Publications
On June 19, 2014, the U.S. Supreme Court issued its long-awaited decision on patent eligible subject matter in Alice Corp. Pty Ltd. v. CLS Bank Int’l, U.S., No. 13-298, 6/19/14. In a unanimous decision, the Court held that claims directed to implementations of the abstract idea of intermediated settlements of financial transactions on a generic […]
A recently-enacted amendment to Connecticut’s Paid Sick Leave Act (“Act”) will bring welcome changes for employers. On June 6, 2014, Governor Dannel P. Malloy signed into law Public Act 14-128, which changes 1) the method for determining if an employer is exempt from providing paid sick leave, and 2) the time-frame for accruing paid sick […]
In the first case under the “Pay-to-Play” rules adopted in 2010, the SEC sent a strong message to investment advisers that violations of these rules would be treated seriously. The SEC Settlement On June 20, 2014, the SEC announced that it had brought and settled charges against TL Ventures, Inc. (“TL Ventures”), a Philadelphia investment […]
The federal Telephone Consumer Protection Act (“TCPA”) provides, among other things, that both the sender of a text message advertisement that violates the TPCA and the person on whose “behalf” the text message is sent can be liable for statutory damages of at least $500 per improper text message sent. On July 2, 2014, the […]
On July 18, 2014, the Financial Crimes Enforcement Network (FinCEN) published the first issue of SAR Stats, a successor to the FinCEN publication By The Numbers. SAR Stats examines data generated from the more than 1.3 million individual Suspicious Activity Reports (SARs) filed by the financial industry, using the recently implemented unified Form 111.[1] FinCEN […]
The U.S. Equal Employment Opportunity Commission (“EEOC”) recently issued enforcement guidance, a question-and-answer guide, and a fact sheet for small businesses regarding employer obligations under the Pregnancy Discrimination Act of 1978 (“PDA”), which amended Title VII of the Civil Rights Act of 1964, along with other federal laws. This enforcement guidance (“Guidance”) sets forth the […]
Evidence obtained from a cell phone and flash drive seized by Customs and Border Protection (“CBP”) officers during a search at the Canadian border contributed to the owner’s conviction this week of violating the International Emergency Economic Powers Act (“IEEPA”) and the Iranian Transactions and Sanctions Regulations (“ITSR”). Ali Saboonchi, a 34-year-old U.S. citizen, was […]
The pharmaceutical industry is one of the most heavily regulated in the U.S. economy. Even the seemingly simple step of product labeling is subject to regulation by multiple federal agencies. Compounding the challenge: the disparate regulatory regimes are largely unreconciled, resulting in conflicting rules regarding pharmaceutical labeling. It is therefore necessary to address each set […]
Both the federal FMLA and Connecticut’s FMLA require employers to provide general notices of employees’ rights under the FMLA, and employee-specific notices of rights and obligations when an employee takes FMLA leave. Under a recent Third Circuit Court of Appeals decision, an employer’s failure to give proper notice may give rise to an FMLA violation. […]
Recently, for the first time in 24 years, the Federal Trade Commission (“FTC”) published revisions to its guidelines on advertising allowances and other promotional payments and services, widely known as the Fred Meyer Guides (“Guides”). Originally published in 1969, the Guides explain Sections 2(d) and 2(e) of the Robinson-Patman Act, which require a seller that […]
False Claims Act (“FCA”) settlements and judgments continued their striking rate of growth in fiscal year 2014. According to the Department of Justice (“DoJ”), FCA settlements and judgments for the year surpassed the $3.8 billion the government secured under the FCA in 2013. In fact, although the government generally does not publish its official FCA […]
Probably to no one’s surprise, given the SEC’s much publicized enforcement efforts, the Commission has announced that it filed a record number of enforcement actions over the last three fiscal years and secured record payouts in penalties and disgorgements.[1] Over this period, the SEC has taken aim at a broad spectrum of conduct in the […]
A staff report on last year’s consumer data breach at Target Corporation, released today by the Senate Committee on Commerce, Science and Transportation (Rockefeller, D-WV, Chair), provides a gripping wake-up call for those who oversee the security of corporate America’s systems and data. Publication of “A ‘Kill Chain’ Analysis of the 2013 Target Data Breach”[1] […]
On February 28, 2014, Chief Judge George King of the United States District Court for the Central District of California issued an In Chambers Order reducing requested attorneys’ fees from a whopping $3,253,902 to a mere $91,715 by, among other things, drastically reducing billable hours and applying a “negative multiplier,” or a “reduction of the […]
Does an “export” occur when a foreign person has the mere ability to access export-controlled data, regardless of whether he actually accesses that data? The Department of State and the Department of Commerce have long diverged on this issue. Since its landmark settlement with General Motors in 2004, the Department of State has generally considered […]
