North America

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Covington has a long history of developing comprehensive business and legal solutions for our clients’ most challenging business opportunities and disputes across North America. Recognized by the Financial Times as one of the top 40 most innovative law firms in North America, our teams throughout the firm help clients navigate complex international issues at the intersection of law and policy in the United States, Canada, and Mexico. Clients benefit from the combined experience of our more than 120 former government officials, diplomats and regulators who lend their expertise to our teams of litigators, regulatory lawyers and deal makers.

Support of derivative sovereign immunity defense through Supreme Court amicus brief

Filed a Supreme Court amicus brief on behalf of a government contractor trade association in support of a U.S. Navy contractor being sued for unwanted text messaging. The proposed class action raised significant questions regarding the application of derivative sovereign immunity to private contractors performing work on behalf of the federal government.

Insurance Coverage for AI, Autonomous Vehicles, and Other IoT Products

We advise clients on closing insurance gaps associated with new technologies. Matters have included advising a client in identifying and providing solutions to gaps in coverage relating to AI use and risk, including with respect to AI used for autonomous vehicles. We help policyholders recover insurance—both in the U.S. and abroad—for a wide variety of claims, including mass-tort liabilities, property and business interruption losses, marine, and D&O, E&O, and many other types of exposures.

M&A Counsel

We represent Global 100 companies, private equity firms and investment banks as well as venture-backed companies in public and private transactions worldwide. Our lawyers advise investors from the start of diligence through the consummation of investments in IoT portfolio companies, and we combine our corporate negotiating expertise with our deep understanding of regulated industries.

Global Legislative and Regulatory Counsel

We help clients engage with policymakers developing IoT regulatory frameworks in jurisdictions worldwide. We have assisted clients with IoT products or services in identifying relevant legislative and regulatory developments, drafting and submitting comments on proposals to regulate IoT technologies, and lobbying policymakers on these issues. We monitor developments in jurisdictions across the world.

Emerging IoT Government Contracts Standards

We monitor and advise clients on legislation and regulations that affect IoT-related government contracts. For example, we track legislation that would require the development of contractual IoT security standards for IoT devices purchased from government contractors. We also advise on IoT best practices for government contractors.

Autonomous Vehicles AI Technology

We assist clients developing artificial intelligence technologies for autonomous vehicles. Matters have included advising a tech company on a joint venture for the development of autonomous vehicles AI technology. Separately, we assisted a client with a standard essential patents/essentiality complaint before the EU and national courts in the automotive/wider driverless car sector.

Shareholder Proposals in Proxy Materials

Represented a global life sciences company with respect to selected securities disclosure and governance matters, including obtaining no-action relief allowing the exclusion of several shareholder proposals from its proxy materials. We also successfully defended and achieved favorable outcomes for this client in related litigation.

Successfully defended prime contractor in data rights lawsuit

We successfully defended a Navy prime contractor accused of misusing its subcontractor’s design data. We convinced the court that the Defense Federal Acquisition Regulation Supplement (DFARS) data rights clauses allowed the client to use and distribute the data, resulting in a complete summary judgment for our client.

Successfully defended bidder against claims of misuse of competitors data

We obtained a complete jury verdict for our client accused of misappropriating the incumbent’s trade secrets to win a $200 million NASA contract. The alleged trade secrets included the data generated under the incumbent’s existing NASA contract and the incumbent’s proposal data for the new contract.

Successfully defeated infringement suit in the Court of Federal Claims

One of our clients provides a key component of the F-35 Joint Strike Fighter. A rival contractor sued the U.S. government in the Court of Federal Claims, alleging that the component infringed its patent. We intervened on behalf of our client and persuaded the court to rule that the patent is invalid.

Successful resolution of best pricing investigation

One of the nation’s largest construction supply companies was investigated for failing to provide the General Services Administration (GSA) with its “best pricing” for materials. Working with the company’s auditors, we were able to resolve the matter for no money based on ambiguities in the Schedule language as applied to the circumstances.

Successful representation of major defense IT contractor in GSA IG audit

Successfully represented a major defense IT contractor in an audit of two U.S. General Services Administration (GSA) Schedule contracts by the GSA Inspector General (IG), in which the IG initially asserted a claim for the repayment of tens of millions of dollars. The matter was resolved for less than $5,000.

Successful jury trial defense of Schedule contractor in False Claims Act case in the Eastern District of Virginia

Through a jury trial in the Eastern District of Virginia, successfully represented a Schedule contractor accused of submitting fraudulent commercial pricing data in violation of the False Claims Act (FCA). The Fourth Circuit affirmed the jury verdict in favor of the contractor.

Pre-Incident Advice and Assessments

We regularly advise clients on compliance with information security requirements and best practices, including, among others, governance best practices, vendor contract terms and due diligence, the implementation of information security controls to satisfy regulatory requirements, and the conduct of vulnerability assessments.

Trial Win in Civil Forfeiture Case For Car Exporters Who Had to Prove Their Innocence

Following a seven-day jury trial in the Southern District of New York, our litigators won a jury verdict in favor of Efans Trading Corporation and Unicorn Tire Corporation in a high-profile civil forfeiture case involving the export of high-end luxury cars to China. Our clients ran two companies—Unicorn Tire, a tire import business, and Efans Trading Corporation, which bought and exported high-end luxury automobiles to China. In 2013, the Government seized 47 vehicles and over $3.3 million in funds based on the allegation that Efans had defrauded dealers and manufacturers, and that Unicorn had provided essential facilitation of that crime. At the February 2017 trial, because of the unusual civil forfeiture context, we had the burden of proving that our clients had not committed mail and wire fraud, as the Government alleged. Based on the evidence of dealership knowledge, lack of harm, and Claimants’ good faith belief that their business was proper, it took jurors three hours to return a verdict for our clients, answering each of 53 questions on a lengthy verdict form in our favor. We expect that this verdict will soon lead to the return of our clients’ property.

Transfer of major construction dispute from state to federal court

Removed a construction dispute involving several hundred million dollars from state to federal court, which was a superior forum for asserting various federal defenses on behalf of our government contractor client. We defeated the plaintiff’s efforts to send the case back to state court, successfully arguing that the case properly was removed under the federal officer removal statute because of the significant role played by the federal government in the construction project.

TINA dispute

For an electronics supplier to a prime contractor for a major U.S. Navy program, we appealed in the prime contractor’s name from a final decision finding defective pricing due to the alleged nondisclosure of certain improvement-curve data that the Navy contended would have led the Navy to conclude that the decline in labor costs would have been steeper than the parties assumed in negotiations. After the close of discovery, we negotiated a favorable settlement.

Cross-border trade, anti-corruption, and data compliance

Advising a major petrochemical company regarding its establishment of an integrated compliance program, with particular focus on the areas of U.S. and European trade controls, anti-corruption, and data privacy. Our representation includes assistance with establishing a corporate compliance office, assessing risks in these areas, drafting the necessary policies and procedures tailored to company risks and operations, and implementing the program through training and assessment.

China Investment Corporation Purchase in AES Corporation

China Investment Corporation (CIC), a large sovereign wealth fund created by the People's Republic of China, on FERC and state (NY) energy regulatory issues with respect to its purchase of a 15% share in the AES Corporation, a large independent power producer of international scope with significant US electricity generation assets. Covington secured all necessary approvals for this transaction.

Defeated Claims for Museum of Fine Arts, Boston

On behalf of the Museum of Fine Arts, Boston, defeated claims by parties seeking to attach Persian antiquities in efforts to enforce a judgment against Iran, Rubin v. Museum of Fine Arts, Boston (1st Cir. 2013), and claim to Austrian expressionist painting, Museum of Fine Arts, Boston v. Seger-Thomschitz (1st Cir. 2010).

Fair Credit Reporting Act (FCRA)

Advising several of the largest bank holding companies in the U.S. on compliance with the FCRA. Advising major consumer reporting agencies and trade associations on the requirement of the FCRA. Successfully representing numerous consumer reporting agencies and financial services providers in CFPB and FTC supervisory and enforcement actions relating to FCRA. Representing numerous firms in connection with the acquisition of FCRA-regulated businesses, including due diligence and preparation of merger and acquisition documents.

ERISA litigation in the Supreme Court

Successfully handled important ERISA litigation in the Supreme Court, including Conkright v. Frommert, 130 S. Ct. 1640 (2010) (requiring deference to the plan administrator’s interpretation of a plan, even though the administrator had previously relied on provisions that were not properly added to the plan), and Kennedy v. Plan Adm’r for Dupont Sav. & Invt. Plan, 129 S. Ct. 865 (2009) (applying ERISA’s “plan document” rule to affirm unanimously a plan administrator’s decision to follow a beneficiary designation that gave rights to a participant’s former spouse, even though a divorce decree had stated that the former spouse gave up her rights).

Debt/Equity Classification for $2 Billion Instrument

Obtained an appeals reversal of a transfer pricing adjustment involving more than $400 million of proposed adjustments, reversals of $285 million of subpart F income, and reversal of proposed earnings and profits adjustment of almost $300 million in connection with the debt/equity classification of a $2 billion instrument.

Ensuring fair international procurements for private companies

When a major Latin-American government’s procurement financed by the Inter-American Development Bank (IDB) appeared to lock out foreign competitors, a private company turned to us for advice and discreet action. With our knowledge of the country, and of IDB and other multilateral procurement regulations, and relationships with key officials, we were able to persuade the IDB to take quick remedial action which ensured the company a new opportunity to compete fairly in a new procurement with no damage to their relationships in Latin America.

Drafted comments and testified at hearings on behalf of numerous clients

Prepared comments and testified at hearings on behalf of industry groups and individual clients on a number of proposed regulations that would significantly affect the design and administration of large employers’ employee benefit plans, including regulations issued by the U.S. Treasury Department, U.S. Department of Labor, and Department of Health and Human Services. In recent years, we have advised clients on rulemaking related to health reform, hybrid and other retirement plans, and fiduciary responsibility.

BSA in Major Domestic and International Copyright Law Reform Efforts

Advise Business Software Alliance in most of the major domestic and international copyright law reform efforts resulting from the advent of the digital age, including the U.S. Digital Millennium Copyright Act, the WIPO Treaties, the EU Copyright Directive, the EU Software Directive, implementation of the TRIPS Agreement, and amendments to existing copyright laws in over 30 countries worldwide.

Koppers Global Wood Preservation Portfolio

For Koppers Performance Chemicals Inc., managing a portfolio of patents and patent applications relating to market-leading wood preservation technology as well as advising on strategies for obtaining patents throughout the world and on post-grant opposition proceedings involving its patents and applications in Europe, Australia, and New Zealand. Covington also represented the predecessor to Koppers in several inter partes reexamination proceedings, including the defense of patents drawn to methods of preserving wood using particulate copper and methods for directly producing copper carbonate.

Alkermes Global Pharmaceutical Portfolio

Managing the worldwide patent portfolios of Alkermes companies relating to sustained-release pharmaceutical formulations in products such as VIVITROL®, RISPERDAL® CONSTA®, and BYDUREON®. We obtained pivotal patents in Canada, China, Europe, Japan, and the United States covering the BYDUREON product, a sustained-release formulation indicated for the treatment of Type 2 diabetes.

Verizon Communications Transactions

Representation of Verizon Communications in several transactions, including its $3.89 billion acquisition of AOL. Also advised the company in connection with its purchase of UK-based Vodafone’s 45 percent ownership of Verizon Wireless, as well as Vodafone’s purchase of Verizon’s interest in Vodafone Italy, which was valued at $124.1 billion.

AstraZeneca Transactions

Representation of AstraZeneca in relation to the creation of a $3.4 billion diabetes joint venture with BMS, and the subsequent acquisition of sole control over that venture; in its acquisition of the rights to Almirall’s respiratory franchise (for initial consideration of $875 million and up to $1.22 billion in development, launch and sales-related milestones); assisting in the acquisition of the Takeda respiratory portfolio; and in relation to the creation of an oncology joint venture with Fujifilm Kyowa Kirin Biologics (FKB).

Samsung Inter Partes Reexamination Proceeding

Representation of Samsung Electronics Co., Ltd. in inter partes reexamination proceedings for a patent related to LCD color technology. Genoa Color Technologies Ltd., the original owner of the patent, sued Samsung for infringement. Samsung requested inter partes reexamination of the patent, and the Right of Appeal notice upheld the final rejection of all claims of the patent on numerous grounds. Subsequent to the Right of Appeal Notice, the parties settled the litigation.

3rd Party Access to Distribution Resources and Required Retail Market Structure

Major national retail electricity supplier on the rules regarding 3rd party access to distribution resources and the retail market structure required to facilitate robust electricity supply competition in a dozen states including Texas, Pennsylvania, Illinois, Maine, Maryland, New York, Massachusetts and Ohio.

$3.6 Million Jury Verdict in Favor of World Marketing, Inc. in Trademark Dispute

Won a $3.6 million jury verdict in California federal court after a jury found that apparel giant Quiksilver, Inc. willfully infringed World Marketing, Inc.’s longstanding federally registered “VISITOR” brand. Following a six-day jury trial, the eight-member jury unanimously found that Quiksilver willfully infringed World Marketing’s brand after launching its clothing and apparel brand VSTR, which it pronounced “visitor.” World Marketing, a family-owned company based in New York, has been selling clothing and apparel under its registered VISITOR trademark for more than 20 years, including at stores like Saks Fifth Avenue, Macy’s, and Men’s Wearhouse.

Prosper in First-of-its-Kind Transaction

Representation of Prosper Marketplace in a variety of securities advisory and transactional matters, including in a first-of-its-kind registration of $500 million of borrower dependent notes and restructuring into a bankruptcy remote vehicle, several rounds of venture financings, as well as ongoing disclosure, SEC reporting and SEC regulatory matters.

Severance cost dispute for DOE contractor

Recovered disallowed severance costs paid by a U.S. Department of Energy (DOE) contractor to its employees when the contractor exited the contract and the employees went to work for a successor contractor. The costs were unallowable under the Federal Acquisition Regulation (FAR), but the contract contained an unusual provision, personally approved by President Truman, making virtually all costs allowable. We handled the preparation of the initial claim, the contract appeal to the Court of Federal Claims, and the appeal to the Federal Circuit, at the end of which our client recovered every penny of its severance outlay, plus interest.

Service Contract Act investigation and disclosure

Our client, a major large business provider of IT services to the federal government, discovered possible Service Contract Act compliance issues in the operations of a recently acquired subsidiary. We conducted and internal investigation and assisted the client in making a disclosure to the U.S. Department of Labor, which closed the matter without adverse financial or other consequences for our client.

Dismissal of Multidistrict Litigation Alleging Contractor Negligence Inside Overseas War Zones

Obtained complete dismissal of 63 lawsuits brought by 800-plus named plaintiffs against KBR, the largest military services contractor in Iraq and Afghanistan. These claims challenged KBR’s use of burn pits to dispose of waste during those wars. The district court adopted our arguments in their entirety and held the claims were barred by the political question doctrine and preempted based on the “combatant activities” exception to the Federal Tort Claims Act.

Securities Counsel to Numerous Fortune 500 companies

Represent numerous Fortune 500 companies in the pharmaceuticals, consumer goods, health insurance, home equipment, advertising, motor vehicles, network communications, and technology industries with respect to the resolution of shareholder proposals concerning executive compensation, majority voting, proxy access, the right to call special meetings, political spending and lobbying disclosures, and a host of other topics.

SBIC portfolio company divestment advice

Our client was a small business defense contractor owned by a Small Business Investment Company (SBIC) that was nearing the end of the control period permitted under Small Business Administration (SBA) regulations. We advised a special committee of the board of directors of the client about the potential effects of various potential sale and transfer scenarios on the client’s continued small-business status, and enabled the committee to decide upon a course of action that would permit the client to continue to perform and compete for small-business set-aside contracts.

SBA Size Determination

We took over a U.S. Small Business Administration (SBA) size determination proceeding for our client, an IT services provider, after previous DC government contracts counsel had failed to persuade the SBA that our client was a small business. We submitted thousands of pages of documentation and numerous position papers in what is believed to be the most complex size determination ever performed by SBA, and persuaded the agency that our client is a small business, notwithstanding its affiliation with dozens of other small businesses, thus allowing it to continue to compete for business on small business set-aside contracts.

Sanctions advice for a major non-U.S. financial institution regarding the processing of U.S. dollar payments

We are representing a non-U.S. financial institution in connection with an investigation by federal and state civil and criminal enforcement authorities into the bank's processing to or through the United States of U.S. dollar payments involving U.S.-sanctioned parties.

Renegotiated government IP agreements

On behalf of a major pharmaceutical manufacturer, we renegotiated agreements with the National Institutes of Health (NIH) concerning IP rights arising out of the development, manufacture, and use of experimental vaccine supplies for international clinical trials, and negotiated contract terms placing on the government the risk of the client’s use of contested IP developed by another contractor.

Successfully protested award for contract to help reform the justice system in Mexico

We successfully challenged an agency award of a contract to assist the government of Mexico in reforming its justice system, obtaining corrective action that involved new final proposal revisions. When our client won the second round award, we defended a challenge by the prior awardee, and preserved the award to our client.

