The Consumer Financial Protection Bureau proposed a rule Thursday that would ban arbitration clauses, which would affect the entire financial industry and the hundreds of millions of bank accounts, credit cards and other financial services Americans use, reports the Associated Press.

“The CFPB’s proposal does have a significant limitation,” the report explains. “The ban would only apply when consumers want to create or join a class-action lawsuit. Financial companies will still be able to force individuals to settle disputes through arbitration; however cases where a lone customer wants to sue his or her bank are far less common.”

The financial industry claims that arbitration is a more efficient way for customers to resolve disputes, and a study commissioned by the CFPB in lends that claim some credence. “However, when large numbers of customers were negatively impacted by the same issue, the same study showed arbitration clauses hinder the ability for customers to seek relief,” the AP report says.

Read the article.

Financial services lawyers are predicting that efforts by the Consumer Financial Protection Bureau to prevent companies from keeping consumer complaints out of a courtroom will wind up being challenged in court, reports The Wall Street Journal.

A rule proposed by the agency Thursday would prohibit financial companies from using mandatory-arbitration clauses as a way to block class-action lawsuits, according to the report. “While companies would still be able to require consumers to enter arbitration to resolve individual disputes, the elimination of the no-class arbitration provisions would strip away incentives for companies to include arbitration clauses in their contracts. And many are predicting that as a result, companies would discontinue using them.”

But the CFPB counters that class actions are a “more effective means for consumers to challenge problematic practices by … companies” than arbitration, which it says gives financial service providers an unfair advantage over customers.

Read the report.

A federal judge in San Diego said he wanted a trial by the middle of this year in a lawsuit against Donald Trump over the now defunct Trump University, according to a report by ABC News. That was before the real estate mogul appeared headed for the Republican presidential nomination.

“U.S. District Judge Gonzalo Curiel is expected to address the trial’s timing at a hearing Friday in San Diego. Trump’s lawyers, who have put the candidate on a list of witnesses who may testify, have signaled opposition to a trial while Trump is in the race,” the report says.

“This will be a zoo if it were to go to trial,” Trump lawyer Daniel Petrocelli said at a hearing in March.

Read the article.

Photo by Mike Mozart of JeepersMedia

Regulators fighting the merger plan of Office Depot and Staples face a decision from a judge that may hinge on the veracity of the government’s relevant product market, reports Policy and Regulatory Report, a Mergermarket Group company. The issue of whether the Federal Trade Commission (FTC) gerrymandered its market has repeatedly surfaced during the government’s pursuit of a preliminary injunction against the proposed merger.

PaRR Global (Policy and Regulatory Report) spoke to various independent sources to assess holes in the arguments of both the FTC and the merging companies.

In its case, the FTC defined the relevant product market as “consumable office supplies,” such as pens and paper, which constitute a so-called cluster market, according to the PaRR analysis.

A cluster market is used in antitrust theory to group separate individual relevant product markets, such as the individual market for paper and the individual market for pens, into a wider market for analytical convenience.

Clustering is appropriate “only when the individual products face similar competitive conditions,” according to the government’s proposed findings of fact.

Read the article.

Before entering into a construction contract, consider how force majeure events are evolving in today’s world, advise Jonathan Massell and David A. Senter of Nexsen Pruet on the firm’s website.

“In construction contracts, force majeure clauses include events such as “riots” and “acts of war” but courts have found that acts of terrorism did not fit those descriptions,” they write. “After the September 11th attacks, clauses utilizing “acts of terrorism” became more common, but courts have not directly interpreted the phrase and it has not been scrutinized judicially.”

Read the article.

Quyen Truong, former assistant director and deputy general counsel of the Consumer Financial Protection Bureau (CFPB), has joined Stroock & Stroock & Lavan LLP as a partner in the firm’s Washington, DC office.

