Legal Developments

Action-Snacked Year: Food Labeling Class Actions On The Rise

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Consumer class action lawsuits targeting foods for alleged false and misleading labeling rose sharply in 2020. Although this trend may appear to threaten the food and beverage industry, courts are applying the “reasonable consumer” standard with a “real world” perspective, dismissing cases despite plaintiffs’ alleged subjective confusion about the labeling at issue because the hypothetical “reasonable consumer” would not have been misled.

Supreme Court Issues Highly Anticipated Decision in NCAA Antitrust Suit

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The Supreme Court has unanimously ruled that the National Collegiate Athletic Association (NCAA) rules restricting student-athletes’ educational benefits are not entitled to deference under the antitrust laws and are subject to antitrust scrutiny under a “rule-of-reason” analysis.

Modernization of Intellectual Property Laws Under the New Consolidated Appropriations Act, 2021

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The Consolidated Appropriations Act, 2021 (the act) was passed by Congress on December 21 and signed by President Donald Trump on December 27, 2020. The act includes not only amendments to the Paycheck Protection Program (PPP), but also significant changes to copyright and trademark laws.

CFPB Adopts Strict Liability Standard for Debt Collectors Who Sue or Threaten Suit Over Time-Barred Debt

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On January 19, 2021, the Consumer Financial Protection Bureau (CFPB) published its final debt collection rules in the Federal Register, including 12 C.F.R. § 1006.26(b), which prohibits collections of time-barred debt. Under the new rules, collectors who sue or threaten to sue consumers for time-barred or “zombie” debts ‒ debts for which the statute of limitations already expired ‒ violate the Fair Debt Collection Practices Act (FDCPA).

Dismissal of Chapter 11 Case Calls Into Question Bankruptcy Protections for Cannabis Companies

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Despite a company’s claim that it deals only in legal hemp products, in January, a federal court denied the company’s access to relief under the Bankruptcy Code. U.S. Bankruptcy Court Judge Joseph Rosania, Jr., of the District of Colorado, dismissed United Cannabis Corporation’s (UCANN) Chapter 11 bankruptcy filing, a move that could cause concerns for cannabis companies that may be seeking bankruptcy relief, particularly in the midst of a global pandemic.

The Compliance Monthly: The Outlook for Enforcement Actions Under a Biden Administration

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There was a perception in 2017 when then President-elect Trump took office that white collar enforcement actions under the US Department of Justice (DOJ) might drop dramatically. Many expected the Republican administration to effect policy changes or resourcing decisions that would keep corporations out of the spotlight when it came to major investigations and massive penalties. But, in surveying the last four years, the opposite happened.

SEC Adopts Modernized Framework for Fund Valuation Practices

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On December 3, the SEC adopted Rule 2a-5 under the Investment Company Act of 1940, as amended. Under Rule 2a-5, determining fair value in good faith with respect to what a fund will require: (1) the periodic assessment and management of material risks associated with the determination of the fair value of the fund’s investments,

There’s An App (But Maybe Not A Copyright) For That

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With the software copyright case Google LLC, v. Oracle America, Inc. now being decided by the Supreme Court after hearing oral arguments on October 7, 2020, software developers and the general public may wonder about the potential impact a decision in the case may have on the tech industry. At stake for the parties are the copyright protections afforded to Oracle’s application programing interface (API) previously used by Google to provide the functionality of Google’s highly popular Android mobile operating system installed on billions of mobile devices worldwide.