Successfully protested $2 billion+ biodefense award

When the federal government awarded a contract worth more than $2 billion for the development and delivery of a medical countermeasure, we protested at the U.S. Government Accountability Office (GAO). After many rounds of briefing, and a hearing before GAO, the agency agreed to cancel and re-compete the majority of the contract.

Protection of Client IP Rights

For pharmaceutical, energy, and defense companies entering into R&D contracts, grants, and cooperative agreements with federal agencies (including DoD, DOE, and HHS), we have successfully developed and implemented strategies for protecting our clients’ intellectual property. We have helped our clients limit or avoid government IP rights through the use of alternative contracting vehicles, specially negotiated contract clauses, properly drafted statements of work, and other means. We have also obtained waivers of patent ownership from federal agencies, as well as waivers of the U.S. manufacturing requirements under the Bayh-Dole Act.

Procurement advice and protests in states across the country

We have helped clients navigate state procurement systems and have handled protests in states across the country, including: California, Texas, New York, Florida, Maryland, the District of Columbia, Oregon, North Carolina, Massachusetts, Minnesota, Georgia, Colorado, Washington, New Jersey, and others.

Protection of employee personal information

Provided guidance to a major technology and manufacturing company in connection with the unauthorized posting of employee personal information on a third-party webpage. Our efforts on behalf of the client included working with Internet service providers to remove the posted information and providing notice to potentially affected individuals and applicable state regulators.

Protection of IP rights for pharmaceutical companies

For pharmaceutical companies entering into R&D contracts, grants, and cooperative agreements with BARDA, NIH, and DTRA, we have successfully developed and implemented strategies for protecting our clients’ intellectual property. We have helped our clients limit or avoid government IP rights through the use of alternative contracting vehicles, specially negotiated contract clauses, properly drafted statements of work, and other means. We have also obtained waivers of U.S. manufacturing requirements under the Bayh-Dole Act.

Responding to Sophisticated Advanced Persistent Theat ("APT") Attacks

We have directed the investigations and response into APT attacks from state-sponsored actors and sophisticated criminal groups targeting intellectual property and other proprietary information. These attacks, and the responses, have spanned multiple industries and global companies, with investigations covering four continents.

Resolved hotly-contested completion disputes of U.S. Embassy in Baghdad

Negotiated resolution of concerns that the contractor building the U.S. embassy in Baghdad had thousands of unauthorized deviations from specifications, which prevented the U.S. State Department’s acceptance of the sprawling compound. Demonstrated in senior-level meetings and on-the-ground inspections that the project was materially compliant, leading to acceptance and the resolution of investigations by multiple agencies and Congress.

Resolved claims arising from the incarceration of U.S. contractor for espionage

Negotiated a creative settlement of a tort suit filed by a subcontractor arising from his imprisonment in Cuba for carrying out a USAID democracy-building program in that country. We converted that tort settlement into a contract claim by the prime contractor, and successfully negotiated payment to fully compensate the subcontractor while making the prime contractor whole.

Successfully protested $200 million U.S. Army award

When the U.S. Army awarded a $200 million contract for IT services, we protested the award, arguing that the awardee had an organizational conflict of interest and gained an unfair competitive advantage by hiring a former government official. The agency took corrective action in response to the protest.

Successfully protested exclusion from $500 million+ biodefense competition

When the U.S. Department of Defense (DoD) conducted a competition for an Advanced Development and Manufacturing (ADM) facility for medical countermeasures, we protested DoD’s exclusion of one of the offerors from the competitive range. The protest issues were of extraordinary technical complexity, but after several rounds of briefing, we convinced the agency to reverse course and invite the offeror back into the competition.

Fax Ban Coalition, U.S. Chambers of Commerce, National Association of Realtors, and Coalition of Mortgage Finance Industry Businesses on Commercial Fax Messages Matter

Obtaining rules on commercial fax messages that protect consumers’ rights, but are fair to legitimate businesses, after multi-venue effort in Congress, in court and at the FCC on behalf of the Fax Ban Coalition, a cross-industry group of trade associations and businesses, as well as the U.S. Chambers of Commerce, the National Association of Realtors and a coalition of businesses in the mortgage finance industry.

On Behalf of MSTV, Representing the Television Industry on Key Legislative, FCC, and Industry Issues

On behalf of MSTV, representing the television industry on key legislative, FCC and industry issues, including, for example, negotiating a template agreement with Sprint Nextel for the migration of broadcast ENG services out of the 2 GHz spectrum, the implementation of a “hard date” for the transition to a digital-only television service, and for the process of electing and assigning final DTV channels.

Network Affiliated Stations Alliance and NAB in Battle before Congress, FCC, and Third and D.C. Circuits Courts of Appeals

Waging on behalf of the Network Affiliated Stations Alliance and the National Association of Broadcasters a multi-year, multi-venue battle before Congress, the FCC, and the Third and D.C. Circuits Courts of Appeals on the national television ownership rule, successfully achieving a legislative reversal of the FCC’s decision.

Multiple Clients on Legislative and Regulatory Policy and Litigation Issues

Representation of clients on various legislative and regulatory policy and litigation issues, including (1) retransmission consent, (2) downconversion of digital signals by cable systems, (3) carriage of digital multicast streams by cable, DBS and other video program distributors, (4) indecency, (5) media ownership and (6) importation of distant signals by DBS operators.

Microsoft before FCC on Issues Concerning Media Center and DRM Products

Representation of Microsoft before the FCC on various issuing surrounding its Media Center and DRM products. We obtained FCC recognition of Windows Media Digital Rights Management software as a permissible means to handle digital content. We also represent the company in ongoing rulemakings and waiver petitions involving plug-and-play issues, including industry-wide efforts to resolve these issues.

Newspaper Association of America and 70-Member Media Coalition in Spearheading Federal Legislation to Establish Journalists’ Privilege

Representation of the Newspaper Association of America, and an 70-member media coalition, in spearheading federal legislation to establish a journalists’ privilege. We have worked closely with proponents of legislation and with Congress to suggest creative solutions to protecting the integrity of the journalistic enterprise, in both traditional and digital media, while taking into account legitimate law enforcement and anti-terrorism concerns.

Corporate Culture Investigation for Uber Technologies, Inc.

Led a three-month investigation into the corporate culture at Uber Technologies Inc. following a blog post by a former Uber engineer that alleged that the company’s work culture was biased against women and that managers ignored sexual harassment complaints. The process included more than 200 interviews with current and former employees, and resulted in a set of recommendations approved unanimously by the board that subsequently were released publicly.

GE and Synchrony Financial in $2.95 billion initial public offering and subsequent split-off transaction

Representing General Electric and Synchrony Financial (GE Capital’s former North American retail finance business) in connection with Synchrony’s approximately $2.95 billion initial public offering and in connection with GE’s subsequent exchange offer to complete the separation of Synchrony from GE, including the Federal Reserve Board application process and approval required for the Synchrony’s separation from GE.

PBS in Proceedings Before FCC, U.S. Copyright Office, and Other Policy Settings

Representation of the Public Broadcasting Service (PBS) in proceedings before the FCC, U.S. Copyright Office and other policy settings, including with respect to the role and distribution of educational and other noncommercial media across the broadcast, online, mobile and other IP-based platforms.

HR operations audit for multinational pharmaceutical client

Conducted a detailed review of the human resources operations of a large pharmaceutical company to assess compliance with data protection and privacy laws and regulations in both the US and EU, in anticipation of possible certification under the US-EU Safe Harbor regime. Our extensive written report described potential compliance issues and recommended specific remedial actions.

Horizon Discovery on Sage Labs Acquisition

Representation of Horizon Discovery Group plc, an AIM listed international life science company supplying research tools and services to organizations engaged in genomics research and the development of personalized medicines, on the acquisition of Sage Labs Inc. for a total of approximately $48 million (£29 million), comprising up to $16 million in cash and up to $32 million in new ordinary shares. The acquired business will be known as Sage Labs Inc., a wholly owned subsidiary of Horizon Discovery Group plc. The acquisition creates a fully integrated translational genomics platform and significantly expands Horizon’s product, service and research offerings.

In re Automotive Wire Harness Systems Antitrust Litigation

Representing S-Y Systems Technologies Europe, GmbH, the only defendant dismissed in its entirety from the wire harness price-fixing litigation, which is the lead case in the sprawling Automotive Parts Antitrust Litigation pending in Detroit. The court granted motion to dismiss, on personal jurisdiction grounds and did not grant the plaintiffs’ request for jurisdictional discovery.

Internal investigation for a major U.S. financial institution

A cross-office team conducting an internal investigation for a major U.S. financial institution of allegations that the bank assisted Argentine nationals evade taxes and launder money. We are also coordinating the bank's global defense strategy, which includes leading strategy meetings with local Argentine defense counsel, and interfacing with key U.S. officials in the U.S. and in Argentina.

Innovative Program Agreements Negotiations for Multiple Clients

Negotiated various innovative program agreements for (a) the NFL, including for example, its deals with ESPN and Sprint and one with TiVo to protect its programming against Internet piracy, (b) other program deals involving PBS, Comcast and Children’s Television Workshop and (c) NBC Weather Plus and NBC Broadband -- joint ventures between the network and its affiliates.

High-level advocacy before the U.S. executive branch

A U.S. defense company faced stiff competition from a non-U.S. competitor in connection with the deployment of its technology in a NATO-member country, which was seeking a complementary commitment from the U.S. government. We conducted high-level advocacy in the United States, helping our client obtain the needed commitment to secure the transaction-a deal valued at about $5 billion.

Acquisition of A123 Systems by Wanxiang America

Advised Wanxiang America’s purchase of substantially all of the non-government business assets of U.S. battery maker A123 Systems, Inc. On Jan. 28, 2013, CFIUS approved that transaction, valued at $256.6 million. Covington represented Wanxiang America in securing CFIUS approval. A123 makes lithium ion batteries for electric cars.

Allergy Therapeutics on Alerpharma Acquisition and £20 Million Placing

Representation of Allergy Therapeutics plc, the AIM-listed specialty pharmaceutical company, in its acquisition of Alerpharma, S.A. a Spanish-based allergy immunotherapy company which previously spun out from Spanish biopharmaceutical company, Zeltia S.A. Covington also advised Allergy Therapeutics on its recent £20.8 million placing of ordinary shares with institutional investors. The proceeds of the placing are being used to progress the clinical development of the company’s lead product, Pollinex Quattro Grass, through to FDA approval and planned launch in the United States in 2019.

Advised one of the Largest Mutual Fund Families in the U.S.

Advised one of the largest mutual fund families in the U.S. on financial products issues affecting their funds and investors in their funds. In the past year we have advised on numerous specific products in which the funds have invested and on structuring issues related to a new type of actively managed exchange-traded fund.

Advised on groundbreaking “pension derisking” transactions involving billions of dollars, including the following:

Represented 21st Century Fox on a spinoff and termination of its pension plan, including the accompanying group annuity purchase.
Represented Verizon Communications on its pension plan’s $7.5 billion annuity purchase (one of the largest pension annuitization transactions in U.S. history), and successfully defended Verizon against an attempt by retirees to block the transaction in court.
Represented Fiduciary Counselors on two pension derisking transactions, each involving a transfer of over $500 million in liabilities to insurance companies.

PBS in Two Trademark-Related Matters

Representation of Public Broadcasting Services (PBS) in trademark litigation to recover the PBS.COM domain name in the United States District Court for the Eastern District of Virginia; and in an opposition proceeding before the U.S. Trademark Trial and Appeal Board, claiming that applicant's mark BE MORE RESPONSIBLE is likely to cause confusion with PBS's BE MORE mark.

In re K-Dur Antitrust Litigation

Representing Schering-Plough (now Merck) in multi-district class action litigation challenging so-called reverse payment settlements of pharmaceutical patent litigation. Obtained denial of certification of indirect purchaser class, after which indirect purchasers voluntarily dismissed their case. The team previously defeated the FTC at trial in an action on the same facts, and will now have the opportunity to resolve the direct purchaser portion of the case under a recent Supreme Court decision.

Former CEO of IndyMac Bancorp in Litigation

Representing the former CEO of IndyMac Bancorp in matters arising out of the failure of IndyMac Bank, including knocking out all but one claim in SEC’s once wide-ranging securities enforcement case and settling the last remaining claim, without admitting or denying liability, as a negligence-based claim for $80,000 and a commitment to comply with the securities laws; successfully resolving an FDIC lawsuit; and defending against and/or successfully resolving several securities class action lawsuits, mortgage-backed securities cases, and purported ERISA class action lawsuits.

Global Privacy Audit for Leading Consumer Electronics and Technology Companies

On behalf of one of the world’s leading consumer electronics and technology companies, we completed a comprehensive global privacy audit under the laws of the United States, the European Union, and China, including an assessment of the data collection, use, and sharing practices of numerous business units (including HR data), cross-border data transfers, and adopting a going-forward privacy governance and risk-management approach and corresponding policies and procedures.

GE Capital Retail Bank CFPB Investigation and DOJ Consent Order

Represent the former GE Capital Retail Bank (now Synchrony Financial) in a CFPB investigation, enforcement action, and consent order related to allegations of deceptive marketing of credit card add-on products and discrimination against Spanish-speaking customers related to certain offers to settle outstanding credit card balances and a Department of Justice enforcement action and consent order regarding the same allegations of discrimination.

Global regulatory and legislative support

A global air cargo company wanted to enhance its political influence as a respected industry voice on public policy issues in order to advance its global business objectives. We helped the company resolve difficult regulatory disputes in several countries, including a fast-moving dispute in China that endangered its business model. We also achieved legislative success for the company in the U.S. Congress on defense policy matters in the authorization bill (NDAA).

Pearl Mobile DTV in Project to Provide Mobile Digital Television Services in U.S.

Pearl Mobile DTV in establishing a nine-company venture to provide Mobile Digital Television services in the United States. Covington attorneys led the negotiations leading to the creation of the Pearl Mobile DTV venture, the negotiation of content license agreements, and public policy efforts before Congress and at the White House and the FCC.

Proposition 65 Labeling and Chemical Safe Harbor Levels

Represent Compañía Cervecera de Puerto Rico, Inc. (CCPR), in a lawsuit alleging that CCPR’s Malta India product contains the chemical 4-MEI in quantities above the safe harbor level, and that CCPR has failed to label Malta India products sold in California with the warning required by California’s Proposition 65.

NFL Financings

Advised the NFL on its multi-billion dollar league-wide credit facilities, consisting of a revolving credit facility and multiple term note offerings. Over 20 NFL teams participate in these facilities, which are negotiated by the NFL on behalf of its member clubs and allow participating clubs to obtain financing on favorable terms through a structured arrangement that gives lenders priority access to the teams’ share of national television revenues and which is otherwise secured by a pledge of all of the assets of each participating club.

NFL CBA Arbitrations

Represented the NFL in a host of arbitrations under the NFL collective bargaining agreements, including the disputes regarding the Jimmy Graham Franchise Tender, the Drew Brees Franchise Tender, the Michael Vick, Plaxico Burress, and Larry Johnson salary forfeitures, and the Washington Redskins/Dallas Cowboys salary cap reallocation.

NHL Digital Rights and Related Transactions with MLB Advanced Media

Represented the NHL in connection with entry into a six-year digital rights partnership under which the NHL licensed to MLB Advanced Media (MLBAM) rights to distribute the NHL’s out-of-market subscription packages, digital and online properties, and related rights, and in connection with negotiations for an equity stake in a to-be-formed tech company that is expected to be created by MLBAM.

Guidance to Governments on Telecommunications Matters

Advised governments on the privatization of telecom service providers, crafting regulations for the introductions of regulatory structures to foster competition in the telecommunications industry; drafted regulations governing telecom activities; and established a licensing and regulatory structure for the introduction of next-generation wireless telecommunications service.

GRUMA S.A. de C.V.

Successful representation of two Spanish subsidiaries of GRUMA S.A. de C.V., a Mexican food conglomerate, in an ICSID arbitration proceeding against the Bolivarian Republic of Venezuela arising out of certain measures of the Republic that violated the bilateral investment treaty between Spain and Venezuela and resulted in an award of close to $500 million, including interest.

Gramm-Leach-Bliley Act (GLBA) and State Financial Privacy Laws

We have advised the largest and most sophisticated banks, consumer reporting agencies, and financial services companies on the collection, use and disclosure of nonpublic personal information under GLBA, that California Financial Information Privacy Act, and similar laws, including the development and implementation of privacy notices.

NBA Expanded Partnerships with Turner Broadcasting and The Walt Disney Company

Represented the NBA in expanding its partnerships with Turner Broadcasting System, Inc. and The Walt Disney Company through new, nine-year agreements under which ABC, TNT, and ESPN will televise NBA games beginning with the 2016-17 season and running through the 2024-25 season.

Merck, Verizon, Spirits International, National Geographic, PBS, and Others before the United States Trademark Trial and Appeal Board

Representation of numerous clients, including Merck, Verizon, Spirits International, National Geographic Society, Public Broadcasting Services, M Financial, Promontory Financial Group, U.S. Soccer Federation, Lewis Brothers Bakeries and Rosie O’Donnell in opposition and cancellation proceedings before the United States Trademark Trial and Appeal Board.

