Today's Legal Pulse
UK pushes commonhold reform to boost housing supply
The Draft Commonhold and Leasehold Reform Bill proposes abolishing leasehold and mandating new homes be sold as commonhold, tying the change to a target of delivering 1.5 million homes annually—the highest since 1968. The model remains untested, with fewer than 25 developments and unresolved issues around dispute resolution.
Also developing:
By the numbers: Hogan Lovells and Cadwalader clear final merger hurdles
Exxon’s Move to Texas Is Not Dexit
Exxon Mobil plans to reincorporate from New Jersey to Texas, a move notable because the company has never been a Delaware corporation. The shift highlights that Exxon’s governance risks are driven by operational, environmental, and regulatory exposure across multiple jurisdictions rather than by the legal nuances of its charter state. Texas offers a governance ecosystem that aligns with Exxon’s headquarters, industry concentration, and state‑level reforms. The case challenges the long‑standing view that Delaware is the default domicile for sophisticated public firms.
Paul Weiss Discusses SEC Increase in “Qualified Client” Dollar Amount Thresholds
On April 28, 2026 the SEC announced inflation‑adjusted increases to the qualified‑client thresholds under Rule 205‑3 of the Investment Advisers Act. Effective June 29, 2026 a client must have at least $1.4 million in assets under management or a net worth...
Texas Royalty Owners Burdened with Post-Production Costs … Again
The Texas Court of Appeals ruled that the Olivers’ leases retain an “at the well” royalty valuation point, despite an addendum stating royalties should not bear post‑production costs (PPCs). The court held that the PPC language is surplusage because no...
Is Congress the Next Stop for Freight Brokers After Montgomery V. Caribe Transport II Held No Preemption?
The U.S. Supreme Court ruled in Montgomery v. Caribe Transport II that a freight broker’s negligent‑hiring claim falls within the safety exception of the Federal Aviation Administration Authorization Act, meaning it is not preempted by federal law. Justice Barrett’s unanimous opinion...
SEC Permits Shortened Offering Period for Certain Equity Tender Offers
The SEC’s Division of Corporation Finance issued an exemptive order that lets qualifying equity tender offers run as short as ten business days, half the usual twenty‑day minimum under Rule 13e‑4(i). The relief applies only to all‑cash, fixed‑price offers and imposes...
Judge Bars ICE From Making Immigration Arrests at Courts in New York
Judge P. Kevin Castel largely barred ICE from making arrests in New York immigration courts, halting a Trump‑era policy that saw agents detaining migrants inside federal courthouses. The ruling follows a Manhattan U.S. attorney’s admission that the policy relied on a mistaken...
FutureLaw 2026 Wraps in Tallinn, Spotlighting Billable‑Hour Reforms and AI Production Realities
FutureLaw 2026 concluded in Tallinn with a sharp focus on the billable‑hour model and the gap between AI demos and production tools. Founder Uwais Iqbal presented data from 23,000 AI‑assisted adjudications, while panelist Chas Rampenthal warned that generative AI is...
Spanish Court Orders €55 Million Refund to Shakira, Acquitting Her of Tax Fraud
Spain’s National High Court ruled on Monday that pop star Shakira is not liable for tax residency in 2011, ordering the tax agency to return more than €55 million ($64 M) in fines and interest. The decision overturns earlier assessments that had...
After Elon Musk’s Court Loss Comes the Long Hot A.I. Summer
Elon Musk’s three‑week federal lawsuit accusing OpenAI and CEO Sam Altman of breaching their founding agreement was dismissed by a judge in Oakland. The court’s decision removes a high‑profile legal hurdle for OpenAI, allowing the company to continue its rapid...
QB's Lawsuit Spotlights NIL, Betting, Eligibility Clash
Texas Tech QB Brendan Sorsby sues the NCAA in a case that blends NIL, sports betting, addiction and eligibility. It's a sports law bonanza for the 2020s. My @Sportico legal take: https://t.co/vxGlqC47jh.
The Missing Part of the State Court Mangione Suppression Ruling?
A New York state appellate court partially suppressed the contents of Luigi Mangione’s backpack, allowing the red notebook but excluding the magazine, cellphone, passport, wallet and computer chip. The court applied New York’s constitutional search‑seizure standards to Pennsylvania officers, even...
U.S. Drops Charges Against Gautam Adani After Settlements and Investment Pledge
U.S. authorities have moved to drop both criminal and civil cases against Indian billionaire Gautam Adani. The Department of Justice announced it will dismiss the criminal charges, while the Securities and Exchange Commission settled a fraud lawsuit. The actions come...
