In a fresh development, a federal district court in Kentucky has granted a preliminary injunction preventing the Consumer Financial Protection Bureau (CFPB) from implementing the small business data collection and reporting rule, commonly referred to as the 1071 rule. This is based on the Dodd-Frank section necessitating the rule (the “Rule”). The information from the…
In a recent development, a federal district court in the Eastern District of Kentucky became the second court to issue an order partially granting a plaintiffs’ appeal for a preliminary injunction to prevent the Consumer Financial Protection Bureau’s (CFPB) enforcement of its final rule under § 1071 of the Dodd-Frank Wall Street Reform and Consumer…
The legal landscape within the digital financial assets space continues to evolve – and California is at the forefront of these changes. As many may recall, the state previously attempted to implement a “Digital Financial Assets Law” with the introduction of AB 2269 in February 2022. This legislation, much like its peers, sought to address…
Upstream RollCo LLC, a major player in the corporate world, recently made headlines due to a serious data breach. The incident resulted from unauthorized access to the company’s employee email accounts and was publicized when the company filed a notice of data breach with the Texas Attorney General on September 18, 2023. JD Supra reported…
The California Privacy Protection Agency (CPPA) recently held a public board meeting on Friday, September 8. The central focus was the Agency’s draft regulations on cybersecurity audits and risk assessments. These proposals, which had their first viewing at the Board’s preceding meeting in July, were partially formulated based on preliminary public feedback received earlier this…
In Troutman Pepper's weekly newsletter released in September 2023, the law firm highlighted some of the primary developments in the Consumer Finance Services industry over the past week. This includes crucial activities at the federal and state levels that have shaped the sector, providing an insight into the evolving legal and regulatory landscape for large…
The Consumer Financial Protection Bureau (“CFPB”), in conjunction with 41 US states and the District of Columbia, recently resolved a multistate investigation concerning lease finance company Tempoe’s business practices. The resolution followed a comprehensive evaluation of Tempoe’s leasing activities, which the CFPB and several states considered exploitative and ultimately harmful to consumers. As a result…
On September 18, 2023, Massachusetts-based technology corporation, Nuance Communications, Inc. (“Nuance”), filed a data breach notice with the Attorney General of Texas. The enterprise software company discovered that it was a victim of the well-publicized MOVEit vulnerability which affected a slew of companies across various sectors. In the filed notice, Nuance disclosed that due to…
The United States persists in its struggle with the absence of a federal data privacy and breach law. The Congress has exerted efforts over the years to broker a deal in this territory but has, so far, been unsuccessful in rising above robust lobbying forces — whether it’s the high-tech industry, trial lawyers, law enforcement,…
The Consumer Financial Protection Bureau (CFPB) has swiftly and positively responded to a recent petition by consumer advocacy groups proposing a ban on pre-dispute arbitration clauses within consumer contracts. This news follows after these organizations submitted a Petition for Rulemaking to the CFPB last week. The petition argues against the use of these clauses which…
In a recent episode of the Legal Marketing 2.0 Podcast, Guy Alvarez was joined in the studio by John Hellerman, the President of Hellerman Communications. As a recognized leader in his field, Hellerman’s corporation is trusted by businesses, helping professionals secure winning positions in their industry as well as guiding them through crisis management. Hellerman’s…
In a meaningful development for corporate law professionals, the Fourth Circuit, on August 18, 2023, decertified nearly 20 million putative class action claims originating from a 2018 data breach involving Marriot Hotels. The decision reversed the district court’s certification, requiring the latter to determine from square one if all the supposed plaintiffs had, in effect,…
The US Department of Health and Human Services’ Office for Civil Rights (HHS) and L.A. Care Health Plan (L.A. Care) recently entered a settlement over alleged violations of the Health Insurance Portability and Accountability Act (HIPAA). L.A. Care, recognised as the largest publicly operated health plan in the nation, is reported to pay a whopping…
In an extensive collaboration between state governments and federal agencies, a consumer finance company faces significant legal repercussions. Tempoe LLC, a specialty consumer finance firm, is confronting a $35 million settlement following the joint action of 42 Attorneys General and the Consumer Financial Protection Bureau (CFPB) Kelley Drye & Warren LLP Reports. The bipartisan coalition…
In a recent development, the Federal District Court for the Eastern District of Kentucky has issued an order granting a motion to preliminarily enjoin the Consumer Financial Protection Bureau (CFPB) from enforcing the Small Business Lending Rule (the “Rule”). This decree was issued on September 14th and was a much-welcomed resolution for the plaintiffs involved…
The Securities and Exchange Commission (SEC) recently announced a new cybersecurity final rule. This ruling has brought about a level of uncertainty, particularly regarding the understanding of roles and responsibilities of key business leaders. Not only does it involves heightened monitoring of public companies, but also the increased efforts needed by organizations to ensures protection…
In a significant regulatory move, the Internal Revenue Service (IRS) and the Treasury Department have rolled out long-awaited Proposed Regulations that necessitate reporting of transactions involving digital assets by specific parties. This development is expected to substantially impact parties involved in the handling and facilitation of digital assets, including cryptocurrencies. As per the new directives,…
On September 12, 2023, the U.S. Food and Drug Administration (FDA) initiated a significant measure by issuing warning letters to eight companies. These companies, inclusive of two renowned drugstore retail chains, were found to be involved in the production or promotion of unapproved ophthalmic drug products. By this act, they have violated the Food, Drug,…
In September, The Centers for Medicare & Medicaid Services (CMS) issued fines against two hospitals that allegedly violated the agency’s price transparency rule. This marks a notable increase in the agency’s enforcement efforts, as it issued fines for the third consecutive month, after several years of generally light enforcement. The victims of the two fines…
The business landscape is poised for significant changes, as announced revisions to consumer protection legislation in the United Arab Emirates (UAE) are set to come into effect on 14 October, 2023. The wide-reaching implications for corporations and legal professionals cannot be understated. With these alterations, both multinational and local businesses will need to adjust their…
In the world of brand protection and advertising law, recent updates have made the spotlight on Madison Reed, a hair color company. A case against the company, alleging that it crafted deceptive claims about its hair dye products is slated to continue, enduring a motion to dismiss. Madison Reed allegedly misrepresented the safety and quality…
On February 7, the Division of Examinations of the Securities and Exchange Commission (the “Division”) released its 2023 Examination Priorities (the “Exam Priorities”). These priorities appear to spotlight registered investment advisers (“RIAs”) and, more specifically, private fund advisers. The document underscores areas where heightened staff scrutiny is expected, one such area being the Marketing Rule….
In a recently developed legal narrative, a Texas federal judge has determined that the Consumer Financial Protection Bureau (CFPB) overstepped its authority in 2022 when it adapted a comprehensive anti-discrimination policy. The judgement was delivered on September 8 following the amendment of the policy through an update to its examination manual in March 2022. The…
In an intriguing turn of legal events, the California Court of Appeals has found that a solar energy agreement can provide a basis for a Rosenthal Fair Debt Collection Practices Claim made by a non-party to the agreement. The case under the microscope was Hagey v. Solar Service Experts, LLC. It is an important development…
Cadence Bank confirmed that a data breach involving MOVEit, a file transfer application, has compromised customer information. The breach, which was discovered and notified to the Montana Attorney General on September 15, 2023, exposed sensitive data held by the bank, including customer names, addresses, dates of birth, Social Security numbers, driver’s license numbers and financial…