Connecticut recently awarded licenses to four medical marijuana producers, marking the beginning of Connecticut’s legal medical marijuana industry. Although medical marijuana businesses are licensed and heavily regulated by the State of Connecticut,[1] they have had difficulty securing basic financial services due to ambiguities in federal policy. Financial institutions are wary of servicing such clients owing […]
Federal and state laws govern the distribution and dispensing of controlled substances. The Controlled Substances Act (the “CSA“) is the federal law that regulates individuals and entities, including health care practitioners and pharmacies throughout the chain of distribution of controlled substances.[1] For practitioners licensed to prescribe controlled substances, the CSA details the requirements for valid […]
The Second Circuit recently expanded the ability of the Securities and Exchange Commission to obtain disgorgement in insider trading cases, holding that a defendant need not receive a direct benefit from the illicit trades in order to be liable for the disgorgement of another’s profits. SEC v. Contorinis, No. 12-1723-cv (2d Cir. February 18, 2014). […]
On March 26, the Securities and Exchange Commission (SEC) held a roundtable discussion regarding the issues and challenges that cybersecurity presents for market participants and public companies. The roundtable was divided into four panels, discussing in turn the cybersecurity landscape generally, cybersecurity disclosure issues faced by public companies, cybersecurity issues faced by exchanges and other […]
On April 7, the U.S. District Court for the District of New Jersey ruled that the Federal Trade Commission should be allowed to proceed with its case against Wyndham Worldwide Corp., the hotel franchisor, for allegedly failing to safeguard consumers’ personal information. Between April 2008 and January 2010, Wyndham experienced three major data breaches that […]
On March 27, 2014, the New York’s Court of Appeals ruled, in apparent contravention of most practitioners’ understanding of New York law, that a contract’s consequential damages disclaimer did not preclude recovery of the lost profits. The relevant clause stated that “neither party is liable to the other for any indirect, special, consequential, incidental or […]
The U.S. Court of Appeals for the Second Circuit recently affirmed the admissibility of wiretap evidence in upholding the insider trading conviction of former Goldman Sachs director Rajat Gupta. In this closely-watched case, the Second Circuit found that wiretapped telephone conversations between Raj Rajaratnam, founder of the Galleon Group, and other Galleon employees to which […]
Many states have established, or are in the process of establishing, online databases reporting practitioner prescribing patterns and patient prescription histories. These databases have become an important tool for law enforcement in the fight against prescription fraud and the illegal trafficking and use of controlled substances. Often, states tout these databases for their ability to […]
On April 15, 2014 the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) issued a Risk Alert providing important additional information concerning its ongoing initiative to assess cybersecurity preparedness in the securities industry. According to the Alert, OCIE will be conducting examinations of more than 50 investment advisers and broker-dealers focusing on the following areas […]
While the Omnibus HIPAA regulations were promulgated over a year ago and are becoming more familiar, the HIPAA enforcement landscape continues to evolve. The federal government is determined to have HIPAA taken more seriously and is continuing to make strides in HIPAA enforcement. Covered entities and business associates need to be aware of these developments […]
The European Commission (“EC”) has issued a Technology Transfer Block Exemption Regulation (“TTBER”) and related Guidelines, which will become effective on May 1, 2014. The TTBER and Guidelines set forth principles for evaluating technology transfer agreements, including many IP license agreements, under European Union (“EU”) competition law. The TTBER provides a safe harbor from EC […]
The U.S. Equal Employment Opportunity Commission recently issued a question-and-answer guide and accompanying fact sheet addressing workplace rights and responsibilities with respect to religious dress and grooming under Title VII of the Civil Rights Act of 1964. As with other Title VII-protected classes, employers are prohibited from discriminating, harassing or retaliating against applicants and employees […]
Governor Cuomo recently signed into law changes to New York’s estate and income taxes. As the headlines noted, the changes provide some welcome tax relief to many middle class New Yorkers. However, wealthy clients may see little benefit under the new rules, and the additional complexity means careful estate planning to maximize the available benefits […]
The Second Circuit recently affirmed the Securities and Exchange Commission’s ability to negotiate settlements without requiring an admission of wrongdoing, thus vacating and remanding a decision to the contrary by Judge Jed S. Rakoff of the Southern District of New York in SEC v. Citigroup Global Mkts., Inc., No. 11-5227-cv(L); 11-5375-cv(con), 11-5242-cv(xap) (2d Cir. June […]
In April 2013, the SEC and the U.S. Commodity Futures Trading Commission jointly issued final rules (the “Red Flag Rules”) requiring certain investment advisers and other regulated entities to develop and implement written identity theft prevention programs (“Reg S-ID Programs”) designed to detect, prevent and mitigate identity theft in connection with new accounts and certain […]