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McGuireWoods LLP

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State Attorneys General Poised to Crack Down On Price Gouging Amid Market Pressure

By Alex J. Brackett, Erin Ashwell and McGuireWoods LLP on Compliance, Fraud, Deception and False Claims
This past Thursday, New York Attorney General Letitia James issued a warning to businesses against price gouging for eggs and poultry. The current bird flu outbreak began in March 2024 but has become a topic of increasing concern for consumers and businesses in the new year after more than 13 million hens—necessary to the success… Continue Reading

Supreme Court Holds That SEC Must Seek Civil Penalties in Federal Court

By E. Andrew Southerling, John S. Moran, Jonathan Ellis, Louis D. Greenstein and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
In SEC v. Jarkesy, No. 22-859, 603 U.S. __ (2024), the Supreme Court held that the Seventh Amendment prohibits the Securities and Exchange Commission (SEC or Commission) from seeking civil penalties in certain enforcement actions when the Commission chooses to proceed in-house before its own administrative law judges (ALJs), rather than in federal court. In… Continue Reading

Federal District Court Finds Private-Insurer Relator Can Proceed with False Claims Action

By Michael J. Podberesky, Brett Barnett and McGuireWoods LLP on Fraud, Deception and False Claims
Last month, the U.S. District Court for the District of New Jersey held that a private company could proceed with its whistleblower action against a clinical laboratory that allegedly submitted false claims to the federal government for medically unnecessary urine drug tests (UDTs). The lawsuit is part of a growing trend of nontraditional whistleblower-like insurance… Continue Reading

Disruptive Technology Strike Force Announces Its First Declination to Prosecute Under the National Security Division’s Voluntary Self-Disclosure Program

By Alex J. Brackett, Patrick Rowan and McGuireWoods LLP on Government Contracts, Sanctions, Trade Embargo, and Export Controls
On May 22, 2024, the Department of Justice’s National Security Division (“NSD”) announced its first declination of prosecution for a company under the voluntary self-disclosure program established by the National Security Division Enforcement Policy for Business Organizations (“NSD Enforcement Policy”). An individual who worked for a United States-based biochemical company, along with his co-conspirator, each… Continue Reading

BIS Continues Enforcement Policy Ramp-Up

By Alex J. Brackett and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
On January 16, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) issued new guidance to incentivize voluntary self-disclosure (“VSD”) of possible violations of the Export Administration Regulations (“EAR”). This new guidance—which was announced in conjunction with a speech by BIS’s top enforcement official indicating the EAR enforcement is an increasingly important priority… Continue Reading

1st Circuit Rejects Convicted Former Medical Device Executives’ Off-Label “Free Speech” Theory

By Michael J. Podberesky, Allyson M. Maur and McGuireWoods LLP on Fraud, Deception and False Claims
A federal appeals court recently upheld misdemeanor convictions of two former Acclarent Inc. executives for commercially distributing an adulterated and misbranded medical device by misleading the U.S. Food and Drug Administration regarding the device’s intended use. Read on for details about the decision, which rejected claims that their off-label promotion amounted to constitutionally protected commercial… Continue Reading

California Climate Accountability Package Poised to Disrupt

By Alex J. Brackett, Patrick A. Wallace and McGuireWoods LLP on Compliance
During the week of September 11, 2023, the California Legislature passed a series of bills known collectively as the “California Climate Accountability Package” (“CCAP”).  The CCAP is comprised of three bills: S.B. 252 (applicable only to two California state pension funds, and not discussed further herein), S.B. 253 (the “Climate Corporate Data Accountability Act” of… Continue Reading

Massachusetts Attorney General Increasing Enforcement in Car Repossession Space

By Jeffrey P. Ehrlich, Erin Ashwell and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
The Massachusetts Attorney General (AG) is increasing its enforcement in the motor-vehicle-repossession space. In a January 17, 2023 Assurance of Discontinuance (AOD), the AG stated that it is “conducting an investigation” into “entities collecting, servicing and/or funding” motor-vehicle-secured retail-installment contracts. The AG is focused on two primary areas of compliance:… Continue Reading

Silvergate, Silicon Valley Bank, Bank Receiverships in General, and Payroll Regulatory Challenges

By Erin Ashwell, Andrew W. Russell, Dion W. Hayes and McGuireWoods LLP on Financial Institution Regulation
In the wake of Silvergate’s collapse, Silicon Valley Bank entering receivership and another bank following in SVB’s footsteps, startups and other companies directly affected by these events are struggling to manage their payroll and other obligations while credit facilities are frozen. Although depositors likely will be fully protected and most businesses can expect to avoid… Continue Reading

Department of Education Guidance Expands Possible Liability for Private Companies That Contract With Higher Education Institutions