Outside Tax Counsel to U.S. Securities Markets Coalition

Act as outside tax counsel to U.S. Securities Markets Coalition, which consists of all U.S. options exchanges and related entities. Our representation includes advising the coalition and its members on developments that affect the taxation of options and other financial products and advocating on behalf of the options industry before Congress, Treasury and the IRS. In the past year we have been actively engaged on behalf of the Coalition with respect to proposed tax legislation that would require all exchange-traded options to be marked to market (treated as sold) at year-end, and with respect to proposed regulations that would treat certain equity options as giving rise to deemed dividends subject to U.S. withholding tax.

Policy advice to the Executive Affairs Authority of Abu Dhabi

We provided policy advice to the Executive Affairs Authority of Abu Dhabi on how the Embassy in Washington, DC could be most effective in representing the UAE’s interests. In a follow-on project, we advised on factors to consider in establishing a business-oriented consulate on the West Coast of the United States.

Preparation of key industry comment letters

Advising the Securities Industry and Financial Markets Association, The Clearing House Association, American Bankers Association, and Global Financial Markets Association with respect to comment letters submitted in response to proposals from the Federal Reserve Board, Financial Stability Board, and other agencies affecting large systemically important financial institutions.

NFL and Other Professional Sports Leagues Regarding Tax-Exempt Status

Representation of the NFL and other sports leagues in tax, corporate, legislative, and PR matters related to the relinquishment of their tax-exempt status. Projects involved tax planning, meetings with IRS executives and members of Congress, and coordination of audit defense strategy.

McGraw-Hill and Other Major Textbook Publishers in Gray Goods Trademark and Copyright Litigation

Representation of McGraw-Hill and other major textbook publishers in gray goods trademark and copyright litigation in the United States District Court for the Eastern District of New York to prevent the illegal importation and sale over the Internet of textbooks published abroad and not intended for sale in the United States.

Maximizing the value of intellectual property

Our client, a major energy company, sought to maximize the value of its intellectual property while limiting its own liability in the treacherous waters of international patent disputes. Combining U.S. and EU regulatory expertise with a multi-jurisdictional strategy, our senior advisors and lawyers designed a corporate structure that would create and generate long term value with minimal risk to the parent entity.

Mass media company global public policy

One of the world’s largest global mass media companies needed support on a range of issues that intersect law and policy. We helped the client:

navigate U.S. sanctions on advertising, promotion, and distribution of content in international markets;
pursue a diplomatic solution to an IP rights dispute in the Middle East, leveraging extensive relationships at the State Department; and
advocate on federal issues with Members of the U.S. Congress.

National Geographic Society in Two Trademark Matters

Representation of National Geographic Society in the United States District Court for the District of Massachusetts against claims of infringement of an alleged family of ZONE marks asserted by the author of a series of ZONE books on health and nutrition; and in an opposition proceeding before the U.S. Trademark Trial and Appeal Board, claiming that applicant's EXPLORE CHANNEL mark is likely to cause confusion with National Geographic's EXPLORER marks.

Microsoft public policy and government affairs

Microsoft wanted assistance with legal, public policy, and strategic issues. We support Microsoft on a wide array of policy and legislative issues, including privacy, national security, immigration, tax, and telecommunications, and assist them in gathering political intelligence and advocating before Congress and federal agencies.

IRS Disputes with Sports Clubs and Affiliated Cable Network

Negotiated highly favorable settlements with the IRS in the representation of a professional sports club in a $275 million dispute regarding stadium financing, player contracts, and broadcast agreements, and of a different club in a $300 million dispute regarding the club’s affiliated cable network.

Numerous Clients in Managing U.S. and Global Trademark Portfolios

Advise on cutting edge trademark strategies, domain name, social media, and keyword advertising issues, manage U.S. and global portfolios, and provided trademark advisory and prosecution services to leading US and global brand owners, including: American Automobile Association (AAA); AOL, Inc.; Astelllas US; Business Software Alliance; Dale & Thomas Popcorn; Expedia, Inc.; FeraDyne Outdoors; German American Chambers of Commerce; Lewis Bakeries, Inc.; Merck & Co. Inc.; Microsoft Corporation; National Basketball Association; National Football League; National Geographic Society; National Hockey League; Public Broadcasting Service; Phi Beta Kappa Society; Promontory Financial Group; and U.S. Soccer Federation.

Salix Pharmaceuticals in $2.6 Billion of Santarus, Inc.

Representation of Salix Pharmaceuticals, Ltd. in its acquisition of Santarus, Inc. for a total value of approximately $2.6 billion. The transaction closed on January 2, 2014. According to Carolyn Logan, Salix President and Chief Executive Officer, “The acquisition of Santarus is a transformational event for Salix and an important milestone in our growth as the leading gastroenterology-focused specialty pharmaceutical company in the United States.”

Review of the right to monitor Internet and electronic communications

Conducted a pan-European and selective US survey of laws and regulations affecting an employer’s right to monitor employee’s Internet use and review electronic communications. We have also advised numerous clients on the law governing call recording and access to (and disclosure of) employee e-mail, including in connection with several personal crises and actions.

Multi-Billion Dollar NFL Sunday Ticket Deal

Represented the NFL in negotiating its multi-billion dollar deal with DIRECTV to extend DIRECTV's exclusive rights to carry the NFL Sunday Ticket out-of-market games package through a new multi-year agreement. The new agreement expands DIRECTV’s rights to stream NFL Sunday Ticket on mobile devices and via broadband, and provides for the NFL and DIRECTV to explore the development of an NFL Sunday Ticket over-the-top subscription service. The deal also provides for DirecTV to continue to carry NFL Network.

Microsoft on Internet Protocol Television Issues

Advised Microsoft on Internet Protocol Television issues, including testimony before Congress, appearances at the FCC, and industry negotiations, and advised on industry negotiations to encourage movie studios and the cable industry to use their digital rights management technology for distributing movie and other content over the Internet.

Kayne Anderson Capital Advisors on a Range of Sports Lending Transactions and Other Investments

Represented Kayne Anderson Capital Advisors on a range of its lending transactions and other investments, including loans to (and other investments in) Sport 10 IP Limited, the holding company that owns all of Pelé’s marketing rights as well as the rights to all of Pelé commercial appearances.

Joint Ventures for Multiple Broadcast Clients

Representation of the first joint venture to provide Mobile Digital Television ("Mobile DTV") services in the United States in establishing a nine-company venture, as well as in negotiating a national joint venture with NBC, Fox and Ion Media to deploy this new digital service. This project has involved leading the negotiation of the Pearl Mobile DTV venture, leading the negotiation of certain programming and content agreements, and heading up public policy efforts with Congress, the White House, and the FCC.

Successfully protested the terms of a $600 million cloud procurement

When the Central Intelligence Agency (CIA) issued an RFP for cloud services, we filed a protest challenging the terms of the RFP as unduly restrictive of competition. After discussion with the U.S. Government Accountability Office (GAO), the agency agreed to amend the RFP to revise the terms at issue in the protest.

Successfully protested the terms of a $2 billion USAID procurement

When USAID issued a $2 billion procurement for consulting services related to economic growth and poverty reduction, we protested the terms of the solicitation. Our protest convinced the agency to abandon its use of the “low cost, technically acceptable” evaluation scheme by arguing that LPTA was inappropriate for the complex, high-stakes services being sought.

Broadcasters on DTV Transition

Representation the broadcast industry and individual broadcasters for nearly two decades on the incredible range of technical, legal and policy issues surrounding the transition to digital television. We helped negotiate the DTV standard, and devised the new frequency table. We worked closely at every step with the FCC’s engineers and with engineers across the television industry. We also worked to develop the new rules and legal requirements to accompany the detailed technical analysis.

WTO and NAFTA disputes

Counseled clients on WTO and NAFTA disputes on a wide range of matters, including sanitary and phytosanitary regulations, anti-dumping and countervailing duties, agricultural subsidies, and intellectual property issues, including the FSC and Byrd WTO disputes against the United States. Our lawyers have argued cases before the WTO and have negotiated solutions related to implementation, compliance, and retaliation in trade disputes.

Veritas Capital’s investment in Alion Science & Technology

Represented private equity firm Veritas Capital as regulatory counsel during its acquisition of Alion Science & Technology Corporation, a leading provider of engineering services to the Department of Defense. We handled government contracts, trade controls, and national industrial security due diligence.

U.S. government sanctions investigation of international energy company

We advised an international energy company on a U.S. Treasury Department investigation of transactions with certain U.S.-sanctioned markets, and assisted the company with interactions with the U.S. State Department on sanctions-related policy matters. The Treasury Department closed its investigation without taking any enforcement action against our client.

U.S. Appeals Court Shoots Down FCC Merger-Review Disclosure Order

Successful representation of CBS Corporation, The Walt Disney Company, Twenty-First Century Fox, Inc., Scripps Networks Interactive Inc., Time Warner Inc., Univision Communications Inc., and Viacom Inc. Borrego Solar Systems, Inc. against the Federal Communications Commission (FCC) in connection with the disclosure of programming contracts with pay-TV providers as part of the FCC’s review of pending cable and satellite mergers.

Univision in Deal for Carriage on DISH’s “Over the Top” Sling TV Service

Represented Univision Communications in the precedential agreement for carriage of Univision’s broadcast stations and cable networks on DISH’s “over the top” Sling TV service. The UCI media portfolio includes the Univision Network, one of the top five broadcast networks, and the most-watched Spanish language broadcast network in the U.S., reaching approximately 94 percent of U.S. Hispanic television households. The agreement covers the Univision and UniMas broadcast networks, as well as other UCI services, such as Univision Deportes and El Rey Network. Sling TV is a new online offering from one of the largest television distributors in the country, by which subscribers can view major network content via the Internet anywhere in the United States.

Veritas Capital’s investment in SolAero Technologies Corp.

Represented private equity firm Veritas Capital as regulatory counsel during its acquisition of EMCORE’s Space Photovoltaics business, and represented the business, which is now known as SolAero Technologies Corp., during its subsequent acquisitions of Alliance Spacesystems and Vanguard Space Technologies. We handled government contracts, trade controls, anti-corruption, and other regulatory due diligence, and also assisted with contract novations.

Complicated Inbound Transaction

Represented U.S. multinational corporation in a complicated inbound transaction where a foreign holding company “domesticated” by coming onshore and converting to a U.S. corporation. Critical elements in the transaction included (1) repatriation, and (2) preservation of and receiving credit for certain U.S. tax attributes arising from the group’s foreign operations, and (3) overall entity simplification in a tax efficient manner. U.S. tax issues involved the foreign tax credit, subpart F, the cross-border M&A rules, and foreign currency issues.

Compliance Program for Multinational Manufacturer

Developed a compliance program for a multinational manufacturer for registration and reporting under the U.S. Foreign Account Tax Compliance Act, including classification and analysis of its internal treasury and cash pooling functions and its consumer lending business, as well as integrating advice from foreign advisors into compliance program.

Legislation granting visa access for New Zealand nationals

We represented the Embassy of New Zealand in seeking the passage of legislation that would permit NZ nationals to access trade and investment visas in the United States. Covington assisted the Embassy in devising a legislative strategy, drafting the legislation, and lobbying key members of Congress and the Administration.

LaRue v. DeWolff, Boberg & Assocs., Inc., 128 S. Ct. 1020 (2008) (counsel for amicus)

The U.S. Supreme Court held that a participant stated a colorable ERISA fiduciary breach claim for losses stemming from the alleged failure to implement investment directions for his 401(k) plan account. In a concurring opinion, Chief Justice Roberts cited our amicus brief for The ERISA Industry Committee in stating that such actions might need to be brought as benefits denial claims and subjected to exhaustion of administrative remedies.

Complex Procurement

A government entity needed to purchase a large number of military vehicles. The procurement required contractors and technology from several jurisdictions and a long-term supply arrangement. From international trade controls and U.S. and EU military sales advice to commercial terms, Covington provided strategic direction as we simultaneously ensured that the documents met local and international requirements.

COMPETE Representation in Federal and State Electricity Competition Issues

COMPETE, a major coalition of more than 680 electricity market participants including Exelon, PSEG, Wal-Mart, PPL Energy, Calpine, TXU Energy, Safeway, Tendril and Leggett & Platt on a wide range of federal and state electricity competition issues, including the structure of RTO markets and retail competition matters in numerous states including Texas, Pennsylvania, New Jersey, Illinois, Virginia, Michigan, California, Oregon, Wisconsin, Arizona and Ohio.

Commercial Savvy

Our client, a major Middle East regional airline, issued an RFP for information technology services and a global ticket distribution arrangement. The Covington team, coordinated between our London and New York offices, deployed locally to manage the entire process—from receiving bids to negotiating the final contract valued at over one billion dollars.

Cole Taylor Bank in Federal Reserve Board Investigation

Representing Cole Taylor Bank, now part of MB Financial, in Federal Reserve Board (and Illinois banking department) investigation and consent cease and desist/civil money penalty order alleging violations of consumer protection laws with respect to deposit products provided by the bank through a third party that offered financial aid refund disbursement services to higher education students.

Coalition of Broadband Users and Innovators, including Microsoft, Google, and Consumer Groups before FCC and Congress

Led the Coalition of Broadband Users and Innovators, including Microsoft, Yahoo!, Google, eBay, and consumer groups before the FCC and Congress for policies that ensure that as broadband services are deregulated, these Internet content companies have the ability to reach their customers.

Creation and launch of 120 Sports

Advised the NHL in connection with its entry into a joint venture with Silver Chalice Partners, Sports Illustrated and Major League Baseball Advance Media for the creation and launch of 120 Sports, the first multi-sport, league-created digital network in the United States. In addition to MLB and NHL content, the digital network will include content from the NBA, NASCAR and a number of college conferences. The network is expected to offer 24/7 programming on an unauthenticated basis, including live sports highlights and related news programming.

Corporate Inversion Transaction

Advised regarding tax policy and legislative issues concerning the potential execution of a corporate inversion transaction. Tax issues considered included consequences for the corporation and its shareholders as a result of inverting, consequences for corporation going forward (including future deductibility of interest), and strategic considerations involving public and government reactions to an inversion of this magnitude in light of significant press attention and Congressional concern regarding these transactions.

Coordinated monitoring and advocacy at the multinational, international and national levels

A highly innovative pharmaceuticals company was concerned about the public debate and policy proposals made to address antimicrobial resistance, as these could seriously curtail its future business. Working together with external partners, we monitor and participate in discussions at the G7, WHO, EU and national levels (in the UK and Germany), with several successes already at proposing alternative solutions more favorable to our client.

Largest Media Rights Deal in NHL History

Represented the NHL in negotiating its 12 year, C$5.232 billion agreement with Rogers Communications for national broadcast and multimedia rights to NHL games, including the Stanley Cup Playoffs and Stanley Cup Final, in Canada. The agreement is the largest media rights deal in NHL history and one of the largest media rights deals, including the largest-ever sports-media rights agreement, in Canadian history.

Fintech Financial Regulatory and Data Privacy Compliance

Advise numerous financial technology and services companies, including consumer reporting agencies, payment processors, and technology providers, on issues related to consumer credit reporting, financial privacy and data security, payment processing and payment systems, and state licensing requirements.

Congressional testimony advice for cable programming company

We advised an independent lifestyle programming channel on the effects of a potential Comcast/Time Warner Cable merger and assisted them in communicating their concerns to Congress and relevant federal agencies, including the Department of Justice, and the FCC. Covington’s work led to the channel’s then-CEO testifying before the Senate Judiciary Committee.

Credit Suisse AG in connection with Federal Reserve Board Investigation and Consent Order

Representing Credit Suisse AG in connection with Federal Reserve Board investigation and Federal Reserve Board Consent Order to Cease and Desist and Assessment of Civil Money Penalty with respect to allegations that Credit Suisse assisted U.S. taxpayers with opening of foreign accounts to avoid required U.S. tax reporting and related matters—and in connection with implementation of requirements of the Order.

Corporate, Financial and Operational Matters for Borrego Solar Systems

Advising Borrego Solar Systems, Inc. on a variety of corporate, financial and operational matters in a dynamic and rapidly changing solar market. Borrego is one of the oldest and largest solar integrators in California with over 25 years of experience. We counseled Borrego on tax, regulatory and corporate matters related to power purchase agreement, engineering procurement and constructions contracts, operations and maintenance contracts and site access agreements on more than 30 projects.

Copyright and Fair Use Advice and Counseling to Publishers

Provide general copyright and fair use advice and counseling to publishers such as the National Geographic Society, the Washington Post Company, and Zomba Music Publishing, to various television broadcast stations, and to a number of leading online business and media ventures including The Microsoft Network, USA Interactive, and the National Football League. Covington is also special intellectual property counsel to the Smithsonian Institution.

Congressional action on organic product marking

We helped a trade association obtain congressional reversal of a crippling federal court decision that would have compelled removal of the USDA seal from approximately 90 percent of organic products and that would have likely resulted in a market loss of nearly $1 billion in the first year after the ruling.

