U.S. Treasury Department Blacklists Cryptocurrency Platform Tornado Cash Over Money Laundering Allegations
On August 8, 2022, the U.S. Department of the Treasury prohibited Americans from using Tornado Cash, a cryptocurrency platform, alleging that the service has helped criminals launder over $7 billion worth of cryptocurrencies and calling it a "threat to U.S. national security." Although "[t]he ability to operate anonymously is a central tenet ...
SEC COMPLAINT ALLEGING INSIDER TRADING FILED AGAINST COINBASE: ARE CRYPTO ASSETS “SECURITIES”?
On July 21, 2022, the Securities and Exchange Commission ("SEC") announced insider trading charges in connection with an action it filed against Ishan Wahi, a former Coinbase manager, Nikhil Wahi, and Sameer Ramani, in the U.S. District Court, Western District of Washington, Seattle Division, "for perpetrating a scheme to trade ahead of multiple ...
COVID Response Prompts Proposed Changes to Civil Procedure
During the height of pandemic chaos, federal district courts were left to their own devices to manage docket disruption. This resulted in hundreds of orders across the federal courts, ranging from a handful in one district, to dozens in another. Perhaps hoping to address the ad hoc nature of the judicial branch's pandemic response, Congress ...
Google Agrees to a Proposed $22 Million Settlement in Gender and Race Discrimination Suit
Title VII prohibits employment discrimination based on race, color, religion, sex, and national origin. To establish a prima facie case of discrimination, an employee must show that: (1) he/she is a member of a protected class, (2) met the employer's legitimate job expectations, (3) suffered an adverse employment action, and (4) another similarly ...
UBS AGREES TO $25 MILLION SETTLEMENT WITH THE SEC
On June 29, 2022, the Securities and Exchange Commission and UBS Financial Services agreed to a $25 million settlement to resolve claims that the company sold $2 billion of a complex investment strategy to customers without adequately explaining the risks of the strategy to both advisers and clients. The settlement stems from allegations that ...
5th Circ. Will Rehear In-House Courts Challenge, At The Request of the SEC
On May 18, 2022, in Jarkesy et al. v. U.S. Securities and Exchange Commission, case number 20-61007, a divided panel ruled that the U.S. Securities and Exchange Commission's system of in-house courts was unconstitutional. Since that decision was issued, the SEC and Biden administration have pushed for a rehearing. Attorneys for the government ...
Comments to SEC’s Proposed Rules on Cybersecurity Raise Concerns About Potentially Serious Consequences
On March 9, 2022, the Securities and Exchange Commission ("SEC") issued its Proposed Rules on Cybersecurity Risk Management, Strategy, Governance and Incident Disclosure. As per the SEC press release from March 9th, "[t]he proposed amendments are intended to better inform investors about a registrant's risk management, strategy, and governance ...
Ernst & Young To Pay $100 Million Penalty To Settle Cheating Scandal Charges—The Largest Ever Imposed By The SEC Against An Audit Firm
The U.S. Securities and Exchange Commission ("SEC") announced on June 28, 2022 that it charged accounting firm Ernst & Young LLP ("E&Y") for cheating on ethics tests and withholding evidence from the SEC's Enforcement Division. According to the SEC, E&Y admitted that a significant number of its auditors cheated on the ethics components of ...
COVID HAZARD PAY
Under 29 C.F.R. § 778.201, lump sum premiums, which are paid without regard to the number of hours worked, and premiums delineated in the Fair Labor Standards Act (FLSA) §§ 207(e)(5)-(7), are considered non-overtime premiums and must be included in employees' regular rate upon which overtime rate is based. During the Covid-19 pandemic, ...
Plaintiffs Appeal Summary Judgment in Long-Running Case Against Video Game Giant
In the case against Valve Corporation ("Valve"), the company behind the popular "Counter-Strike" video game, Plaintiffs are seeking to appeal the district court's decision granting Valve's motion for summary judgment. Should Plaintiffs lose their appeal, it would mark the end of the case, which has been a highly contested matter. The case ...
