White House Task Force Redirects Resources to Newly Established National Fraud Enforcement Division

On March 16, 2026, President Trump issued an Executive Order establishing the White House “Task Force to Eliminate Fraud” (Task Force), an interagency body charged with coordinating a government-wide strategy to combat “fraud, waste, and abuse” in federal benefit programs. The Executive Order (EO) is the latest step in a broader 2026 anti-fraud initiative that began in January with the announcement of a new U.S. Department of Justice (DOJ) National Fraud Enforcement Division. It continued with the Senate’s March 24 confirmation of Colin McDonald, a federal prosecutor, to lead the division, and with Vice President JD Vance convening the Task Force’s first meeting on March 27. That effort took another significant step on April 7, when DOJ directed the new Division to assume immediate control of several existing fraud-enforcement components and laid the groundwork for a broader realignment of resources across the Department.

“This Is the Beginning”: DOJ Signals Intensifying Health Care Fraud Enforcement in California

Recent U.S. Department of Justice (DOJ) and California Attorney General enforcement activity sends a clear signal that California health care entities that interact with government programs—in particular the hospice and home health industries—are now under intense scrutiny. Companies in these sectors should prepare for subpoenas, Civil Investigative Demands, and searches as a result of federal and state agencies conducting independent and parallel investigations. This uptick in government enforcement is sure to spur qui tam relators and whistleblowers. Unprepared California hospice and home health companies may face significant civil, and even criminal, exposure.

SEC Staff Statement on Crypto Trading Interfaces: Key Takeaways and Implications for Market Participants

On April 13, 2026, the SEC’s Division of Trading and Markets issued a staff statement (the “Statement”) addressing when certain user interfaces used to facilitate transactions in crypto asset securities may operate without registering as broker-dealers under Section 15 of the Securities Exchange Act of 1934 (“the Exchange Act”). The Statement introduces the concept of a “Covered User Interface” —a non-custodial, user-facing application such as a website, mobile app or wallet interface (or “front end”) that assists users in preparing and submitting transactions through their own self-custodial wallets. The Staff indicates that, where specified conditions are met, it “will not object” to such interfaces operating without broker-dealer registration.

FinCEN Proposed Rule on AML/CFT Program Requirements: Key Implications

On April 7, 2026, the Financial Crimes Enforcement Network (FinCEN) issued a proposed rule that would revise anti-money laundering and countering the financing of terrorism (AML/CFT) program requirements under the Bank Secrecy Act (BSA) and Anti-Money Laundering Act of 2020 (AML Act), which supersedes FinCEN’s July 3, 2024 proposed rule. While the proposal codifies and standardizes aspects of existing regulatory expectations, it also reflects a broader shift toward effectiveness, risk-based compliance and expanded FinCEN oversight. If adopted, the rule would meaningfully affect how financial institutions design, maintain and defend their AML/CFT programs.

Un-Banked Tax 101: The IRS Proposes Regulations Implementing the 1% Remittance Excise Tax

President Trump has famously said that “‘tariffs’ is the most beautiful word to me in the dictionary.” As financial service firms know, the Administration’s tariff policy has not been limited to non-U.S. goods and services. The President’s signature legislation, the One Big Beautiful Bill Act (PL 119-21), enacted a one percent (1%) excise tax on certain remittance transfers initiated with cash and money orders, beginning in 2026. And while remittance senders bear the tax in the first instance, U.S. remittance transfer providers are required to collect the tax, remit it to the Internal Revenue Service (IRS) and bear the tax if it’s not properly collected. The IRS, recognizing the importance of the excise tax to the Administration’s immigration enforcement initiatives, has just proposed regulations for remittance service providers to use to comply with the new rules.

Landlords Beware: A Tenant’s Bankruptcy May Limit Your Recovery More than You Think

In In re Tupperware Brand Corporation, the U.S. Bankruptcy Court for the District of Delaware recently found that, although letter of credit proceeds are not estate property, the Bankruptcy Code’s statutory cap on landlord claims may still apply and reduce the benefit the landlord receives as the beneficiary of the letter of credit. The Court thus allowed litigation seeking to recover the proceeds of a landlord’s draw on a letter of credit to proceed, despite the general rule that such draws are independent transactions.