Truong, a member of the firm’s national Financial Services/Class Action Practice Group, was instrumental in building the new federal agency while implementing the Dodd-Frank Act for finance reform, the firm says in a release. Among other responsibilities, she advised leadership on analysis of consumer financial laws, oversaw review of all enforcement actions and responded to legal challenges to the agency.

“Quyen’s proven track record bridging the technical complexities of financial reforms and their regulatory implications will complement our already prominent Financial Services/Class Action practice and enhance our ability to provide high level strategy and counsel to our clients,” stated Julia Strickland, chair of the Financial Services/Class Action Practice Group and a member of the firm’s Executive Committee.  “We are thrilled that she chose Stroock when she decided to return to the private legal sector.”

While at the CFPB from 2012-2016, Truong was instrumental in helping the Bureau to define the scope of its authorities and develop a new regulatory and enforcement framework for the financial industry.  As a senior leader at the CFPB, she represented the Bureau on the inter-agency Financial Stability Oversight Council (FSOC), managed enterprise risks, and coordinated activities with the Department of Justice, Federal Trade Commission, and banking regulators in high stakes litigation, regulatory and oversight proceedings.  As head of litigation, she also directed the CFPB’s amicus program to advance the agency’s policy and legal interpretations in private litigation.

“Stroock to me epitomizes an ideal law firm in which to work with the financial industry, because of the high quality of its lawyers, their focus on this industry, and their close relationships with market leaders,” says Truong.  “The firm and its clients share my belief that doing right by customers is crucial to achieving business success. I am confident that as we continue to build the practice, we will advance both business and consumer interests.”

Prior to joining the CFPB, Truong served at the Federal Deposit Insurance Corporation (FDIC) as risk management and litigation counsel where she oversaw the investigation and litigation of claims of regulatory violation, fraud, officer/director and other professional liability, following the financial crisis.  In addition, she has held public and private positions with Dow Lohnes PLLC, the Federal Communications Commission (FCC), Howrey LLP and Mayer Brown LLP.

“Quyen’s unique government background, coupled with her 25 years of regulatory policy, compliance and litigation experience adds significant value for our market-leading financial services clients,” noted Alan M. Klinger, Stroock’s co-managing partner.  “We embrace every opportunity to grow our Washington, DC office through highly talented and skilled legal leaders from the government sector.”

Truong received her J.D. from Yale Law School where she was a John M. Olin Fellow in Law, Economics & Public Policy, and her B.A. from Yale University, summa cum laude and Phi Beta Kappa.

Exari, a provider of cloud-based contract lifecycle management solutions, has announced the release of its Contract Risk Playbook: Risks Hiding in Plain View, an advanced guide for Corporate Boards and Senior Executives.

Contract risk is a board level issue that has been difficult to quantify, Exari says on its website. Understanding contract risk requires a comprehensive business plan to capture, organize, analyze and improve the contract management process across the entire enterprise. By understanding the rights and obligations contained in contract assets, board directors and executives can better determine the underlying risk profile of their firm. As a result, they can take definitive action to reduce risk and improve long-term sustainability.

The Contract Risk Playbook breaks down the risks for Boards and Executives who lack control over monitoring their contracts. The playbook gives step by step guidance on how to assess contractual risk from an enterprise level, take action and move forward proactively.

Exari says firms often lack the right tools and processes for managing contractual relationships, which can result in major risks, such as regulatory compliance and expensive outside legal costs. Risk exposures need to be managed proactively at an enterprise level in order to reduce risk and improve operational excellence before a crisis emerges. Most companies store contracts electronically but are unable to understand the relationship between contract terms across all their contracts.

Download the playbook.

Global law firm Greenberg Traurig, LLP’s Global Gaming Group co-chairs Martha A. Sabol and Mark A. Clayton will participate in this year’s International Gaming Summit. The conference will take place May 31-June 2 at the Westin Dragonara Resort in St. Julian’s, Malta. The summit brings together leaders from all global gaming sectors to meet and discuss the top issues and challenges facing gaming today.

