Keep your finger on the legal world's pulse

The California Civil Rights Department's lawsuit against Tesla, which accuses the company of allowing widespread race discrimination at its Fremont assembly plant, was set to go to trial on Monday. The lawsuit, filed in 2022, alleges that Black workers faced harassment, including racial slurs and graffiti, and were paid less than their peers while being denied promotion opportunities. Kevin Kish, director of the California Civil Rights Department, said the agency looks forward to holding Tesla accountable. The trial, to be overseen by Judge Peter Borkon, is expected to last until October 30. Unlike federal law, California law does not cap damages, meaning Tesla could face significant financial repercussions if found liable. Reuters says Tesla's high profile and the thousands of ​workers involved in the case make it among the most significant involving employment discrimination claims against a major US ​company to go to trial in recent years.

 

CNBC

Reuters

Fraudsters attempted to steal at least $10m through Polymarket’s U.S. platform earlier this year by placing bets with stolen debit cards. The prediction markets platform's payment processor at one point rejected more than 80% of the deposits it handled as fraudulent, according to The Wall Street Journal. The company's CEO, Shayne Coplan, reportedly downplayed the incident to employees, instructing them to focus on growth now and deal with regulatory fines later. Polymarket says it has since strengthened its infrastructure and leadership. An investigation by the law firm Sullivan & Cromwell concluded the company had complied with regulations, according to people familiar with the findings. Separately, the FT reports that Polymarket is convening with European regulators to make the case that it should be regulated under financial services laws instead of local gambling statutes.

 

Financial Times

Wall Street Journal

The NAACP and other civil rights organizations have filed a lawsuit against the Trump administration to prevent armed agents from being deployed at U.S. polling places during the upcoming midterm elections. The lawsuit targets the Department of Homeland Security, Immigration and Customs Enforcement, and the Department of Justice, among others, claiming that their presence could intimidate voters. The plaintiffs argue that such actions could lead to “physical violence, surveillance, and harassment” of voters. Democratic senators last week pressed FBI Director Kash Patel on whether his agency would comply if President Trump asked him to send agents to the polls. Patel said he was aware of laws that prohibited armed officers or troops from polling sites, but he also observed that he may in the case that there was “a violation of the law,” adding: “The FBI will follow the law. If there's a reason to go there because there's been a violation of law, we will.”

 

The Hill

Paramount Skydance has settled a lawsuit with a dozen states and a Hollywood writers union to pave the way for its $110bn merger with Warner Bros Discovery. Under the agreement, Paramount must produce at least 30 films a year and ensure a certain percentage are produced in the US, or face penalties including selling off parts of its business. Paramount chief executive David Ellison said "we have complete clearance for this merger and look forward to putting these commitments into action . . . Our shared aim was an outcome that best serves consumers, workers and - most importantly -the creative community so vital to the art of visual storytelling." The WGA said it still believes the deal will damage the industry. The union said the states' parallel ​settlement forced it to "contend with the reality of forging ahead alone, with no backing from government enforcers" in a complex case that would have cost millions ​of dollars.

 

New York Times

Reuters

BBC News

CNN, MS NOW and Politico have sued President Donald Trump and other members of his administration for banning them from White House grounds. The news outlets said the action was a violation of their rights to free speech ​and a free press under the U.S. Constitution's First Amendment. They are seeking a temporary restraining order to block Trump's action in federal court in Washington, D.C.. A joint statement from the outlets said: "Without notice or process, the White House revoked our journalists' credentials because it objected to our reporting . . . Left unchallenged, this threatens press freedom and the public's right to independent journalism free from government interference." A hearing is scheduled for tomorrow.