Financial services investigation

We represented a major financial services company in congressional investigations concerning the documentation of residential foreclosures. Conducted by the House Committee on Financial Services and the House Committee on the Judiciary, the investigations included document requests, interrogatory responses, and an oversight hearing. A significant complicating factor was widespread private and state attorneys general litigation on the same subject matter.

Global compliance

Conducted a detailed review of the human resources operations of a large pharmaceutical company to assess compliance with data protection and privacy laws and regulations in both the U.S. and EU, in anticipation of possible certification under the U.S.-EU Safe Harbor regime. Our extensive written report described potential compliance issues and recommended specific remedial actions.

Huawei privacy class action

Defending Huawei, a Chinese mobile handset maker, in a putative class action alleging violations of the Wiretap Act, Stored Communications Act, and various state laws. The suit stems from the allegation that third-party mobile analytics software transmitted data about mobile device users’ activities to other parties without authorization.

Global privacy assessment

Cybersecurity FCA Victory for a Services Contractor

Foreign government cyber hacking of a federal agency produced front page news and a U.S. Department of Justice (DOJ) False Claims Act (FCA) investigation of the service contractor that built and maintained the agency’s cyber security system. We rebutted allegations that critical cyber infrastructure was missing, out of date, and technically deficient. The DOJ dropped its investigation and the company made a small, five figure settlement with the agency.

Cutting-edge cost allowability victory

Successfully represented a major defense contractor, through trial and decision, in board of contract appeals litigation involving the allowability of private security costs allegedly incurred in connection with providing logistical support to the U.S. military during the Iraq War. The case raised cutting-edge cost allowability, contractor-on-the-battlefield, and statute of limitations issues.

Compliance program for a defense company

Developed a major defense company’s comprehensive export controls compliance best-practices manual covering a range of export control topics. We seconded one of our associates to the company’s core export compliance organization to work on this project, which required synthesizing existing company compliance material and standardizing export compliance practices across a diverse group of businesses.

Deep experience

We have represented clients in numerous other congressional investigations and oversight hearings, including a major internet services company in an investigation of its practices abroad, a chemical manufacturer in an investigation of the safety of its products, an insurance company in a hearing on the federal long term care insurance program, a financial services company in an investigation of credit card terms, and drug companies in investigations concerning such matters as payments to doctors, marketing practices, generic approvals, drug importation, and drug safety.

Eight-Year FCA Investigation Ends with Declination

Press reports accusing our client of using inflated labor categories on a billion dollar contract triggered an eight year False Claims Act (FCA) investigation. Eventually, our appeal to senior attorneys at the U.S. Department of Justice’s Civil Division brought an end to the FCA investigation and cleared the way for the client to negotiate an administrative settlement with the contracting agency resulting in a net payment to the client of millions of dollars.

Dismissal of wrongful death case based on government contractor defense

Obtained dismissal of a wrongful death case brought against a major government contractor for alleged gamma radiation exposure from a cargo screening device it manufactured for national security/border protection purposes. Early in the case, and only after minimal discovery, we successfully asserted the government contractor defense and convinced the trial court that the government had meaningfully reviewed and approved the product’s design specifications, that the product conformed with those specifications, and that the contractor had no knowledge of any product risks or hazards unknown to the government.

Dismissal of wartime wrongful death claims brought by contractor employees

Obtained dismissal of wrongful death claims against a military support contractor following an insurgent attack on a supply convoy in Iraq. After the district court refused to dismiss the case, we successfully brought an interlocutory appeal and persuaded the court of appeals that the Defense Base Act provided an exclusive remedy and barred the employee claims.

Dismissal of personal injury case involving military personnel

Persuaded a district court to dismiss a tort suit brought against a large logistical services contractor for injuries sustained by a soldier on a military base in Iraq. The district court and the court of appeals agreed that the case raised political questions because of the involvement of the military that were outside the scope of judicial review.

Addressing Regulatory Enforcement Actions

We have addressed regulatory investigations and enforcement actions from regulators in the United States, Europe, and Asia following data breaches. These have included investigations or formal enforcement proceedings brought by the Federal Trade Commission, State Attorneys General, and the Securities and Exchange Commission in the United States, and by data protection authorities and sector-specific regulators across Europe and Asia.

Internal investigations for an aircraft manufacturer

Led more than a dozen internal investigations for a military aircraft manufacturer, including drafting voluntary disclosures filed with the Departments of State and Commerce that were successfully resolved. Also developed export compliance plans for several of the company’s high-profile international projects.

International procurement capacity building

Through the United Nations Development Program, the International Senior Lawyers Project, and the U.S. Department of Commerce’s Commercial Law Development Program, we provide procurement law expertise and training to senior procurement officials of foreign governments including Liberia, Iraq, and Afghanistan to help those countries build capacity for conducting predictable and transparent procurements. This experience allows us to provide specific, knowledgeable advice to clients wishing to pursue procurements conducted by foreign governments.

Negotiation and vetting of state contracts for healthcare exchanges and MMIS

We helped a major client negotiate contracts with state healthcare exchanges in Maryland and several other states, and navigate the procurement rules and risk areas unique to many state exchanges. We have also advised clients regarding intellectual property and other issues specific to state MMIS procurements.

Navigation of Organizational Conflicts of Interest

We have helped major contractors navigate the specific Organizational Conflicts of Interest (OCI) rules and requirements imposed by the Centers for Medicare and Medicaid Services (CMS), the Defense Health Agency, and other agencies. When CMS rolled out its new approach to OCIs, including its new standard clause and required forms, we helped a major CMS contractor comment on key aspects of the approach.

Navigating U.S. sanctions programs for multinational corporations

When the U.S. government announced changes to its Cuba policy, major global companies in the consumer products, travel, and entertainment sectors turned to us for advice on policy and trade matters. We advised these clients on export controls and sanctions, legislative proposals, Helms-Burton restrictions, expropriations and certified U.S. claims, and market access issues.

Navigated foreign legal requirements for international contractors

Organized foreign counsel in 40 foreign countries to determine legal requirements governing U.S. government contractors working in country, to ensure local compliance as to business registrations, visas, employment laws, and taxes. In doing so, developed a template for determining foreign requirements and a network of local counsel to serve as a resource for the contractor.

Obtained SAFETY Act protection for anti-terror products and services

The SAFETY Act, administered by the U.S. Department of Homeland Security, provides liability protection to the makers and users of anti-terror technology in the event of a terror attack. We have successfully guided clients from virtually every major industry in the United States, including government contractors, airports, port authorities, chemical companies, large sports stadiums, and professional sports leagues, through the SAFETY Act application process and secured SAFETY Act protection for a wide range of technologies.

Northwestern University Royalty Monetization

Represented Northwestern University, and an inventor affiliated with Northwestern University, in a series of royalty monetizations (structured both as sales and as financings through special purpose vehicles), including Northwestern’s 2007 sale of a portion of its worldwide royalty interest in Lyrica for $700 million, the largest monetization of a royalty stream for a single pharmaceutical product.

JFK International Airport Cogeneration Facility

Represent Calpine’s JFK Energy Center (KIAC Partners) as project counsel, including in the original structuring and planning of the project, a $175 million combined bank facility and bond financing and a $250 million Rule 144A bond refinancing, structuring and negotiating numerous commercial contracts, and achievement of commercial operations.

MedImmune in Series A Funding of Clinical-Stage Pharmaceutical Company

Advised MedImmune Ventures as lead investor in the Series A Preferred Stock financing of G1 Therapeutics. G1 Therapeutics uses small molecule therapies that act by a novel mechanism to potentially prevent the hematological side effects of exposure to ionizing radiation and cancer chemotherapy, as well as other possible uses.

Los Alamos investigation

We represented the University of California in an intense and wide-ranging investigation by the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations into alleged fraud and mismanagement at the Los Alamos National Laboratory. The investigation involved more than two dozen witness interviews and culminated in three days of hearings. At the conclusion of the investigation, the University retained its contract to manage the Laboratory.

LinkedIn privacy class action

Achieved dismissal of a putative class action against LinkedIn alleging violations of the Stored Communications Act and state law. The complaint asserted that LinkedIn disclosed LinkedIn user identification numbers and LinkedIn URL addresses to third party advertising companies, which allowed those companies to correlate the identity of a user with his or her previously anonymous Web browsing history.

Lindsay Goldberg's transformation of PAE

Represented private equity firm Lindsay Goldberg and PAE as regulatory counsel in six different M&A transactions that have grown PAE to a defense contractor with annual revenue in excess of $2 billion. Our work began in 2011 with Lindsay Goldberg’s acquisition of PAE from Lockheed Martin, and continued through to PAE’s acquisitions of Defense Support Services, CSC’s Applied Technology Division, USIS’s Global Security and Solutions Business, and A-T Solutions and to Lindsay Goldberg’s 2016 sale of PAE to Platinum Equity. Our work in each of these deals has included government contracts, national security, trade controls, and anti-corruption due diligence and advice on transaction structuring, novations, and regulatory approvals.

Launch of the WWE Network

Represented WWE in the launch of the WWE Network, a direct-to-consumer, subscription-only, online video channel that will air round-the-clock programming, including new programs and matches, an on-demand service, WrestleMania, and a six-decades-deep library for $9.99 a month. This is one of the first sports “over the top” offerings in the United States and the transaction received a great deal of publicity as a result.

Representation of Teva Pharmaceuticals

We represented Teva in its strategic partnership with IBM, which enabled it to become the first multinational pharmaceutical company to deploy IBM’s Watson Health Cloud as its global technology platform. As part of the partnership, a joint Teva-IBM research team will work together using “big data” and machine-learning tools to develop disease models and advanced therapeutic solutions, including solutions designed to collect and analyze real world evidence. The deployment of these models and solutions will enable Teva to provide insights and real-time feedback directly to care providers and patients via mobile devices in order to achieve treatment optimizations and improved patient outcomes.

NBA in Live Virtual Reality Streaming with NextVR

We represented the NBA in a multi-year deal to stream live NBA games in virtual reality in a partnership with NextVR, which will become the official live virtual reality partner of the NBA. During the 2016-2017 season, live VR games will first be available to NBA League Pass subscribers, with single-game purchase opportunities to follow for all VR consumers as the NextVR app becomes available on new VR devices.

Taylor v. United Technologies Corp.

Taylor v. United Technologies Corp., 2009 WL 4255159 (2d Cir. Dec. 1, 2009), aff’g 2009 WL 535779, 46 Empl. Ben. Cas. (BNA) 1935 (D. Conn. Mar. 3, 2009). The Second Circuit affirmed the summary judgment entered in favor of our client United Technologies in a 401(k) plan expense class action lawsuit. The court upheld the rejection of all of plaintiffs’ claims concerning a variety of fiduciary decisions over more than a decade, for which plaintiffs had calculated alleged damages of $230 million.

Landmark Trademark Infringement Ruling for John Deere

Represented John Deere in a trademark infringement lawsuit against FIMCO, Inc. for dilution and false designation concerning Deere's iconic green and yellow colors on its towed agricultural equipment. After a one week bench trial, the Judge ruled in favor of Deere on every claim and issued a permanent injunction, prohibiting FIMCO from selling green and yellow agricultural equipment.

Navigating U.S. Legislative Amendment Procedures on a Tight Deadline

Our client, a major trade association, was facing an adverse and precedential amendment to a piece of U.S. legislation. With only one day before decisions were to be made as to which amendments would be in order during the House of Representatives (House) debate, we promptly developed substantive and procedural arguments against the amendment at issue. We then presented these arguments to senior members of the committee of jurisdiction and the Rules Committee. Through our aggressive efforts, the Rules Committee decided against making the amendment in order for a vote, preventing the House from acting on it.

Legislative Victory in a 2016 FDA Nutrition Facts Panel Rule

When the 2016 Nutrition Facts Panel final rule required manufacturers to submit evidence demonstrating that their products met new standards, our client, a Midwestern food ingredients company, immediately complied. However, they were told the FDA would not be able to review the data in time to renew the company’s contracts. Faced with losing its domestic customers for its flagship products, we organized a robust appropriations strategy involving a series of high-level communications. Through our efforts, the FDA delayed compliance long enough to allow for due process. The company was able to swiftly renew its contracts with its biggest customers.

Magellan’s Acquisition of AFSC

Represented Magellan Health as regulatory counsel during its $117.5 million acquisition of Armed Forces Services Corporation (AFSC), a provider of behavioral health and specialty services to the Department of Defense and other U.S. government agencies. We handled government contracts and national security matters for Magellan.

Secured Dismissal for Deutsche Bank in Civil Litigation Involving the Anti-Terrorism Act (ATA)

Successfully defended Deutsche Bank in an ATA litigation brought on behalf of American service members killed or injured by terrorist bombing attacks in Iraq. Covington secured a complete dismissal with prejudice, proving that Deutsche Bank's conduct did not amount, as plaintiffs contended, to a conspiracy to fund terrorism.

Significant Trial Win for Warner Chilcott

Representation of Warner Chilcott against generic manufacturers Lupin and Watson, that brought suit challenging the key patent covering Warner Chilcott’s Lo Loestrin birth control pill. After trial, the District Court for the District of New Jersey issued an opinion rejecting validity attacks on the patent and granting judgment to Warner Chilcott. The ruling preserved our client’s exclusive ability to market and sell Lo Loestrin through expiration of the patent in 2029.

Autonomous Vehicles Law and Regulation

We advise manufacturers, technology companies and other stakeholders with respect to a range of legal issues associated with autonomous vehicles. For example, we advised an automotive bidder on a major government contract for a next-generation vehicle regarding NHTSA innovation-related exemptions and autonomous vehicle guidelines. We also advise a Japanese automotive parts manufacturer on NHTSA and CARB certification rules and autonomous vehicle guidelines.

Counsel to Emerging Companies

We represent companies at all stages of development and in all aspects of their business, typically serving as outside general counsel. For early stage companies, we structure the relationships among founders, develop an intellectual property rights strategy, and help secure initial funding. As companies develop and expand, we provide strategic and legal advice, both domestic and international, on governance issues, capital structure, distribution, licensing and other commercial arrangements, venture capital financings, IPOs, and M&A transactions.

Global assistance to international corporations on government procurement

One of the world’s largest manufacturers of civilian aircraft wanted to promote its foreign direct investment and expand access to government procurements in the United States and Latin America. We supported the company’s increased engagement in Washington, achieving notable recognition by U.S. policymakers at the most senior levels of government. We also advised on U.S. trade policy, export credit programs, and market access issues.

Representation of Eli Lilly, ImClone, and BMS

Represented Eli Lilly and Company, ImClone, and BMS in an IPR proceeding challenging the validity of a patent owned by the Trustees of the University of Pennsylvania (“Penn”). In concurrent district court litigation (in which we also represent Eli Lilly), Penn alleged that its patent covered methods of using Eli Lilly’s biologic Erbitux® for treating cancer patients. In July 2016, the PTAB instituted trial on all challenged claims, and later that month, the district court entered a stay of the litigation pending the IPR proceeding. The PTAB hearing took place in March 2017, and the final written decision found the challenged claims of Penn’s patent invalid.

Covington Avoids IPR Trial for AstraZeneca SYMBICORT® Patent

Represented AstraZeneca in defeating Complex Innovations’ attack on a patent covering SYMBICORT® inhalation aerosol for asthma and COPD. On July 24, 2017, the Patent Trial and Appeal Board denied institution of an IPR trial as to every challenged claim. The PTAB largely followed the arguments Covington presented in the preliminary response when determining that the petition failed to demonstrate a reasonable likelihood of prevailing at trial.

The Walter and Eliza Hall Institute of Medical Research Royalty Monetization

Represented The Walter and Eliza Hall Institute of Medical Research in the sale of a portion of its royalty interests in Venetoclax for up to U.S. $325 million (A$406 million), consisting of an up-front payment of U.S. $250 million and up to U.S. $75 million of additional payments upon the attainment of certain milestones, the largest royalty monetization by a non-profit institution outside the United States.

Won Summary Judgment for DARCARS in Suit Seeking Ownership/Control

Won summary judgment for a major auto dealership network in a fight for control of a family-owned company. In this high-profile Washington, DC-area case, Plaintiff Tammy Darvish sued her father, her brothers, and her former employer in January 2015 claiming that she had been promised one-third ownership and control of DARCARS and that her brothers tortuously interfered with this alleged “contract.” Covington developed evidence showing that Ms. Darvish’s alleged “contract” was fatally vague and illusory and that her tortious interference claims were unfounded. Covington moved for summary judgment on all claims, and the court granted the motion in its entirety with trial just weeks away.

Consumer Financial Protection and Practices

Advise numerous financial institutions and non-bank financial services firms on unfair, deceptive, or abusive acts or practices (“UDAAPs”), fair lending, overdraft programs, credit cards, installment loans, and other consumer credit products, payments and payment systems, military lending, and managing vendor and other third-party relationships.

