On May 18, 2023, during an “Ask FINRA Senior Staff” panel held as part of FINRA’s 2023 Annual Conference, Christopher Kelly, Acting Head of FINRA Enforcement, provided a first look into how FINRA Enforcement intends to address CAT reporting violations as the industry nears the three-year anniversary of the first Phase of CAT go-live and
Update on FINRA’s Use of CAT Data – They Are “Just Scratching the Surface”
During FINRA’s 2023 Annual Conference held on May 16-18, 2023, several panels provided insight into how FINRA is currently using CAT data for market surveillance and how FINRA plans to use the data going forward to both develop more sophisticated surveillance reviews and further promote industry-wide efficiencies.
FINRA Continues to Prioritize Compliance with CAT Reporting
On May 17, 2023, as part of FINRA’s 2023 Annual Conference, staff from FINRA’s Market Regulation and Member Supervision Departments, along with representatives from FINRA CAT, participated in a panel entitled “Consolidated Audit Trail (CAT): What You Need to Know.”[1]
A Primer on Mass Arbitration
In response to a wave of Supreme Court decisions affirming the enforceability of class action waivers in arbitration agreements, plaintiffs’ firms began using the arbitration agreement’s language (and/or the arbitration provider’s rules) requiring that the entity pay virtually all the fees and costs associated with arbitration against the entities that drafted them through a process
OIG to Expand Informal Guidance with New FAQs
The Office of Inspector General (OIG) has announced that it is expanding the topics it considers for new Frequently Asked Questions (FAQs) submitted by healthcare stakeholders. OIG will now answer general questions about the Federal anti-kickback statute (AKS), questions related to the civil monetary penalty (CMP) provision prohibiting remuneration to Medicare and State health care
Pharmaceutical Suppliers Beware: Expect Increased Scrutiny of Average Wholesale Pricing Methodology and Marketing “The Spread”
A Texas federal court recently denied a pharmaceutical supplier’s motion to dismiss claims brought by a whistleblower under the federal False Claims Act (FCA) alleging violations of the Anti-Kickback Statute (AKS) and manipulation of Average Wholesale Pricing (AWP) rules. The complaint was filed by a pharmacist (the Relator) who previously worked for the defendant, Professional
The Price Isn’t Right?
In recent months, retailers have faced increased pressure from litigation related to their sales practices. While there is overlap, sales practices litigation can fall into four different buckets: pricing, data collection, auto-renewal, and “free” lawsuits. This post focuses on trends in recently filed pricing litigation.
U.S. Supreme Court Clarifies Salary Basis Requirement for Executive Exemption – Maybe?
On February 23, 2023, the Supreme Court of the United States ruled in Helix Energy Solutions Group, Inc. v. Hewitt, that even highly compensated individuals are subject to the overtime requirements of the FLSA unless they are paid on a salary basis. Below are details of this ruling and the impact it may have on
FTC MUSA Labeling Rule Enforcement
The Federal Trade Commission (FTC) issued its Made in USA Labeling Rule on August 13, 2021 (the “Rule”), which has led to significantly increased enforcement in the area. Since then, the FTC has taken actions to enforce the Rule against certain companies. Below is background on the Rule itself, links to enforcement actions taken by
Supply Chain and Logistics 101 for Retailers and Consumer Brands
In the wake of the COVID-19 pandemic, the supply chain crisis has evolved into a contentious issue that has captured the attention of both consumers and retail businesses. Specifically, there has been a significant emphasis on challenges related to international ocean transportation. Within the supply chain, ocean container transport plays a crucial role for retailers