Federal Prosecutors Put Pressure on PPP Fraudsters

When the Paycheck Protection Program (PPP) was first passed into law along with the Coronavirus Aid, Relief and Economic Security (CARES) Act in March, it was intended to help businesses through the economic difficulties caused by the coronavirus pandemic. Businesses who struggled with paying for employees and other essential expenses could apply for PPP loans to help them endure when their business operations were negatively impacted by the virus or by quarantine measures. However, some people have been abusing the program for their own personal gain, and the United States Department of Justice (DOJ) has begun cracking down on people making false filings for PPP loans. Continue reading “Federal Prosecutors Put Pressure on PPP Fraudsters”

COVID Business Interruption Insurance Case Dismissed by Indiana Court

In the first case of its kind to be decided across the country, an Indiana Court has dismissed a claim by a business attempting to recover money under its business interruption insurance due to the coronavirus. The case has caught a great deal of attention, as it may presage other similar cases being decided around the country, including in New York, where businesses struggled to stay open during the coronavirus quarantine. However, while it is tempting to ascribe a great deal of significance to this case, attempting to apply the ruling widely may be difficult. Continue reading “COVID Business Interruption Insurance Case Dismissed by Indiana Court”

Postmates Loses in Federal Court, Stuck with Hundreds of Arbitrations

Postmates is learning the hard way that mandatory arbitration clauses go both ways, as an Illinois court has ruled against its attempt to consolidate hundreds of arbitrations into a single proceeding. As a result, the food delivery company is facing millions of dollars in arbitration fees as it is forced to defend each individual arbitration. The ruling concurs with similar rulings made against Postmates in California, where it was also ruled that it cannot consolidate these arbitrations, no matter how costly to itself. Continue reading “Postmates Loses in Federal Court, Stuck with Hundreds of Arbitrations”

FTC Calls Use of Bots in Advertising a “Deceptive Practice”

The Federal Trade Commission (“FTC”) has sent a report to Congress on the use of social media bots in online advertising. Based on their observations, the FTC says that the use of these bots may constitute a “deceptive practice” under certain circumstances. This means that any person or company that uses bots for illicit purposes may be opening themselves to legal liability at some point. Continue reading “FTC Calls Use of Bots in Advertising a “Deceptive Practice””

Cryptocurrency Transactions Not Protected by 4th Amendment

The United States Court of Appeals for the Fifth Circuit has ruled that cryptocurrency transactions fall under the third-party exception to the Fourth Amendment. This means that cryptocurrency transactions can be monitored without a warrant, and law enforcement can seek information on cryptocurrency exchanges without consulting people who trade on those exchanges. This ruling will likely have a chilling effect on cryptocurrencies everywhere, as one of the central appeals of cryptocurrency is the supposed anonymity it affords. Continue reading “Cryptocurrency Transactions Not Protected by 4th Amendment”

Capital One Ordered to Release Forensic Report on Data Breach

A United States Magistrate Judge for the Eastern District of Virginia has ordered Capital One, the national bank, to release its forensic report on a data breach that occurred in 2019. The data breach affected about 100 million Capital One customers, and exposed sensitive financial data including Social Security numbers and information about credit card transactions. The decision may have a significant impact on many companies who wrestle with protecting the sensitive data of their customers. Continue reading “Capital One Ordered to Release Forensic Report on Data Breach”

The Complications of Corporate Dissolution

A corporation is meant to absorb the financial and legal liability its owners might otherwise accrue in the course of running their business. However, a corporation’s effectiveness is not limitless, and there may come a time when it becomes necessary to bring the corporation’s business to a close. When that happens, you will need to undertake a corporation dissolution, which can be a more complicated process than it first appears. Continue reading “The Complications of Corporate Dissolution”

Facing Bankruptcy, Hertz Paid Executives $16 Million in Bonuses

Hertz, the major rental car company, has struggled to stay afloat since the arrival of the coronavirus. Its business model is heavily reliant on tourism, and with most people staying at home, their revenues have plummeted. However, these financial difficulties did not stop the company from paying its executives $16 million in bonuses right before filing for bankruptcy, a move that has received criticism from employees and shareholders alike. Continue reading “Facing Bankruptcy, Hertz Paid Executives $16 Million in Bonuses”

Small Business Owners Seek Essential Status to Remain Open

With the stay-at-home order in New York now extended to May 28 for some parts of the state, many small business owners are increasingly seeking ways to survive what will soon be an entire Spring under quarantine. While many businesses have moved to telework arrangements where possible, many other “nonessential businesses” have been forced to remain closed for the duration of the quarantine. For some businesses seeking to survive, they have come up with a novel approach: finding a way to shift to be considered an “essential” business. Continue reading “Small Business Owners Seek Essential Status to Remain Open”

Employers Brace for Employee Coronavirus Exposure Suits

Businesses are eager to reopen after the coronavirus quarantine, but employees are less so.
Businesses are eager to reopen after the coronavirus quarantine, but employees are less so.

The coronavirus has occupied the attention of America for months now, with people quarantined in their homes to avoid contracting or spreading the disease. This effort to slow the spread of the coronavirus, however, has had a deleterious effect on the economy, and businesses are eager to return to normal so they can begin making money like they did before. Employees, however, are less than enthusiastic about returning to work in the middle of a pandemic, and they have been turning to the courts for a remedy. Continue reading “Employers Brace for Employee Coronavirus Exposure Suits”