Multimillion Dollar Jury Verdict in Trade Secret Dispute for Former CEO of a Medical Device Company

Representation of the former CEO of a medical device company in defeating claims of theft of trade secret and employment contract claims, and obtaining a multimillion dollar jury verdict on counterclaims based on a technology licensing agreement in which the CEO (who was also the inventor of a heart valve) licensed the technology to the company.

TRICARE-Related Advocacy

We achieved a significant legislative victory for a major retail corporation when Congress passed the FY 2017 National Defense Authorization Act with new authorities to expand patients’ access to retail pharmacies. Our objective was to overcome the exclusion of chain and local pharmacies from providing brand maintenance drugs under TRICARE at the same rates available for prescriptions filled at military treatment facilities or through mail-order pharmacies, which caused significant losses to chain and local pharmacy businesses and limited beneficiaries’ access to retail pharmacies. Our efforts led to the inclusion of a pilot program allowing pharmacies to provide brand maintenance drugs to TRICARE beneficiaries. The bill passed with overwhelming support in both the House (375-34) and the Senate (92-7).

Bayh-Dole Advice Across Sectors

We have advised clients in various sectors regarding the substantial manufacturing requirement under the Bayh-Dole Act, including securing waivers of the requirement and helping clients structure manufacturing obligations to maximize business efficiencies within the requirements of the Bayh-Dole Act. We also routinely advise clients regarding the Bayh-Dole Act’s requirements for perfecting title in intellectual property and avoiding potential march-in actions under the Act.

High Profile Section 337 Dispute Between U.S. Steel and the Chinese Steel Industry

Representation of Baoshan Iron & Steel Co., Ltd. in a trade secret, antitrust and false designation of origin dispute in the International Trade Commission involving processes for making Advanced High Strength Steel. In November 2016, Sturgis Sobin, Derek Ludwin, and James O’Connell were named “Litigators of the Week” by American Lawyer for an initial determination at the ITC on behalf of our client. This was the first price-fixing case in almost 40 years at the agency, terminating U.S. Steel’s antitrust claim.

Half-billion Dollar Trade Secrets Trial Victory for McKesson

After being retained months prior to trial following nearly a decade of litigation, Covington obtained a complete defense verdict for a subsidiary of McKesson Corporation in a bench trial in New York Supreme Court. The plaintiff had alleged breach of a non-disclosure agreement and trade secret misappropriation related to a drug discount program. Plaintiff sought the assignment of certain McKesson patents and half a billion dollars: nearly $250 million in damages and 11.5 years’-worth of prejudgment interest. PSKW, LLC v. McKesson Specialty Arizona, Inc. (S. Ct. NY).

Multi-defendant privacy class action

Achieved dismissal of a putative class action against Microsoft, CBS, Microsoft, McDonald’s, and Mazda alleging violations of the Wiretap Act, Computer Fraud and Abuse Act, and state laws. The complaint alleged that an online ad network used Flash cookies and other tracking mechanisms to build user profiles for the purpose of serving targeted advertising.

Microsoft privacy class action

Achieved summary judgment for Microsoft in a putative class action alleging unauthorized collection of geolocation information from the plaintiffs’ mobile devices. After a claim under the Wiretap Act was dismissed at the pleadings stage, we successfully obtained summary judgment on a remaining claim under the Stored Communications Act.

Over-the-counter medicine investigation

We represented a world-leading consumer products manufacturer in an investigation by the House Committee on Oversight and Government Reform regarding high-profile recalls of over-the-counter medicines. The investigation included multiple interviews, tens of thousands of documents produced to Congress, and two major hearings, including one at which the company’s chairman and CEO testified.

Octavian Global Partners Fund Reorganization

Representation of the investment manager and general partner of Octavian Special Master Fund, L.P., and its onshore and offshore feeder funds in connection with a complex reorganization, including: an investment in the funds by a TPG affiliate; a concurrent offer to existing fund investors to have their interests in the funds repurchased; and the takeover by TPG affiliates of the investment management and general partner responsibilities for such funds.

Novel Lending Platform in First-of-its-Kind Transaction

Represent Prosper Marketplace in a variety of securities advisory and transactional matters, including in a first-of-its-kind registration of $500 million of borrower dependent notes and restructuring into a bankruptcy remote vehicle, several rounds of venture financings, as well as ongoing disclosure, SEC reporting and SEC regulatory matters.

Joint Venture for Creation and Launch of 120 Sports

Represented NHL in connection with its entry into a joint venture with Silver Chalice Partners, Sports Illustrated and Major League Baseball Advance Media for the creation and launch of 120 Sports, the first multi-sport, league-created digital network in the United States. In addition to MLB and NHL content, the digital network will include content from the NBA, NASCAR and a number of college conferences. The network is expected to offer 24/7 programming on an unauthenticated basis, including live sports highlights and related news programming.

Largest Suspension and Investigation in USAID's History

A voluntary disclosure to USAID by one of its largest not-for-profits led the agency to suspend the entity for potential false claims and lack of internal controls, resulting in the board of directors forcing the resignation of the entity’s leadership team and hiring our lawyers to resolve the matters. When the agency refused to lift the suspension due to the lack of trustworthy internal controls and the entity was on the brink of shuttering its doors, our lawyers successfully negotiated a grand bargain to transfer nearly all of the programs, assets, and employees to another not-for-profit and settle the False Claims Act (FCA) investigation.

Resort Developer on Water Project in Bahamas

Baha Mar, a prominent resort developer, in connection with the proposed development, construction, and project financing of a salt water pumping station to provide chilled water to Baha Mar’s resort property in the Bahamas, including inter-creditor aspects relating to existing financing of the resort from China Ex-Im Bank (CEXIM) and proposed new project financing for the construction of the pumping station and chilled water facility by banks led by Deutsche Bank.

Multiple IPR Proceedings on Behalf of Biogen

Represented Biogen in defeating Swiss Pharma’s attacks on three patents covering TYSABRI®, an antibody biologic for treating patients with multiple sclerosis. The PTAB declined to institute a trial on all three of Biogen’s patents. The PTAB adopted the detailed reasoning from Covington’s briefs, finding that Swiss Pharma’s evidence and expert testimony did not demonstrate a reasonable likelihood of prevailing at trial.

Enactment of Trade Secrets Legislation

Represented the Protect Trade Secrets Coalition in successfully seeking to enact legislation to create a federal civil cause of action for trade secret misappropriation to supplement state-level remedies and testified before the House Judiciary Committee on the need for legislation. The legislation was enacted in 2016 after being passed by the Senate 87-0 and by the House 410-2.

Representation of Elbit Systems of America, LLC in IPR Proceeding

Representation of Elbit Systems of America, LLC as petitioner in an IPR proceeding relating to a patent directed toward a system and method for tracking the motion or orientation of an object relative to a moving reference frame, such as in a head-mounted display. The patent is owned by Thales Visionix, Inc., and Covington also represents Elbit in the co-pending litigation in the Court of Federal Claims. In October 2016, the PTAB issued its final written decision holding as unpatentable more than half of the challenged claims.

Representation of LifeCell as Petitioner in an IPR Proceeding

Achieved a complete victory for LifeCell Corporation as petitioner in an IPR proceeding challenging a patent owned by LifeNet Health directed to soft tissue graft compositions. Trial was instituted in March 2016, and the PTAB granted the patent owner’s request for adverse judgment in August 2016, cancelling all claims in the patent.

Representation of Indivior in Challenge to Patent for SUBOXONE

Represented Indivior UK Limited (f/k/a RB Pharmaceuticals Limited), as patent owner in an IPR proceeding, brought by Teva Pharmaceuticals USA, Inc., challenging one of three Orange Book listed patents for Suboxone® sublingual film, a treatment for opioid dependence. In a decision rendered on June 10, 2016, the PTAB denied Teva’s petition in its entirety, adopting the rationale presented in Covington’s patent owner preliminary response.

Representation of BMS as Patent Owner in an IPR Proceeding

Represented Bristol-Myers Squibb Company, as patent owner in an IPR proceeding brought by Momenta Pharmaceuticals, Inc., challenging the validity of a patent covering the formulation of BMS’s biologic ORENCIA. The PTAB entered a final written decision in December 2016 entirely rejecting Momenta’s challenges and upholding all claims of the patent.

Representation of Warner Chilcott in an IPR Proceeding

Representation of Warner Chilcott as patent owner in an IPR proceeding, brought by the generic company Mylan Pharmaceuticals, challenging the patent claiming LO LOESTRIN, Warner Chilcott’s oral contraceptive. After Mylan filed its petition, the parties settled favorably without a single claim being invalidated or the PTAB instituting review on a single claim of the LO LOESTRIN Patent. Covington successfully represented Warner Chilcott in ANDA litigation against prior generic filers on LO LOESTRIN, obtaining a favorable judgment after a bench trial which was upheld by the Federal Circuit.

Representation of Elbit Against Petitions Filed by Hughes

Representation of Elbit Systems Land and C4I Ltd. in securing the PTAB’s denial of four separate Patent Office challenges over the course of 2016. In the latest decision, issued in mid-July 2016, the PTAB denied the fourth and final patent office challenge filed by Hughes Network Systems, LLC against Elbit’s patents. In November 2015, Hughes filed two petitions for inter partes review against Elbit’s ’073 patent, and one petition against Elbit’s ’874 patent, both of which are asserted against Hughes in the co-pending district court litigation. Hughes filed a second petition against the ’874 patent in January 2016. The PTAB denied the first challenge to the ’874 patent, and both challenges to the ’073 patent, in April. Hughes’s request for rehearing on the first petition also was rejected in July 2016.

Balkrishna Industries, Ltd. Patent Litigation

Representation of Balkrishna Industries Ltd. and its affiliates BKT Tires, Inc. and BKT USA, Inc. in litigation against Bridgestone Brands, LLC and Bridgestone Americas Tire Operations, LLC concerning alleged patent infringement, trademark infringement and unfair competition issues in the U.S. District Court for the Middle District of Tennessee.

Sony BMG Music Entertainment in Class Action Lawsuit

Sony BMG Music Entertainment in a class action lawsuit brought by the Allman Brothers Band and Cheap Trick on behalf of all artists whose contracts pre-date the era of digital downloaded music. Sony BMG pays the artists under the applicable royalty rate for album sales at brick-and-mortar record stores, while the artists claim that Sony BMG should be paying a much greater royalty rate for downloaded music.

Solar Project Joint Venture

SunShare, LLC, a developer of community solar farms, in connection with its construction and project development and financing plan, including in a senior secured bridge financing provided by Solar Construction Lending, a joint venture between MMA Capital Management and Fundamental Advisors, for community solar power farm projects in Colorado and Minnesota.

Stadium Construction and Renovation Projects

The National Football League in the structuring and negotiation of League “G-3” loans to support construction of new or renovated stadiums for the Chicago Bears, Dallas Cowboys, Denver Broncos, Detroit Lions, Indianapolis Colts, New England Patriots, Philadelphia Eagles, and Seattle Seahawks, and, most recently, in the financing of the new stadium for the New York Jets and Giants and League approvals of the first-of-its-kind joint venture relating to the New Meadowlands Stadium.

Aristocrat Technologies Patent and Trademark Litigation

Representation of Aristocrat Technologies Inc. in patent and trademark litigation brought by Bally Technologies relating to gaming devices; and patent infringement litigation brought by IGT in a case involving 32 patents directed at various aspects of gaming devices, in addition to other significant patent litigation.

Tax-efficient acquisition vehicles

Helped a leading global fund-of-funds sponsor with benefit plan investors acquire several large portfolios of European private equity interests. Working with corporate lawyers in our London and New York offices, we designed tax-efficient acquisition vehicles that complied with ERISA and avoided potential fiduciary and plan asset concerns.

Tax Court Litigation Resulting in Government Concession of over $250 million in Adjustments Plus an Additional Refund of $15 million

Prior to trial, obtained a concession from the Government with respect to adjustments of over $250 million relating to a worthless partnership interest deduction, and identified computational errors resulting in additional refunds of $15 million. JELD-WEN v. Commissioner, Tax Court Docket No. 003055-14.

$1 Billion in Real Estate Formations

Representation of Hampshire, a privately-owned real estate investment manager, and its affiliates in connection with the formation of multiple related funds and private REITs for U.S. and foreign institutional investors with more than $1 billion of aggregate committed capital focused on investments in U.S. commercial real estate.

Strategic advice to companies facing international regulatory challenges

A global chemical company is facing a World Health Organization (WHO) classification of one of its key products as “probably carcinogenic.” Recognizing that this finding is based on limited evidence and is in conflict with the conclusions of many national regulatory bodies that have analyzed this product and found it to be safe, the company asked us to help them develop a strategy to seek a public clarification from the U.N. organization.

Strategic advice to multinational corporations facing global market challenges

A global food and beverage company faces a variety of challenging legal and policy issues around the world, including international trade, market access, NGO activism, and multiple proposed restrictions to its ability to operate in the marketplace. We provide both domestic and global strategic counsel and advice and assist them in advancing their legislative and policy objectives.

Tax Court Victory Following Trial in Matter Involving over $350 million of Adjustments

Obtained a complete taxpayer victory following a trial in the Tax Court involving adjustments of over $350 million relating to homebuilder’s use of the completed contract method of accounting. The case represented, by dollar value, the largest taxpayer victory in the Tax Court in 2014. Currently represent taxpayer before the Ninth Circuit Court of Appeals in connection with the Government’s appeal of the case. Shea Homes v. Commissioner, 142 T.C. No. 3 (2014).

Tax Counseling Regarding Numerous Franchise Sales

Deal structuring and related counseling regarding numerous franchise sales, including Chris Hansen in his efforts to acquire the Sacramento Kings or another NBA franchise with a view towards a relocation to Seattle; Chris Cohan’s sale of the Golden State Warriors; the NHL’s purchase and sale of the Phoenix Coyotes; Major League Baseball’s relocation and sale of the Montreal Expos; Fenway Sports Group’s purchase of a 50 percent interest in Roush Racing; the USTA’s acquisition of the Western & Southern Financial Group Masters tournament; and John Henry’s sale of the Florida Marlins and purchase (as lead investor) of the Boston Red Sox.

Successfully Represented Communications Manufacturer in Proposed Debarment Before GSA

Represented a manufacturer of lightweight communications supplies that had been proposed for debarment by the General Services Administration ("GSA"). After obtaining an emergency waiver of the proposed debarment, which enabled our client to continue filling new orders, we filed a formal written response that convinced GSA to terminate the proposed debarment.

BAIC and WFUM Solvent Schemes

Represented clients, including Exxon Mobil Corporation, Goodrich, Goodyear, and Textron in opposing efforts by solvent London Market companies to use so-called “solvent schemes of arrangement” to curtail their coverage obligations to policyholders facing long-tail liabilities, such as asbestos, silica, or environmental claims.

Charlesbank in Acquisition of OTC Consumer Products Brands

Represented Charlesbank Capital Partners in the formation of Blacksmith Brands and its acquisition of five OTC consumer products brands, Efferdent, Effergrip, Luden’s, Nasalcrom and PediaCare, from McNEIL-PPC and subsequent $190 million sale of Blacksmith Brands to Prestige Brands Holdings, Inc.

Changes to NYSE Rules for Banks and Broker-Dealers

Represented a leading global provider of investor communications and technology solutions in connection with its pursuit of specific changes to NYSE rules regarding the distribution of proxy materials on behalf of banks and brokers. Covington interacted with the SEC and NYSE staff and successfully persuaded the bodies to include the provisions advocated by our client.

Case of first impression arising from an FMS contract

Represented a U.S. electronics manufacturer in federal trial and appellate courts against contract claims by a foreign sovereign government asserting third-party beneficiary rights under a Foreign Military Sales (FMS) contract. The case raised issues of first impression under the Contract Disputes Act and Arms Export Control Act (AECA).

Agricultural manufacturer global relationship building

We assisted one of the world’s largest manufacturers of agricultural equipment in establishing and strengthening relationships with key constituencies in the United States, Africa, and South America, including with relevant government officials and international NGOs. With our knowledge of global development programs and agricultural initiatives, we helped identify future markets and consumers through relationships with U.S. and non-U.S. government officials as well as international NGOs.

Advocating On Behalf of Clients Before Congress

Advocating on a variety of legislative and policy issues before Congress on behalf of major corporations and industry associations, including United Airlines, Union Pacific Railroad, Associated of General Contractors, American Association of State Highway and Transportation Officials, Association of Equipment Manufacturers, and U.S. Custom Harvesters.

Advising on domestic sourcing compliance under subgrants and state and local agreements

Advised multiple for-profit clients about domestic sourcing requirements imposed under subgrants and state and local agreements through various Departments of Transportation and Energy appropriations, New Jersey Buy American requirements, and the American Recovery and Reinvestment Act of 2009.

Advising clients regarding anti-human trafficking compliance

Advised multiple clients concerning the Federal Acquisition Regulation’s anti-human trafficking requirements, which were expanded in early 2015. Our advice has included creating employee policies and trainings to facilitate compliance and developing contractor compliance plans that, among other things, provide tools for monitoring subcontractor adherence to human trafficking prohibitions.

