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THE HOT STORY
Bosses say growing number of mental health absences is becoming harder to manage
About two-thirds (67%) of U.S. companies reported an increase in mental health-related leaves of absence and accommodation requests over the past year, according to a survey by employment law specialists Littler Mendelson. Bloomberg reports on how a growing trend of workers using the Family and Medical Leave Act for mental health is prompting a resource strain, as employers hire temporary replacements or redistribute work. The estimated cost of a missed workday is said to be about $340 per day for full-time workers. Jeff Nowak, an employment attorney at Littler, observes: “Leaves have been consistently elevated coming out of Covid. This is a sustained shift, not a temporary disruption.”
LAW
Trump ‌to ask Supreme ​Court to ⁠rehear case ⁠challenging birthright ​citizenship
President Donald Trump has said he intends to request a rehearing from the Supreme Court regarding its ruling that affirmed birthright citizenship for babies born in the U.S. under the Fourteenth Amendment. The Supreme Court's decision, made on June 30, rejected Trump's executive order aimed at limiting this citizenship benefit for immigrant children. In a post on Truth Social, Trump wrote that the “ruling is wrong . . . I will be asking for a Rehearing by the United States Supreme Court, IMMEDIATELY.” He said the ruling could “destroy America.” The Supreme Court has not granted a rehearing since 1965.
U.S. launches H-1B visa probe
The Trump administration has launched an investigation into alleged H-1B and PERM visa abuse, labor trafficking, and the displacement of American workers. Labor Department Inspector General Anthony D'Esposito said: "This is another example where fraud is fueling violent crime . . . Much of the visa and the human trafficking that we see when it comes to this foreign labor is tied to cartels, is tied to transnational gangs, and this is the work that we should be doing, not only to make America safe again, but to make America more affordable again."
Chicago moves to ban insider betting
Chicago is considering a ban on employees and elected officials using insider knowledge to bet on online prediction markets like Kalshi and Polymarket. Ald. Timmy Knudsen, the measure's proponent, said: “The work that we do within City Hall and within all of our offices is innately sensitive and often confidential . . . We just need to be sure that people aren't using any of that information for profit or for playing games.” The City Council Ethics Committee unanimously advanced the proposal, which aims to prevent potential misuse of confidential information for personal gain. Knudsen noted that existing laws already prohibit such actions, but the rise of prediction markets has created a "little bit gray" area due to a lack of federal regulation. The ordinance seeks to establish clear boundaries.
LAWSUITS
U.S. appeals court rejects Bed Bath & Beyond lawsuit against Hudson Bay
A U.S. appeals court has upheld the dismissal of a lawsuit brought by Bed Bath & Beyond's post-bankruptcy successor against Hudson Bay Capital, rejecting claims that the hedge fund improperly retained more than $300m in short-term trading profits. The lawsuit alleged Hudson Bay exceeded the 10% ownership threshold that would have required it to surrender profits under U.S. securities rules. The Second Circuit Court of Appeals ruled that contractual provisions limiting Hudson Bay's stake were valid and effectively kept its beneficial ownership below 10%. The court also rejected arguments that the hedge fund's ownership calculations breached Security and Exchange Commission rules, affirming an earlier district court decision in Hudson Bay's favor.
CORPORATE
Aspen abandons WellNow sale as lenders prepare for debt talks
Aspen Group has abandoned plans to sell its WellNow urgent care business as it works to address around $3bn of loans due next year, prompting lenders to hire law firm Gibson Dunn & Crutcher ahead of potential debt negotiations. The company had explored selling WellNow for up to $300m, with proceeds expected to help reduce its debt burden, but has since informed lenders it will no longer pursue the transaction. The owner of Aspen Dental has been exploring options to strengthen its balance sheet following weaker trading, including bringing in outside investors. Adjusted EBITDA fell almost 6% year-on-year to $101.1m in the first quarter, following a 23% decline in the previous quarter, while one of its $1.2bn loans due in 2027 was recently quoted at 89.9 cents on the dollar, reflecting investor concerns over its financial position.
RISK
Berlin power outage 'was terror attack'
A five-day power outage in Berlin in January was caused by a terrorist attack, a state-appointed commission has said in a report which makes recommendations to bolster security on critical infrastructure and urges more federal funding to better prepare for such crises. “The terrorist attack on the power grid in January 2026 was a wake-up call for Berlin and other cities,” the commission said. “The power outage was resolved in just a few days, yet it revealed how ill-prepared Berlin is for larger, longer-lasting, or hybrid situations.” The report calls for a new position of chief resilience officer for Berlin.
APPOINTMENTS
K&L Gates welcomes asset management partner in New York
Tamika Bent has joined K&L Gates as a partner in the firm's asset management and investment funds practice in New York. Her clientele includes a diverse range of financial entities such as funds, banks, and trade associations. She counsels buy-side and sell-side clients on ISDA documentation and negotiation, and on the Commodity and Futures Trading Commission and Securities and Exchange Commission regulatory frameworks under the Dodd-Frank Act. Previously, Bent was with Willkie Farr & Gallagher.
INTERNATIONAL
More Brazilian companies seek out-of-court debt fixes
Reuters reports on the growing number of Brazilian companies who are turning to creditors to escape debt while avoiding the costs of formal bankruptcy protection proceedings, in response to a 14.25% interest rate imposed on many of them. A 2020 legal reform which made out-of-court restructurings more flexible​ precipitated "a cultural shift," observed Juliana Biolchi, the director of the Brazilian Out-of-Court Restructuring Observatory (Obre). The straightforwardness of the process compared to in-court solutions has made it "increasingly associated with less severe financial distress," Biolchi said.
Insurers don't need to pay out over Nord Stream pipeline blasts
A judge has ruled that insurers of the Nord Stream pipelines don't have to pay €580m ($662m) over explosions that destroyed the pipes bringing Russian gas to Europe because the sabotage was the consequence of the war in Ukraine. Judge Clare Moulder at the High Court in London said: “The damage to the pipelines (both the ruptures and the dent) was ‘directly or indirectly occasioned by, happening through, or in consequence of war’ . . . Such damage was excluded from cover by the terms of Exclusion 2.i of the policies.” The FT notes that the ruling means western insurers won't have to make a huge payment to a company that is majority owned by Russian state-backed gas champion Gazprom.
Guinea court reduces former Prime Minister’s corruption sentence
An appeals court in Guinea has reduced former Prime Minister Ibrahima Kassory Fofana’s prison sentence to three years and nine months. Fofana, who had been detained since April 2022 in pretrial detention on illicit enrichment and money laundering charges before being granted provisional release four months ago, was initially sentenced to five years by a special financial crimes court set up after the September 2021 coup that ousted former President Alpha Condé, under whom he served.
OTHER
GLP-1 usage reaches new high in U.S.
A record 11% of Americans are taking a GLP-1 medication for weight loss, according to Gallup, up 3% from 2024. Meanwhile, the obesity rate among Americans fell to 36.4% in 2026, down from a record high of 39.9% in 2022, the year after the GLP-1 medication Wegovy was first approved by the Food and Drug Administration (FDA) to treat weight loss. Just over two-thirds (68%) of GLP-1 users reported taking a name brand drug developed by pharmaceutical majors such as Novo Nordisk and Eli Lilly, including Ozempic, Mounjaro or Zepbound; 19% said they took custom-mixed drugs unapproved by the FDA.

 

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