Articles Tagged: Compliance


PayPal’s $30 Million DOJ Settlement Puts DEI Program Design Under the Microscope

PayPal has agreed to waive roughly $30 million in fees to resolve a U.S. Department of Justice investigation into a 2020 program aimed at supporting Black- and minority-owned businesses. According to the government, the program unlawfully favored certain businesses on the basis of race, making the settlement a notable marker in the ongoing legal scrutiny of corporate diversity, equity, and inclusion initiatives.

The matter is significant because it shows how civil-rights enforcement is being applied outside the traditional employment setting.

Massachusetts Federal Judge Keeps Multistate DOJ Challenge Alive

A Massachusetts federal judge has allowed a multistate challenge against the federal government to continue, concluding at this early stage that the plaintiff states had already shown harm from the challenged federal actions. That ruling is important not because it resolves the merits, but because it clears one of the biggest threshold obstacles in public-law litigation: whether the states can establish a sufficiently concrete injury to stay in court.

According to the reporting, the U.S. Department of Justice will continue litigating the case in the U.S. District Court in Massachusetts after the judge determined the states had made the necessary showing of harm.

Supreme Court Preserves SEC Disgorgement in Fraud Enforcement

The U.S. Supreme Court has reaffirmed the Securities and Exchange Commission’s ability to seek disgorgement of ill-gotten gains in fraud cases, preserving a remedy that has long been central to the agency’s enforcement playbook. For securities litigators and compliance professionals, the ruling matters not just as a doctrinal win for the SEC, but as a practical confirmation that one of the agency’s strongest settlement and deterrence tools remains available.

Disgorgement allows the SEC to force defendants to give up profits allegedly obtained through unlawful conduct.

Big Tech Antitrust Pressure Builds as DOJ and States Press New Remedies and Filing Deadlines

Antitrust enforcement remained one of the most important U.S. legal developments in the last 24 to 72 hours, with fresh activity in the government’s ongoing campaign against major technology platforms. Recent filings and hearing activity in several headline matters show enforcers moving beyond liability theories and deeper into the remedies phase—where structural relief, business-practice restrictions, and long-term compliance obligations become concrete risks rather than abstract possibilities.

That shift matters.

DOJ’s New Strike Force Puts Health Care Fraud Enforcement Back in the Spotlight

The Justice Department’s latest announcement around health care fraud enforcement is one of the more consequential legal developments for companies operating in regulated industries this week. According to the reporting referenced, federal authorities have highlighted a major enforcement push targeting fraud schemes tied to health care billing and reimbursement, underscoring that prosecutors continue to view the sector as a core enforcement priority.

For legal professionals, the story is not simply about another round of criminal charges.

Seagate’s $175 Million Huawei Settlement Signals Rising Export-Control Disclosure Risk

Seagate Technology has agreed to pay $175 million to resolve shareholder claims alleging the company misled investors about hard-drive sales to Huawei and its exposure under U.S. export-control laws. The proposed settlement, filed in federal court in San Francisco, ranks among the more significant recent securities resolutions tied to sanctions and export-control compliance issues.

The shareholder case centered on allegations that Seagate, along with CEO Dave Mosley and CFO Gianluca Romano, concealed or downplayed legal and regulatory risks arising from continued sales to Huawei after U.S. restrictions tightened.

SEC Moves to Unwind Winklevoss Crypto Judgment in Major Enforcement Reversal

The SEC’s reported move to withdraw a judgment against the Winklevoss-linked crypto exchange Gemini marks one of the more consequential digital-asset enforcement developments now circulating in the legal market. Even without a fully public merits ruling to dissect, the significance is clear: a federal securities regulator appears to be stepping back from a previously obtained result in a high-profile crypto matter, underscoring how quickly the enforcement landscape can shift as policy priorities, litigation risk, and legal theories evolve.

For legal professionals, the immediate takeaway is not simply that one company may get relief.

DOJ Spotlights Financial Fraud and RICO Violence in Two High-Stakes Criminal Matters

The Department of Justice has recently underscored two of its core criminal-enforcement priorities: large-scale financial fraud and organized violent crime. In one matter, financier Greg Lindberg was sentenced to 12 years in prison in connection with bribery and a multibillion-dollar fraud scheme tied to his business empire. In another, federal prosecutors in Indianapolis unsealed a sweeping RICO indictment against 12 alleged members of the “Crown Hill Enterprise,” charging crimes that include murder, kidnapping, arson, drug trafficking, and firearms offenses.