Advised client of risk mitigation techniques during contract formation

Counseled a major defense contractor on how to mitigate potential future tort risk during contract discussions with the U.S. government. The military wanted the contractor to provide support for a significant anti-terrorism initiative, and the contractor needed advice on how best to structure the contract to minimize its risk and maximize its protection in the event of third-party claims arising from its contract performance.

Advising clients on pricing and contracting under Veteran’s Health Care Act programs, including VA FSS, 340B, and Tricare

Advice to numerous clients regarding compliance with the statutory and contractual pricing obligations under the Veteran’s Health Care Act (VHCA), including performing gap analyses, providing policies and training, and assisting with investigations and disclosures.

Advice regarding shared employee and facility costs during M&A process

Advised client on structuring employee secondment agreements so as to permit reimbursement of costs of shared employees and associated indirect costs under a secondment agreement during a contractual novation process in connection with an M&A transaction, enabling the client to orderly transfer employees and facilities to the purchaser and ensure continued reimbursement up to the point of final transfer.

Advice on the monitoring of employee communications

Conducted a pan-European and selective U.S. survey of laws and regulations affecting an employer’s right to monitor employee’s Internet use and review electronic communications. We have also advised numerous clients on the law governing call recording and access to (and disclosure of) employee e-mail, including in connection with several personal crises and actions.

Assisting with review and overhaul of FSS pricing model

We advised a large technology reseller in conducting a review and revision of its pricing practices under its Federal Supply Schedule (FSS) contract with the U.S. General Services Administration (GSA). In addition to identifying and addressing potential pricing irregularities, we successfully guided the company through an overhaul of its Commercial Sales Practices Format (CSP-1) disclosure and convinced the GSA to permit our client to implement an alternative pricing model that greatly reduced administrative burdens.

Assisting clients with VA Schedule contracts involving medical equipment and pharmaceuticals

Assisted numerous clients with matters arising under U.S. Department of Veterans Affairs schedule contracts, blanket purchase agreements, and related national agreements, including matters relating to price reporting, drafting of proposals, interactions with federal employees, small business subcontracting, and compliance with other commercial-contracting requirements.

Arms Export Control Act - third party beneficiary claims

Our client sold microchips under a U.S. Air Force Foreign Military Sales (FMS) transaction to a foreign ally’s defense ministry, in a “back-to-back” sale under the Arms Export Control Act (AECA), in which the Air Force purchased the microchips from our client and then sold them in turn to the foreign defense ministry. The foreign defense ministry then sought to present warranty claims directly against our client, claiming to be a third-party beneficiary under our client’s contract with the Air Force. We waged successful litigation in federal trial and appellate courts raising issues of first impression, which established that third-party beneficiary claims are not available, given the public policy and intent of the AECA.

Antidumping and countervailing duty proceeding for freight railroad company

We represented a freight railroad company in an antidumping and countervailing duty proceeding at the International Trade Commission covering certain intermodal containers from China. We assisted the company in successfully opposing the imposition of antidumping and countervailing duties on the Chinese containers.

Charlesbank Capital Partners Investments

Represented Charlesbank in its investment in Universal Technical Institute, in its acquisition and sale of Aurora Organic Dairy, in its acquisition and sale of The GSI Group, in acquisitions of Zenith Products, The Horn Companies, Cedar Creek Lumber, and Peacock Engineering Company, in its sale of American Tire Distributors, and in its formation of Blacksmith Brands, which purchased the Efferdent, Luden's and PediaCare brands from Johnson & Johnson, and subsequent sale of Blacksmith Brands to Prestige Brands.

Canadian IP trade dispute

Life sciences companies are being negatively impacted as a result of patent practices in Canada that are leading to the premature invalidation of pharmaceutical patents. We represent a major life sciences company in a dispute under the North American Free Trade Agreement (NAFTA) seeking compensation for losses suffered by Canada’s internationally inconsistent patent practices.

Cable One privacy class action

Achieved dismissals of three putative class actions against Cable One, a cable and Internet service provider, in litigation involving claims under the Wiretap Act, the Computer Fraud and Abuse Act, and related state laws. The litigation arose out of a third party’s test of a system using “deep packet inspection” for the purpose of serving targeted advertisements.

Aerospace Company Recovers Defense Costs after Fraud Investigation

Search warrants executed simultaneously on both coasts triggered an aggressive investigation of alleged Cost Accounting Standards (CAS) violations. First, we persuaded the U.S. Attorney to terminate its criminal case. Next, we convinced the Department of Justice’s Civil Frauds division that the case had no merit. Finally, we obtained a dismissal on motion of a pending qui tam case. After winning on all fronts, the client was able to submit and recover allowable costs of defense, including legal fees.

Advising Large Public Companies and Investors on Corporate Governance Matters

Represented boards in the pharmaceuticals, consumer goods, health insurance, home equipment, advertising, motor vehicles, network communications, and technology industries as well as hedge funds, public pension funds, and other investors with respect to corporate governance developments regarding board and committee composition, crisis management, cybersecurity, internal controls, shareholder proposals, proxy access, political spending, and other sensitive disclosures and similar matters.

Advising clients on the negotiation and performance of contracts with the Biomedical Advanced Research and Development Authority, the Defense Threat Reduction Agency, and the National Institutes of Health

Advised multiple clients on matters arising from their negotiation and performance of manufacturing and research and development contracts relating to various pandemic and Chemical, Biological, Radiological and Nuclear (CBRN) threats, including matters relating to government indemnification or liability protection for unusually hazardous risks, compliance with cost standards and principles, and protection of intellectual property.

Assisting with cost classification determinations and implementation of subaward negotiation requirements

Advised global nonprofit organization on the appropriate classification of proposal costs claimed in connection with extensions of existing contracts and grants, as well as requirements relating to negotiation of profit under sole-source subawards for commercial items.

AOL privacy class action

Achieved dismissal of a putative class action against AOL alleging violations of the Wiretap Act, Video Privacy Protection Act, and numerous state laws. The suit alleged unauthorized collection of personal information from the plaintiffs’ computers using “Flash cookies” and unlawful disclosure of video viewing information to third parties.

U.S. regulatory guidance for South Korean airline

The second largest airline in South Korea was under investigation by the U.S. government in connection with a 2014 accident in San Francisco. Our Washington office guided the company’s participation in the National Transportation Safety Board (NTSB) investigation, and successfully mitigated U.S. public relations issues.

U.S. Income Tax Treaty

Advised concerning the application of a U.S. income tax treaty to reduce to 5% the withholding tax rate on planned dividends paid to an intermediate holding company of a publicly traded group. To satisfy the treaty’s limitation on benefits provision, Covington supervised a beneficial ownership study which established that at least 50 percent of the global parent’s public shareholders were qualified residents of the U.S. or of the treaty country, and negotiated a Pre-Filing Agreement with the IRS that approved the study’s methodology.

U.S. Department of Labor and Internal Revenue Service Investigations

Resolved contentious investigations by the US Department of Labor and Internal Revenue Service, in which the government took positions that exposed our clients to many millions, and in some cases over $1 billion, of potential liability. In several of these cases, we replaced counsel that was unable to reach agreement with the government, when litigation appeared to be imminent.

Univision Communications in Communications-Related Regulatory Matters

Representation of Univision Communications in all communications-related regulatory matters. Univision is the nation’s largest integrated Spanish-language media company and the fifth-largest broadcast network in any language, which owns nearly 150 radio and television stations, three national programming networks, internet portals and a suite of mobile communications products.

Transmission-Related Matters for PSEG

Represent PSEG, a large New Jersey electric utility, with respect to a range of transmission-related matters including financial incentives and favorable regulatory treatments for large transmission projects, cost allocation policy for certain transmission investments, and market based rates for new generation projects. We advised on the Northeast Grid Reliability Project sponsored by PSEG, a transmission investment of almost $1 billion, and in particular with respect to the rate incentives applicable to the project. FERC granted a range of incentives for the project. In a separate representation, we advised PSEG in a FERC proceeding that secured rate incentives and certain favorable regulatory treatments for PSEG’s construction of five large high-voltage transmission projects.

Transfer Pricing Resolution for More Than $3.3 Billion in Transactions

Served as lead U.S. counsel on negotiations for bilateral advance pricing agreement that proposed a transfer pricing methodology that was new to the industry and the two treaty countries; successfully assisted the two treaty countries in reaching agreement and voiding binding arbitration in dispute spanning 14 tax years and involving intercompany transactions of more than $3.3 billion.

Wireline Competition Before FCC for Client TDS Telecom

Representation of TDS Telecom on a range of wireline issues before the FCC, including universal service, ETC regulation, intercarrier compensation and CALEA. We represent the world’s largest independent directory assistance providers on a range of issues before the FCC, including retail competition.

White Paper for Major Energy Trade Associations

Represent seven major energy trade associations including Edison Electric Institute, American Gas Association, Natural Gas Supply Association, and Electric Power Supply Association in preparing a comprehensive White Paper evaluating FERC’s enforcement initiatives both substantively and procedurally, presenting it to FERC, and paving the way for the implementation of significant reforms to FERC’s enforcement program.

Wells Fargo in Connection with Federal Reserve Board Investigation

Represent Wells Fargo & Co. and Wells Fargo Financial, Inc. in connection with a Federal Reserve Board investigation, enforcement action involving allegations of customer income alteration and customer steering by Wells Fargo Financial sales personnel in originating nonprime mortgage loans—and with implementation of the resulting consent order.

Victory for UCB against multiple Plaintiffs at District Court

Representation of UCB in patent litigation trial against over a dozen generic drug companies in the District of Delaware. The generic drug companies contended that the patent covering UCB’s blockbuster anti-epileptic drug, Vimpat®, was invalid. Chief Judge Stark ruled in UCB’s favor in a 95-page opinion.

Hatch-Waxman Victory for Omeros Corporation

Representation of Omeros Corporation in Hatch-Waxman patent litigation against Par Pharmaceutical concerning Par's application to make a generic version of the drug Omidria®, a combination drug solution used to maintain pupil dilation during cataract surgery and reduce post-operative pain. The case involved Omeros' only approved drug. Following trial, Par settled the matter on favorable terms for Omeros.

Washington National Cathedral in Copyright Matter in the U.S. District Court for the Eastern District of Virginia

Representation of Washington National Cathedral in a copyright action in the United States District Court for the Eastern District of Virginia to enjoin a major movie studio from its unauthorized use of a Cathedral sculpture in a popular feature film.

Virtual Electricity Trader FERC Investigation

Represent a virtual electricity trader in an on-going non-public FERC investigation of fraud and manipulation with respect to trading virtual electricity products and congestion revenue rights in the California ISO markets. As in other cases, we have responded to extensive data requests from FERC, defended depositions, reviewed documents and prepared position papers evaluating the factual and legal issues.

Representation of Knappco in PTAB Proceedings

Representing Knappco, a subsidiary of Dover Corporation, in an IPR against CHS Inc. regarding systems and methods to reduce the potential for unintentional mixing of liquid types in tank systems. In June 2016, the PTAB instituted proceedings on all claims on all grounds. The patent owner failed to file any responsive papers, and the PTAB entered adverse judgment against CHS cancelling all challenged claims.

Fifteen IPR Proceedings for Aristocrat Technologies Inc.

Representation of Aristocrat Technologies Inc. in patent infringement litigation brought by IGT on an array of patents directed to gaming devices. On behalf of Aristocrat, Covington prepared and filed IPR petitions on eleven patents, and Covington represented Aristocrat as the patent owner in four IPR proceedings initiated by IGT. The parties reached a favorable settlement ahead of the litigation, and have terminated all of the IPR proceedings.

Victory for BMS and Eli Lilly in Copyright Infringement Matter

Secured a sweeping victory for our clients BMS and Eli Lilly. In 2006, BMS/Lilly hired Consumer Health Information Corporation (“CHIC”) to develop patient education materials for their injectable diabetes drug BYETTA. The contract expressly designated these as works made for hire and assigned CHIC’s interest in these materials to BMS/Lilly. BMS/Lilly later terminated CHIC, and CHIC sued for copyright infringement in D.C. district court in 2008, but voluntarily dismissed the action in 2009. Last July, CHIC sued again in the Southern District of Indiana. In an attempt to avoid the contractual ownership provisions, CHIC alleged “economic duress” and sought rescission. CHIC's infringement claim sought to recover our clients' profits, allegedly “in excess of several billions of dollars.” Judge Pratt dismissed the complaint with prejudice, ruling that two separate statutes of limitation barred CHIC’s infringement claim. First, the Court held that the claim was barred by the Copyright Act’s three-year statute of limitations. The Court accepted Covington’s argument that, because the case turned on ownership, not use, the continuing violation doctrine did not apply. The Court pointedly noted the inequity of allowing CHIC to wait while BMS/Lilly developed a market only to “pounce on the prize” years later. Separately, the Court held that the ownership provisions expressly assigned ownership to BMS/Lilly, and that CHIC’s attempted rescission was barred by California’s four-year statute of limitations. The Court also rejected CHIC’s outrageous attempt to invoke equitable tolling by arguing that its own (former) attorneys had dismissed its 2008 action without its consent and subsequently concealed the dismissal from CHIC.

Testified in Favor of and Played an Advisory Role in Crafting, Federal Legislation to Limit “Libel Tourism”

A Covington partner testified in favor of, and played an advisory role in crafting, federal legislation to limit “libel tourism,” the practice of libel plaintiffs suing U.S. publishers abroad. The resulting legislation, the SPEECH Act, unanimously passed the House and the Senate and was signed into law in August 2010.

Television Clients on Pre-Publication Review, Newsgathering and Subpoena Defense Issues

Provided pre-publication review, newsgathering and subpoena defense work for television clients in some 25 states on a 24/7/365 basis. To ensure that our team is fully available to journalists around the clock, we have established technical solutions so that scripts, video clips and documents are distributed electronically to all members of our team simultaneously.

Specialty Equipment Manufacturers on FCC Compliance

Representation of one of the leading distributors of televisions to the healthcare field, Specialty Equipment Manufacturers, on FCC compliance issues. When its leading manufacturer discovered problems complying with an FCC rule, we sought a waiver of the FCC’s Part 15 requirements for one of the leading TV set manufacturer in this market.

San Francisco Digital Media Advisory Council Member

Covington is the only law firm member of the San Francisco Digital Media Advisory Council, a coalition between the City of San Francisco and a host of leading digital media and entertainment companies, including Electronic Arts, Lucasfilm, Dolby Labs, Wild Brain Entertainment, Giant Killer Robots, Dreamworks Animation and Pixar.

Two Major National News and Public Affairs Magazines and a National Newspaper on International Newsgathering and Libel Exposure Issues

Advised two major national news and public affairs magazines and a national newspaper on international newsgathering and libel exposure issues. For example, we have advised on the use of hidden cameras in Africa, India and Europe. We also represented a 50-member media coalition in successfully persuading Canadian courts not to exercise jurisdiction over the Washington Post in Bangoura v. Washington Post.

Pharmaceutical public policy and government affairs

We advise a major pharmaceuticals and health care products company on a wide range of U.S. issues, including Medicare/Medicaid coverage and reimbursement matters related to medical devices, reauthorization of nutrition programs and food labeling policy and tax policy and assist them in advancing their domestic legislative and policy objectives. We also provide global public policy advocacy in countries around the world and in international regulatory bodies.

Persuaded the IRS Examination Division to Close Out Transfer Pricing Audit With No Adjustment

Persuaded the IRS Examination Division to close out with no transfer pricing adjustment an audit involving a novel transfer pricing methodology and intercompany transactions in excess of $1.5 billion and to skip auditing the company for the next two years. The issues under audit were considered by a senior team of three government economists and nearly a dozen agents.

Persuaded IRS Appeals to Reverse Proposed Adjustments of More Than $250 million

On behalf of a national healthcare company, persuaded IRS Appeals Division to reverse, in their entirety, over $275 million of proposed adjustments related to the company’s income accruals. Following resolution, IRS Examination Division agreed to no longer raise the issue and to skip auditing the taxpayer for at least a year.

Pepco Holdings, Inc. in its $1.7 billion sale

Represented Pepco Holdings, Inc. in its sale to Calpine Corporation of its Conectiv Energy segment for approximately $1.7 billion. This transaction included the sale of 19 power generation plants in five states. In the approximately 10 weeks between contract and closing, we addressed and resolved over 200 significant title defects that required everything from bringing a quiet title action to negotiating multiple third-party easements and options, to obtaining mortgage indenture releases. Construction activities were ongoing at most of the plants, including Conectiv’s new 565MW plant in Delta, Pa., which was not yet operational. This required resolution of challenging transfer issues including mechanics lien title coverage under the varying lien laws of multiple jurisdictions.

Tax Court Victory re: Expense Deduction Matter on Behalf of National Sports Team

Successfully litigated a matter before the Tax Court involving the taxable nature and deductibility of meal expenses on behalf of the Boston Bruins. The decision has implications for most national sports teams as well as other employers who provide meals to employees as a de minimis fringe benefit. Jacobs v. Commissioner, Tax Court Docket No. 019009-15.

KKR and Texas Pacific Group Acquisition of TXU Corp.