Hawaii Becomes the First State to Increase the Minimum Wage to $18 Per Hour
On June 22, 2022, Hawaii's Governor, David Ige, signed a bill into law that will gradually increase the state's minimum wage from the current rate of $10.10 to $18 per hour by January 1, 2028. The bill, HB 2510, is the nation's first minimum wage law that will provide workers with a minimum wage of $18 per hour. Employers in Hawaii must pay ...
New York State Senate Passes Equal Rights Amendment to State Constitution
On July 1, 2022, the New York State Senate passed S.51002, more commonly known as the Equal Rights Amendment to the New York State Constitution. Most notably, the Equal Rights Amendment, if passed, will enshrine citizens' right to seek abortions and access contraception within the State Constitution itself. Unsurprisingly, the renewed effort ...
Securities Class Action against Deutsche Bank Survives Motion to Dismiss
On June 13, 2022, U.S. District Court Judge Jed Rakoff, in the Southern District of New York, issued an order denying a motion to dismiss a securities fraud class action brought under 15 U.S.C. § 78j(b), Rule 10b-5, and Section 20(a) of the Securities Exchange Act of 1934 against Deutsche Bank AG and certain of its officers.[1] The suit alleges ...
New Jersey Senate Passes Legislation Affording Greater Protections to Temp Workers
On June 29, 2022, the Temp Workers' Bill of Rights passed the New Jersey Senate and Assembly and will be placed before Governor Phil Murphy for his anticipated approval. The bill will increase transparency in New Jersey's largely unregulated temp agency industry and will improve working conditions for the state's roughly 130,000 temp workers. ...
SEC Moves To Protect The Whistleblower Program From Employee Confidentiality Agreements
July 1, 2022 The SEC whistleblower program is a decade-old program that is an important part of the SEC's enforcement regime. Since its inception, the SEC has issued more than 200 individual awards totaling more than $1.1 billion. By providing a bounty to individuals who report securities law violations to the SEC, the SEC is better able to ...
Understanding the Freelance Isn’t Free Act Recently Passed by the New York State Legislature
The New York State legislature recently passed the Freelance Isn't Free Act ("FIFA") and the bill is expected to be delivered to the Governor later this year. If passed into law, FIFA would provide important protections for independent contractors who are not afforded protections under the employment laws. To be covered by FIFA, an independent ...
Workers’ Compensation Claims, Recent Decision on Death Benefits
In Kelly v. Consol. Edison Co. of New York, 205 A.D.3d 1267, 166 N.Y.S.3d 921 (2022), the Appellate Division of the Supreme Court of the State of New York recently upheld a Workers' Compensation Board decision that the Special Fund is not liable for the death benefits filed after January 1, 2014. This is true even where liability for the original ...
New Benefits for Gig Workers in Seattle
Over the past few years, the gig economy has grown tremendously. Gig workers are independent contractors or freelancers who typically perform short-term work. Gig workers can work hourly, part-time, project-based and can either work on an ongoing contract or temporary position. Gig workers receive 1099 tax forms while employees receive W-2 ...
Employers Must Provide Notice to Employees of Surveillance Practices Under New Law
On May 7, 2022, the Governor of New York, Kathy Hochul, signed a new law requiring private sector employers who monitor or intercept their employees' emails, text messages, telephone conversations, or internet use to notify them of such practices. The new law only applies to surveillance practices put in place solely to intercept or monitor ...
Musk Threatens To Cancel Twitter Acquisition Over Bots
Tesla, Inc. CEO Elon Musk is once again threatening to terminate his $44 billion deal to acquire Twitter, arguing in a filing with the U.S. Securities and Exchange Commission this month that Twitter's alleged refusal to provide him with information needed "to facilitate his evaluation of spam and fake accounts on the company's platform" is ...