School Districts Can Be Vicariously Liable When Students Are Sexually Abused by Their Employees
On March 11, 2026 the New Jersey Supreme Court ruled in *Hornor* and *Simpkins* that school districts can be held vicariously liable for sexual abuse by employees, even when the conduct occurs outside the scope of employment. The decision interprets the 2019 amendment to the Child Victims Act as eliminating the immunity previously granted under the New Jersey Tort Claims Act. The court also provided a fact‑sensitive test for lower courts, focusing on policy enforcement, abuse circumstances, location, timing, and reporting. This framework is expected to limit early dismissals of abuse claims.
Second Circuit Affirms Dismissal of Securities Claims Arising From Reverse Split of Exchange-Traded Notes
The Second Circuit affirmed the dismissal of a securities class action challenging Barclays’ 4‑for‑1 reverse split of exchange‑traded notes. The court ruled the split did not constitute a “sale” under Section 12 because it did not materially alter the nature of...
When Funding Pauses: A Drawstop Playbook, April 2026 - Turning Off the Taps: Drawstops in Fund Finance
Drawstops are contractual clauses that let lenders halt new advances when specified events occur, serving as a middle‑ground between full acceleration and unrestricted funding. In fund‑finance deals they are most contested in revolving subscription lines and NAV facilities, where lenders...
CDFI Fund Update: FY 2027 Budget Renews Pressure, but CDFIs Should Stay the Course
The Trump administration’s FY 2027 budget request seeks to eliminate the Community Development Financial Institution (CDFI) Fund’s core financial and technical assistance programs, redirecting most of the remaining $119.5 million to a new Rural Community Development Fund. More pressing, however, is the...
The 99 Year Dilution Dilemma: What’s the Harm if No Confusion?
The article traces U.S. trademark dilution law from Frank Schechter’s 1927 theory through the 1995 Federal Trademark Dilution Act (FTDA), the Supreme Court’s *Moseley* decision, and the 2006 Trademark Dilution Revision Act (TDRA) that introduced a "likelihood of dilution" standard...
SEC Announces 2026 Inflation Adjustment to Qualified Client Thresholds
The SEC announced a March 27, 2026 notice to raise the qualified‑client thresholds under Rule 205‑3, increasing the assets‑under‑management test from $1.1 million to $1.4 million and the net‑worth test from $2.2 million to $2.7 million. A formal order is expected around May 1, 2026, with...
Supreme Court Puts Brakes on Interstate Sovereign Immunity for State-Created Corporations
The U.S. Supreme Court ruled in Galette v. New Jersey Transit Corp. that NJ Transit is a separate corporate entity and cannot claim New Jersey's interstate sovereign immunity. The unanimous opinion, written by Justice Sotomayor, applied an objective arm‑of‑the‑state test,...
Consumer Protection Roundup
The Consumer Financial Protection Bureau (CFPB) has proposed slashing its workforce to 556 staff, down from 1,100, after a year of funding uncertainty. The agency’s budget constraints stem from the One Big Beautiful Bill, leaving a regulatory gap in financial...
FDIC and OCC Finalize Rule Removing Reputation Risk From Most Supervisory Actions
On April 7, 2026, the FDIC and OCC issued a final rule barring regulators from using reputation risk as the sole basis for supervisory or enforcement actions. The rule requires examiners to rely on quantifiable risks—credit, liquidity, legal, or operational—when assessing...
BoE and PRA Response On AI In Financial Services
The Bank of England and the Prudential Regulation Authority issued a joint letter to the Chancellor outlining a new supervisory framework for artificial intelligence in the UK financial sector. AI will be embedded as a 2026 supervisory priority, with heightened...
DOW’s Economic Defense Unit: Top Points for Defense and Defensetech Companies
The U.S. Department of War has launched the Economic Defense Unit (EDU) to channel roughly $200 billion into defense and dual‑use technology firms over the next three years. The EDU will issue a mix of grants, loans, equity investments and purchase...
First Circuit Confirms Mootness Limits Post‑Janus Union Dues Litigation
The First Circuit dismissed the First Amendment appeal in Ramos‑Ramos v. Jordán‑Conde, holding the case moot after the University of Puerto Rico stopped post‑resignation union dues, reimbursed employees, and revised its policies. The court emphasized that federal courts cannot issue...