KKR and Texas Pacific Group in securing the necessary FERC and NRC approvals for the successful acquisition of TXU Corp. for $45 billion, the largest leveraged buyout in history. The acquisition of TXU included its large fleet of generation assets in Texas as well as transmission and distribution facilities. We also provided counsel on energy regulatory, climate change, government affairs, and public policy matters. The acquired company is now Energy Future Holdings.

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CMS Finalizes Changes to the Regulations Governing the ACA

Last month, the Centers for Medicare & Medicaid Services (CMS) finalized the 2019 Notice of Benefit and Payment Parameters, which includes changes to the Affordable Care Act’s (ACA) implementing regulations. 83 Fed. Reg. 16,930 (April 17, 2018). In this advisory, we analyze the most significant of these regulatory changes, focusing on the key differences between ...

Private Equity Team Joins Covington

NEW YORK—Amy Wollensack and Sergio Urias have joined Covington in New York as co-chairs of its Private Equity practice. Ms. Wollensack and Mr. Urias represent private equity sponsors in the acquisition and disposition of portfolio companies and investments across a wide range of industries. Mr. Urias, who practiced in Mexico before practicing in New York, also ...

ALI Gives Final OK On Liability Insurance Guidelines

In an article regarding the approval of the final iteration of the Restatement of Law, Liability Insurance, Law360 highlights David Goodwin and John Buchanan's efforts that resulted in deleting a provision of the guidelines that would have allowed an insurer to deny coverage for its policyholder's costs to defend a claim that the policyholder became aware of ...

FDA Extends the Compliance Date for Removal of Partially Hydrogenated Oils From Food

FDA announced that it has extended the June 18, 2018 compliance date for removal of industrially-produced partially hydrogenated oils (PHOs) from food. Simultaneously, FDA announced that it had denied approval a 2015 food additive petition (FAP) on limited uses of PHOs.

5 Controversial Rules In The ALI's Insurance Law Project

John Buchanan and David Goodwin are quoted in a Law360 article regarding the final version of the American Law Institute's Restatement of the Law on Liability Insurance. Commenting on Section 3, which addresses foundational principles of insurance law, Buchanan says that a strong presumption rule would already have been more favorable to insurers than the ...

Season Tickets? Steak Dinners? Small Firms Rethink Client Events After Losing Tax Break

Marianna Dyson is quoted by The Wall Street Journal in an article regarding changes in the tax law that reduce limits on deductions for entertainment and meals. Among the uncertainties is whether companies will still be able to claim a 50% deduction for business meals with customers or business associates, or whether those expenses will be considered ...

DACA Program’s Fate Considered by Appeals Court

Jeffrey Davidson is quoted by the Society for Human Resource Management in an article regarding oral arguments before the Ninth Circuit in a case challenging the federal government's attempted rescission of the Deferred Action for Childhood Arrivals (DACA) program. Davidson, who represents the University of California in this case, argued that the government's ...

Banking Regulators' Examination Authority Does Not Override Attorney-Client Privilege

Notwithstanding the venerable status of the attorney-client privilege and the important purposes it serves, the federal bank regulators and the Consumer Financial Protection Bureau have taken the position that they have the legal authority to override the privilege and compel supervised institutions to produce information protected by the privilege.

CFIUS Developments: Senate Banking Committee Releases Draft Manager’s Amendment to FIRRMA

We are writing to report on the current status of the Foreign Investment Risk Review Modernization Act (“FIRRMA”), legislation to reform the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”). FIRRMA, a bill introduced by Senator John Cornyn (R-TX) in the Senate and Congressman Robert Pittenger (R-NC) in the House, seeks to ...

4 Things To Know About New ITC Rules For Patent Cases

Daniel Valencia is quoted in a Law360 article regarding new ITC rules for intellectual property cases that take effect next month. Commenting on the provision that gives the commission and individual administrative law judges the authority to sever one case into two or more, Valencia says, "Going forward, we will see litigants and judges looking at ...

Trump's tweets could derail efforts to end DACA, appeals court says

Jeffrey Davidson is quoted by The Washington Times in an article regarding the Ninth Circuit's response to oral arguments in a case challenging the federal government's attempted rescission of the Deferred Action for Childhood Arrivals (DACA) program. Davidson, who represents the University of California in this case, argued that there's case law that says even ...

Court appears skeptical of allowing Trump to end DACA

Jeffrey Davidson is quoted by The Hill in an article regarding oral arguments before the Ninth Circuit in a case challenging the federal government's attempted rescission of the Deferred Action for Childhood Arrivals (DACA) program. Davidson, who represents the University of California in this case, argued, “The record reflects not one word of consideration for ...

Pasadena Appeals Court Hears DACA Arguments

Jeffrey Davidson is quoted in a CBS article regarding oral arguments before the Ninth Circuit in a case challenging the federal government's attempted rescission of the Deferred Action for Childhood Arrivals (DACA) program. “The rescission of DACA is based on what appears to be an argument that DACA was illegal when it was enacted, but that’s just wrong," says ...

Trump Tweets and Litigation Risks: Key Takeaways From 9th Circuit’s DACA Hearing

The Recorder highlights Covington's representation of the Regents of the University of California system in its challenge to the federal government's attempted rescission of the Deferred Action for Childhood Arrivals (DACA) program. This article provides key takeaways from the oral arguments before the U.S. Court of Appeals for the Ninth Circuit on May 15.

DACA's Legality, Rollback Focus Of 9th Circ. Arguments

Jeffrey Davidson is quoted in a Law360 article regarding oral arguments before the Ninth Circuit in a case challenging the federal government's attempted rescission of the Deferred Action for Childhood Arrivals (DACA) program. Davidson, who represents the University of California in the case, argued that the Administration failed to provide proper justification ...

Music Modernization Act, Digital Rights Issues Take Center Stage At Music Biz 2018

Jacqueline Charlesworth participated in the Music Biz 2018 conference and is quoted in a Billboard article providing highlights from the event. According to Charlesworth, who spoke on a panel focusing on the Music Modernization Act, “The [Notice of Intent system] doesn’t work in the digital age."

The Congressional Agenda for May

Members of Congress return to Washington, D.C. this week for a three-week work period before the Memorial Day recess. As with the congressional agenda in April, the Republican majority will work towards meeting deadlines on several priority items—Fiscal Year (FY) 2019 appropriations bills, the Farm Bill authorization (set to lapse in September), the Federal ...

Competing in Africa: China, the European Union, and the United States

Given recent developments in the global economy, especially Brexit and the Trump administration’s “America First” policy, it is worth assessing how Africa’s three largest commercial partners—China, the European Union, and the United States—are likely to impact the region in the near future as it relates to trade and investment trends. The China-in-Africa story ...

UC Returns to Court Next Week to Fight for DACA Students

Jeffrey Davidson appeared on KCBS to discuss the lawsuit filed on behalf of the University of California challenging the federal government's decision to rescind the Deferred Action for Childhood Arrivals (DACA) program. According to Davidson, "The reason the University has taken such a strong public stand is really because of the several thousand DACA ...

Back to Drawing Board for CFTC Cryptocurrency Guidance?

Jason Grimes is quoted in a Bloomberg Law article regarding the CFTC’s approach to cryptocurrency regulation following a federal judge’s decision to dismiss an enforcement action against Monex. According to Grimes, “This requirement [which requires a dealer not to retain an interest in a virtual currency to gain the actual delivery exemption] would appear ...

What You Need To Know As 9th Circ. Hears DACA Challenge

Alexander Berengaut and Jeffrey Davidson are quoted in a Law360 article regarding upcoming oral arguments related to the DACA challenge in which Covington represents the University of California. “Our case and its companion cases in other districts aren't about politics but, again, based on the law of how government decisions are supposed to be made,” says ...

Litigators of the Week: A Compassionate—But Effective—Product Liability Defense

Phyllis Jones was named a “Litigator of the Week” by The AmLaw Litigation Daily for her successful representation of Boehringer Ingelheim, which was hit with a new wave of lawsuits alleging that Pradaxa caused excessive bleeding. On March 23, Jones and Paul Schmidt secured the first victory, and on May 7, she achieved another defense win before a Connecticut ...

Attorneys will ask the Ninth Circuit of Appeals to continue maintaining DACA renewals

Jeffrey Davidson and Alexander Berengaut are quoted in a La Opinión article regarding Covington's representation of the University of California in a lawsuit challenging the federal government's attempt to rescind the Deferred Action for Childhood Arrivals (DACA) program.

Law360's Weekly Verdict: Legal Lions & Lambs

Michael Imbroscio and Phyllis Jones were recognized as “Legal Lions” by Law360 for their victory on behalf of Boehringer Ingelheim in a second bellwether trial as part of a consolidated state proceeding over the alleged bleeding risk of its blood thinner Pradaxa. The jury rejected a woman’s claims that taking the drug landed her in the hospital.

English Court of Appeal Rejects High-Profile Challenge to Arbitrator

The Court of Appeal in London has handed down a judgment of significance to both the insurance and international arbitration communities in Halliburton v Chubb. The judgment raises serious questions about the apparent reluctance of English courts to police arbitrators for “apparent bias” and to set aside arbitrator appointments and awards in London-seated ...

Three Covington Partners Among Top 100 Women Lawyers in California

LOS ANGELES—Covington partners Carolyn Kubota, Robyn Polashuk, and Sonya Winner have been named to the Daily Journal’s 2018 “Top 100 Women Lawyers” list, recognizing the “top women lawyers in California.” Based in the firm’s Los Angeles office, Ms. Kubota is a member of the American College of Trial Lawyers and has served as lead counsel on high-profile ...

United States Ends Participation in Iran Nuclear Deal, Re-Imposes Sanctions Against Iran

On May 8, 2018, President Trump announced his decision to end U.S. participation in the Joint Comprehensive Plan of Action (“JCPOA”) and re-impose sanctions against Iran that had been suspended as part of this 2015 nuclear agreement between the United States, Iran, and certain other governments. This action will have far-reaching effects for both U.S. and ...

Enforcement of the Nagoya Protocol in the Food, Drugs and Cosmetics sectors - state of play

The Nagoya Protocol to the Convention on Biological Diversity entered into force on 12 October 2014. It imposes a complex set of multi-jurisdictional compliance obligations on businesses active in the cosmetics, food, pharmaceutical and other life science sectors. It now has more than 100 contracting parties, including the European Union.

CMS Finalizes Rules Allowing Medicare Advantage Plans To Expand and Target Supplemental Benefits

Under Sections 1852(d) and 1854(c) of the Social Security Act (SSA), a Medicare Advantage (MA) plan must offer uniform benefits, premiums, and cost-sharing within each “segment” in the MA plan’s service area. See 42 C.F.R. § 422.100(d). “Segments” are county-level portions of a plan’s overall service area.

Mulvaney Targets CFPB's Student Lending Office In Reorg

Eitan Levisohn is quoted in a Law360 article regarding CFPB Acting Director Mick Mulvaney’s announcement that the Office of Students and Young Consumers “will be folded into” the Office of Financial Education. According to Levisohn, “This [reorganization] does signal a shift that enforcement and rulemaking within the student lending space is not the emphasis, ...

United States Ends Participation in Iran Nuclear Deal, Re-Imposes Sanctions Against Iran

EU Releases e-Evidence Proposal for Cross-Border Data Access

On April 17, 2018, the European Commission published the e-Evidence Initiative, long-awaited legislation that would create a new framework for European Union (“EU”) Member States to access content data and metadata (collectively “e-evidence”) across national borders. The European Commission released the proposal less than one month after the United States ...

Frequently Asked Questions (FAQ) and Answers Regarding the International Emergency Economic Powers Act (IEEPA)

It has been publicly reported that the Trump Administration is considering invoking the International Emergency Economic Powers Act (IEEPA) to further regulate—and in certain areas potentially preclude—Chinese direct investment in the United States, beyond the authorities exercised by the Committee on Foreign Investment in the United States (CFIUS).

Five Firms Going Above and Beyond on Pro Bono

The AmLaw Litigation Daily highlights Covington’s work alongside the ACLU, the Southern Poverty Center, and prisoners’ rights litigator, Elizabeth Alexander, regarding a class action that was filed in the Southern District of Mississippi on behalf of the East Mississippi Correctional Facility’s prisoners, 80 percent of whom are mentally ill. “Prisoners suffer ...

USDA Issues Proposed Rule on National Bioengineered Food Disclosure Standard; FDA Extends Compliance Date for Nutrition Facts Label Final Rule

USDA and FDA each issued a long-awaited rulemaking document affecting food labeling. FDA issued a final rule extending the compliance date for the Nutrition Facts Label (NFL) Final Rule and the Serving Size Final Rule. For manufacturers with $10 million or more in annual food sales, FDA extended the compliance date for these rules from July 26, 2018 to January ...

U.S.-China Trade Talks End Without Agreement as U.S. Finalizes Unilateral Measures

The Trump Administration’s senior economic and trade officials held talks with their Chinese counterparts in Beijing, May 3-4. The talks concluded with no agreement, and each side tabled expansive demands that appear well beyond what the other side would be able to accept.

Changes Are Underway at the FTC As New Commissioners Are Sworn In

On Tuesday, Joseph Simons was sworn in as the new Chairman of the Federal Trade Commission. The five-member Commission will soon be at full strength, as Simons is set to be joined by four other new FTC Commissioners, each of which were confirmed for seven-year terms by the Senate on April 26: Democrats Rebecca Kelly...… Continue Reading

Benjamin Haley Promoted to Partner

JOHANNESBURG AND WASHINGTON—Covington has promoted Benjamin Haley to its partnership. Mr. Haley, who has deep experience conducting investigations and compliance projects on the ground in Africa, will be relocating from Washington to the firm’s Johannesburg office this summer, where he will lead the firm’s Africa Investigations and Compliance practice. Mr. Haley ...

BAE Is Doing F-16 Victory Flyby Despite South Korea Defense Costs

Alan Pemberton and Ryan Burnette are quoted in a Federal Contracts Report article regarding a Fourth Circuit ruling that shielded BAE from liability under the Foreign Military Sales program. According to Pemberton and Burnette, although the court didn't definitively address the issue of foreign enforcement, the ruling is favorable for contractors overall because ...

National Law Journal Names Covington to “Pro Bono Hot List”

SAN FRANCISCO—The National Law Journal has named Covington to its “Pro Bono Hot List.” The 2018 special report recognizes 14 firms who “have taken on some of the biggest issues of our time.” In its profile of the firm, The National Law Journal highlights Covington’s pro bono efforts, led by San Francisco partner Jeffrey Davidson, on behalf of the University of ...

Covington Advises Elbit Systems in $120 Million Acquisition

WASHINGTON—Covington advised Elbit Systems Ltd. in its $120 million acquisition of the assets and operations of the privately owned U.S. company, Universal Avionics Systems. Elbit Systems is an international high technology company engaged in a wide range of defense, homeland security, and commercial programs throughout the world. Universal Avionics is a ...

5 Takeaways As DOJ Investigative Powers Get Challenged

Peter Hutt is quoted in a Law360 article providing takeaways from a recent challenge to the Justice Department’s investigative powers. The challenge was filed by a podiatry chain embroiled in False Claims Act litigation, and voiced procedural objections to the civil investigative demands that the DOJ issued after electing not to intervene in the ...

Covington & Burling: Backing Institutional Support for DACA

Covington was named to The National Law Journal's "Pro Bono Hot List" for its representation of the University of California in challenging the government’s rescission of the Deferred Action for Childhood Arrivals (DACA) program. "To be in court standing up for 700,000 immigrants, I don't know that there's anything quite like that. For them, it's not a legal ...

‘Turn Yourself In,’ Justice Dept. Says, But Companies Need Data

Jennifer Saperstein is quoted in a Bloomberg Law article regarding the Justice Department's decision not to press criminal charges against Dun & Bradstreet Co. because of the company's cooperation under the updated anti-bribery policy. According to Saperstein, Dun & Bradstreet’s approach demonstrated the full benefits the new system can offer, but the DOJ’s ...

Emboldened by Trump, banks push to throw off old rule constraints

Randy Benjenk is quoted in a Reuters article regarding the push by banks to revise rules they say are "outdated, costly, and hurt economic growth." According to Benjenk, consumer advocate groups may claim that changes to the Community Reinvestment Act rules could lead to discrimination of some groups of borrowers or create “banking deserts” where consumers do ...

IP Hires: Covington, Polsinelli, Michael Best

Law360 highlights the arrival of Suzanne Bell to Covington's Technology Transactions practice in a roundup of recent IP hires. According to Bell, "The firm’s collaborative approach will allow me to work hand-in-hand with lawyers across the firm’s various offices and practices."

The Supreme Court May Have Taken One Part of PTAB Reform Off The Table For Now

Scott Kamholz is quoted in an Intellectual Asset Management article regarding the Supreme Court's decision in Oil States Energy Services v. Greene’s Energy Group. In this case, the Court decided that inter partes review does not violate Article III or the Seventh Amendment of the U.S. Constitution. “I have to say that Justice Thomas engaged in Supreme Court best ...

