Introduction
On Thursday, March 20, a federal judge in the Northern District of Illinois granted final approval to a settlement agreement under which Clearview AI (Clearview) agreed to pay an estimated $51.75 million to a nationwide class if one of several contingencies takes place. This approved settlement agreement resolves In Re: Clearview AI, Inc. Consumer
The Office of Massachusetts Attorney General (AG) Andrea Campbell announced the criminal indictment of several Massachusetts-based health care providers and their owners in connection with allegedly false claims they submitted to the Massachusetts Medicaid program, MassHealth. In what Campbell characterized as a fraud and kickback arrangement, the defendants submitted more than $7.8 million in false claims for reimbursement associated with urine drug tests and home health services that were not provided, not medically necessary, or not properly authorized.
On January 15, the Federal Trade Commission (FTC), Minnesota, and Illinois filed a lawsuit against Deere & Company (Deere). The complaint, which Michigan, Wisconsin, and Arizona have since joined, accuses Deere of creating and maintaining a repair services monopoly and engaging in anticompetitive business practices that interfere with farmers’ rights to repair their Deere agricultural equipment in violation of federal and state antitrust laws.
Government Contracting and Cyber/Privacy Attorneys at Troutman Pepper Locke LLP discuss the U.S. Justice Department’s efforts to combat cybersecurity fraud and some best practices for government contractors seeking to mitigate noncompliance risks.
In the fourth episode of our 12 Days of Regulatory Insights podcast series, Dan Waltz is joined by colleague Amy Williams, a partner at Troutman Pepper, and Allison O’Neil, co-chair of Locke Lord’s White Collar Defense & Investigations practice group. They dive into recent enforcement actions under the False Claims Act (FCA) at both federal and state levels.
The Internet of Things (IoT) represents a transformative shift in how consumers interact with technology, integrating physical devices with sophisticated services to create interconnected ecosystems. As the adoption of IoT devices skyrockets, with projections estimating 75 billion connected devices by 2025, the legal landscape surrounding these hybrid transactions — comprising goods, software, and services — remains unsettled. Traditional legal frameworks, such as the Uniform Commercial Code (UCC), struggle to address the complexities of IoT transactions. Consumer advocacy groups are increasingly calling for regulatory intervention to protect consumers from emerging issues, considering a legislative landscape that is not keeping pace with rapidly evolving technology.
Introduction
The National Defense Authorization Act (NDAA) for 2025 includes a mandate that contractors furnish information and documentation to enable the military to modify and repair equipment and systems. Not surprisingly, industry is pushing back on that mandate. On September 25, Senator Elizabeth Warren (D-MA) sent a letter to various industry associations, questioning their motives to prevent a right-to-repair requirement that the Senate included in its proposed defense budget for fiscal year (FY) 2025. Warren also sent a separate letter to Secretary of Defense Lloyd Austin, expressing concern about contractual restrictions that void contractor warranties when third parties perform repairs and that prevent access to operations, maintenance, integration, and training data.
Since 2016, the federal government has implemented numerous procurement regulations and associated contract clauses to address cybersecurity by requiring contractors to adopt various controls and standards to protect sensitive, unclassified information, and to harden information technology (IT) systems to make them more resilient to all manner of cyber hacks. The easy part (not that it was at all easy) was developing the controls and standards – NIST SP 800-171 (currently up to Rev. 3), and contract clauses (most notably, FAR 52.204-21, and DFARS 252.204-7012, 7019, 7020, 7021, and others). The difficult part is getting contractors to take seriously the obligation to invest in cybersecurity.
On August 7, the U.S. Department of Treasury hosted a virtual briefing to discuss the steps that the Biden-Harris administration is taking to address perceived unfair and deceptive practices in the consumer solar energy industry. Deputy Secretary of Treasury Wally Adeyemo, along with Federal Trade Commission (FTC) Chair Lina Khan and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, announced a new interagency consumer solar industry initiative directed at both sales and financing of residential systems. Each made statements about the unique effort to root out anti-competitive and sometimes-fraudulent activity by a handful of “bad actors” who are taking advantage of the burgeoning industry. The presenters also noted that they will be coordinating with state attorneys general (AG) and state financial regulators.
A gambling compact between the state of Florida and the Seminole Tribe of Florida, which allows for sports betting off tribal lands, will remain in place after the U.S. Supreme Court denied a petition for review filed by Florida casino operators. This decision will have a significant impact on states’ authority to regulate gambling, especially gambling facilitated by Indian Tribes, moving forward.