Central Payment Co. Improper Fees $84M Class Action Settlement

“Central Payment Co. has agreed to an $84 million settlement resolving claims it misrepresented and improperly added fees for its card-processing services. The class is made up of current and former Central Payment customers who, between Jan. 1, 2010, and Oct. 31, 2020, were assessed the TSSNF,” reports Top Class Actions in their blog.

“They had their contractual credit card discount rates increased above their contractual rate by the company; and for whom the company shifted their credit card transactions from lower-cost rate tiers to higher-cost tiers. Central Payment Co., based in California, provides services related to transaction processing, and also offers ATMs.”

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When Do You Really Need the Expense of a Law Firm?

When Do You Really Need the Expense of a Law Firm?
Adopting an Agile Approach to Legal Resourcing During an Inflationary Economy

By Catherine Kemnitz, Chief Legal Officer, Axiom

Do you really need the (growing) expense of a law firm? The answer is – of course you do. Elite law firms will always have a place in the legal resourcing ecosystem. The right question to ask, however is: When do you really need that law firm?

Given the way world events are unfolding, now is the time for legal leaders to intensify their efforts to hedge against inflation by rethinking the traditional legal paradigm – and this means taking a hard look at their approach to anticipating and identifying risks and mapping related legal matters to the most appropriate legal resources.

The Impact of Macro Issues
Today, evolving macro issues are challenging the role of in-house counsel.

Risks are proliferating: Turmoil in world politics, ongoing repercussions from the pandemic, the Great Resignation, the looming energy crisis, and unprecedented inflation – which recently reached its fastest 12-month pace in nearly 40 years – are just some of the factors contributing a perfect storm of enterprise jeopardy which legal departments must navigate. Commercial leaders, already dealing with a pandemic-induced volatile economy and a disrupted supply chain, are struggling to keep costs in check to maintain profit.

The marketplace is less forgiving: Stakeholder expectations are changing rapidly and there is even less tolerance for companies that cannot effectively withstand increased scrutiny around DE&I practices, ESG, privacy, security, and heightened consumer advocacy. Reputational risk carries far more weight and its impact is longer-lasting than ever before.

The role of legal is expanding: Particularly in the post-pandemic environment, and after a year of social unrest and global turmoil, legal departments have had to be more responsive to external circumstances, volatility, and related internal shifts in priorities and strategies. Meanwhile, product development cycles are accelerating and corporate strategies are evolving more rapidly. The need for legal teams to act with speed and agility has never been greater. This is good news, perhaps, for GCs who (rightfully) believe they have critical insights to contribute as a partner and counselor to the C-suite – but with that enhanced role comes increased implications for the legal department. Legal now becomes far more accountable for advocating, driving, and navigating the corporate response to emerging risks and market opportunities.

GCs are all too aware of how their role is expanding. Seventy-nine percent of respondents to a recent survey of 220 GCs at companies with $250m+ in annual revenue say they believe they must serve as the conscience of the company, and 64% believe that role is more important today than it’s ever been. GCs are also conscious of how much harder their job is in a COVID- influenced environment, with 85% (unsurprisingly) reporting that the pandemic made their job more difficult.

The pressure on GCs to cut costs is mounting: Even before the pandemic, 74% of in-house legal executives cited cost control as a top priority, according to a 2020 Consero Report. A 2021 EY Law and Harvard Law School survey, which interviewed more than 2,000 GCs, found that 88% of GCs anticipated substantial budget cuts. CEOs of companies with more than $20 billion in annual revenue were expected to require legal departments to reduce costs by 18%, despite ballooning work volumes and emerging legal risks.

The Deficiencies of the Traditional Model for Legal Resourcing
It’s a new environment in which the old “staff up or send out” model is no longer adequate, not only because budgets are shrinking, but also because the legacy legal resourcing model lacks the agility to address accelerating risks. In this model, the in-house team handles an ongoing stream of enterprise legal work, which normally requires some level of institutional knowledge and should support the broader strategic priorities of the company. External law firms form the second piece of the puzzle. They are critical for large-scale litigation, for understanding and benchmarking marketplace norms, and for exceptional matters that are beyond the abilities and scale of even the most robust internal team (more on this later).

Addressing enterprise needs in this model is expensive and partly ineffective. The in-house team is a fixed cost, so GCs ideally need to avoid staffing up for matters that turn out to be transient. But because it is difficult to anticipate future risk, especially in the current business environment, GCs are forced to hire for tomorrow’s needs based on yesterday’s issues, creating an inherent misalignment. Ideally the core team could follow the Goldilocks paradigm of being perfectly right-sized: big enough to focus on essential issues, lean enough to control for costs and hedge against the underutilization of specialists, but sufficiently agile to add resources as workflow and matters evolve. But it rarely works out that way.