California Assembly Bill 2321 Seeks to Deputize Prosecutors to Pursue Workplace Safety Violations

Enforcement of California’s workplace safety regulations is primarily civil, with most inspections by California’s Division of Occupational Safety and Health (Cal/OSHA) resulting in the issuance of citations and civil penalties. Although it does not happen often, criminal enforcement occurs when Cal/OSHA refers matters to the Bureau of Investigations (BOI) to conduct criminal investigations and refer cases to district attorneys when appropriate. The BOI “must investigate accidents involving violations … in which there is a serious injury to five or more employees, death, or request for prosecution by a Division representative.” [8 C.C.R. section 344.51.] In short, the BOI is responsible for “investigating employee fatality and serious injury cases” and “preparing and referring cases to local and state prosecutors for criminal prosecution.” When Cal/OSHA refers an inspection to BOI, it must provide the BOI with its initial accident reports, inspection reports and any other relevant documents. [Cal. Lab. Code section 6315(b).]

NRC Part 53 Final Rule Offers More Flexibility for Different Reactor Technologies

In January 2019, President Trump signed the Nuclear Energy Innovation and Modernization Act (NEIMA), which directed the Nuclear Regulatory Commission (NRC) to establish a technology-inclusive regulatory framework for optional use by commercial advanced nuclear reactor applicants for new reactor license applications. In response, the NRC recently released 10 CFR Part 53, “Risk-Informed, Technology-Inclusive Regulatory Framework for Advanced Reactors.”

NASA Announces Significant Programmatic Changes to Ignite Lunar, LEO, and Nuclear Development

At a March 24, 2026 event called “Ignition,” NASA announced substantial changes to its exploration program in an effort to better align its activities with the 2020 U.S. National Space Policy over the next decade. The Ignition announcement sought to establish certainty and direction for NASA mission priorities following a turbulent year for the agency, and the space industry generally.

SALT in the Wound: New York Imposes Shareholder-Level Tax on Corporate Asset Sale

In Matter of Petosa, the New York State Division of Tax Appeals (DTA) decided to refund $184,852 of corporate taxes collected on the asset sale of a business and collect approximately $245,900 of shareholder-level taxes on the transaction instead. But to the taxpayers involved, this wasn’t just an extra $60,500 of state taxes (split among the 3 shareholders). The corporate-level taxes would have been deductible for federal income tax purposes. The salt in the wound for the taxpayers was that shareholder-level tax, unfortunately, was overwhelmingly, if not totally, nondeductible to the shareholders. Thus, on a net basis, the state tax liability increased the shareholders’ taxes by approximately 68%. The case provides a cautionary tale for sales of business interests with a New York nexus.

Colorado Packaging EPR Program Faces Legal Challenge from Lubricant Trade Association

Colorado’s packaging EPR program is now the subject of a new legal challenge, after the Independent Lubricant Manufacturers Association (ILMA) filed suit in the State of Colorado’s District Court for the City and County of Denver on March 12, 2026. The lawsuit challenges the Colorado Department of Public Health and the Environment’s (CDPHE) implementation of the Colorado extended producer responsibility (EPR) law, the Producer Responsibility Program for Statewide Recycling Act (HB22-1355), passed in 2022.

Chapter 15 Relief: What Does It Take to Qualify?

There is an ongoing circuit split as to whether the eligibility requirements in section 109(a) of the Bankruptcy Code apply in chapter 15 cases. Section 109(a) provides, in relevant part, that “only a person that resides or has a domicile, a place of business, or property in the United States ... may be a debtor under” the Bankruptcy Code. In turn, section 103(a) of the Bankruptcy Code makes chapter 1, which includes section 109, applicable in chapter 15 cases.

Drone in the USA: FCC Seeks Comment on New Flight Plan for UAS and C-UAS Commercialization in the United States

On April 1, 2026, the Federal Communications Commission (FCC) released a Public Notice seeking comment on an expansive set of proposals aimed towards accelerating domestic drone production. Following direction from a pair of June 6, 2025, Executive Orders (EO)—EO 14307, “Unleashing American Drone Dominance,” and EO 14305, “Restoring American Airspace Sovereignty”—the FCC Public Notice offers a comprehensive recognition of the regulatory roadblocks facing the U.S. commercial unmanned aircraft systems (UAS) and counter-UAS (C-UAS) industries and solicits responses to a broad inquiry into how the FCC’s rules, policies, and coordination mechanisms can be better adapted to facilitate a competitive, secure, and domestically anchored UAS and C-UAS ecosystem.