UK FCA Confirms An Increase To FOS Award Limits
The UK Financial Conduct Authority has approved higher compensation caps for the Financial Ombudsman Service for 2026/27, tying the increase to CPI inflation. Effective 1 April, the maximum award for complaints arising on or after 1 April 2019 rises to £455,000 (about $578,000),...
Six Questions Federal Contractors Are Asking About the New DEI Executive Order
Executive Order 14398, issued to curb race‑based DEI practices among federal contractors, mandates a specific contract clause by April 25, 2026 that requires reporting, flow‑down to subcontractors, and subjects violators to False Claims Act liability. The order narrows the focus to race...
Consumer Finance Monitor Podcast Draws Coverage From “Inside the CFPB”: A First for Our Platform
The Consumer Finance Monitor podcast earned its first dedicated coverage from the industry publication Inside the CFPB, highlighting an April 2 episode on buy‑now‑pay‑later (BNPL) regulation. The article quoted Max Dubin of the New York State Department of Financial Services,...
On Final Approach: How the NC Supreme Court Case Can Ground Long-Tail Aviation Liability
The North Carolina Supreme Court in Warren v. Cielo Ventures upheld a one‑year contractual limitations period, rejecting the idea that statutory UDTPA claims automatically override contract terms. The decision rests on freedom‑of‑contract principles and prior case law, stating that parties...
No Charge, No Case: Employee’s Discovery Stonewalling Dooms Title VII Claim
A Texas federal court granted summary judgment to L3Harris in *Farlow v. L3 Communications* because the plaintiff refused to produce his EEOC charge during discovery. The court held that while the charge satisfied the exhaustion requirement at the pleading stage,...
![[Video] Daily Compliance News: April 8, 2026, The Fleeing Binance Edition](/cdn-cgi/image/width=1200,quality=75,format=auto,fit=cover/https://jdsupra-static.s3.amazonaws.com/profile-images/og.2237_4849.jpg)
[Video] Daily Compliance News: April 8, 2026, The Fleeing Binance Edition
Bloomberg reports a rapid exodus of compliance professionals from Binance, with more than 30 officers resigning in a matter of weeks. The departures are linked to heightened regulatory pressure and internal concerns over the firm’s anti‑money‑laundering (AML) framework. Binance’s leadership...
Florida Appeals Court Rejects Rules Protecting Physician Dispensing in Workers’ Compensation Cases
The Florida First District Court of Appeal struck down two Department of Financial Services rules that had extended the workers’ compensation “absolute choice” provision to physicians and other dispensing practitioners. The ruling means insurers can now require injured workers to...
IEEPA Tariff Refunds: Who Really Owns the Money?
The Supreme Court’s *Learning Resources* decision nullified IEEPA tariffs, revealing that Customs and Border Protection collected roughly $166 billion to $182 billion in now‑invalid duties. More than 2,000 refund cases have been filed in the Court of International Trade and assigned to...
AI as Star Witness: How a Buyer’s AI Conversations Sank Its Earnout Avoidance Strategy
The Delaware Court of Chancery ruled that Krafton’s termination of Unknown Worlds’ key executives and seizure of studio control violated the Equity Purchase Agreement, reinstating the CEO and extending the earnout period by 258 days. The buyer’s strategy, guided by...
Lit & Legit Business Briefs: Do Your Homework on Cannabis Properties
New Jersey’s cannabis licensing now hinges on securing both a municipal Resolution of Support and a zoning determination letter, adding a layer of local approval beyond state requirements. Landlords are not obligated to lease to cannabis operators, and many properties...
USTR Section 301 Forced Labor Investigations: Tariff Risk, UFLPA Overlap, and What Companies Should Do Now
The U.S. Trade Representative has launched Section 301(b) investigations into forced‑labor enforcement gaps in 60 major trading partners, expanding risk from product‑level actions to potential country‑wide tariffs. The probe runs alongside existing UFLPA and CBP measures, creating layered compliance and cost...
(Re-)Planting the Flag: DOJ’s National Security Division Reaffirms Primacy in Corporate National Security Enforcement
On March 30, 2026 the DOJ’s National Security Division (NSD) issued guidance reaffirming its lead role in corporate enforcement of national‑security laws under the newly adopted department‑wide Corporate Enforcement Policy (CEP). The CEP replaces NSD’s component‑specific policy and standardizes voluntary...