The second element of the traditional model is even costlier costly. Big Law firms are inherently expensive and getting more so: In 2020, we saw an aggregate rate increase of 5% for their services. The pandemic years have been good for law firms. Beyond cost, however, law firms must be educated about the critical context of the legal matters for which they are engaged, which adds both to the cost and management time required to bring them up to speed. They also often lack the unique experience of in-house lawyers in building practical solutions that can be operationally carried out throughout the organization.

Legal leaders can adapt, survive, and thrive only by rethinking the traditional legal paradigm. What does that mean? It means taking a new approach to anticipating and identifying risks and mapping related legal matters to the most appropriate legal resources.

The Missing Leg
Like a two-legged stool, the traditional model lacks a stabilizing element to help absorb risk and balance the distribution of legal matters. That missing piece, the third leg of the stool, is an agile layer of flexible talent or “virtual bench” that sits between the in-house team and the law firm, allowing the legal department to combine the legal expertise of Big Law and company-specific institutional knowledge in new ways. In this model, which we call Core-Bench-Firm or CBF, the core team is composed of a lean full-time team of legal lieutenants who leverage internal enterprise knowledge, provide appropriate managerial scale and handle core competency work. That core team is then supported, almost entirely, by a bench of trusted, on-demand lawyers for expertise aligned to emerging risks, workload surges, and law firm management.

Creating a CBF model that incorporates a layer of agile talent reduces the addiction to law firms by limiting their involvement to a need-based model. Instead of leveraging law firms because the in-house team is simply too busy, or not well-versed enough in the specialty, a CBF model funnels legal matters through a process that confines law firm engagement to exceptional events, like navigating during the pandemic and new benchmarking needs; or provides a mechanism for more finely focusing how and when, during the course of a legal matter, external firms get called upon for counsel. Herein lies one of the hidden values of the agile layer. In the old paradigm, everything that can’t be staffed internally gets sent out to law firms from the start. In this new model, expertise from the bench is tasked with handling the matter. That agile lawyer (or lawyers) can often handle the issue entirely – but that is not the only value he or she brings. Sometimes that lawyer can handle a matter through near completion, but then understands the needs and nuances requiring specific law firm expertise. That latter-stage and more finely tuned conversation with a law firm is far more informed, focused and valuable than it would have otherwise been from the start, which means lower costs and less managerial burden because the agile lawyer is participating in the law firm education process.

This CBF approach to legal resourcing minimizes expensive law firm spend while simultaneously reducing the fixed costs of permanent headcount, especially as legal departments find themselves affected by an inflationary economy and more short-staffed than ever.

This doesn’t just control costs; it provides the legal department with better value for every budgeted dollar. Instead of expensive external outside counsel, an in-house generalist not well-versed in the matter, or an underutilized specialist, that bucket of legal spend can be re-deployed and divided among a curated bench of on-demand lawyers, based on needs and risks in the moment. Not only does it provide more value and managerial scale, but it also optimizes risk management by ensuring the right talent is matched to the right legal matter at the right time.

It’s Time to Change the Paradigm
Identifying the right legal resource is no longer a binary choice between the two expensive options of staffing up (internally) or sending out (to an external law firm). Today, the right legal resource – particularly in an inflationary market where cost mitigation is paramount – is often a third option: agile legal talent. Instead of hiring a single on-demand lawyer for overflow work, forward-looking GCs are building a virtual bench of “always-on” flexible talent, trained to understand the business and the strategic objectives of the organization, that sits between the in-house team and the firm, combining Big Law-level expertise with in-house acumen.

The agile virtual bench helps the internal team achieve four critical objectives:

1. It improves risk mitigation by matching legal matters to the right legal talent on an as-needed basis
2. It extends in-house expertise, thereby limiting how much and how often work needs to be sent to a law firm
3. It decreases costs by minimizing law firm spend and in-house hires
4. It reduces the burden on in-house counsel by providing practical, business-focused oversight to teams tasked with managing an increasing number of law firms.

A 5-Step CBF Blueprint
Critically, the virtual bench must be curated, built, and onboarded before specific needs arise, and its nature will be dictated the subject matter expertise that’s required to address specific anticipated risks. The objective is to create a standby team with a base of institutional knowledge that’s ready to ramp up at any time. This bench can be supplemented by additional lawyers as work requires or unexpected risks emerge.