 

The Baltimore Sun

Reuters

BBC News

The Federal Trade Commission and Washington ‌State are to be paid $225m by multilevel marketing company Amway and two of its affiliates ​to settle allegations regarding the recruitment of new members with deceptive claims about how much money they could make. Amway and affiliates World Wide Group ​and Leadership Team Development told potential recruits ⁠that they could make $40,000 or more, the agency said. Most of those who joined the two affiliates ​after 2020 spent more money on training and Amway products than they made, according to the FTC. Amway said it fundamentally disagreed with ‌the ⁠agencies’ characterization of its business.

 

Reuters

Workers at 46 hotels in downtown Chicago, represented by Unite Here Local 1, are poised to strike after contracts expired on August 31. The union reported that 85% of participating workers voted to authorize strikes. "Workers at an overwhelming majority of the 46 hotels with expired contracts participated," the union said.

 

Chicago Tribune

President Donald Trump has announced plans to create a federal "AI Force" and recruit an AI "czar" to oversee the initiative as concerns grow over the rapid development of artificial intelligence. Trump said the administration would support the industry’s growth while monitoring its development, although details on funding, leadership and the unit’s powers remain unclear. The announcement comes amid increasing public opposition to AI data centers; a Gallup poll found that nearly half of respondents strongly opposed local developments. Industry leaders have also urged greater caution, and former President Barack Obama has backed greater government oversight. Trump has previously opposed tighter AI regulation, arguing it could hinder the industry’s growth.

 

Wall Street Journal

Sidley is enhancing its FDA and life sciences capabilities by adding two partners from King & Spalding. Michael Resch has joined the litigation group in San Francisco, while Smitha Stansbury has become part of the food, drug, and medical device practice in Washington. Resch, previously the chief people officer and general counsel at Amy's Kitchen, observed: “The issues facing the food, beverage and supplement companies have never been so complex and significant.”

 

Bloomberg Law

Fender is facing resistance from guitar makers, retailers and musicians after launching a European legal campaign to establish copyright protection over the iconic Stratocaster body shape. Following a German default judgment in December 2025 that recognised the design as a protected work, Fender sent cease-and-desist letters to around 60 companies, including Yamaha, PRS Guitars, Schecter, LsL Instruments, and retailer Thomann, prompting criticism that it was targeting an industry that has produced Strat-style guitars for decades. Chief executive Edward “Bud” Cole has acknowledged that the legal process “got ahead” of the company and said Fender is now focused on large manufacturers rather than boutique builders, while maintaining its underlying intellectual-property claim. Fender says it is working with 32 builders and has reached agreements with 18 to change their designs, but its claim remains contested, with Thomann challenging Fender in Germany and questions remaining over the Stratocaster’s authorship, ownership and Fender’s decades-long tolerance of similar designs.

 

Bloomberg

Super Retail Group’s former chief executive Anthony Heraghty has been sued by the Australian Securities and Investments Commission (ASIC), which alleges he breached his directors’ duties and misled the board and market over an alleged relationship with former head of human resources Jane Kelly. Heraghty was dismissed in September 2025 after the retailer’s board concluded he had inadequately disclosed the alleged relationship, while ASIC has alleged he failed to properly manage the resulting conflict of interest despite participating in decisions concerning Kelly’s employment, remuneration, incentives and redundancy package. The regulator is seeking financial penalties, declarations of contravention and disqualification orders against Heraghty, who became chief executive of Winning Group in July.

 

Reuters

Nike-owned Converse has apologized and removed a social media advertisement after critics said its imagery evoked the Ku Klux Klan and lynching. The Instagram ad featured K-pop singer Karina holding a pair of Chuck 70 X trainers: critics argued that lighting on her skirt resembled a KKK hood and the positioning of the shoes recalled the imagery of a lynching victim. Converse acknowledged that the image was “deeply upsetting”, and said it had removed the advertisement from its channels and was working to remove it elsewhere. The company declined to provide further details about its advertising review and approval processes, while the controversy prompted calls for a boycott and criticism over how the campaign had passed internal checks.

 

ABC News

Los Angeles Times

The Oregonian

Reuters