Expert Analysis

• Lessons For Banks From Recent FCA Enforcement Trends

  

  While government relief programs rely on financial institutions in times of economic uncertainty, recent enforcement shows that a government partnership may not protect banks from liability involving False Claims Act missteps, say attorneys at O'Melveny.

• NY's Tax On 2nd Homes Compounds Residency Tax Risks

  

  New York’s recently enacted surcharge on high-value second homes reflects a nationwide legislative trend of using the residency tax framework more aggressively, which brings new considerations for business owners who maintain a residence while asserting domicile elsewhere, says Mark Parthemer at Glenmede.

• Justices Widen Path For Confiscated Cuban Property Claims

  

  For Americans holding claims to confiscated Cuban property, the U.S. Supreme Court’s recent decision in Havana Docks v. Royal Caribbean Cruises means that the expiration of their property interest is no longer a bar and that any company using such property is now a potential defendant, say attorneys at Bracewell.

• 'Operation Hard Money' Marks New Phase In Synthetic ID Fraud

  

  A recent California mortgage fraud case dubbed "Operation Hard Money" shows synthetic identities are increasingly key to mortgage and money laundering schemes, so lenders would be wise to integrate verification and behavioral monitoring as fraud powered by artificial intelligence creates larger losses and recovery challenges, says Neal Levin at Rimon.

• Mortgage Co. Ruling Shows Risks Of Broad Noncompetes

  

  The Federal Trade Commission and a Pennsylvania state court recently took actions against Mortgage Connect that demonstrate that overbroad noncompetes may not be worth the regulatory trouble they invite, especially amid heightened federal scrutiny, proliferating state restrictions and increasingly skeptical courts, say attorneys at A&O Shearman.

• 2nd Circ.'s Cantero Redo Complicates Mortgage Escrow Issue

  

  The Second Circuit's recent decision in Cantero v. Bank of America reflects the absence of definitiveness in mortgage escrow preemption jurisprudence, leaving lenders to navigate conflicting state rules and pricing challenges amid a deepening circuit split, say attorneys at Sullivan & Cromwell.

• Recent Benchmarking Suits Highlight DOJ Enforcement Risks

  

  The U.S. Department of Justice's recent settlements with RealPage and Agri Stats inform the level of antitrust risk surrounding the use of benchmarking services and suggest an aggressive enforcement approach, particularly with respect to granular data and nonprice data reporting, say attorneys at Axinn.

• Bid Protest Spotlight: Discriminators, Fairness, Experience

  

  In this month's bid protest roundup, Victoria Angle at MoFo surveys three recent decisions from the Government Accountability Office that show performance benchmarks may serve as qualitative discriminators, solicitation amendments and timelines must allow for fair competition, and past performance submissions must strictly comply with proposal requests.

• 4th Circ. Ruling Will Rewrite Class Action Litigation Strategies

  

  The Fourth Circuit's recent decision in Oliver v. Navy Federal Credit Union is the first from a federal circuit court to hold that motions to strike are inappropriate vehicles for challenging class allegations at the pleading stage, invalidating a tactic that had been used for decades, says Jim Francis at Francis Mailman.

• CFPB Rule Recalibrates Fair Lending Compliance

  

  A close reading of the Consumer Financial Protection Bureau's new final rule on fair lending enforcement reveals a thoughtful and disciplined effort to realign enforcement with statutory text, evidentiary rigor and practical compliance realities, says Alan Kaplinsky at Ballard Spahr.

• 8 Reasons To Consider Maryland As A 'DExit' Option

  

  While Nevada and Texas have garnered the most attention as alternative states of incorporation for companies considering leaving Delaware, Maryland offers considerable benefits too, including a predictable statutory framework, robust anti-takeover protections, sophisticated business courts with decades of experience, and more, say attorneys at Miles & Stockbridge.

• How Courts Are Clashing Over FinCEN Real Estate Rule

  

  A Texas federal court's recent decision in Flowers v. Bessent has vacated the Financial Crimes Enforcement Network's anti-money laundering rule for residential real estate transfers, but significant uncertainty remains due to the ruling's direct conflict with other recent federal court decisions, say attorneys at Katten.

• Anticipating The Justices' Potential Ruling On Tax Takings

  

  Recent oral arguments in the U.S. Supreme Court case Pung v. Isabella focused on rules for valuation, timing and administrability of tax auction proceeds and whichever method the court adopts for determining just compensation, it will have far-reaching impacts on tax collection, homeowners' equity and the secondary market for tax-foreclosed property, say attorneys at Holland & Knight.