California Leads the Charge as Privacy Fines Soar
State privacy enforcement is accelerating, with total fines across the U.S. soaring to $3.4 billion in 2025, up from $1.8 billion in 2024 and just $1.2 million in 2023. Gartner reports that 22 states have already enacted consumer‑privacy statutes and another 24 are...
LeO Directs Law Firm to Pay £49k in Latest Public Interest Decisions
The Legal Ombudsman (LeO) has ordered London firm Laytons to pay roughly $62,000 in compensation after it failed to register a client’s lease extension, and listed fee‑share firm Keystone Law to pay about $26,000 for missed court deadlines and poor...
When a Deal Goes Wrong: A Practical Guide to Breach of Contract in Oilfield Services
Contract disputes are a chronic issue in oilfield services, but Texas’s new Business Court is reshaping how they are resolved. Effective September 2025 the court’s jurisdiction lowered to $5 million, moving many cases from overloaded district courts to a specialized forum that...
Sports Solicitor Fails in Challenge to SRA Intervention
A High Court judge dismissed sports lawyer Chris Farnell's challenge to a Solicitors Regulation Authority (SRA) intervention, finding sufficient reason to suspect dishonesty in his handling of client funds. The SRA acted after complaints involving roughly £2 million (≈$2.5 million) held for...
BYD Defamation Case Leads to Landmark Ruling
Chinese EV giant BYD sued 37 online influencers for alleged defamation, claiming false statements harmed its brand and the broader automotive sector. This week a prominent blogger, Long Ge of “Long Ge Talks EVs,” was ordered to pay a 2 million‑yuan (≈$294,000) penalty and issue...
Littler Scales AI-Powered Deposition Training with Adoption of AltaClaro’s DepoSim
Littler, the world’s largest employment‑law firm, has adopted AltaClaro’s DepoSim, an AI‑powered deposition simulation platform, across its entire practice. The tool lets attorneys rehearse oral depositions in realistic, AI‑driven scenarios and receive instant, actionable feedback on questioning and witness control....
SEC Kills 'Gag Rule' That Silenced Thousands of Settling Defendants for over 50 Years
The SEC has eliminated Rule 202.5(e), a half‑century "no‑deny" policy that barred defendants from publicly contesting allegations as a settlement condition. Chairman Paul Atkins framed the move as a restoration of First Amendment rights and alignment with most federal agencies. The...
SCOTUS Rejects Pharma Companies’ Petitions To Review IRA Drug Program
The U.S. Supreme Court on May 18 denied six pharmaceutical companies’ petitions to revisit lower‑court rulings that upheld the Inflation Reduction Act’s (IRA) Medicare drug‑price negotiation program. The decision ends the companies’ multi‑year legal challenge, leaving the federal government’s authority...
Trends of Pay Transparency Laws and Salary History Bans Continue to Grow — New Laws Enacted in Virginia, Maine, and...
A wave of state pay‑transparency legislation continues with Virginia, Maine and Delaware joining the ranks. Virginia’s law, effective July 1, 2026, bans salary‑history questions and forces employers to disclose wage ranges for every posting. Maine, effective July 29, 2026, requires pay ranges on all...
Off the Clock, Out of Compliance? Managing Wage-and-Hour Risk in Remote Workforces
Employers with remote or hybrid staff face heightened wage‑and‑hour exposure under the FLSA. Untracked off‑the‑clock work, incorrect overtime calculations, and employee misclassification can generate significant liability. Adding to the risk, remote workers often span multiple states, each with its own...
Casey Sullivan, Everlaw: Introducing Everlaw’s Anthropic MCP Integration
Everlaw announced a native integration with Anthropic's Claude via the Model Control Panel (MCP), allowing litigators to search, retrieve, and analyze case materials using generative AI within a single, secure system of record. The integration lets users pose natural‑language queries...
Trump Settles IRS Lawsuit, Triggering the Creation of a Controversial $1.7 Billion DOJ Fund for Victims of ‘Political Weaponization’
President Donald Trump and his family’s LLC settled their lawsuit against the IRS after alleging political weaponization of tax‑return leaks. As part of the agreement, the Department of Justice will establish a $1.776 billion Anti‑Weaponization Fund to hear and redress claims...
