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  • CONSUMER FINANCIAL PROTECTION BUREAU—D. Ore.: CFPB funding withholding decision vacated; ‘profits’ reading of funding statute rejected

    CONSUMER FINANCIAL PROTECTION BUREAU—D. Ore.: CFPB funding withholding decision vacated; ‘profits’ reading of funding statute rejected

    CONSUMER FINANCIAL PROTECTION BUREAU—D. Ore.: CFPB funding withholding decision vacated; ‘profits’ reading of funding statute rejected
    September 28, 2026 | By Shashi Kant, BALLB, LL.M.
    The court held that Vought’s refusal to request Federal Reserve funding violated federal law and the constitutional separation of powers. A federal district court in Oregon granted partial summary judgment to 22 states and the District of Columbia, vacating decisions by Consumer Financial Protection Bureau (CFPB) Acting Director Russell Vought not to request bureau funding from the Federal Reserve (Fed). The court declared that the decisions were contrary ...
Hearing on ‘Rogue’ AI Scheduled by Senate Subcommittee

Hearing on ‘Rogue’ AI Scheduled by Senate Subcommittee

September 28, 2026 | By Tom Leithauser
A hearing to examine cyber attacks by “rogue” AI (artificial intelligence) agents has been set for Wednesday by the Senate Homeland Security and Governmental Affairs Committee’s disaster management su...
LITIGATION NEWS, TRENDS—Trump administration settles with unions in case challenging mass firing of federal workers during 2025 shutdown

LITIGATION NEWS, TRENDS—Trump administration settles with unions in case challenging ...

September 28, 2026 | By Brandi O. Brown, J.D.
Under the agreement, litigation is paused and guidance directing agencies to fire employees during shutdowns has been abandoned. A settlement agreement has been announced in a lawsuit brought by labor unions that challenged the Trump-Vance administration’s unlawful mass firing of federal employees during the 2025 government shutdown. In the lawsuit, initially filed just as the shutdown was about to commence and later amended, the labor unions alleged that OMB and OPM exceeded statutory…
FEDERAL PREEMPTION—6th Cir.: Sixth Circuit rules Ohio, Tennessee may apply gambling laws to Kalshi sports-related trading

FEDERAL PREEMPTION—6th Cir.: Sixth Circuit rules Ohio, Tennessee may apply gambling ...

September 28, 2026 | By Lene Powell, J.D.
The ruling deepens a federal appellate split over whether states can regulate prediction markets trading. The Sixth Circuit resolved appeals arising in Ohio and Tennessee by ruling that sports-related event contracts on the Kalshi predictions market are not “swaps” and do not fall within the CFTC’s exclusive jurisdiction. A three-judge panel decided that even if the contracts are swaps, the Commodity Exchange Act (CEA) neither expressly nor impliedly preempts Ohio’s or Tennessee’s gambling…
Court Upholds DoD’s Decision That Anthropic Poses Security Risk

Court Upholds DoD’s Decision That Anthropic Poses Security Risk

September 25, 2026 | By Tom Leithauser
A federal law on technology supply-chain threats provided sufficient authority for the Department of Defense to designate Anthropic as a national security threat after the company refused to allow the use of its AI (artificial intelligence) systems for mass domestic surveillance or autonomous weaponry, an appeals court ruled today. But the ruling by the U.S. Court of Appeals for the District of Columbia Circuit is at odds with a decision by the U.S. District Court for the Northern District of…
FALSE CLAIMS ACT—N.D. Ga.: Relators win $1.9M fee fight after hospice parties seek reduction for unsuccessful claims

FALSE CLAIMS ACT—N.D. Ga.: Relators win $1.9M fee fight after hospice parties seek ...

September 28, 2026 | By Justin Marcus Smith, J.D.
The hospice parties advocated for a fee haircut to account for time spent on unsuccessful claims, but the court held “substantial relief” was what mattered, and the government had settled for $9.2 million in restitution. The federal district court in Atlanta, Georgia, awarded more than $1.9 million in attorneys’ fees to relators’ attorneys in a decade-old qui tam action against a hospice provider after the government only recently intervened and settled a subset of the claims. The court held…
FINANCIAL TECHNOLOGY—Fed seeks comment on GENIUS Act framework for stablecoin issuers it supervises

FINANCIAL TECHNOLOGY—Fed seeks comment on GENIUS Act framework for stablecoin issuers ...

September 25, 2026 | By Shashi Kant, BALLB, LLM
The Fed proposed reserve, capital and risk management rules for stablecoin issuers it supervises, and a bank application process. The Federal Reserve Board (Fed) has proposed a regulatory framework for payment stablecoin issuers under its supervision to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), together with a separate proposal setting out how insured state member banks may apply for approval for a subsidiary to issue payment stablecoins.…
COPYRIGHT—S.D.N.Y.: Artist’s copyright infringement and most royalty claims against Sony may not proceed

COPYRIGHT—S.D.N.Y.: Artist’s copyright infringement and most royalty claims against ...