The International Association of Gaming Advisors (IAGA) is hosting the summit with the Gaming Regulators European Forum (GREF), marking the first time IAGA and GREF have hosted a joint conference together.

Sabol is the current president of IAGA, and will make opening remarks and preside over the President’s dinner.

“The summit’s focus will be on the international gaming industry as a whole,” Sabol said. “Among other topics, we will discuss the convergence of land-based casinos, lotteries, and online gaming.”

Sabol added, “The joint conference provides members of IAGA and GREF with the unique opportunity to network and discuss important matters affecting the international gaming industry.”

Clayton will moderate a panel on social gaming, e-sports, and fantasy sports. He will also participate in the GLI University Regulations Seminar.

Additionally, Howard Stutz, strategic development manager of the Las Vegas office, will moderate a panel on gaming development in the Americas.

About Greenberg Traurig Las Vegas

In Nevada, Greenberg Traurig counsels clients in appellate, construction, corporate and securities, entertainment, gaming, government law & policy, intellectual property, litigation, and real estate matters.

About Greenberg Traurig’s Global Gaming Group

Greenberg Traurig’s Global Gaming Group focuses on not only casino operations, but also addresses lotteries, pari-mutuel wagering, charitable gaming, tribal gaming, and Internet gaming, where permitted by law. Members of the group have varied backgrounds and are located throughout the firm’s offices, allowing them to assist gaming clients in this highly regulated industry across multiple U.S. jurisdictions and internationally. The group’s focus includes the representation of casino owners, operators and executives, gaming manufacturers and suppliers, private equity firms and investment banks on gaming related matters.

About Greenberg Traurig, LLP

Greenberg Traurig, LLP is an international, multi-practice law firm with approximately 1,900 attorneys serving clients from 38 offices in the United States, Latin America, Europe, Asia, and the Middle East. The firm is No. 1 on the 2015 Law360 Most Charitable Firms list, third largest in the U.S. on the 2015 Law360 400, Top 20 on the 2015 Am Law Global 100, and among the 2015 BTI Brand Elite. More information at: www.gtlaw.com.

As a result of the passage of the Dodd-Frank Act in 2010, the use of mandatory pre-dispute arbitration in consumer transactions has become tenuous, according to an article written by Maurice Shevin for Sirote & Permutt, PC.

He explains that the Consumer Financial Protection Bureau was instructed by law to study and evaluate the effect of such mandatory clauses, and it has been doing so almost since its inception.

“The CFPB holds yet another public forum on the subject in May. I won’t be surprised to see a Proposed Rule come out of this hearing that announces the intent of the CFPB to suppress the use of mandatory arbitration. If the CFPB stays true to form, it will give creditors a period of time to comply with any Rule that it may adopt, Shevin writes.”

Read the article.

Atlanta-based LabMD was a successful company that tested blood, urine, and tissue samples for urologists, and had about 30 employees and $4 million in annual sales. Then one day in 2008, the company’s general manager received a phone call from a man who claimed to be in possession of a file containing LabMD patient information, including more than 9,000 Social Security numbers, reports Bloomberg.

Then came the sales pitch: His company, Tiversa, offered an investigative service that could identify the source and severity of the breach that had exposed this data and stop any further spread of sensitive information — at a cost of about $38,000. After some back-and-forth, LabMD told Tiversa to direct all communication through its lawyers. Then the Federal Trade Commission came calling.

LabMD’s woes could end up finishing off the once-promising business.

Read the article.

Harris, Wiltshire & Grannis LLP will host a complimentary one-hour webinar on what industry needs to know about the increasingly severe enforcement of energy efficiency rules.

The event will be Tuesday, May 3, 2016, at 12:30 p.m. EDT.