There are 5 key steps for building that virtual bench:

1. Identify and understand the enterprise’s key priorities to ensure that the legal department’s resourcing strategies support core business goals.
2. Assess enterprise-specific core legal talent requirements.
3. Implement a hiring freeze on full-time lawyers to free up budget.
4. Partner with HR to assess the skills and expertise available within the current team and where critical gaps exist.
5. Build the bench by:
• Identifying skill sets required to address anticipated work volume and risk in the near future
• Selecting an agile legal talent provider to curate the required bench of lawyers
• Documenting institutional information to ease onboarding, and
• Continuing to expand the bench over time.

The benefits of CBF are not just financial; the agile bench helps the legal team in many less obvious, but meaningful, ways. For example, agile talent can be used to help create better legal outcomes in coordination with law firms. Agile talent can be used in M&A transactions to help support the entire lifecycle of the deal from diligence to integration, or perhaps to handle discrete components of transaction activity (such as contract review and integration) while the law firm addresses the bet-the-company IPO-related filings. The right bench can also help keep day-to-day legal operations running smoothly while the core team focuses temporarily on the timely execution of a high-stakes deal. The possible configurations of in-house, external, and agile talent to address a diverse set of legal problems are virtually limitless.

The important point is that the agile bench is a true but flexible extension of the in-house team, imbued with the required institutional knowledge of the enterprise, but without the fixed costs of full-time employees. For specific projects, that bench can displace law firms entirely. For other matters, the bench can help extend the internal team’s ability to address the matter, only then engaging the law firm during the project’s latter stages, where their counsel and advice is really required and ready to be acted upon.

Because the CBF model allows hard-pressed legal departments to gain access to a vetted bench of institutionally knowledgeable lawyers without incurring the costs of hiring full-time talent, it gives those departments unprecedented flexibility and buying power. Given marketplace volatility and the macro risks and trends impacting the modern-day enterprise legal department, this model is quickly becoming a core requirement for today’s GC. This is the kind of innovation today’s short-staffed legal departments desperately need as they face an inflationary economy, increased market pressures, and a growing list of risks to the enterprise.




Investigating The SCOTUS Leak: Here’s What Needs to be Done

“H&M will pay $36 million to settle accusations that the fashion retailer illegally kept millions of dollars in gift cards that customers never used, New York Attorney General Letitia James said on Thursday. The Swedish company, whose full name is H&M Hennes & Mauritz AB, will pay $28.26 million to,” reports Nicholas Peck And Thomas Feeney in The Hill.

“There are ways, however, to get to the truth while respecting the court’s singular and delicate ecosystem. Supreme Court Marshal Col. Gail A. Curley has been charged with investigating the leak, and she has an admirable and impressive record of service to our country.”

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District Court Approves $500 Million Tribal Lending Settlement

“On May 12, the U.S. District Court for the Eastern District of Virginia preliminarily approved a nearly $500 million class action settlement resolving allegations that tribal online lending companies charged usurious interest rates. Plaintiffs’ filings outline their class action against tribal entities, as well as several,” reports Lexology in their blog.

“The U.S. Court of Appeals for the Fourth Circuit previously upheld a district court’s denial of defendants’ bid to dismiss or compel arbitration in the case (covered by InfoBytes here). The 4th Circuit concluded that the arbitration clauses in the loan agreements impermissibly forced borrowers to waive their federal substantive rights under.”

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What’s Hot in Corporate Renewable Energy Procurement

“From a global pandemic to extreme weather events, supply shortages and a global energy crisis, it’s been a wild couple of years. The uncertainty and instability has bred innovation among corporate energy buyers: Not only are those with experience exploring and using a wider range of contract types, but,” reports Sarah Golden in Green Biz.

“A broader range of companies of all sizes have gotten more comfortable with taking the plunge into renewables procurement. That’s according to “State of the Market,” an annual report from the Clean Energy Buyers Association (CEBA) that identifies top trends from the energy deals inked by U.S.-based corporations. CEBA, an advocacy.”

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Databricks Appoints Tram Phi as Senior Vice President and General Counsel

“Databricks, the Data and AI company and pioneer of the data lakehouse paradigm, today announced the appointment of Trâm Phi as Senior Vice President and General Counsel. In this role, Phi will pull from her decades of experience scaling high-growth companies, both public and private, to lead,” reports PR Newswire in their blog.

“Tram’s depth of experience and focus on operational excellence in scaling impactful legal and regulatory functions across enterprise software is critical to our continued success as a company,” said Ali Ghodsi, CEO and Co-Founder of Databricks. “Her leadership and expertise across both public and private markets will prove invaluable.”