September 28, 2026 | By Nadine E. Roddy, J.D.
A limited exception for the musician was made for claims arising from royalty statements due on or after September 30, 2023. A musician who produced an album by contracting with a producer who alone contracted with a recording company failed to plausibly allege copyright infringement and breach of contract by the recording company. The musician (artist), who was a California resident and the member of a band known as “Anything Box,” brought a copyright and breach-of-contract suit against Sony…
ANTITRUST—N.D. Cal.: Card issuers get class certification in suit against Apple alleging Apple Pay monopoly

ANTITRUST—N.D. Cal.: Card issuers get class certification in suit against Apple ...

September 28, 2026 | By Donielle Tigay Stutland, J.D.
The court certified a class of U.S. financial institutions that issued an Apple Pay-enabled card and paid Apple a transaction fee. The federal district court in Oakland, California certified a class of U.S. financial institutions that issued an Apple Pay-enabled card and paid Apple a transaction fee in a class action suit brought by payment card issuers alleging that Apple Inc. violated the Sherman Act by unlawfully tying together its mobile devices and its mobile wallet and by unlawfully…
SETTLEMENT AGREEMENTS—ELECTRONIC PRODUCTS—Alabama secures up to $300 million in TikTok settlement

SETTLEMENT AGREEMENTS—ELECTRONIC PRODUCTS—Alabama secures up to $300 million in TikTok ...

September 28, 2026 | By WK Editorial Staff
The agreement requires time limits, enhanced parental controls, and stronger safeguards for young users. Alabama Attorney General Steve Marshall announced a settlement with TikTok Inc. that will provide the state with at least $100 million and potentially as much as $300 million, while requiring the social media platform to adopt a range of new safety measures aimed at protecting children and teenagers. The agreement resolves Alabama’s lawsuit alleging that TikTok designed its platform with…
DISCRIMINATION—RELIGIOUS—9th Cir.: Nurse revives COVID-19 vaccination claim after court overlooked objection letter to employer

DISCRIMINATION—RELIGIOUS—9th Cir.: Nurse revives COVID-19 vaccination claim after ...

September 25, 2026 | By Todd Harrison, J.D.
Although it was not attached to her complaint, the Ninth Circuit determined that under the incorporation-by-reference doctrine, the lower court should have considered the contents of the letter. Reversing a district court’s dismissal of a registered nurse’s Title VII and state-law claims alleging religious discrimination in the face of a COVID-19 vaccine mandate, the Ninth Circuit found the lower court erred when it dismissed the claim without leave to amend. In her opposition to the motion to…

LABOR PULSE—‘Congress is so strange; a man gets up to speak and says nothing, nobody listens, and then everybody disagrees’
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September 28, 2026 | By Dr. Jim Castagnera, Esq.
“With hearings harnessed to the manufacture of sound bites, little time is left for a debate about doomsday.” In this month’s Labor Pulse, Jim Castagnera takes stock of a mid-September hearing, of the U.S. House of Representatives...

EXPERT INSIGHTS—California legislature takes aim at AI-powered mind reading, but questions remain
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September 28, 2026 | By Michelle L. Lappen & Jonathan Slowik
The California Legislature recently passed Assembly Bill 1883 ("AB 1883"), which would prohibit employers from using artificial intelligence ("AI") workplace surveillance tools for two specific purposes: recognizing employees' emo...

PROXIES—Goldman Sachs receives SEC approval for proxy voting instruction program
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September 28, 2026 | By John Filar Atwood
The program is similar to Exxon’s controversial retail voting program that allows shareholders to choose to have their shares voted according to management’s recommendations rather than go unvoted. Like Exxon Mobil before it, Gold...

SEC NEWS AND SPEECHES—Commission’s chief accountant calls on registrants to maintain rigor over private asset valuations
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September 28, 2026 | By Suzanne Cosgrove
Private credit investment within registered fund portfolios has grown nearly 60 percent in the past five years—from $170 billion in December 2020 to $270 billion in December 2025. Amid the growing accessibility of private assets, ...

Bicameral Legislation Would Bar Federal Agencies’ Use of Biometric Tech
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September 28, 2026 | By Tom Leithauser
The federal government would be prohibited from using facial recognition and other biometric technologies under legislation introduced Friday in the House and Senate. The Senate version of the Facial Recognition and Biometric Tech...

