Litigator of the Week Runners-Up and Shout-Outs
Litigation teams at Gibson, Dunn & Crutcher and Sullivan & Cromwell secured a nationwide injunction blocking the Federal Trade Commission's proposed ban on non-compete agreements, which was set to go into effect early next month.
August 23, 2024 at 07:25 AM
6 minute read
First up are Amir Tayrani, Andrew Kilberg and their team at Gibson, Dunn & Crutcher and Jeff Wall, Judson Littleton and their team at Sullivan & Cromwell, who secured a nationwide injunction blocking the Federal Trade Commission's proposed ban on non-compete agreements, which was set to go into effect early next month. U.S. District Judge Ada Brown in Dallas this week found that the FTC exceeded its statutory authority and held that its proposed rule was "arbitrary and capricious" in violation of the Administrative Procedure Act. "In sum, the Rule is based on inconsistent and flawed empirical evidence, fails to consider the positive benefits of non-compete agreements, and disregards the substantial body of evidence supporting these agreements," Brown wrote. Gibson Dunn represented tax services and software provider Ryan, which filed the initial lawsuit challenging the proposed rule. Aside from Tayrani and Kilberg, the Gibson Dunn team included Eugene Scalia, Allyson Ho, Aaron Hauptman, Josh Zuckerman and Elizabeth Kiernan, as well as Chad Fillmore and Dusty Fillmore of The Fillmore Law Firm. The Sullivan & Cromwell team represented a group of advocacy groups that intervened in the suit—the U.S. Chamber of Commerce, Business Roundtable, Texas Association of Business and Longview Chamber of Commerce. The intervenors' team also included Robert Sayles and Boyce Holleman of Bradley Arant Boult Cummings, Jordan Von Bokern and Tyler Badgley of the U.S. Chamber Litigation Center and Liz Dougherty of Business Roundtable.
A team at Morgan, Lewis & Bockius led by Jason Pinney and Michael Kenneally helped the Securities Industry and Financial Markets Association, or SIFMA, secure a ruling blocking Missouri rules targeting financial professionals who consider "a social objective or other non-financial objective" in investment advice. U.S. District Judge Stephen Bough in Kansas City found federal laws preempted the Missouri rules, which required securities brokers and advisers who consider ESG objectives in investments to disclose them using certain language and obtain customer consent. The judge granted SIFMA's motion for summary judgment last week, further finding the rules were unconstitutionally vague and violated SIFMA's First Amendment rights.
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Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
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Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
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Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
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