A newsletter by Reuters and Westlaw |
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Good morning. Seeking more power, Trump is using firings to test presidential limits. Plus, a federal judge will hold a hearing in a lawsuit over delays in reviewing NIH grants and the 5th Circuit will hear a challenge to a Louisiana law that bars drugmakers from imposing restrictions on access to discounted drugs under a federal drug pricing program. Here are some odd photos to kick off your Tuesday. Let's dive in. |
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- Over three days last week, the Republican president moved to terminate Federal Reserve Governor Lisa Cook, CDC Director Susan Monarez and railroad regulator Robert Primus.
- The actions underscored Trump's desire for influence in sectors normally seen as independent from overt political control and could have major implications for financial markets, health policy and public trust in institutions.
- Cook has sued Trump and the Fed, saying an unsubstantiated claim of mortgage fraud does not provide legal authority for her removal. Monarez had refused to resign. Primus said his termination was legally invalid. There was a hearing in Cook's case on Friday. Read more about that here.
- "If this ... removal at the Federal Reserve is allowed to stand, then all of the rest of the dominoes are going to fall," said Jane Manners, associate professor at the Fordham School of Law and an expert on presidential powers. "We will no longer have an administrative state in which you have decision makers who are insulated from naked political pressure."
- The conservative-dominated U.S. Supreme Court has approved of some of Trump's assertions of executive authority, including his ability to fire members of nominally independent regulatory agencies.
- The court hinted at some limits in a recent ruling, suggesting such authority might not fully extend to the Fed. Trump appears ready to put that question to the test.
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- The 5th Circuit will hear a challenge by AbbVie, AstraZeneca and the Pharmaceutical Research and Manufacturers of America to a Louisiana law that bars drugmakers from imposing restrictions and limitations on the ability of specialty pharmacies from accessing steeply discounted drugs under the federal 340B drug pricing program. Read the district court ruling.
- U.S. District Judge William Young in Boston will hear a challenge by Democratic-led states and researchers to delays by the Trump administration in reviewing pending applications for grants from the National Institutes of Health. The U.S. Supreme Court last month put on hold part of an earlier ruling by Young in the same litigation requiring the administration to reinstate hundreds of millions of dollars in grants that were terminated because they touched on diversity-related topics.
- U.S. District Judge Ana Reyes in D.C. will hold an evidentiary hearing in a lawsuit challenging a recent ruling by U.S. Customs and Border Protection that allowed certain Apple Watch models with blood-oxygen reading technology to be imported into the U.S. Masimo Corporation claims CBP exceeded its authority and ran afoul of a U.S. International Trade Commission order blocking the watches from being imported due to patent infringement. Read the complaint.
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Court calendars are subject to last-minute docket changes. |
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- Tesla hired a trio of prominent new lawyers as it tries to overturn a jury's $243 million verdict in a lawsuit over the fatal crash of a Model S equipped with Tesla's Autopilot self-driving feature. Spearheading the effort are Theodore Boutrous Jr and Miguel Estrada, both top appellate lawyers at Gibson Dunn, and former U.S. Solicitor General Paul Clement. Read more here.
- Retired Harvard Law professor Alan Dershowitz has lost his bid to overturn a ruling dismissing his defamation lawsuit against CNN over the news channel's coverage of his remarks during President Trump's 2020 impeachment trial. Read the 11th Circuit's decision.
- The head of the DOJ's antitrust division criticized what she said were problematic tactics used by some Big Law firms in antitrust cases, saying recent incidents where courts have chastised Google and Apple for hiding or destroying evidence are "just the tip of the iceberg." Read more here.
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"The TPS statute is designed to constrain the Executive, creating predictable periods of safety and legal status for TPS beneficiaries."
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—9th Circuit Judge Kim McLane Wardlaw writing for a three-judge panel. The court found that the Trump administration had likely acted unlawfully when it rolled back temporary protections from deportation granted to 600,000 Venezuelans living in the United States during his Democratic predecessor Joe Biden's tenure. Read the opinion. |
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- The Federal Circuit ruled that most of Trump's tariffs are illegal, undercutting the Republican president's use of the levies as a key international economic policy tool. Read more here.
- U.S. District Judge Alan Albright blocked Texas from enforcing a first-of-its-kind state law restricting Glass Lewis and ISS, two of the best-known proxy advisers, from advising shareholders on diversity, environmental and governance practices. Read more here.
- Walmart defeated an appeal by shareholders who said the retailer defrauded them by failing to disclose that federal prosecutors were investigating its opioid-dispensing practices. Read the 3rd Circuit's decision.
- Nike and StockX have settled Nike's trademark lawsuit against the popular online reseller for allegedly selling unauthorized non-fungible tokens and counterfeit shoes. Read more here.
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Column: A Nvidia worker shares secrets on his screen, and a legal battle erupts |
First came the theft, then the epic PowerPoint fail: A software engineer stole confidential source codes, jumped ship to chipmaking giant Nvidia, and then accidentally shared the documents on a video call with his former colleagues. The theft and blunder led the man's prior employer, global automotive tech supplier Valeo, to file a trade-secrets lawsuit against Nvidia. Now a federal judge in San Jose, California, has greenlit the case for trial in November, raising thorny intellectual property issues, Jenna Greene writes in On the Case. |
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Additional writing by Shruthi Krishnamurthy. |
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