By Farnaz Farkish Thompson, John S. Moran and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
UPDATE (March 1, 2023): On February 28, 2023, the Department updated the Dear Colleague Letter regarding third-party servicers to expressly state: “the guidance in this Dear Colleague Letter will not become effective until September 1, 2023.” The Department also extended the public comment period on this Dear Colleague Letter to Thursday, March 30, 2023. Finally,… Continue Reading

33 State Attorneys General Urge Federal Trade Commission to Take Action on Corporate Surveillance

By Erin Ashwell and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
A bi-partisan coalition of 33[1] state Attorneys General sent a comment letter[2] to the Federal Trade Commission (FTC) highlighting the risks to consumers from corporate surveillance and data collection. The November 17, 2022, letter was filed as part of the FTC’s Advanced Notice of Proposed Rulemaking on Commercial Surveillance and Data Security.[3] The Attorneys General… Continue Reading

California Signs New Bill Prohibiting CA-based Tech Companies from Disclosing Data for State Abortion Investigations

By Brandon M. Santos and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
Compliance with out of state investigative requests, like warrants, just got a little trickier for California companies. Under existing law, California technology and communications companies are required to produce specified user data in response to an out of state warrant as if that warrant was issued by a California court. But now there is one… Continue Reading

CFPB’s New Interest in Examining Fintechs is Likely to Mean More Naming and Shaming by the Agency

By Jeffrey P. Ehrlich and McGuireWoods LLP on Financial Institution Regulation
On April 25, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it will begin examining nonbank “covered persons” that it has determined pose risks to consumers. The CFPB has had this authority since its inception. The Dodd-Frank Act empowered the CFPB to examine this category of nonbanks, which might include fintech firms that are… Continue Reading

D.C. Circuit Rebukes CFPB in PHH Case

By McGuireWoods LLP on Enforcement and Prosecution Policy and Trends, Financial Institution Regulation
In a major setback for the Consumer Financial Protection Bureau (“CFPB”), the D.C. Circuit issued a significant ruling today that found the CFPB’s single director structure unconstitutional, ruled against the CFPB on important statutory interpretations – including the Bureau’s position that it was not subject to any statute of limitations in enforcement proceedings – and… Continue Reading

CFPB Announces New Set of Advisory Board Members

By Jodie Herrmann Lawson and McGuireWoods LLP on Financial Institution Regulation
On September 18, 2015, the CFPB announced that it was appointing new members to the Consumer Advisory Board, Community Bank Advisory Council, and the Credit Union Advisory Council. These three bodies advise CFPB leadership on consumer financial issues and emerging market trends. However, these advisory groups can only provide nonbinding recommendations and cannot make determinations… Continue Reading

CFPB Signals Future Regulation in the Payment Processing Industry

By Jodie Herrmann Lawson and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends, Financial Institution Regulation
On July 9, 2015, the Consumer Financial Protection Bureau (CFPB) issued a set of “consumer protection principles” for the financial industry as it develops new, faster payment processing systems. Last November, CFPB Director Richard Cordray gave a speech that expressed concerns over lack of consumer protection for loss or theft, a general lack of transparency,… Continue Reading

Proposed New Legislation Would Extend CFPB Oversight Over SCRA

By McGuireWoods LLP on Financial Institution Regulation
On June 11, 2015, Sen. Jack Reed [D-RI] introduced a bill amending the Consumer Financial Protection Act to extend CFPB oversight and protection to include key provisions of the Servicemembers Civil Relief Act (SCRA).  The SCRA provides an array of protections to members of the military, including postponing civil obligations so that servicemembers can better fulfill… Continue Reading

National Mortgage Servicer Pays CFPB and FTC $63 Million to Settle Claims Over Alleged Servicing Violations

By McGuireWoods LLP on Enforcement and Prosecution Policy and Trends, Financial Institution Regulation
 On April 21, 2015, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) announced a joint enforcement action and joint order with a national mortgage servicer. The CFPB and FTC alleged that the servicer failed to honor loan modifications transferred from other servicers and insisted that borrowers pay their original, higher monthly… Continue Reading

CFPB’s Position on Confidential Supervisory Information

By Jodie Herrmann Lawson and McGuireWoods LLP on Financial Institution Regulation
Is your financial institution or company subject to the Consumer Financial Protection Bureau’s (CFPB) supervision? If so, take note of a recent bulletin warning supervised entities – both banks and non-banks – about the treatment of confidential supervisory information. There are two main takeaways from the bulletin: Disclosure of confidential supervisory information (CSI) is prohibited,… Continue Reading

CFPB Issues Sweeping Proposal to Regulate Prepaid Financial Products

By McGuireWoods LLP on Financial Institution Regulation
On November 13, 2014, the CFPB proposed expansive federal regulations establishing requirements for prepaid financial products. The proposed regulations cover “traditional” prepaid cards that can be loaded with money and used to store funds, make payments, withdraw cash, receive direct deposits, and send funds to others. According to the CFPB , consumers are expected to… Continue Reading

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