Don’t Put All Your Eggs in One Basket: Patent Claim Strategies for Medical Device and Consumer Health Companies
The PTAB invalidated all 14 claims of U.S. Patent 9,308,138 in IPR2024‑01487, a patent covering a layered absorbent article used in incontinence pads. The board found the claims either anticipated or obvious over prior‑art references, overturning Essium’s infringement suit against First...
CFTC Issues No‑Action Letter to Ease Reporting for Prediction‑Market Operators
The Commodity Futures Trading Commission issued a no‑action letter that relaxes swap‑data reporting for prediction‑market operators, allowing event contracts to use futures‑style reporting. The guidance covers 19 current beneficiaries and creates a template for future entrants, signaling broader regulatory acceptance...
Carta Acquires Avantia Law to Launch AI‑powered ABS for Private‑equity Firms
San Francisco‑based Carta has bought Avantia Law, an AI‑focused alternative business structure serving asset‑management clients, and will rebrand the combined entity as Carta Law. The deal creates a cross‑Atlantic ABS that blends Carta’s ERP platform with Avantia’s AI, promising fixed‑fee,...
NY Judge to Decide on Backpack Evidence in Mangione Murder Trial
State Judge Gregory Carro will issue a ruling on whether the contents of Luigi Mangione’s seized backpack—handgun, journal, cash—can be admitted at his September murder trial. The decision follows a defense claim that the warrantless search violated Mangione’s Fourth‑Amendment rights and...
AI Legal Watch: May 2026
On April 9, 2026, xAI filed a federal suit to block Colorado’s AI Act (SB 24‑205) before its June 30 effective date, arguing the law’s high‑risk AI restrictions and $20,000 per‑violation penalties are overly burdensome. The act mandates disclosure, impact assessments, and anti‑discrimination safeguards...
Construction Litigation Checklist: Your Step-by-Step Plan From Discovery to Decision
Construction disputes now average $42.8 million in North America, making them among the most data‑intensive litigation. Nextpoint’s checklist stresses starting with an early case assessment to map custodians, project‑management and accounting systems before discovery costs spiral. It then recommends a detailed...
Rare Securities Suit Trial Results in Defense Verdict in ExxonMobil Case
On May 14, 2026 a federal jury returned a complete defense verdict in the long‑running ExxonMobil securities class action, clearing the oil giant and its executives of all claims. The case, filed in 2016, alleged misrepresentations about the profitability of...
Former Trader Joe's Worker Sues, Says Employer Ignored Injuries and Punished EEOC Filing
Vanessa Kempf, a former Trader Joe’s crew member, filed a federal lawsuit alleging race discrimination, disability discrimination, and retaliation after reporting a physical assault and requesting ADA accommodations. The complaint details a pattern of heightened scrutiny, a reprimand three days after...
Alabama Supreme Court Tosses Failure-to-Hire Case over Mixed-Up Job Titles
The Alabama Supreme Court dismissed a failure‑to‑hire lawsuit after finding that the plaintiff, John William Wilder, Jr., confused two similarly titled municipal positions. Wilder applied for the city‑appointed “Park and Recreation Director” role, but the city’s Board of Parks and...
Insurer Wins Coverage Dispute over IVF Genetic Testing Fraud Claims
A federal judge in Illinois ruled that Landmark American Insurance Co., a Berkshire Hathaway unit, does not have to defend or indemnify Reproductive Genetics Institute (RGI) in a class‑action lawsuit alleging deceptive marketing of its embryo‑screening test. The court found...
Elon Musk Loses Lawsuit Against OpenAI
A U.S. jury ruled against Elon Musk in his lawsuit against OpenAI, finding that his claims were barred by the statute of limitations. Musk alleged the company betrayed its nonprofit roots, misused his $38 million contribution, and turned into a for‑profit...
Trust Account Reconciliation: Can You Find the Errors Hiding In a Positive Bank Balance?
Law firms often assume a positive trust‑account balance means compliance, but hidden misallocations can create serious violations. A recent case revealed $31,000 of unallocated funds in a $184,000 trust pool, underscoring the limits of bank‑statement checks. The article advocates a...
Elon Musk Loses His $134 Billion Lawsuit Against OpenAI After Jury Deliberates for Just Two Hours
Elon Musk's $134 billion lawsuit against OpenAI and Microsoft was dismissed after a two‑hour jury deliberation in Oakland, with Judge Yvonne Gonzalez Rogers affirming the verdict. The case stemmed from Musk’s claim that OpenAI broke its nonprofit promise, seeking ill‑gotten gains...