Concern Over AI Security Reflected in Two New Senate Bills
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September 28, 2026 | By Tom Leithauser
Members of the U.S. Senate are continuing to offer legislation to address AI security, with one bipartisan bill introduced late last week and a second that will be introduced soon. Sens. Chris Coons (D., Del.), Katie Britt (R., Al...

LABELING AND PACKAGING (FOOD, DRUGS & MEDICAL DEVICES)—E.D.N.Y.: Putative class action over broth protein labeling is ruled preempted by ...
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September 28, 2026 | By Steven Melendez
A federal judge adopted a magistrate judge’s recommendation finding the federal Food, Drug, and Cosmetic Act preempts claims about the product’s labeling. A federal judge adopted the recommendation of a magistrate judge in dismiss...

ENFORCEMENT ACTIONS—NOTICES: FDA permanently debars oncologist over illegal cancer drug resale scheme
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September 28, 2026 | By WK Editorial Staff
FDA permanently barred a Michigan oncologist from working with companies holding approved or pending drug applications after a felony conviction stemming from the unlawful resale of prescription cancer drugs. The FDA issued a fina...

VITAL BRIEFING—Extension of China tariff truce agreed to ahead of Xi, Trump summit
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September 28, 2026 | By Brad Rosen, J.D.
The U.S. and China also agreed to operationalize a process for considering cuts to tariffs on low-tech Chinese imports and U.S. energy and agricultural exports, according to a recent statement from U.S. Trade Representative Jamies...

BANKING OPERATIONS—OCC conditionally approves Mission Lane de novo subprime credit card bank
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September 28, 2026 | By A. Bryan Gerepka
Approximately 95% of Mission Lane’s customers fall within the VantageScore range of 550 to 700, which the application identifies as the Bank’s target market. The Office of the Comptroller of the Currency (OCC) has granted prelimin...

COPYRIGHT—D. Conn.: Dispute over LEGO minifigure painted with copyrighted jacket will proceed
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September 28, 2026 | By Sherri M. Schroeder, J.D.
The artist who created and adorned a leather jacket for NetFlix's Queer Eye sued LEGO over inclusion of a rendition of that jacket on a minifigure in LEGO’s Queer Eye construction playset. A jacket included as a torso element for ...

COPYRIGHT—E.D. La.: Rock band The Revivalists’ motion to dismiss copyright infringement lawsuit partly granted
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September 28, 2026 | By Carolin Dennis, B.Sc., LL.B., LL.M.
District court found the former band member’s ownership claims for all songs except the studio recording of Concrete (Fish Out of Water) were time-barred. The U.S. District Court for the Eastern District of Louisiana partly grante...

ANTITRUST—S.D. Tex.: Summary judgment granted on Texas ambulance operator's Sherman Act claim against city
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September 28, 2026 | By Kenneth H. Ryesky, M.B.A., J.D.
Ambulance operator alleged that permit renewal application was timely submitted in person after rejection; city contended that there was no permit to renew because it had expired. The federal district court in Galveston, Texas has...

FRANCHISING & DISTRIBUTION—D.N.J.: La Quinta wins partial summary judgment in hotel franchise dispute
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September 28, 2026 | By Martin A. Steinberg, J.D.
Franchisee argued that alleged disclosure failures, disputed fees, property-improvement demands, and suspension from La Quinta’s reservation system excused its debranding and nonpayment of termination damages. La Quinta Franchisin...

DESIGN AND MANUFACTURING DEFECTS—WEAPONS AND FIREARMS—D. Idaho: Sig Sauer and Palmetto State Armory largely survive dismissal in pistol ...
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September 28, 2026 | By Pankhuri Bhatnagar, B.A. LL.B.
The veteran’s allegations of accidental discharge allowed his product-liability, warning, negligence, and related claims to proceed, while the remaining counts were dismissed. In a suit brought against a pistol’s manufacturer and ...

EXPERT EVIDENCE—ASBESTOS—E.D. Pa.: Court allows state law damages testimony in maritime law case
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September 28, 2026 | By Molly Platnick
State damages law applies because decedent was non-seaman maritime worker. The U.S. District Court for the Eastern District of Pennsylvania denied a ship part manufacturer’s motion to exclude expert testimony in a case brought by ...
See more from VitalLaw

Expert Insights

  • Growing pushback to Automated License Plate Readers - Video Vital Briefing with Senior Analyst Tom Leithauser
  • Is Kalshi subject to state gambling laws? - Video Vital Briefing with Senior Analyst Lene Powell
  • Anthropic v. U.S. Dept. of War - Video Vital Briefing with Senior Analyst George Gullo
  • Eleventh Circuit rejects one constitutional challenge but leaves open questions on FCA qui tam provisions
  • Equitable tolling for untimely Tax Court petitioners?

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