New Reports Shine Light on Increased Use of TIF Districts
Two new reports spotlight the rapid expansion of tax increment financing (TIF) districts in Illinois, revealing 1,488 active districts statewide and a 1,034% jump in TIF‑generated property‑tax revenue to over $1.8 billion in 2024. Cook County alone accounts for roughly 400...
California AG Files Lawsuit Against Individuals and Charities for Allegedly Operating and Profiting From Fraudulent Fundraising Opportunities
The California Attorney General Rob Bonta filed a lawsuit on March 26, 2026 against six individuals and three sham charities that allegedly raised about $3.8 million through youth softball fundraisers at San Diego stadiums and diverted the proceeds for personal use....
Liberating the Department of Homeland Security From the Democrat-Caused Shutdown (Trump EO Tracker)
President Trump issued an executive order directing the Department of Homeland Security to reallocate existing funds so that all DHS employees receive pay and benefits despite the ongoing government shutdown. The order frames the shutdown as a Democratic‑caused emergency that...
2026 Perspectives in Private Equity: Health Care & Life Sciences
Private equity in health care and life sciences faces a turbulent 2026 as the new administration rolls back ACA subsidies and implements the One Big Beautiful Bill Act, slashing Medicaid spending by roughly $800 billion over the next decade. The loss...
2026 Perspectives in Private Equity: GP Stakes Investing in a Maturing Market
GP‑stake and GP‑M&A activity hit record levels in 2025, with deal volume up 40% year‑on‑year and 164 transactions versus 117 in 2024. Managers are using stake sales to fund seed capital, technology upgrades, talent hires, and to increase their own...
Preferred and Structured Equity in the UAE and Saudi Arabia: Key Opportunities and Issues for Investors
Preferred and structured equity are gaining traction in Gulf private‑equity deals, but the legal environment differs sharply across jurisdictions. The DIFC and ADGM, governed by English common law, allow sophisticated instruments such as convertible and redeemable shares with familiar protections....
2026 Perspectives in Private Equity: Food & Agriculture
Private equity activity in food and agriculture rebounded in 2025 and is set to accelerate in 2026, buoyed by mega‑deals like Ferrero’s $3.1 billion purchase of WK Kellogg and new investments such as L Catterton’s stake in Good Culture. Consumers’ shift...
Borrower Defense to Repayment Guidance Issued by U.S. Department of Education Prompts Strategic Considerations for Higher Education Institutions
The U.S. Department of Education issued an electronic announcement on March 30, 2026 clarifying its borrower defense to repayment (BDR) process. The guidance confirms that current BDR claims are unrelated to the 2022 Sweet settlement and will be adjudicated based...
California's Pay Data Deadline Is Around the Corner: Here's What Employers Need To Know
California’s Civil Rights Department requires employers with 100 or more employees – and those with 100+ labor‑contractor staff – to file a detailed pay‑data report by May 13, 2026. The report must cover a single snapshot pay period between October 1 and December 31,...
UK Public M&A Monthly Activity Update: March 2026
In March 2026 the UK public M&A market recorded three Rule 2.7 firm offers, highlighted by Zurich Insurance Group’s recommended cash bid for Beazley plc valued at £8.1 billion (≈ $10.3 billion), Helios Consortium’s hostile pre‑conditional cash offer for CAB Payments Holdings plc of...
CJEU Clarifies the Standard for Accessing Evidence in Competition Damages Cases
On 29 January 2026 the CJEU ruled in Meliá Hotels v. Associação Ius Omnibus that the EU Damages Directive permits pre‑action evidence disclosure when national law allows it. The Court set a “reasonably acceptable” plausibility standard, meaning claimants need only...
Arizona Breaks New Ground with Criminal Charger Against Prediction Market Platform
Arizona Attorney General Kris Mayes filed the first criminal complaint against a CFTC‑regulated prediction‑market platform, alleging illegal gambling on state elections. The 20‑count, misdemeanor‑level indictment in Maricopa County targets bets on the 2028 presidential race and 2026 gubernatorial contest. By...
Private Credit 2026
Private credit has solidified its role as a major financing source, outpacing traditional syndicated bank loans and high‑yield bonds. The 2026 Chambers guide reviews 2025 performance and outlines trends across the United States, United Kingdom and other key jurisdictions. Assets...