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H&M Reaches $36 Mln Settlement with New York Over Unused Gift Cards

“H&M will pay $36 million to settle accusations that the fashion retailer illegally kept millions of dollars in gift cards that customers never used, New York Attorney General Letitia James said on Thursday. The Swedish company, whose full name is H&M Hennes & Mauritz AB, will pay $28.26 million to,” reports Jonathan Stempel in Reuters.

“James said H&M had since 2008 unlawfully kept at least $18.4 million in unused gift card balances in its own bank accounts, instead of transferring them to the state’s Abandoned Property Fund. New York law requires gift card issuers to turn over unused card balances to the fund after five years of inactivity. James also said H&M repeatedly.”

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Illinois Facebook Users to Receive Class Action Lawsuit Settlement Payments of Up to $400

“Facebook users in Illinois who applied to collect a settlement stemming from a class action lawsuit could see their payment any day now. According to the settlement administrator, paper checks and electronic payments began going out on May 9. The lawsuit was filed over Facebook’s collection and storing of,” reports ABC 7 News in their blog.

“The Biometric data of Illinois users without proper consent. As part of the $650 million settlement, claimants will receive payments of between $200-$400. Those covered by the settlement include Facebook users located in Illinois for whom Facebook created and stored a face template after June 7, 2011. Claimants must have been a resident.”

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OnPolitics: SCOTUS sides with Ted Cruz over campaign loan repayment

“House Speaker Nancy Pelosi, D-Calif., said Sunday that Congress will take action on the baby formula shortage plaguing states throughout the country. The House is considering two pieces of legislation: first, a bill introduced by Rep. Bobby Scott, D-Va., chair of the Education and Labor Committee, to “loosen some of the red tape,” connected to how people can purchase formula. Pelosi told CNN that half of the formula is bought by WIC recipients,” reports Chelsey Cox in USA Today.

“The second bill is being put together by Rep. Rosa DeLauro, D-Conn., that will allow the U.S. to purchase formula from overseas. Mexico, Chile, Ireland and the Netherlands have a formula supply on hand that may be immediately available, Pelosi told ABC News Sunday.”

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How Corporate Takeovers are Fundamentally Changing Podcasting

“At first glance, it may seem as though Big Tech can’t figure out how to make money off its foray into podcasting. In early May 2022, Meta announced that it was abruptly ending Facebook’s podcast integration less a year after it launched. Facebook had offered podcasters the ability to upload their,” reports John Sullivan in The Conversation.

“Meanwhile, Spotify’s own expensive gamble on podcast integration within its music streaming service hasn’t resulted in the surge of new listeners that it had hoped and what about the emergence of social audio platforms like Clubhouse that promised to re-imagine podcasting as live audio chatrooms hosted by celebrities and public.”

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Charles Barber Named Vice President and General Counsel

“Charles Barber has been appointed George Washington University’s permanent vice president and general counsel, President Mark S. Wrighton announced Friday. A higher education legal expert with decades of experience at major research universities, Barber has served GW’s Office of the General Counsel since,” reports GW Today in their blog.

“Charles has been a crucial member of my leadership team since I joined the university, offering sound judgment and guidance through a wide range of legal matters, from business operations and strategic partnerships to our response to the Wrighton wrote in his message to the GW community. Charles’ legal acumen, collaborative.”

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Virginians Win $489 Million in Payday Loan Settlement

“Online payday loan companies that charged as much as 919% interest will spend $489 million to reimburse some 555,000 borrowers, to settle a class action lawsuit filed by eight Virginians. The lawsuit alleged that Golden Valley Lending; Silver Cloud Financial, Inc. Mountain Summit Financial, Inc. and,” reports Dave Ress in Daily Press.

“Majestic Lake Financial, Inc. all formed under the laws of the Habematolel Pomo of Upper Lake tribe in California, violated federal racketeering laws as well as Virginia’s usury and consumer finance licensing laws. It also leveled the same charges against three Kansas City, Missouri, businessmen, whose firms processed the loans, put up the.”

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Le Clair Ryan Trustee Reaches $21 Mln Settlement in United Lex Case

“The trustee overseeing the dissolution of defunct law firm Le Clair Ryan has reached a $21 million settlement to resolve her claims that the firm’s joint venture with alternative legal services company United Lex hastened its demise, according to a court transcript in the case. A lawyer for court-appointed,” reports Sara Merken in Reuters.

“Chapter 7 trustee Lynn Tavenner described the details of the agreement during an April 19 hearing before a bankruptcy judge in Richmond, Virginia. The proposed settlement agreement has not been formally entered into the court docket as of Monday. There is a hearing scheduled for May 25 on a request to restrict public access.”