DOE Announces New $500 Million Funding Opportunity for Advanced Battery Supply Chain Projects

On March 13, 2026, the U.S. Department of Energy’s (DOE) Office of Critical Minerals and Energy Innovation (CMEI) announced a Notice of Funding Opportunity (NOFO) intended to expand U.S. critical minerals and materials processing and derivative battery manufacturing and recycling. The NOFO, which advances the Trump administration’s goals of supporting domestic production of critical minerals directed under the Executive Order titled Immediate Measures to Increase American Mineral Production (which we discuss here), is issued by the Manufacturing Deployment Office (MDO) within CMEI under Sections 40207 (b) and (c) of the Infrastructure Investment and Jobs Act and was previewed in DOE’s August 2025 Notice of Intent, which we discuss here.

California’s March 30th Emergency Contact Deadline and What Employers Must Do ASAP

This emergency contact notification requirement is one provision within the broader Workplace Know Your Rights Act, a California statute that took effect on January 1, 2026. Under the emergency contact provision, an employer must notify an employee’s designated emergency contact when:

• the employee is arrested or detained at the worksite; or
• the employee is arrested or detained offsite (but during work hours or while the employee is performing job duties) and the employer has actual knowledge of the incident.

Previously Scrubbed Mission Authorization Proposal Gets a Lift from OSC

On March 24, 2026, the U.S. Department of Commerce’s Office of Space Commerce (OSC) released a proposal for a new regulatory process that would provide mission authorization for novel space activities through a streamlined framework, as directed by Executive Order 14192, “Unleashing Prosperity Through Deregulation,” and Executive Order 14335, “Enabling Competition in the Commercial Space Industry.” The OSC proposal calls for the adoption of a light-touch “Space Commerce Certification” (Certification) framework that would provide clear and consistent application requirements, defined timelines for authorization decisions, and a mechanism for coordinated interagency review of novel commercial space activities.

New Executive Order Converts Anti-DEI Policy into Enforceable Federal Contract Clauses

On March 26, 2026, the White House issued an Executive Order (EO) titled “Addressing DEI Discrimination by Federal Contractors.” The EO states that its purpose is to promote economy and efficiency in federal contracting by preventing racial discrimination. Although prior executive orders have referred to “illegal DEI,” that term was not defined. This new EO defines “racially discriminatory DEI activities” to mean “disparate treatment based on race or ethnicity in recruitment, employment (e.g., hiring, promotions), contracting (e.g., vendor agreements), program participation, or allocation or deployment of an entity’s resources.” The term “program participation” is further defined to mean “membership or participation in, or access or admission to: training, mentoring, or leadership development programs; educational opportunities; clubs; associations; or similar opportunities that are sponsored or established by the contractor or subcontractor.”

California SB 22 Becomes Effective, Raising Gift Card Cash-Out Threshold to Under $15

California law has long required that closed-loop gift cards (i.e., cards redeemable only for goods and services from a single merchant or affiliated group) be redeemable for cash when the remaining balance falls below a statutory minimum. The prior threshold of less than $10 has been in place since 2008. Under the amended law, if a gift card has a remaining balance of less than $15, the cardholder is entitled to cash redemption upon request. This requirement applies regardless of any contrary terms printed on the card or included in consumer-facing policies. The amended law also clarifies that “gift certificates” includes electronic or digital gift cards, extending the cash-out requirement to modern, app-based and emailed formats.

SEC/CFTC Issue Joint Interpretation on Crypto Assets

On March 17, 2026, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued an interpretive release addressing the classification of crypto assets and the application of federal securities laws to crypto asset transactions. In accompanying public statements, the SEC described the release as recognizing that “most crypto assets are not themselves securities,” reflecting a significant shift in emphasis toward distinguishing between the asset itself and the circumstances under which it may be offered or sold as part of an investment contract. Issued as part of the agencies’ coordination efforts under “Project Crypto,” the release is intended to provide a unified framework for analyzing when crypto assets and related activities involve the offer or sale of securities.

