Unfair Competition Defense Podcast Episode 16: An Increased Interest In Credit Card Surcharges

Article I, section 10 of the Washington State Constitution guarantees Washington residents access to the courts. That right does not mean that a person has unlimited access.

DigiNovations, Inc. brought a nine-count complaint in Massachusetts Superior Court against its former executive vice president, Wales, former employee Mackos, and the competing company they founded...

A California federal court ruled that plaintiffs cannot avoid arbitration simply by labeling their claims as "sexual harassment." The decision requires plaintiffs to plausibly allege conduct that actually constitutes sexual harassment under governing law before the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applies. This ruling establishes important limits on attempts to circumvent arbitration agreements through strategic claim labeling.

A federal magistrate judge blocked an employer from distributing a dispute resolution agreement with a class action waiver to settlement class members between preliminary and final approval stages. The court found that despite the agreement's non-coercive language, the timing created unacceptable risks of confusion that could interfere with class members' settlement rights.

A federal judge dismissed a securities fraud class action against former executives of a business communications company, finding that plaintiffs failed to adequately plead actionable misstatements or establish scienter. The court analyzed allegations concerning revenue projections, financial disclosures, and internal controls during the company's transition from hardware to subscription-based software, ultimately determining that forward-looking statements were protected by safe harbor provisions and that

The Ninth Circuit has amended its opinion in a securities fraud class action against a pop culture collectibles manufacturer, clarifying that the company's risk disclosures improperly framed already-realized harms as hypothetical future risks. The court denied petitions for panel rehearing and rehearing en banc, maintaining its partial reversal of the district court's dismissal of claims under Sections 10(b) and 20(a) of the Securities Exchange Act.

Vivek Shah's latest legal defeat demonstrates how courts are scrutinizing CIPA claims when plaintiffs fail to establish concrete privacy injuries. The ruling in Shah v. Drexel Chemical Co. examines what constitutes actual harm when a plaintiff alleges website tracking violations based on generic search terms and routine metadata. This case provides critical guidance on the evidentiary threshold required to survive a motion to dismiss in privacy litigation.

The Eleventh Circuit’s recent decision in United States ex rel. Zafirov v. Florida Medical Associates, LLC marks an important development in the ongoing constitutional debate surrounding the False Claims Act’s qui tam provisions. By rejecting an Appointments Clause challenge, the court aligned itself with every other circuit that has spoken on the issue.

Expert reports are often invaluable in civil and criminal cases. In general, these reports provide the trier of fact with an opinion from an expert witness who possesses specialized knowledge, skill or experience on technical or scientific issues in dispute that are beyond the trier of fact’s knowledge or experience.

The Eleventh Circuit's reversal in U.S. ex rel. Zafirov v. Florida Medical Associates addresses one of the most anticipated False Claims Act decisions in years, ruling that qui tam provisions do not violate the Appointments Clause. While this decision aligns with other circuit courts, it leaves critical constitutional questions unresolved, including Take Care and Vesting Clause challenges that could reshape FCA litigation.

The Federal Trade Commission has reached a proposed $12 million settlement with Humboldt Merchant Services based on allegations that it processed payments for merchants that were shell companies or engaged in fraud. This enforcement action highlights the FTC's scrutiny of payment processors and their obligations to identify and prevent fraudulent merchant activity.

FINRA member firms are rapidly deploying AI tools for employee use, creating new opportunities for misuse and compliance challenges. Drawing on decades of internal review experience, this analysis identifies key risk areas that broker-dealer firms should evaluate as AI adoption accelerates across their organizations.

The Court of Justice of the European Union has ruled on whether political expression and parody can justify the unauthorized use of a reputed trademark, examining the balance between intellectual property rights and freedom of speech. The case arose from a Belgian political party's immigration campaign that adopted IKEA's branding without permission, prompting Inter IKEA to bring infringement proceedings.

El Ejecutivo Federal presentó el Paquete Económico 2027 ante el Congreso, proponiendo cambios significativos en la Ley del Impuesto sobre la Renta y la Ley de Ingresos de la Federación. ¿Cómo afectarán las nuevas limitaciones a deducciones, pérdidas fiscales e intereses la tasa efectiva de tributación de las empresas mexicanas?

DigiNovations, Inc. brought a nine-count complaint in Massachusetts Superior Court against its former executive vice president, Wales, former employee Mackos, and the competing company they founded...

Employers increasingly rely on AI-enabled recruiting tools to streamline hiring, but these technologies introduce new litigation risks under employment discrimination laws and emerging AI regulations. Understanding the legal landscape, discovery implications, and governance strategies is essential for organizations implementing AI-assisted hiring systems.

A California federal court ruled that plaintiffs cannot avoid arbitration simply by labeling their claims as "sexual harassment." The decision requires plaintiffs to plausibly allege conduct that actually constitutes sexual harassment under governing law before the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applies. This ruling establishes important limits on attempts to circumvent arbitration agreements through strategic claim labeling.

The IRS and Treasury Department have proposed sweeping new regulations that could strip tax-exempt status from private schools using race-based criteria in admissions, scholarships, or programs—even when designed to promote diversity or remedy historical discrimination. These proposed rules would affect an estimated 18,000 educational institutions nationwide and create significant compliance challenges for schools, their donors, and holders of tax-exempt bonds financing educational facilities.

The Court of Appeal's recent decision in Thomas v. Nicholas provides critical guidance on how the locality principle operates within the tort of private nuisance under English law. This analysis examines the implications for real estate finance transactions, where a borrower's use of financed assets may be disrupted by neighbouring landowners or where the borrower's own activities create liability risks that affect asset value, liquidity, and lender security.

Nikki Dobay and Glenn Newman explore New York City's controversial pied-à-terre tax, examining its rushed implementation, administrative challenges, and potential constitutional vulnerabilities. The discussion reveals how this new surcharge on high-value non-primary residences may face legal challenges while setting a precedent for similar taxes nationwide.