“Robinhood Markets has agreed to pay $65 million to settle Securities and Exchange Commission allegations that the broker failed to properly inform clients that it sold their stock orders to high-frequency traders and other financial firms,” reports Bloomberg in Fortune’s Finance.

“Robinhood, known for its popular smart-phone app that offers commission-free trading, also agreed to have an outside consultant monitor its compliance with rules that require firms to provide best execution for trades. Robinhood has gained notoriety during the pandemic by attracting a massive customer base of younger investors.”

Read the article.

“California’s new privacy agency means a fresh set of regulatory headaches for tech companies and other businesses operating in California that are already grappling with the state’s landmark 2018 law,” reports Jake Holland in Bloomberg Law’s Privacy & Data Security Law News.

“The new regulator was established with the passage of the Proposition 24 ballot measure on Tuesday to police California’s broad data privacy laws. Companies need to be more diligent about their data retention and sharing practices or risk hefty fines of as much as $2,500 per violation or $7,500 per intentional violation.”

“‘The law is chock full of new things,’ said Kristen Mathews, a privacy and data security partner at Morrison & Foerster LLP in New York. ‘Most of the provisions require extra compliance, and it’s a big lift for businesses.'”

Read the article.

“Google’s parent company has reached a $310 million settlement in a shareholder lawsuit over its treatment of allegations of executives’ sexual misconduct,” reported by Associated Press in Boston Herald’s Business.

“Alphabet Inc. said Friday that it will prohibit severance packages for anyone fired for misconduct or is the subject of a sexual misconduct investigation. A special team will investigate any allegations against executives and report to the board’s audit committee.”

“Thousands of Google employees walked out of work in protest in 2018 after The New York Times revealed Android creator Andy Rubin received $90 million in severance even though several employees had filed misconduct allegations against him. Shareholder lawsuits followed, and in 2019 Google launched a board investigation over how it handles sexual misconduct allegations.”

Read the article.

“Daimler AG will pay $2.2 billion to resolve a U.S. government diesel emissions cheating investigation and claims from 250,000 U.S. vehicle owners, court documents show,” reporting by David Shepardson in U.S. News via Reuters, Wire Service Content.

“The German automaker and its Mercedes-Benz USA LLC unit disclosed on Aug. 13 it had reached a settlement in principle resolving civil and environmental claims tied to 250,000 U.S. diesel cars and vans after the automaker used software to evade emissions rules.”

“Daimler said in August expected costs of settlements with U.S. authorities would total $1.5 billion, settling with owners will cost another $700 million and also disclosed “further expenses of a mid three-digit-million EUR (euro) amount to fulfill requirements of the settlements.”

Read the article.

“A 32-year-old woman suspected since July of running an unlawful law practice in Uptown Dallas has been arrested in Boston, and police are asking anyone who may have been victimized to speak up,” reports Marc Ramirez in The Dallas Morning News’ Crime.

“Massachusetts state police detained Camilia Shene Johnson at Logan International Airport on Sept. 5 as she tried to board a flight to Istanbul, Turkey. Johnson, a convicted felon, also goes by the name Camilia Johnson Ibrahim.”

“Authorities had been looking into Johnson’s conduct since mid-July, when a skeptical DeSoto resident alerted police to say that a number of legal actions being proposed to them by the suspect were in fact not the law.”

Read the article.

“In recent weeks, because of the remoteness of our work forces, we have seen an increased incidence of abusive written communications between employees. It’s fair to say that we all have certain frustrations with our current situation, but in the past, when we all worked in the office or plant together, we could often work out those frustrations through face-to-face conversation. In face-to-face conversations, it is more difficult to say rude or abusive things to other employees. Unfortunately, a similar social barrier does not seem to be present when employees write emails or text messages,” warns Thomas H. Wilson in Vinson & Elkins’ Insights.

“In the recent General Motors case, the facts indicated that the employee in question, over the course of several meetings, used profane language toward managers, threatened them, and played loud, explicit music on his phone to interrupt the conversation. The administrative law judge, citing to the Board’s prior rulings on these types of communications, found that General Motors’ discipline against the employee—namely, a series of suspensions—constituted an unfair labor practice. The current Board overturned that opinion and the prior cases that supported it in its decision.”

Read the article.

“The Am Law 50 firm moved its headquarters to Philadelphia’s Cira Centre in 2005, taking advantage of a tax break program that Pennsylvania offers businesses to move into developments in formerly run-down areas. Since taking up residence in Cira Centre, Dechert’s paid virtually no state or local business taxes in exchange for Dechert’s role in making the area an attractive business destination,” notes Joe Patrice in Above the Law’s Biglaw.

“But the program expired in 2018, so when the Keystone Opportunity Zone program eyed a new tax-free area in Schuylkill Yards, Dechert walked up and asked to move there too.”

“There’s nothing in the law to say companies can’t hop from zone to zone to remain permanently tax-free, and when authorities denied Dechert’s request to continue not paying its taxes, the firm took the government to court.”

Read the article.