IRS Notice 2026-15 Provides Taxpayers with Additional Guidance on Material Assistance Under New Foreign Entity of Concern Rules

The IRS has issued Notice 2026-15, providing comprehensive interim guidance on the material assistance provisions under Section 7701(a)(52) of the Internal Revenue Code (IRC). In particular, Notice 2026-15 sets forth the methodology for calculating Material Assistance Cost Ratio (MACR) applicable to the IRC Section 45Y Clean Electricity Production Credit, the IRC Section 48E Clean Electricity Investment Credit and the Section 45X Advanced Manufacturing Production Credit. Enacted as part of the One, Big, Beautiful Bill Act (OBBBA), the material assistance provisions deny credit eligibility where a qualified facility, energy storage technology (EST) or “eligible component” includes material assistance from a Prohibited Foreign Entity (PFE). Notice 2026-15 also introduces interim computational and certification safe harbors and outlines documentation and reliance standards pending the issuance of proposed regulations.

California Court Tentatively Rejects “True Lender” Claim in Bank-Fintech Partnership Dispute

On February 24, 2026, the Los Angeles County Superior Court issued a tentative decision granting summary judgment to the fintech Opportunity Financial LLC (OppFi) in its litigation with the California Department of Financial Protection and Innovation (DFPI). The court rejected DFPI’s arguments that OppFi’s lending program with FinWise Bank should be treated as an unlawful “rent-a-bank” arrangement meant to evade California’s interest rate caps.

California Moves to Tighten PAGA Oversight

The Private Attorneys General Act (PAGA) allows an “aggrieved employee” to pursue civil penalties on behalf of the State of California for alleged Labor Code violations. In 2024, amendments to PAGA expanded administrative cure procedures, limited standing to violations personally suffered by the named plaintiff and increased agency oversight of PAGA litigation. On February 6, 2026, the California Labor and Workforce Development Agency (LWDA) issued proposed regulations concerning the interpretation of the PAGA. If adopted, these would be the first regulations in PAGA’s 20-year history, formally detailing how employers and employees must comply with both the original 2004 statute and the amendments enacted in 2024.

New California AI Laws Are Here: Is Your Business Ready?

Effective January 1, 2026, many of California’s newly enacted artificial intelligence (AI) regulations took effect. The more than 20 new AI laws signed by Governor Gavin Newsom regulate AI, data privacy, automated decision systems and generative AI across diverse sectors that include employment, health care, education, social media, among other sectors.

AI and Privilege: Lessons from U.S. v. Heppner and the Emerging UK Position

Courts in both the UK and the U.S. are increasingly encountering the implications of generative AI outputs in litigation, which raises a foundational question: When does an AI generated communication attract legal privilege, and when is it exposed to disclosure?

Key Questions Remain Under DOJ’s New Department-Wide Corporate Enforcement Policy

On March 10, 2026, the U.S. Department of Justice (DOJ) announced its first-ever department-wide Corporate Enforcement Policy (CEP), describing the policy as “promoting uniformity, predictability, and fairness” in its resolution of white-collar cases. With one exception, for antitrust offenses, the new CEP applies to all criminal cases involving organizations and supersedes all component-specific or U.S. Attorney’s Office-specific corporate enforcement policies previously in effect.

Conflict Premium: Insurance and Supply Chains During the Iran War (Part 4)

War-risk losses are rarely “mysteries.” They’re usually fights about ordinary words— “detainment,” “loss,” “costs,” “restraint,” “constructive total loss”—and about which section of a program pays when war is in the causal chain.

FERC Moves to Streamline Hydropower Environmental Reviews

On February 19, 2026, the Federal Energy Regulatory Commission (FERC) issued two orders intended to streamline environmental reviews for certain actions related to hydropower facilities.

DEI Compliance Remains an Active Concern

In Students for Fair Admissions v. Harvard (SFFA), the Supreme Court held that the use of race-conscious decision-making in admissions violated federal law. The complex and often opaque nature of the admissions process, however, has made it difficult to determine whether schools were complying with SFFA’s mandate. In August 2025, the White House issued a memorandum directing the Secretary of Education to expand the scope of data schools are required to report to the Department of Education (ED) to provide greater transparency into admissions for the purpose of “exposing unlawful practices and ultimately ridding society of shameful, dangerous racial hierarchies.”

Conflict Premium: Insurance and Supply Chains During the Iran War (Part 3)

Some losses don’t look like “property damage” at all. They look like government action, loss of control, blocked payments or a legal inability to perform. That’s where political risk insurance (PRI)/political violence wording—and sanctions clauses—do the heavy lifting.

