USA Federal Court Decision Creates Greater Uncertainty as to Future of FTC Final Rule on Noncompete Clauses

In ATS Tree Services v. Federal Trade Commission, the Eastern District of Pennsylvania found that even if the plaintiff employer could show irreparable harm, injunctive relief would still be inappropriate because the plaintiff was unlikely to prevail on its argument that the FTC did not have authority to promulgate the Noncompete Rule.

Seventh Circuit Confirms Extraterritorial Reach of the Defend Trade Secrets Act

Under Motorola, a trade secret plaintiff can bring its claim against a foreign defendant in the United States even when most of the wrongful conduct occurs outside the USA, so long as there is some act in furtherance of the misappropriation in the United States. In such cases, the trade secret plaintiff can recover damages on all of the...

Jarkesy Limits Power of the SEC to Rely on In-House Adjudicators When Pursuing Penalties for Fraud

Previously, the SEC could elect to litigate fraud cases before its administrative law judges, where it had “home court” advantage, and who often have considerable subject-matter expertise, but now it must bring such cases in a U.S. federal court.

Another Minnesota Noncompete Ban: Restrictive Covenants in Service Contracts

Minnesota Statute § 181.9881 — Restrictive Employment Covenants; Void in Service Contracts — prohibits on a go-forward basis service providers from restricting “in any way a customer from directly or indirectly soliciting or hiring an employee of a service provider.”

Entities That 'Cease to Exist' Must Still Comply With the Corporate Transparency Act

On Monday, July 8, 2024, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released additional FAQs specifying that reporting companies created or registered on or after January 1, 2024, that are subsequently dissolved or cease to exist, are required to make a CTA filing even if such reporting companies cease to...