For legal professionals, the pairing is notable.

SEC Drops “No-Deny” Settlement Rule, Reshaping Enforcement Negotiations

The Securities and Exchange Commission announced on May 18, 2026 that it has rescinded Rule 202.5(e), ending the agency’s long-standing practice of requiring settling parties not to publicly deny the SEC’s allegations. The change marks a notable shift in enforcement policy and is likely to alter the leverage, messaging, and negotiation dynamics in SEC resolutions going forward.

For decades, the SEC’s settlement framework allowed defendants to resolve cases without admitting wrongdoing in many instances, but it also prohibited them from later publicly disputing the agency’s allegations.

FTC’s $35 Million Shutterstock Settlement Puts Subscription Practices Back in the Crosshairs

Shutterstock has agreed to pay $35 million to resolve Federal Trade Commission allegations that it used deceptive subscription and cancellation practices, adding to a growing line of enforcement actions targeting so-called “negative option” marketing. According to the FTC, Shutterstock obscured important terms tied to annual subscription and content-pack plans and made it harder for customers to cancel than to sign up.

While the dollar amount is notable, the broader significance lies in what the case signals about the FTC’s enforcement priorities.

DOJ’s May 18 Enforcement Wave Signals Higher Stakes for Corporate Compliance and Litigation Strategy

Monday’s legal news cycle was notable less for a single blockbuster ruling than for a concentrated burst of federal enforcement activity that reinforces a broader trend: the Department of Justice continues to use press announcements, charging decisions, and coordinated policy moves to signal aggressive expectations around corporate compliance, individual accountability, and cross-agency enforcement.

For legal professionals, that matters because DOJ activity often functions as an early warning system.

FTC’s $35 Million Shutterstock Settlement Raises the Stakes on Subscription “Dark Patterns”

The Federal Trade Commission has announced a $35 million settlement with Shutterstock over allegations that the company used deceptive subscription practices, including misleading consumers about billing terms and making cancellation unnecessarily difficult. The action is the latest in the FTC’s broader campaign against so-called “dark patterns” — interface designs or workflows that steer consumers into purchases, renewals, or ongoing charges they may not have knowingly agreed to.

At a high level, the case reflects a familiar enforcement theory: regulators are focusing not just on what companies disclose, but on how those disclosures are presented and whether consumers can realistically avoid or end recurring charges.

Boston Insider-Trading Case Puts M&A Law Firm Confidentiality Under a Microscope

Federal prosecutors in Boston and the SEC have unsealed a closely watched insider-trading case alleging that confidential merger information was funneled from lawyers at elite law firms into a wider trading network. The government’s allegations center on Nicolo Nourafchan and Robert Yadgarov, and reportedly tie the flow of nonpublic deal information to attorneys associated with Goodwin Procter and Latham Watkins.

What makes this case stand out is not just the scale of the alleged trading scheme, but the source of the information.

Musk Ends SEC Twitter-Disclosure Case With $1.5 Million Settlement

Elon Musk has settled the SEC’s lawsuit over the timing of his 2022 disclosures about his initial Twitter stake, resolving one of the agency’s most closely watched beneficial-ownership reporting cases. Under the reported deal, a trust will pay a $1.5 million civil penalty, bringing to a close a dispute that tested how aggressively the SEC would pursue delayed Schedule 13D-style disclosures in a headline-making transaction.

The case centered on allegations that Musk did not timely disclose that he had crossed the 5% ownership threshold in Twitter stock, a milestone that can trigger federal reporting obligations for investors acquiring significant positions in public companies.

DOJ’s New Corporate Criminal Enforcement Policy Raises the Stakes on Self-Disclosure

The U.S. Department of Justice has rolled out its first department-wide corporate criminal enforcement policy, giving companies and their counsel a more uniform framework for one of the most consequential decisions in any internal investigation: whether to self-disclose potential misconduct.

The policy is designed to clarify when prosecutors may decline to bring criminal charges against a company that voluntarily discloses wrongdoing, fully cooperates, and timely remediates.

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