NRC Proposed Rule Seeks to Streamline and Accelerate Adjudicatory Proceedings

On March 3, 2026, the U.S. Nuclear Regulatory Commission (NRC) published a proposed rule, Streamlining Contested Adjudications in Licensing Proceedings, which proposes to revise its Rules of Practice in 10 C.F.R. Part 2 to increase efficiency and accelerate licensing adjudications in response to the requirements of the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act of 2024 (ADVANCE Act) and Executive Order 14300, Ordering the Reform of the Nuclear Regulatory Commission (EO 14300).

CARB Approves Proposed Climate Disclosure Regulations

On February 26, 2026, the California Air Resources Board (CARB) approved its initial implementing regulations for California’s corporate climate disclosure laws, the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261), during a public hearing. As we have discussed previously on this topic, the adopted regulations proposed on December 9, 2025 are narrow in scope and address only a limited set of threshold compliance issues. The approved regulations define key terms, establish the program fee structures, explain fee enforcement and set initial reporting timelines. A broader rulemaking addressing Scope 3 greenhouse gas (GHG) emissions, assurance requirements and ongoing reporting mechanics will follow later in 2026.

Conflict Premium: Insurance and Supply Chains During the Iran War (Part 2)

In the first installment of this series, we focused on the operational side of the Iran war: chokepoints, reroutes, airspace constraints and the pricing ripple effects. Here’s the insurance translation: Before you can measure the loss, you need to classify it.

Conflict Premium: Insurance and Supply Chains During the Iran War (Part 1)

Modern supply chains are engineered for efficiency—until the map changes. The current conflict involving Iran and the wider Middle East is a real‑time reminder that a single regional shock can cascade through shipping schedules, commodity pricing, aviation routes and contract performance.

Treasury and IRS Issue Proposed Regulations Under IRC Section 45Z Clean Fuel Production Credit

Recently, the U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) released long-awaited proposed regulations (the Proposed Regulations) under Section 45Z of the Internal Revenue Code of 1986, as amended (IRC), providing comprehensive guidance on the clean fuel production credit (CFPC) enacted by the Inflation Reduction Act of 2022 and amended by the One, Big, Beautiful Bill Act of 2025 (OBBBA). The Proposed Regulations largely follow the approach taken in last year’s draft form of proposed regulations (Draft Regulations) that was included as part of IRS Notice 2025-10. As discussed below, however, the Proposed Regulations include several significant modifications from the Draft Regulations in response to comments submitted to Treasury and amendments to IRC Section 45Z made by the OBBBA.

The Pendulum Swings Back: DOL Proposes to Restore 2021 Independent Contractor Framework

The Department of Labor (DOL) proposal marks the latest shift in a continuing cross-administration debate over how workers should be classified under federal law. In January 2021, at the end of the first Trump administration, the DOL adopted a rule that emphasized two “core” factors in the economic reality analysis—control over the work and opportunity for profit or loss. That rule sought to provide greater predictability by giving those factors more weight than the remaining considerations.

Robust Sourcing for Private Equity Acquisitions Five Key Considerations for Stand Up, Transition and Cost Optimization

Private equity (PE) firms increasingly recognize that value creation depends on disciplined procurement of business services, particularly technology, in addition to financial engineering and operational optimization. Whether establishing a standalone services environment, especially in the case of a carveout, replacing services provided under a transition services agreement (TSA), optimizing costs after deal closing, or reaping synergies presented by an acquisition, PE firms aim to “get it right once.” Engaging a robust sourcing team comprising specialized attorneys and experienced sourcing experts is essential to mitigate risk, control costs and enhance the enterprise value.

Office of the Comptroller of the Currency Proposes GENIUS Act Implementing Rules for Payment Stablecoins

On February 25, 2026, the Office of the Comptroller of the Currency (OCC) issued a Notice of Proposed Rulemaking proposing regulations to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) for the issuance of payment stablecoins and certain related activities by entities subject to OCC jurisdiction.

NRC Issues Proposed Rule Establishing Licensing Framework for Fusion Machines

In late February 2026, the NRC issued a proposed rule titled Regulatory Framework for Fusion Machines, which regulates the possession, use and production of byproduct material associated with fusion machines under Part 30 rather than under the reactor licensing framework applicable to fission facilities. The proposal amends provisions across Parts 20, 30, 37, 50, 72, 110, 150, 170 and 171 to integrate fusion machines into the byproduct material structure.

