or particular or spurious political interests,” Arévalo said.

 

U.S. News

U.S. Federal Reserve Governor Michael Barr has said stress in ​private credit could spark "psychological contagion" and precipitate a broader credit crunch. Barr said that while direct links between banks and private credit do not yet appear "super ​worrisome," there were other areas of concern ​such as the insurance sector's overlaps with private ⁠lenders. He also criticized growing calls to ease liquidity requirements for U.S. banks, describing them as "super-short sighted" and warning that it could weaken the banking system over time. Bloomberg notes that Barr has repeatedly warned of risks building in the financial system, including the $1.8 trillion private credit market.

 

Bloomberg