Welcome back to Inside Track!

The FDA is definitely interested in hearing about CBD. Though if you were to ask Steve Mister, the CEO of the Council for Responsible Nutrition, the industry has some work to do for the next month while written comments are still accepted.

“There were numerous times when a speaker would finish and someone from FDA would say, 'Please submit that to the docket; we'd like to see that in your written comments,'” Mister said of public comment hearing on CBD, a compound found in cannabis. “I think FDA is hoping they're going to find some sort of miracle solution in the written comments.”

John Moynan, the general counsel of Organa Brands, said while his company does not focus on selling CBD products, the hearing was still a good sign.

“Many of my colleagues are working closely with the FDA to provide additional guidance. How that manifests remains to be seen,” Moynan said.

One of Mister's main complaints with the hearing was it was a combined hearing on both CBD and cannabis.

“I think the fact that [CBD] has this historical connection to marijuana because its found in the same plant really does a disservice to those of us thinking about CBD as CBD,” Mister said.

What do you see as the greatest barrier stopping the FDA from regulating CBD in food, drinks and beauty products? And what kind of evidence would satisfy the FDA into creating guidelines surrounding its use in those products? Let me know by emailing me at [email protected].

What's Happening

A Bill To Rework The Gig Economy

Last week the California State Assembly passed a bill that could force ride-hailing and delivery companies who take advantage of the gig economy to either reclassify their workers or change how they do business. Law.com reporter Caroline Spiezio spoke to labor attorneys who said in-house lawyers should begin planning ahead, even though the bill is not yet in its final form.

If passed as is, the bill would not exempt drivers at companies like Uber or Lyftfrom becoming employees. Companies would also have to show that workers perform their work free of the company's “control and direction” to keep their status.

Mike Warren, a partner at McManis Faulkner, said in-house counsel who are concerned about how the bill will impact their businesses should share those concerns with lawmakers.

Richard Meneghello, a partner at Fisher & Phillips, said companies should be taking a wait-and-see approach. “Don't expect the Senate to pass it as it currently sits…there might be some more exemptions that are built into it,” Meneghello told Caroline.

A New Challenge For A New General Counsel

Just as she is beginning to get her feet wet as the new general counsel of Florida A&M University, Denise Wallace faces controversy over the school's request to name an alleged rape victim in defense of a suit. The lawyers for the school from Cozen O'Connor in Miami and Philadelphia believe they should have the right to name the plaintiff, who is only known as S.B., in court filings. However, a federal judge in Tallahassee has denied their request twice. Law.com reporter Sue Reisinger spoke with Wallace last week. Below are excerpts from their conversation.

➤ Wallace said the litigation decisions in the case were made between outside counsel and the previous general counsel before she arrived. “I'm not going to second-guess their litigation strategy when I wasn't here. I am just beginning to get my arms around things here and am in the process of setting up meetings with outside counsel.”

➤ Despite being on the defensive end of the suit, Wallace called the situation sad. “I wholeheartedly empathize with students who are victims of rape. And now alleged assailants [in other cases] are filing lawsuits, too. I wish there were a better way to handle these things in society, period. It's tragic for everybody, and nobody wins,” Wallace said.

➤ Sue wrote that Wallace is taking the controversy and her new role “in stride.” “There are as many challenges in higher education as there are in any practice in law,” Wallace said.

What I've Been Reading

Failing cannabis companies may be finding it easier to get to federal bankruptcy courts, according to a report in Bloomberg Law. Last month, the Ninth Circuit ruled in Garvin v. Cook Investments that bankruptcy law does not forbid a marijuana company from filing for Chapter 11 bankruptcy.

In a story in the Buffalo Law Journal, Suzanne Risman, general counsel of Lactalis American Group, said working as an attorney whose clients were primarily family-owned businesses helped prepare her for the in-house role. She said she was working in financial services when her husband saw a job at the company for an assistant general counsel role at Lactalis, which she found to be a perfect fit when she started four years ago.

What are in-house counsel looking for when it comes to outside IP counsel? According to a report in Managing Intellectual Property, 51% of respondents to a survey the publication put out said they are unlikely to switch their IP firms. With that said, 18% of respondents mentioned that communication with their IP firms was among their biggest challenge. The results indicated more face-to-face contact with IP firms is needed.

Don't Miss

Tuesday, June 11 – Global Leaders in Law will be hosting a “Be the Change” event at Rosewood in Palo Alto, California. On Tuesday, June 18 GLL will be hosting a “Changing Corporate Culture” event at D.O.M. in São Paulo, Brazil. GLL is an invitation-only membership group offering general counsel a global platform for in-person collaboration to exchange ideas and receive advice and guidance from peers. For more information, contact Meena Heath at [email protected].

Wednesday, June 12 – Morrison & Foerster will be hosting an event on Getting Ready For the CCPA and How In-House Counsel Need to Prepare in the firms New York office. The discussion will include strategies for creating compliance programs with some of the unknowns of the regulation. Speakers will include Kristen Matthews and Miriam Wugmeister of MoFo's Privacy & Data Security Group.

Tuesday, June 18 – The Conference Board will be hosting an event on Emotional Well-Being In The Legal Profession. Topics will include how to develop enterprise-wide well-being solutions; how law firms are collaborating with corporate clients to advance emotional well being; and ethics and risk management. Speakers for the event will include Russell Deyo, former general counsel at Johnson & Johnson; Jane Son, director in banking legal at Barclays; and Eileen Travis, director of the lawyer assistance program at the New York City Bar Association. 

On The Move

✦ Grammarly ✦ Virginia Badenhope has been hired as the first general counsel of the writing app company. She previously worked as the deputy general counsel of Atlassian Corp., where she oversaw the firm's commercial, privacy and intellectual property functions.

✦ Accenture ✦ Joel Unruch will become the general counsel and chief compliance officer of the Dublin-based professional services company in September. He has worked in the company's legal department since 2011 and will be replacing Chad Jerdee. Jerdee will be taking on a newly created role at the firm.

✦ UPS ✦ Teri McClure, the delivery service's first black senior vice president, general counsel and corporate secretary, will be retiring in July. She joined the company's legal department in 1998 and became the company's top lawyer in 2006. She has been the chief human resources officer and senior vice president of labor since 2015.