The Fiscal Year 2026 National Defense Authorization Act Expands Defense Procurement Sourcing Restrictions Related to Critical Minerals and Advanced Batteries

The Fiscal Year 2026 National Defense Authorization Act (FY 2026 NDAA), signed into law on December 18, 2025 (Pub. L. 119-60), includes several provisions affecting critical mineral and materials sourcing for DoD procurements. Many of these changes will be implemented through updates to the Defense Federal Acquisition Regulation Supplement (DFARS), particularly restrictions under 10 U.S.C. § 4872 (covered materials) and related DFARS clauses. These include adding additional materials subject to sourcing restrictions from China, Russia, North Korea and Iran, and clarifying timelines for entry into effect of certain restrictions. The FY 2026 NDAA also provides for a new battery-related prohibition tied to foreign entities of concern (FEOCs) and for opportunities for stakeholder and private sector engagement to accelerate compliance with DFARS sourcing restrictions. These provisions have significant implications for contractors and sub-contracts (at all tiers) supplying material for or incorporated into DoD contracts including related to compliance with the restrictions and opportunities to supply DFARS-compliant material.

Ninth Circuit Rules That Federal Courts May Invalidate Arbitration Agreements Implemented to Subvert an Ongoing Class Action

The Ninth Circuit has ruled that the broad authority that FRCP 23(d) grants federal judges to oversee class actions includes the power to invalidate arbitration agreements where their rollout appears designed to prevent or discourage class member participation.

NIST Launches AI Agent Standards Initiative and Seeks Industry Input

In January and February 2026, the National Institute of Standards and Technology (NIST), through its Center for AI Standards and Innovation (CAISI), launched a new AI Agent Standards Initiative to support the development of interoperable and secure AI agent systems, issued a Request for Information (RFI) on securing AI agent systems, and announced a series of virtual listening sessions to identify barriers to artificial intelligence adoption, including in the financial sector.

Cal/OSHA Proposes Inspection “Walkaround Rule”

As previously alerted, federal OSHA’s May 2024 walkaround rule clarified that employees, like employers, have the right to designate a non-employee third party to be their representative during worksite inspections. If federal OSHA establishes a new standard, state-plan states such as California must adopt their own standard that is at least as effective as the new federal standard within six months. (See 29 CFR 1953.5(a)(1).) Although late, in February 2026, Cal/OSHA published a Notice of Proposed Rulemaking seeking to add a section to the California Code of Regulations titled, “Regulating the Process for Representatives of Employers and Authorized Representatives of Employees to Accompany the Division During Workplace Inspections.” The proposed new 8 C.C.R. section 331.8 consists of four subsections, which are summarized below.

Enforcement Landscape Heightens Risk Around Surveillance Pricing in California and at the Federal Level

California has entered 2026 with an aggressive enforcement posture toward surveillance pricing—the practice of using consumer personal information to set individualized prices for goods or services. The California Attorney General (AG) has explicitly linked this practice to potential violations of the California Consumer Privacy Act, as amended, (CCPA) and has begun formal investigative sweeps targeting businesses across retail, grocery and hospitality sectors. Meanwhile, California’s parallel antitrust reforms (AB 325) targeting algorithmic pricing deepen legal exposure for companies that use shared or data‑driven pricing systems.

DOJ’s First Antitrust Whistleblower Award: The New “Race to Report” and What Companies Should Do Now

On January 29, 2026, the U.S. Department of Justice (DOJ) announced the first whistleblower reward payment under the Antitrust Division’s Whistleblower Rewards Program. DOJ reported that it paid $1 million to an individual whose information contributed to criminal charges and a deferred prosecution agreement (DPA) with EBLOCK Corporation, under which EBLOCK agreed to pay a $3.28 million criminal penalty. DOJ’s program guidance contemplates potentially significant awards for eligible whistleblowers, subject to eligibility requirements and DOJ discretion.