Speakers Scott Blake Harris and John Hodges will provide information on enforcement proceedings at the U.S. Department of Energy (DOE), Environmental Protection Agency (for its Energy Star program), Federal Trade Commission, and the California Energy Commission.

The presentation will include an opportunity for participants to ask questions. This webinar is designed for manufacturers, importers, and marketers of appliances and equipment that are, or may become, subject to energy efficiency rules.

Register for the webinar.

David Conaway of Shumaker, Loop & Kendrick LLP has posted an article describing the key provisions to address in international sales contracts, other than normal trade terms.

The article covers what law applies, where will disputes be resolved, arbitration of foreign disputes, who pays the costs of dispute resolution, and miscellaneous important contract provisions.

“Companies ideally would have bespoke contracts that address these differences. However, given that many companies do business in numerous foreign countries, it may be impractical to have a bespoke contract for every country. A reasonable approach would be to consider an over-arching ‘international’ sales or supply contract, and variations for key market countries, or material customer relationships,” he writes.

Read the article.

Elizabeth Holmes
Photo by Max Morse for TechCrunch

Federal prosecutors have launched a criminal investigation into whether Theranos Inc. misled investors about the state of its technology and operations, according to people familiar with the matter, The Wall Street Journal is reporting.

Walgreens Boots Alliance Inc. and the New York State Department of Health have received subpoenas in recent weeks seeking documents and testimony about representations made to them by the Palo Alto, Calif., blood-testing company, some of the people said.

Theranos once claimed it had made “breakthrough advancements” that made it possible to run “the full range” of lab tests on a few drops of blood pricked from a finger. But some regulators and former employees have voiced doubt about the tests.

“Theranos was valued at $9 billion in a funding round in 2014 and the majority stake of Elizabeth Holmes, the startup’s founder and chief executive, at more than half that,” The Journal reports.

Read the article.

Webinar: Thursday, April 28,
10 a.m. PDT

SecureDocs, a virtual data room provider for secure document sharing and storage, and Corum Group, a seller of technology companies globally,will host a webinar focused on examining the growing trend of Asian buyers eagerly seeking technology acquisition and investment opportunities, particularly in North America and Europe. The webinar also will consider what this means for the technology industry across the globe.

This webinar titled, “Is Your Company’s Buyer in Asia?,” will be on Thursday, April 28, 2016 at 10 am PDT.

This webinar is especially relevant for the business leaders from the technology industry who are interested in understanding and capitalizing on the shifting tide of buyers from Asia, and their huge appetites for growth companies located in North America and Europe, SecureDocs says in a release.

During this 60-minute webinar, featured speaker Jim Perkins, Vice President at Corum Group, will present an in-depth analysis of what buyers from Asia are after, how to reach them, and what the ramifications are of doing business overseas. Additionally, Perkins will introduce and examine critical elements of working with buyers from Asia, including:

-Why Asian buyers are so eager for North American and European technology acquisitions.
-Why Asian buyers are doing deals of all sizes, from very large to moderate.
-How to best reach and leverage the potential acquirers in Asia.
-What it’s like working with a buyer in Asia.

Register for the webinar.

From the SecureDocs release:

About SecureDocs Virtual Data Room:
SecureDocs is a Virtual Data Room for businesses raising funds, going through M&A, licensing Intellectual Property, and those who recognize the importance of safeguarding their most critical business documentation. SecureDocs has an easy-to-use solution that keeps businesses organized and ready for opportunity, without breaking the bank. Created by the engineers and team who helped develop GoToMeeting, GoToMyPC, AppFolio, and Rightscale, the team is dedicated to building software solutions that are highly secure, easily adopted, and affordable for any type or size of business.

About Corum Group:
Corum Group is the global leader in merger and acquisition services, specializing in serving sellers of software and information technology companies worldwide. With offices globally, Corum has completed over US $7 billion in software M&A transactions over the last 30 years, spanning six continents. Corum’s M&A advisors are highly experienced former tech CEOs, who are supported by the industry’s leading researchers, writers and valuators.

