A recent ruling of United States Court of Appeals for the Second Circuit in an antitrust case has posed challenges for plaintiffs in current and future cases.
CMS Restricts Arbitration Clauses in Nursing Homes
On October 4, 2016, the Centers for Medicare and Medicaid Services (CMS), an agency within the U.S. Department of Health and Human Services (HHS), issued new regulations, providing the first major reform to nursing homes since 1991. The regulations include a ban on pre-dispute arbitration clauses in resident contracts. The regulations, which apply to long-term care facilities that accept Medicare and Medicaid, may affect as many as 1.5 million residents in over 15,000 long-term care facilities.
The Theory of the SEC’s Case Against Leon Cooperman
On September 21, 2016, the Securities & Exchange Commission filed a complaint alleging Leon G. Cooperman, the billionaire hedge fund manager of Omega Advisors, “generated significant illegal profits” due to insider trading. The trading arose when Cooperman purchased additional securities in Atlas Pipeline Partners, a company in the Omega Advisor portfolio, after receiving information that Atlas intended to sell a large portion of its assets. When Atlas announced the sale, its stock price jumped 31%. The SEC alleges that Cooperman agreed to keep the information confidential, and that by trading on it, he violated insider trading laws.
Airbnb Fights New Law on Short-Term Rentals in New York
On October 21, 2016, Airbnb launched a legal battle in the Southern District of New York against the Mayor of New York City, the City of New York, and the state attorney general after Governor Andrew Cuomo signed a bill into law that possesses the potential to significantly impact the company. Airbnb provides an online platform for residential hosts to directly advertise rental listings for their properties and for guests to make reservations for these properties. Airbnb gains revenue by charging service fees on hosts and guests for the booking process. Airbnb asserts that it helps the middle class by providing a supplemental source of income that can be gained from renting out properties via this online platform.
Judge Rules in Favor of Fannie and Freddie Investors in Government Battle
On October 3, 2016, Fannie Mae and Freddie Mac investors received good news in their suit against the United States over its seizing of company profits. After reviewing 56 documents that had been deemed privileged by the government, Federal Claims Court Judge Margaret M. Sweeney ruled that the government had improperly withheld 52 of the documents and ordered their release. This is a breakthrough for plaintiffs in what has been an unusually secretive case, shrouded by sealed depositions and claims of presidential privilege.
Congress Urges Stricter Scrutiny of Chinese Capital in Hollywood
Lawmakers are urging a tougher stance on Chinese acquisitions in certain industries involving national security, but with a twist: now, Hollywood is in focus.
Tech Giants Invest in Local Cloud Infrastructure to Build Credibility in Europe
Silicon Valley’s tech giants, including Apple, Facebook, Microsoft, Amazon, and Google, have recently invested billions of dollars into Europe’s cloud market. Amazon, already running data centers in Germany, is planning on opening additional centers in France and Great Britain. Google is also opening a new data center in the Netherlands, adding to its already existing centers in Finland and Belgium. Apple, Facebook, and Microsoft are also working on similar projects. In doing so, these tech giants foster benefits for both themselves, their European customers, and the economies of European nations.
Snapchat Poised for IPO in 2017
Everyone’s favorite message disappearing app is reportedly preparing the paperwork to file an IPO as early as next March. Snap Inc., parent company of Snapchat, received a valuation of $17.8 billion in May, but a public offering next year could potentially price the company at $25 billion or more.
Recap: “Venture Capital Speaker Series—The Tech Counsel”
On October 12, 2016, the Berkeley Center for Law, Business and the Economy (BCLBE) welcomed Dave Kling (’97), Vice President, Deputy Counsel, and Corporate Secretary of Facebook for a Q&A discussion about his career, his role at Facebook, and the variety of legal challenges Facebook faces as a company.
Federal Government May Have Spied on Your Yahoo Account
On Tuesday, October 4, 2016, Reuters revealed that Yahoo secretly scanned user emails for the federal government in 2015. Anonymous former Yahoo employees alleged that members of either the National Security Agency or Federal Bureau of Investigation issued a warrant under Section 702 of the Foreign Intelligent Surveillance Act (FISA), asking Yahoo to create software to search key words and/or phrases of user emails as part of an ongoing government investigation. Shortly after, Yahoo created a syphoning system by which the government could tap into user emails in real time and search for specific character strings that they believed were connected to national security threats. Yahoo has not denied these allegations.