A Sea Change in California Antitrust Law? CLRC Single-Firm Proposal Raises the Stakes for Algorithmic Pricing

On January 20, 2026, California Law Revision Commission (CLRC) staff circulated a draft final recommendation addressing single-firm conduct. The proposal recommends amending the Cartwright Act, California’s antitrust statute, by creating new prohibitions against single-firm conduct, which would add new Sections 16729–16731 to the Business and Professional Code. “Single-firm” (or “unilateral”) conduct simply refers to conduct that a company engages in on its own, as opposed to through agreements or coordination with other unrelated parties (i.e., other companies, associations or individuals who are not under common control). The CLRC’s recommendations do not change the law unless and until the California Legislature enacts them.

Treasury Issues Request for Information on CFIUS Known Investor Program

On February 6, 2026, the U.S. Department of the Treasury (Treasury) issued a Request for Information (RFI) seeking public input on CFIUS Known Investor Program (KIP). The RFI signals Treasury’s intent to formalize and begin implementation of the KIP announced in May 2025.

Fourth Circuit Holds That Anti-DEI Executive Orders Are Likely Not Facially Unconstitutional

On February 6, 2026, the U.S. Court of Appeals for the Fourth Circuit issued a final Order in the case NADOHE v. Trump, permanently vacating a district court’s preliminary injunction against several provisions of Executive Order (EO) 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” and EO 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (as discussed in a previous client alert, the Fourth Circuit temporarily stayed the injunction in March 2025). The EOs sought to deter diversity, equity, and inclusion (DEI) initiatives. The plaintiffs challenged the provisions that directed federal agencies to terminate all “equity-related” grants and contracts, to require all federal funding recipients to certify that they do not “promot[e] DEI” that violates antidiscrimination laws, and to identify targets for civil investigations into “illegal DEI.” The plaintiffs—an association of diversity officers in higher education, an association of university professors, and the City of Baltimore—argued that these provisions were facially unconstitutional under the First Amendment and Fifth Amendment. While the Fourth Circuit held that the “plain text” of the EOs alone did not provide enough of a foundation for an injunction that relied on a facial challenge, the court’s decision did not rule out future challenges to the Trump administration’s interpretation and application of the EO provisions.

New Executive Order Seeks to Limit Stock Buy Backs and Executive Compensation for Underperforming Defense Contractors (Part 2)

(This is the second of two alerts examining this issue.)
In Part 1 of this client alert, we briefed the substance of President Trump’s January 7, 2025, Executive Order (EO) titled “Prioritizing the Warfighter in Defense Contracting” and provided preliminary observations. As we detailed, the EO gives broad discretion to the U.S. Secretary of War to designate underperforming contractors and directs the Secretary, within 30 days of the EO’s issuance and on an ongoing basis thereafter, to notify defense contractors of such designations. The 30-day deadline for the Secretary to designate underperforming contracts is February 6, 2026. Contractors receiving a notice of underperformance on February 6 will only have until Saturday, February 21 to submit to the Secretary a remediation plan that has the approval of their Board of Directors. While the EO directs the Secretary to allow fifteen days for contractors to submit a Board-approved remediation plan, the EO also allows the Secretary to initiate immediate action if the contractor and Secretary reach an impasse during the 15-day negotiation window. Part 1 of this Client Alert advised defense contractors to identify issues related to delivery, quality, schedule and cost of their existing defense contracts. This second part expounds upon how organizations can best prepare to react to underperformance notices from the Secretary.

Congressional Investigations to Take Center Stage in 2026

With a narrow Republican majority in the House, a crowded election-year calendar and the midterm elections already looming, congressional leaders are leaning heavily on oversight and investigations as their tool of choice. Passing major legislation will be difficult. Investigations, by contrast, can be fast, flexible and highly visible—and they allow lawmakers to shape policy debates, apply pressure and generate headlines without moving a bill.

New Executive Order Seeks to Limit Stock Buy Backs and Executive Compensation for Underperforming Defense Contractors

On January 7, 2026, President Donald Trump issued the “Prioritizing the Warfighter in Defense Contracting” Executive Order (EO). The EO directs the U.S. Secretary of War (Secretary) to establish a process for reviewing defense contractors for critical weapons, supplies and equipment that, as determined by the Secretary, are underperforming on their contracts; have not invested sufficient capital in necessary production capacity; have not sufficiently prioritized U.S. government contracts; or maintain insufficient production speed. The EO does not provide guidance as to any specific criteria to be used in determining what constitutes underperformance, granting full discretion to the Secretary.