If your company is providing professional services as opposed to selling a product, you may find that you need a good Agreement for Professional Services, writes Richard Harroch for AllBusiness. This type of agreement lays out the terms and conditions under which a business provides certain services, such as accounting, engineering, consulting, software development, and property inspections.

The article discusses the key points to keep in mind when drafting or negotiating an Agreement for Professional Services.

Those points include services to be rendered, nonsolicitation of employees, fees, reimbursable costs, liability limitations, late charges, period for bringing claims, time to perform services, suspension of services, and force majeure.

Read the article.

Josh Stark, lawyer and head of operations and legal at blockchain consulting firm Ledger Labs, comments in an opinion piece on CoinDesk on “smart contracts” as an alternative form of legal agreement, speculating on how they could come to impact his industry.

“Banks, exchanges, and other financial institutions are actively developing blockchain technologies that will enable them to store and trade real assets over blockchain systems. Nasdaq, in partnership with blockchain startup Chain, has developed and begun testing a private-market equity trading platform,” he writes.

“The impact will not be limited to financial contracts, although these are the most obvious use cases. As techniques are developed that enable other types of property to be recorded and transacted on a blockchain, the possible applications for smart contracts will multiply,” he adds.

Read the article.

Though most business-to-consumer transactions do not involve the signing of contracts, a lot of business-to-business transactions do, which is why it is important to remain current on the law to ensure that your electronically signed contracts are enforceable, writes John Di Giacomo for Practical Ecommerce.

“In the United States, the federal government has adopted the E-Sign Act, which states that a signature cannot be denied legal effect simply because it is made in an electronic form,” he writes. “The E-Sign Act preempts state law concerning electronic signatures to the extent that states haven’t adopted their own electronic signature laws.”

He also discusses the enforceability of e-signed contracts in the European Union.

Read the article.

The argument for corporate longevity is quite simple: achieving something strategic, significant, and sustainable almost always takes time, writes Wendell P. Weeks, chief executive officer of Corning, in an article posted by McKinsey & Company. Longevity is particularly important for innovation because time and sustained investment are needed to solve really tough problems. To help explain why, he considers an example from the history of his company.

He tells the story of Corning’s early experiments with optical technology in an effort to solve the problem of strained copper lines for phone carriers.

“Today, more than two billion kilometers of optical fiber have been installed worldwide, and a single fiber can transmit the entire collection of the US Library of Congress from Florida to London in less than 25 seconds. This life-changing invention would not have been possible without a long-term focus and sustained investment—a pattern that has repeated itself throughout Corning’s history,” he writes.

Read the article.

Abbott Laboratories didn’t cause medical providers to submit false payment claims to Medicare for unapproved stents, a Texas jury ruled, thwarting a whistle-blower’s lawsuit seeking as much as $1 billion, reports Bloomberg.

A former salesman for Abbott’s predecessor Guidant claimed the company pushed bile duct stents that were intended for short-term purposes for more complex vascular use. His 2006 lawsuit on behalf of the U.S. government accused the company of encouraging doctors and hospitals to code bills to Medicare falsely.

“Abbott, which acquired Guidant’s stent business in 2006, denied during the trial in Dallas federal court that it induced anyone to submit false claims to Medicare. Its lawyers told jurors the use of biliary stents for peripheral vascular or arterial disease was accepted medical practice and Medicare knowingly approved payments,” Bloomberg reports.

Read the article.

The Justice Department has sued to stop Halliburton Co. from acquiring oilfield services rival Baker Hughes, the Associated Press and CNBC are reporting.

The deal would combine two of the world’s three leading providers of those services to oil and gas companies and would create a bigger rival to the industry leader, Schlumberger.

“But Justice Department officials say in their lawsuit that the Halliburton-Baker Hughes deal threatens to raise prices and eliminate competition,” the report says.

Read the article.