Nintendo & Pokémon Co. File Lawsuit Against Palworld Dev for Infringement (UPDATE)
On September 18, 2024, Nintendo and The Pokémon Company filed a patent infringement lawsuit in Tokyo against Pocketpair, the developer of the indie game Palworld. The suit alleges that Palworld violates three of Nintendo‑Pokémon patents covering creature‑capture and summoning mechanics,...
Jury Rejects Elon Musk's Lawsuit, Sides with OpenAI in Bitter Feud over AI Future
A federal jury in Oakland dismissed Elon Musk's lawsuit against OpenAI, ruling that his claims were barred by the statute of limitations. Musk, who invested $38 million and co‑founded the nonprofit, had alleged that OpenAI’s leaders breached a charitable trust by...
Jury Rules Against Musk in Landmark AI Trial
A federal jury unanimously ruled that Elon Musk waited too long to sue OpenAI, its CEO Sam Altman, co‑founder Greg Brockman and Microsoft, dismissing his claim for up to $134 billion in damages and Altman's removal. The judge affirmed the verdict...
Court Agrees to Hear Case on Ability of Employees to Bring Certain Suits for Sex Discrimination, Turns Down Child Pornography...
The U.S. Supreme Court added *Crowther v. Board of Regents of the University System of Georgia* to its 2026‑27 docket, agreeing to hear whether Title IX creates a private right of action for employees alleging sex discrimination at federally funded schools....
DOJ’s May 18 Enforcement Wave Signals Higher Stakes for Corporate Compliance and Litigation Strategy
The Department of Justice released a wave of enforcement announcements on May 18, underscoring an aggressive stance on corporate compliance, individual accountability, and inter‑agency coordination. Prosecutors are targeting conduct with national economic impact, public‑integrity concerns, and consumer or investor harm,...
Banned Nvidia AI Chips Keep Reaching China Despite US Crackdown
U.S. authorities say banned Nvidia AI chips continue to reach China and Russia through encrypted broker networks, shell companies, and third‑country routes, prompting the Bureau of Industry and Security to levy $420 million in penalties, including a $252 million fine against Applied...
European Prosecutors Probe €11M Cost of Greece’s Migrant Camps
The European Public Prosecutor’s Office is investigating two Greek migrant reception centres built in 2020‑21 that cost €11.3 million (≈$12.3 million). The contracts were awarded without public tender and are alleged to be about 15 times more expensive than comparable EU‑funded projects, pushing...
When “The Devil Made Me Do It” Is Not a Defense: Lessons in AI Governance and Organizational Oversight From an...
A May 7, 2026 Southern District of New York decision rejected the government’s attempt to blame ChatGPT for terminating over 1,400 DEI‑related federal grants. The court found the agency’s AI‑assisted workflow lacked meaningful human oversight, proper prompt design, and documentation, rendering it...
NetDocuments Teams with Anthropic to Embed Claude via Model Context Protocol
NetDocuments announced a partnership with Anthropic that connects Claude, the firm’s large‑language model, to NetDocuments through the Model Context Protocol (MCP). The integration lets law firms query and draft using Claude while keeping all documents inside NetDocuments’ secure repository, preserving...
Trillion-Dollar Tech Bandits Are Finally Facing Justice
On March 24‑25, 2026 juries in New Mexico and California handed down landmark verdicts against Meta, Google and YouTube, ordering $375 million and $6 million in damages for child exploitation and social‑media addiction. The rulings mark the first successful state‑level trials holding...
Pizza Hut Franchisee Sues Over AI Delivery System, Seeks $100 Million in Damages
Chaac Pizza Northeast, a top Pizza Hut franchisee, filed a Texas Business Court suit on May 6 accusing the chain of forcing an AI‑driven delivery platform that it says crippled operations and cost over $100 million. The case spotlights emerging tech‑risk disputes...
Texas Children’s Hospital Pays $10 Million, Ends Gender‑Transition Care for Minors
The U.S. Department of Justice and Texas Attorney General Ken Paxton reached a settlement with Texas Children’s Hospital that includes a $10 million payment, a ban on gender‑transition procedures for minors, and the creation of the nation’s first detransition clinic. The...
Estate Planning Without Children
Estate planning for child‑free Americans is becoming a distinct niche as more people forgo traditional family structures. Without children, clients must deliberately select trustees, agents, and beneficiaries, often turning to extended relatives, friends, or corporate trustees. The absence of heirs...