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We Can’t Drill Our Way to Energy Security

“Thanks to a remarkable oil and gas boom, the United States has achieved the long-sought goal of energy self-sufficiency: We now produce more oil and refined products, natural gas and coal than we consume. In particular, horizontal drilling and hydraulic transformed the United States from,” reports Jesse Jenkins in The New York Times.

“This kind of physical energy security is a blessing when conflict disrupts the global energy trade. Europe’s frantic dash to free itself of Russian energy illustrates how deeply problematic it can be to not have it. Yet look at prices at the pump, and you’ll see why we can’t drill our way to true energy security. That’s why the Senate must finalize.”

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Reform Groups Urge More Oversight for State Contracts

“Good-government organizations and a range of think tank and advocacy groups are backing the restoration of oversight for billions of dollars in state government spending by the New York comptroller’s office in order to guard against fraud and corruption. The oversight power was previously,” reports Nick Reisman in Spectrum News.

“Having that oversight could be key for preventing fraud or corruption given those entities have been used in the past to provide pass-through funding for economic development projects. Some of those projects in the last decade have fallen under the scrutiny of federal prosecutors. Comptroller oversight is crucial for ensuring the integrity.”

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NFL First-Round Draft Picks Contract Tracker: Jaguars Sign No. 1 Overall Pick Travon Walker to $37M Deal

“The 2022 NFL Draft has come and gone. Now that teams have claims on players they’ve selected throughout the three-day spectacle in Las Vegas, they’ll now head to the negotiating table to hammer out their rookie contracts. Of course, these negotiations are unlike those from over a decade ago when Sam,” reports Tyler Sullivan in CBS Sports.

“Bradford was inking a $78 million deal with $50 million guaranteed after being the first overall pick. Now, thanks to a new CBA, rookie contracts are a lot more tied to the player’s slotted draft position and there really isn’t too much to be negotiated. That said, it is notable when the two sides do come to terms on what is a fully guaranteed deal.”

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Cardinals Sign Three Draft Picks to First Contracts

“The Cardinals began signing their draft picks on Thursday, getting three of their new players under contract. The team signed running back Keaontay Ingram, guard Lecitus Smith and linebacker Jesse Luketa to four-year deals. Ingram and Smith were sixth-round picks, Luketa was one of three,” reports Darren Urban in Arizona Cardinals.

“Seventh-rounders. That leaves second-round tight end Trey McBride, third-round pass rushers Cameron Thomas and Myjai Sanders, seventh-round cornerback Christian Matthew and seventh-round guard Marquis Hayes. The rookies arrived in Arizona for the first time Thursday. Rookie minicamp is Friday through Sunday.”

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Big Law Is Bullish on SPACs Even as Large Banks Pull Out

“Proposed US rules causing banks to sour on SPACs are having the opposite effect on Big Law firms that see an uptick in inquiries about special purpose acquisition companies. Lawyers are advising SPACs, investors, and target companies on what the rules will mean for deals being negotiated now and,” reports Roy Strom in Bloomberg Law.

“In the past few weeks the work has increased, said Josh DuClos, co-head of the SPACs group at Sidley Austin. We’re having conversations with investors, banks, sponsors, about what these rules will mean. The US Securities and Exchange Commission proposal is creating business for law firms that benefited from the boom in the vehicles.”

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Karen Wilson Thissen Named General Counsel of General Mills

“General Mills (NYSE: GIS) today announced that Karen Wilson Thissen will join as general counsel and corporate secretary of General Mills, effective June 6, 2022. Thissen, a 29-year legal veteran, joins from Ameriprise Financial, Inc. where she most recently served as general counsel and executive vice,” reports Business Wire in their blog.

“Karen brings a proven track record of strategic thinking and global experience which is critical for General Mills’ continued success, said Jeff Harmening, Chairman and CEO of General Mills. As we continue to advance our growth, Karen’s sophisticated global legal experience will help move us forward across the many geographies we are.”

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Capital One Data Breach $190M Class Action Settlement

“Capital One will pay $190 million to resolve claims it jeopardized customer information in a 2019 data breach. The settlement benefits around 98 million Capital One customers whose information was compromised as part of the 2019 data breach. Capital One offers a variety of financial services to,” reports Top Class Actions in their blog.

“However, according to the bank, its customers were targeted in a 2019 Data Breach. In July 2019, Capital One informed its customers that millions of them had their information compromised when a third party accessed bank systems. Although the perpetrator was captured by the Federal Bureau of Investigation (FBI), sensitive information.”

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