“A partner at Quinn Emanuel Urquhart & Sullivan in New York has tested positive for the coronavirus, prompting the firm to close the office as a precaution this week,” reports Amanda Robert in ABA Journal’s Daily News.

“The firm did not name the attorney, but according to Law.com, he is the first known BigLaw partner to contract the coronavirus in the United States. An attorney at Lewis and Garbuz, a Manhattan trusts and estates law firm, also tested positive for the illness last week.”

“John Quinn, founding partner of the 800-plus attorney firm, also told Law.com on Sunday that the partner belongs to a religious community in Westchester County, where other infections have been reported. He has been resting at home since March 2.”

Read the article.

“While organizations make significant investments in protecting their data from outside infiltration, they can often overlook the serious threats that exist within their own workforce. According to a 2020 study released by the Ponemon Institute, the biggest threat in terms of disclosure of sensitive information comes from so-called “insider threats,” in the form of employees who disclose protected information or provide a means of access to that information to third parties, either unwittingly or otherwise. That threat has only grown in recent years, increasing by 47% in the last two years alone,” reports Risa B. Boerner in Fisher Phillips Newsletters.

She further breaks down her article into the following sections:

• The Costs Can Be Staggering
• Why The Recent Surge?
• First Steps: Awareness + Training
• Advanced Tactics

Read the article.

“There has been a veritable explosion of antitrust litigation in the workplace law field, putting employers and their executives at risk. Federal and state antitrust agencies and private plaintiffs have accelerated their attacks on employers who agree to coordinate wage levels (wage-fixing) or not solicit each other’s employees (no-poach),” writes Dennis Cuneo in Fisher Phillips’ Resources.

“Four years ago, the Department of Justice threatened criminal prosecution of companies and individuals who engaged in such activities. A few weeks ago, the nation’s top antitrust law enforcement official reiterated that threat, announcing that he plans to bring a criminal prosecution this year challenging a no-poach agreement. Attorneys General in several states have stepped up their challenges to no-poach agreements, particularly in franchise settings. Private plaintiffs have obtained huge settlements in class action lawsuits challenging no-poach agreements and exchanges of compensation data among employers.”

“The antitrust prohibitions against price fixing or market allocation in product markets are well understood. What is not as well understood is that the antitrust laws apply equally to labor markets. Just as a price fixing agreement between two companies to fix the price of widgets may lead to antitrust sanctions, a wage-fixing or no-poach agreement between two companies that compete for the same labor may also lead to antitrust sanctions.”

Read the article.

“Earlier this week, Americans received a rather stark warning from federal health officials about the inevitable spread of coronavirus in the U.S. ‘[T]his could be bad,’ Dr. Nancy Messonnier, director of the National Center for Immunization and Respiratory Diseases, said during a press briefing. ‘It’s not so much of a question of if this will happen anymore but rather more of a question of exactly when this will happen,'” reports Staci Zaretsky in Above The Law’s Biglaw.

Biglaw firms across the country are taking the news seriously, echoing the actions of their colleagues abroad and imposing travel restrictions and canceling events.

Read the article.

“Dentons says it will appeal a $32.3 million malpractice verdict based on its disqualification in a patent case because of work done by its Canadian branch.” reports Debra Cassens Weiss in ABA Journal’s Law Firms.

“Jurors in Cuyahoga County, Ohio, had found Dentons liable Feb. 13 in a suit by its former client, laser-inscribing company RevoLaze … The verdict is thought to be the largest legal malpractice judgment in Ohio’s history, according to a press release from RevoLaze’s law firm.”

“The suit had alleged that the booting of Dentons from the case forced RevoLaze to quickly find new lawyers and impacted its leverage in settlement negotiations.”

“The case highlights legal issues related to Dentons’ Swiss verein structure in which more than 10,000 lawyers are associated with the law firm.”

Read the article.

“If you’re an Ohio in-house attorney and you value your freedom to make career moves, then you’re in luck. On Feb. 7, the Ohio Board of Professional Conduct issued an opinion letter stating that in-house counsel cannot be bound by non-compete agreements.” reports Douglas M. Oldham in The National Law Review.

“Ohio Rule of Professional Conduct 5.6(a) states that a lawyer may not participate in an “agreement that restricts the right of a lawyer to practice after termination of the relationship, except an agreement concerning benefits upon retirement.” There is a strong public policy allowing parties to be represented by the counsel of their choice, and any agreement that restricts an attorney’s ability to practice would undermine that public policy.”

Read the article.

“Have you ever considered the possibility that you might be the next person your contract attorney sues?” asks in Vinson & Elkins’ Insights.

“As frightening as that sounds, that’s exactly what happened in the bizarre dispute leading up to a recent Fifth Circuit  decision, Faludi v. U.S. Shale Solutions, L.L.C. There the plaintiff was an unlicensed attorney who contracted with the defendant to be a legal consultant. The defendant paid him on a day rate basis, required him to sign a non-compete, and treated him as an independent contractor. Once the plaintiff left the company, he immediately filed a Fair Labor Standards Act (“FLSA”) lawsuit where he claimed that he had actually been an employee who was misclassified as exempt and was entitled to unpaid overtime wages.”