Home Health Company’s Overtime Settlement: A Cautionary Tale for Healthcare Employers With ‘Program Managers’
ViaQuest Residential Services, a Columbus‑based home health provider, agreed to a $975,000 settlement after a collective action alleged it misclassified its program managers as exempt from overtime. The lawsuit centered on whether the managers’ primary duties were supervisory or direct...
FCA’s Regulatory Priorities in Wholesale Markets: New Insights of Importance for Investment Banks - April 2026
The FCA announced it will stop issuing ad‑hoc portfolio letters and instead publish an annual Regulatory Priorities report covering nine defined wholesale‑market sectors. This shift introduces a predictable, pre‑set cadence for regulatory updates that the market has welcomed. Investment banks...
Steps for Company Counsel to Take to Avoid FCA Liability for FalseCertifications Based on DEI Practices
The Department of Justice is expanding False Claims Act (FCA) enforcement to penalize federal contractors and grant recipients who submit false certifications about diversity, equity and inclusion (DEI) compliance. New guidance, including the Bondi Memo and a GSA proposal, requires...
FTC Warning Letters Signal Continued Federal Focus on Debanking and Financial Access
The FTC has issued warning letters to major payment networks and financial service providers, reminding them that denying customers access based on political or religious beliefs may breach Section 5 of the FTC Act. The letters tie the issue to President...
The Friday Five: Five ERISA Litigation Highlights - April 2026
The Fifth Circuit ruled that an ERISA administrator who issues a disability‑benefits decision beyond the statutory deadline loses the deferential review standard and faces de novo review, as seen in the Cogdell case. Federal courts also rebuked administrators for relying on...
Shape Up or Be Shipped Out: The New Broker and Freight Forwarder Financial Responsibility Final Rule Puts Delinquent Brokers on...
The FMCSA’s Broker and Freight Forwarder Financial Responsibility Rule is now fully active, requiring every broker and freight forwarder to maintain at least $75,000 in a surety bond or trust fund. If the security falls below that level, the carrier...
Stabilizing Foreign Investment: China’s Upgraded Industry Investment Guide
China’s National Development and Reform Commission and Ministry of Commerce launched the 2025 Catalogue for Encouraged Industries for Foreign Investment on February 1, 2026, expanding the list to 1,679 entries – 205 new and 303 revised. The updated guide pivots...
SEC Speaks – Are You Listening?
The SEC’s 2026 SEC Speaks conference highlighted a shift toward a "back‑to‑basics" enforcement philosophy after the abrupt resignation of Enforcement Director Judge Margaret Ryan. Acting Director Sam Waldon resumed leadership, and the Commission, now down to three members, reaffirmed a limited...
Money Talks, March 2026 - Right of First Refusal Narrowly Construed
The Southern District of New York dismissed Prairie Street Capital’s claim that Webster Business Credit breached a right‑of‑first‑refusal (ROFR) tied to a $5 million loan to Richardson Foods. The court held that the ROFR could only be triggered by a sale...
Open for Business? Ontario Considers Unlocking Retail on Family Day and Victoria Day
Ontario’s government has introduced amendments to the Retail Business Holidays Act that would allow retailers to decide whether to open on Family Day and Victoria Day, starting with Victoria Day 2026. The proposal eliminates municipal authority to mandate closures on...
Florida Residential As-Is Contract Series | Part 2: Identifying the Property
The Florida As‑Is Residential Contract’s Property Description section defines the real and personal assets being transferred. Errors often arise when agents copy the tax‑roll’s abbreviated legal description instead of the full deed description, risking misidentified parcels. Personal property should be...
AI and the Work-Product Doctrine: A New Frontier
A federal court in Michigan ruled that a pro se plaintiff’s ChatGPT‑assisted legal filings are protected by the work‑product doctrine. The decision in Warner v. Gilbarco, Inc. rejected the employer’s demand for all AI‑related communications, finding no waiver of privilege....
UK Government Response to Late Payment Consultation
On 24 March 2026 the UK Government released its response to the Late Payment Consultation, pledging the strongest G7‑level legislation in over 25 years. The package gives the Small Business Commissioner new investigative and fining powers, caps commercial payment terms at 60 days, and...
