Wake Up Call: SEC Issues $22 Million Whistleblower Award

Aug. 31, 2016, 11:47 AM UTC

• The U.S. Securities and Exchange Commission awarded $22 million to a former Monsanto Co. financial executive who tipped off the regulator to improper accounting, his lawyer said. It is the second highest award issued by the agency. (Bloomberg)

• Dentons has stumbled into a nasty business divorce suit between co-founders of its Mexican merger partner, and it looks like the fight could get nastier. (American Lawyer)

• A proposed federal class action filed in San Francisco by attorneys at privacy law firm Edelson P.C. alleges that an app for the NBA Golden State Warriors franchise surreptitiously turns on microphones on users’ telephones to capture data to better target advertising. (Law.com)

• A Los Angeles judge has given a green light to Rapper Snoop Dogg ‘s law suit claiming that Pabst owes him up to $6 million from the brewery’s recent $700 million sale, according to a lawyer in the case. (National Law Journal)

Legal Market

• A controversial U.K. government decision will allow some 15 law firms that advise the government to stay off a lobbying registry created last year in response to several “cash for access” scandals. (The Lawyer)

• Cleveland has a smaller population than Detroit, Kansas City, Indianapolis, Milwaukee, Phoenix and Seattle, but the city ranks higher in recent measures of the number of lawyers at major firms. (National Law Journal)

• Perspective: CVS General Counsel Thomas Moriarty notes that expanding regulation, increasing competition and risks confronting business today mean general counsel need more skills to serve at the center of corporate strategic decision-making . (Big Law Business)

• The Commodity Futures Trading Commission said it wants greater power to sanction companies for retaliating against whistleblowers, aligning its position closer to the one taken by the SEC. (National Law Journal)

• Lawyers in Arkansas are suing to block a ballot proposal that would impose limits on attorneys’ fees and pain-and-suffering damages in medical-malpractice claims. (WSJ Law Blog)

• The team of Paul, Weiss, Rifkind, Wharton & Garrison lawyers hired by Fox News’ parent company to investigate alleged pervasive sexual harassment of women at the network is facing skepticism and criticism from lawyers at other firms representing accusers in the case. (Law.com)

• An Illinois man’s federal lawsuit in Brooklyn alleging that AstraZeneca’s “ purple pill ” Nexium caused his kidney disease is the latest suit in what could turn out to be a wave of similar litigation targeting the drug. (Bloomberg BNA/Big Law Business)

• George Newhouse, a partner at Dentons, and Peter Henning, a professor at Wayne State University, discuss a federal lawsuit challenging the New York Taxi and Limousine Commission’s requirement that all New York taxis have GPS trackers. Audio. (Bloomberg Radio/Big Law Business)

• Sullivan & Cromwell, which represented Major League Baseball in the league’s $1 billion streaming deal with The Walt Disney Co. announced several weeks ago, is now advising in real estate developer’s Frank McCourt Jr.'s acquisition of the French soccer team Olympique de Marseille for a reported $44.68 million. (American Lawyer)

How old is too old to lead a company? The issue of director age is pitting shareholders against corporate boards at some companies. (Big Law Business)

The EU Apple Tax

• The European Commission’s ruling imposing a retroactive $14.5 billion tax bill on Apple Inc. is a sign that the days when big U.S. technology companies could easily slice tax bills in Europe are coming to an end . (Bloomberg/Big Law Business)

• Viewpoints: The ruling is unjust and unnecessary and a victory for “tax confusion.” It could also prove a boon for the U.K, by allowing it to re-invent itself as a tax haven for multinationals in a post-Brexit world. (Bloomberg)

• U.S. political leaders reacted angrily to the ruling. (Financial Times)

• Amazon and McDonald’s are the next targets for European Commission tax rulings. (WSJ Law Blog)

• Taxation is one among many legal challenges facing American technology companies in the EU, as European regulatory officials also go after them for antitrust and privacy matters. (New York Times)

Court Rulings

• Donald J. Trump suffered another setback in his effort to block former students’ class action in California accusing the Republican presidential candidate of fraud related to his defunct university. (Bloomberg)

• A Washington, D.C., man who accused an Uber driver of stabbing him has dropped his $2 million suit against the company after the two sides reached a “mutual agreement,” according to court papers. (National Law Journal)

Laterals and Moves

• The Google-backed phone security start-up Pindrop Security announced Monday it hired Clarissa Cerda as its general counsel from LifeLock, the identity-theft protection company where she was chief legal strategist. (Big Law Business)

• Market intelligence company S&P Global announced Tuesday it hired Steve Kemps as its executive vice president and general counsel. And other moves . (Big Law Business)

Technology

• Boston-based attorney Shannon Liss-Riordan, who has proven herself a nemesis of “on demand” companies, has filed a new employment class-action targeting mobile app-based food delivery service Caviar Inc. The case could probe the boundaries of a recent appeals court decision limiting companies’s ability of to ward off class actions in labor cases. (The Recorder)

• A federal judge gave the U.S. State Department one week to tell him how many of 30 newly discovered e-mails from Hillary Clinton’s private server relate to the 2012 terrorist attack on the American diplomatic compound in Benghazi, Libya, and how soon they can be made public. (Bloomberg)

• Federal judges discuss what they consider reasonable data preservation requirements for civil cases in an age of mass proliferation of information and devices that produce and store data.(Legaltech News)

• The European Commission is eyeing several changes to EU copyright law , including creating a new right to allow news publishers to claim compensation for use of their content online from aggregators like Google News. (Bloomberg BNA/Big Law Business)

• The U.K.’s consumer protection watchdog is warning celebrities of legal action against them if they fail to disclose they get money to promote brands and products on their social media profiles. (Financial Times)

• Uber Technologies Inc. hired Target Corp.'s chief marketing officer, Jeff Jones, to manage its global operations , marketing and customer support. (Bloomberg)

• Google is expanding its ride-hailing service similar to Uber’s, through its “ Waze ” app. (WSJ Video)

Legal Education

• California Gov. Jerry Brown late Monday vetoed a law that would have obliged law students to put in 50 hours of pro bono work to be admitted to the state bar. (The Recorder)

• The New York State Bar’s Committee on Professional Ethics’ announcement that New York law firms can charge clients for the work of unpaid interns is “shocking.” (Inc.)

Miscellaneous

• The story behind director Oliver Stone’s biopic about NSA whistleblower Edward Snowden . (New York Times Magazine)

• The biggest mistakes that can cost young lawyers a career in big law, starting with “getting psyched out” by negative criticism. (JD Journal)

Compiled by Rick Mitchell and edited by Gabe Friedman.

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