“Fortunately for the defendant, the Fifth Circuit concluded that the plaintiff had been properly classified as an independent contractor. Fortunately for us, the case demonstrates several lessons about certain business practices and FLSA compliance.”

Read the article.

On Monday, a grand jury declined to indict Angela Elleman, a Kentucky defense lawyer, “accused of digging up shell casings linked to a murder case and keeping them in a safe for more than six years,” reports Debra Cassens Weiss in ABA Journal’s Criminal Justice.

“Elleman is a lawyer with the Louisville public defender’s office… A special prosecutor had presented the case to the grand jury.”

“Elleman represented Anthony Hogan, who told prosecutors in 2018 about the shell casings when they spoke with him about testifying against a co-defendant. Hogan and the co-defendant were charged in the April 2012 killing of 15-year-old Gregory Holt.”

Read the article.

“Stephanie Apostolou has been elected general counsel and secretary of Pittsburgh, Pennsylvania-based Koppers and Koppers Holdings, effective March 1,” report Ben Maiden in Corporate Secretary’s Appointments.

“Apostolou is at present deputy general counsel and assistant secretary with the NYSE-listed company, which is a global provider of treated wood products, wood treatment chemicals and carbon compounds.”

“Her promotion follows the announcement that Steven Lacy, chief administrative officer, general counsel and secretary of Koppers will retire at the end of this year after a 20-year career with the company. In the period between March 1 and December 31, Lacy will hold a new position as assistant to the president of Koppers.”

Read the article.

“Have you recently made a career move — maybe going in-house?  Or shifting from a firm to government work?  When you’re dealing with a work-life change, watch out for details that can too-easily fall through the cracks — like your license to practice, the date it expires, and whether you are in line to get an expiration notice.” reports Karen Rubin in The Law for Lawyers Today In-House Counsel.

“Illustrating the possible pitfalls:  a high-level Justice Department  lawyer was in the spotlight this week because he practiced for two months while unaware that his license had lapsed.  He issued apology letters, including to the Ninth Circuit, where he had presented an oral argument while unlicensed.”

“The lawyer heads the DOJ’s Environment and Natural Resources Division.  He has been a member of the D.C. bar since 1997, and worked at Kirkland & Ellis before joining the DOJ in 2018.  His license was deactivated October 1 for not paying his annual bar dues.”

Read the article.

Seeking bankruptcy and scrambling to complete a $1.3 billion state-mandated wildfire prevention plan, Pacific Gas & Electric will now have to prove that its newly hired directors are fit to transform the mega-utility blamed for starting the 2018 Camp Fire in Northern California, reports Courthouse News Service.

While the new members have “impressive resumes,” said Commission president Michael Picker, it’s not clear they have the safety experience or time to manage the overhaul of a publicly traded utility facing an estimated $30 billion in wildfire liabilities.

Courthouse News Service reporter Nick Cahill writes that many state lawmakers and Gov. Gavin Newsom have been skeptical of the additions, citing the new members’ ties to Wall Street.

Read the Courthouse News article.

Image by Tony webster

The Associated Press is reporting that Wynn Resorts has agreed to pay $2.4 billion in a settlement with a Tokyo casino game maker and its U.S. unit over the forced redemption of their shares in the Las Vegas-based casino operating company in 2012.

The report by Regina Garcia Cano says the company settled with Universal Entertainment Corp., which previously held an almost 20 percent stake in Wynn Resorts through its subsidiary Aruze USA Inc.

“The legal fight between the companies dates back to 2012, when Wynn Resorts pushed out Universal’s founder Kazuo Okada after finding the Japanese tycoon made improper payments to overseas gambling regulators,” she writes. “The actions by Wynn Resorts stemmed from a separate casino resort project Okada was undertaking in the Philippines.”

Wynn Resorts said it found more than three dozen instances over a three-year period in which Okada and his associates engaged in “improper activities for their own benefit.” Wynn Resorts forcibly redeemed Azure’s shares in February 2012 and issued a 10-year, $1.9 billion promissory note, leading to the lawsuit.

Read the AP article.

The National Association of Corporate Directors has published its 2018 Governance Outlook and made it available for downloading at no charge.

The report provides perspective on the trends, issues, and risks that will command the board’s attention this year.

“Perhaps the biggest challenge for directors right now is deciding where to focus their attention,” the NACD says on its website. “Both risks and opportunities are proliferating at a bewildering pace. How can boards and directors make the most of their limited time?”

The report includes:

• a summary of directors’ priorities from the 2017–2018 NACD Public Company Governance Survey;
• an assessment of the future of risk management from Grant Thornton LLP;
• a look at the forces driving change in board composition and succession;
• an alert to an often-overlooked liability risk: failing to reveal pertinent information;
• new trends in D&O exposures; and
• insight into workforce disruption, cyber-risk reduction, and other risks.

Download the report.