Community Reinvestment Update Must Include Fintech, McHenry Says

Michael Nonaka is quoted in a Bloomberg Law article regarding Rep. Patrick McHenry's statements at a recent conference stressing that a proposal to modify how banks comply with investment requirements in local communities must take account of new technologies such as mobile banking. According to Nonaka, the Treasury's report, which included recommendations for ...

Senators Are Worried About How Trump Is Picking His Cabinet Secretaries

Robert Kelner is quoted in a Buzzfeed article regarding Senators' concerns about the White House’s vetting process for cabinet secretaries. According to Kelner, the Trump Administration still does an ethical vet, which includes disclosing financial holdings and is required by law, but has not focused that much on a political vetting. “This Administration ...

Lawyers Weigh In On PTAB Cases At The High Court

Scott Kamholz is quoted in a Law360 article providing opinions about the Supreme Court's recent decisions in two patent cases, Oil States Energy Services LLC v. Greene’s Energy Group LLC and SAS Institute Inc. v. Iancu. According to Kamholz, “The Oil States decision has no significance at all on practicing before the PTAB. It concerned a constitutionality ...

BigLaw’s 10 Biggest Revenue Winners And Losers Of 2017

Timothy Hester is quoted in a Law360 article providing an overview of firm financials for 2017. According to Hester, Covington's growth has been impacted by the law firm’s cautious strategy. “We have followed a very clear strategy for many years that has focused on careful growth that aims to meet the needs of our clients across key practices and geographies,” ...

Covington Hires Ex-Wilson Sonsini Tech Deals Pro

Suzanne Bell and Tom DeFilipps are quoted in a Law360 article regarding Bell's arrival to Covington's Technology Transactions practice. Bell says she is excited to join Covington and looks forward to helping it build its tech practice and advise clients on incorporating new technologies into their businesses. “The firm’s collaborative approach will allow me to ...

The Impact Of Changing The PTAB's Claim Construction Test

Scott Kamholz is quoted in a Law360 article regarding speculation that the Patent Trial and Appeal Board may switch to the claim construction standard used in district court. Kamholz says that by having courts and the PTAB work on the same standard, there is a stronger basis for judges in one forum to rely on claim constructions rulings in the other. "By ...

BigLaw On Track For A Big Lobbying Year In 2018

John Veroneau is quoted in a Law360 article regarding first quarter LDA filings. "The Administration's determined efforts to address long-standing trade issues with China through tariffs and other means creates both risks and opportunities for many American businesses,” Veroneau says. “Recognizing that U.S.-China trade relations are likely to remain uncertain ...

Eric Mogilnicki Quoted in Bloomberg Law Article

Eric Mogilnicki is quoted in a Bloomberg Law article regarding the CFPB leadership dispute between Mick Mulvaney and Leandra English. According to Mogilnicki, even if Trump's choice of Mulvaney to lead the CFPB is taken out by the D.C. Circuit, the president is going to get another shot to name both acting and permanent directors at the bureau. “It seems to me ...

Washington Business Journal Names Jean Veta as “LGBTQ Business Leader”

WASHINGTON—The Washington Business Journal has honored Covington partner D. Jean Veta with the 2018 LGBTQ Business Leader Award. This award is given to 20 business leaders in the Washington area who are “blazing the trail for diversity and inclusion in the corporate world.” Ms. Veta, Covington’s first openly gay partner and a member of the firm’s Financial ...

Covington Advises BenevolentAI on £80m Funding and Acquisition

LONDON—Covington advised BenevolentAI on an £80 million equity investment by new and existing investors, including Woodford Investment Management, at a pre-money valuation of £1.4 billion. The firm also recently advised BenevolentAI on its acquisition of Proximagen Limited, a Cambridge, UK-based drug discovery and development company, for an undisclosed ...

Michael Plimack Named One of California's Top IP Lawyers

SAN FRANCISCO—The Daily Journal has named Covington partner Michael Plimack to its 2018 list of the “Top Intellectual Property Lawyers” in California. Mr. Plimack, co-chair of Covington’s Patent Litigation Practice Group, represents leading technology companies that are faced with complex patent infringement cases. In its profile, the Daily Journal highlighted ...

Department of Commerce Activates Denial Order Against Chinese Telecommunications Company ZTE

On April 15, 2018, the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) lifted its suspension of a denial order against two companies, Zhongxing Telecommunications Equipment Corporation of Shenzhen, China (“ZTE Corporation”) and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE Kangxun,” and together with ZTE Corporation, ...

Federal Reserve and OCC Propose Revisions to Capital Framework for Large Banking Organizations

On April 10, 2018, the Federal Reserve issued a notice of proposed rulemaking to implement a stress capital buffer ("SCB") into its capital requirements; revise its capital planning rule for bank holding companies with $50 billion or more in total consolidated assets and U.S. intermediate holding companies of foreign banking organizations established pursuant to ...

3 Alt PE Fund Types Attys Should Know Inside And Out

Kelly Labritz is quoted in a Law360 article regarding potential legal issues brought by alternative fund types. Commenting on the private equity secondaries market, Labritz says that lawyers wishing to be called upon for work on secondaries funds should ensure they are well-versed in both the areas of mergers and acquisitions and private equity fund formation, ...

BTI Names Smith, Sperling, and Topol "Client Service All-Stars"

WASHINGTON—The BTI Consulting Group has named Covington lawyers Andrew Smith, Jonathan Sperling, and Allan Topol to its 2018 “Client Service All-Stars” list, which recognizes “the leaders in superior client service.” Mr. Smith, based in Washington, advises clients on retail financial services, credit reporting, privacy, technology, and e-commerce issues. He ...

Tech & Security Companies Sign Cybersecurity Tech Accord

Today, 34 global technology and security companies announced that they have signed a Cybersecurity Tech Accord, which publicly commits them “to protect and empower civilians online and to improve the security, stability and resilience of cyberspace.” The signatories include Cisco, Dell, Facebook, HP, Intuit, and Microsoft.The text of the Accord references ...

Top IP Lawyers: Michael Plimack

Michael Plimack was named to the Daily Journal's "Top Intellectual Property Lawyers" in California list. Commenting on recent changes in patent litigation, Plimack says, "Large-scale patent litigation these days is an international affair that requires experience in all the key jurisdictions, which I believe will increasingly include China over time."

Depositions At PTAB Vs. District Court: What To Know

Scott Kamholz is quoted in a Law360 article regarding differences between depositions at the Patent Trial and Appeal Board and district court. According to Kamholz, the purpose and execution between the two are quite distinct. “About the only thing in common between the two is the court reporter,” he says. “Lawyers cannot come into a PTAB deposition expecting it ...

Quarles: Fed would recalibrate eSLR if Crapo bill passes

Randy Benjenk is quoted in a Risk Magazine article regarding Randal Quarles' indication that the Federal Reserve will need to revisit its plans to recalibrate the enhanced supplementary leverage ratio for the largest banks if changes to the eSLR also become law. According to Benjenk, the agencies’ attempt to front-run the Crapo bill now looks too little, too ...

Covington Represents Financial Advisor In $1.8 Billion Optical Tech Acquisition

NEW YORK—Covington advised Jefferies LLC as financial advisor to Oclaro, Inc. in its proposed acquisition by Lumentum Holdings Inc. The transaction values Oclaro at approximately $1.8 billion. Oclaro manufactures and sells optical components and modules for the long-haul, metro, and data center markets, providing solutions for optical networks and high-speed ...

Another One Bites the Dust (Thanks Covington)

The Am Law Litigation Daily highlights a victory on behalf of the city of Los Angeles following U.S. District Judge Manuel Real's decision to enjoin an attempt by the Justice Department to link funding for community-oriented policing to cooperation with federal law enforcement agencies on immigration enforcement. Mitch Kamin, who was a member of the Covington ...

Senate Democrats Propose CONSENT Act

On April 10, Senators Richard Blumenthal (D-CT) and Ed Markey (D-MA) introduced new privacy legislation titled the Customer Online Notification for Stopping Edge-provider Network Transgressions (CONSENT) Act. In a statement published on his website, Senator Markey referred to the legislation as a “privacy bill of rights” and explained that “[t]he avalanche of ...

Leading Technology Transactions Partner Joins Covington

SILICON VALLEY—Suzanne Bell has joined Covington as a partner in its Technology Transactions practice in the Silicon Valley office. Ms. Bell advises technology companies, as well as companies in traditional industries that are embracing technology, in a range of intellectual property, licensing and contract matters. Her work includes strategic partnering ...

Covington Nabs Veteran Tech Dealmaker From Wilson Sonsini

The Recorder highlights the arrival of Suzanne Bell to Covington's Technology Transactions practice. Bell says she was attracted to the firm's strong regulatory practice given the increased intersection between the technology sector and government regulations. Bell adds that she is looking forward to using her experience in technology transactions to assist ...

Trump Admin. Can't Deny DOJ Grants To 'Sanctuary' Cities

Law360 highlights Covington's successful representation of the City of Los Angeles following a decision by a California federal judge which imposed a permanent, nationwide ban that would prevent the Administration from placing certain immigration-related conditions on community policing grants administered by the Justice Department. The Covington team included ...

NAFTA Arbitration Substitutes May Spur Issues Of Their Own

Marney Cheek is quoted in a Law360 article regarding issues that could exist under USTR Lighthizer's proposed alternatives to investor-state arbitration in a renegotiated NAFTA. "I think the main problem with his proposed solutions is that they're all limited in scope, and so there's very serious enforcement gaps," says Cheek. Commenting on the fact that ...

PTO Director: 'Something Must Be Done' to Clarify Section 101

Scott Kamholz is quoted by The Recorder in an article regarding USPTO Director Andrei Iancu's ideas for reforming the patent system. “My sense is that [Iancu] is not focused on harmonizing outcomes at the PTAB and district court, but rather to give both the PTAB and district judges more basis to rely on each other’s claim constructions,” Kamholz says. “That will ...

The Congressional Agenda for April

Today a three-week work period begins for Members of Congress arriving back in Washington, where President Trump has remained active (including via his Twitter account). The President has announced initiatives to address a host of topics, from immigration reform to international trade, as well as personnel changes within his Cabinet and White House staff. With ...

Bridge to Nowhere: Gaps in Treasury G-Sib Bankruptcy Plan

Michael Nonaka is quoted in a Risk Magazine article regarding U.S. Treasury's proposed reform to the bankruptcy code known as Chapter 14, intended to be the first resort ahead of orderly liquidation authority (OLA). According to Nonaka, “You want there to be different tools in the toolkit in the event of a crisis. That doesn’t mean you have to use Title II, but ...

Leaders call for free trade for Africa

Witney Schneidman is quoted in an African Law & Business article regarding a continental free trade agreement signed by over 40 African governments. According to Schneidman, “The signing of the [African Continental Free Trade Area (AfCFTA)] is a significant development and should be supported by all of the region's partners.” He notes, “AfCFTA culminates years ...

China-US Trade Frictions: China's steel sector wins in US Section 337 investigation

Ruixue Ran appeared on CGTN to discuss a recent victory on behalf of China's steel sector following a decision by the ITC to terminate a Section 337 investigation into Chinese steel products. According to Ran, who represented Chinese steel companies including Baosteel in the case, "While defending the trade secret misappropriation claim, we spent massive energy ...

Political Law Potpourri—The Consolidated Appropriations Act of 2018

While the din over a possible government shutdown dominated the headlines, political law played a supporting role in the recently enacted Consolidated Appropriations Act (Pub. L. No. 115-141). The content and omissions of the so-called “Omnibus” spending bill will be of interest to political actors in all sectors, but particularly those operating nonprofit ...

United States Imposes Additional Sanctions Against Russian Entities and Individuals

On April 6, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) announced expanded sanctions against Russian entities and individuals, targeting a number of Russian oligarchs in the energy, banking, and other sectors and companies they own or control, as well as 17 senior Russian government officials.

South Dakota Breach Notification Law Breaks New Ground

Last week, South Dakota became the 49th U.S. state to enact a data breach notification law with the passage of S.B. 62, which sets forth requirements for notifying state residents, the state attorney general, and major consumer reporting agencies in the event of a breach. The law, which will take effect on July 1, 2018,...… Continue Reading

Alex Berengaut Quoted in TR Daily Article Regarding the CLOUD Act

Alex Berengaut participated on a panel at an event hosted by the Center for Strategic & International Studies to discuss the recently enacted Clarifying Lawful Overseas Use of Data (CLOUD) Act. As TR Daily notes, Berengaut indicated that the CLOUD Act eventually would reduce conflicts between U.S. authorities and service providers because it anticipates that the ...

China Raises Tariffs on 128 U.S. Imports in Retaliation for U.S. Section 232 Steel and Aluminum Tariffs

The Chinese government has announced that it is raising tariff duties on 128 products imported from the United States into China in retaliation for the Trump Administration’s Section 232 tariffs on steel and aluminum imports into the United States. The new Chinese tariffs went into effect on April 2. The 128 targeted products fall into...… Continue Reading

REIT Directors Duck Investor Suit Over $41M Loan Write-Down

Law360 highlights a decision by U.S. District Judge Louis L. Stanton who stated that a proposed class of Resource Capital Corp. shareholders could not pursue a suit on behalf of the real estate investment trust without the board of directors’ approval. Mark Gimbel, who represents the board and officers, said, “We are pleased with the court’s decision, which ...

Covington Expands in EU With Opening Of Frankfurt Base

Timothy Hester and Thomas Heymann are quoted in a Law360 article regarding the opening of Covington's new Frankfurt office. According to Hester, “Covington will offer German companies a unique capability to help them navigate through their most complex and consequential business issues in their most important international markets." He adds, “Our new German team ...

Law Firms Hitch a Ride on the Blockchain Wagon

Michael Nonaka is quoted in a Washington Lawyer article regarding legal opportunities surrounding blockchain. While some lawyers might eventually become blockchain-specialty attorneys, blockchain is looking “more like a technology you have to know about if you’re in certain industries,” says Nonaka. For instance, highly regulated industries such as energy and ...

US-China Trade Tensions Reflect a Battle for Technological Dominance

The arms race was a defining element of the Cold War between the U.S. and its allies, and the Soviet Union. President Trump’s recent proposal for $60 billion in unilateral actions against China presages a pitched 21st century battle over technological supremacy, with fateful consequences for the world order. The Trump Administration rightly sees that...… ...

FDA Commissioner Gottlieb Launches FDA’s New Nutrition Strategy

Yesterday (March 29), FDA Commissioner Scott Gottlieb kicked off the agency’s Nutrition Innovation Strategy in his keynote address, “Reducing the Burden of Chronic Disease,” delivered at the National Food Policy forum. The Strategy is intended to promote public health through improved nutrition, encourage industry innovation to create more healthful products, ...

FTC Signals Tougher Stance on Mobile Privacy Protection

Catlin Meade and Yaron Dori are quoted in an E-Commerce Times article regarding the FTC's recent report on mobile privacy protection. According to Meade, the FTC's interest in mobile security updates and notification procedures could be more of an evolutionary development rather than a fresh enforcement initiative, given the agency's long interest in mobile ...

New Wave of Trade Lobbying Presents FARA Registration Concerns

Washington is awash with lobbyists seeking to address new steel and aluminum tariffs, and other potential tariffs, on behalf of both foreign and domestic clients. Lobbying on trade issues in some circumstances may trigger Foreign Agents Registration Act (“FARA”) obligations. The connection between trade lobbying and FARA was the subject of close scrutiny ...

Covington & Burling grows practice in New York and Washington

Commercial Dispute Resolution highlights the arrival of David Luttinger and Gerald Hodgkins at Covington. Commenting on Luttinger's addition, Mitchell Dolin says that the firm was “drawn to his superb national reputation as a trial lawyer in the coverage field and to his strengths as an individual and colleague.” According to David Kornblau, Hodgkins’ “broad ...

Why tariff lobbying may trigger FARA

Politico highlights a recent Covington alert examining how lobbying on aluminum and steel tariffs may have FARA implications. "Companies that are engaging with Congress and the executive branch on trade issues may be surprised to find that their advocacy could have FARA implications," the alert reads. "FARA is a notoriously tricky statute, with broadly worded ...

Covington launches in Frankfurt as Dentons takes chunk of Australia player

Timothy Hester and Thomas Heymann are quoted in a Legal Business article regarding the opening of Covington's new Frankfurt office. According to Hester, "Our new German team is of outstanding quality and will provide important synergies with the firm, including our London and Brussels offices and will allow us to serve the needs of our clients who have legal ...

Eric Holder, Unleashed

Eric Holder was featured by The AmLaw Litigation Daily in an article describing his many roles and responsibilities both at the firm and beyond. According to Timothy Hester, Holder is "involved in a lot of important issues of the day, but he’s also involved in very important issues for our client base." Hester adds, “He’s thrown himself into the life of our ...

FTC Recommends Greater Transparency, Better Recordkeeping and Further Streamlining of Mobile Security Practices

Yaron Dori and Catlin Meade are quoted by The Cybersecurity Law Report in an article regarding the FTC's report, “Mobile Security Updates: Understanding the Issues." “The FTC has long been interested in data security and the extent to which consumer data—especially personally identifiable or sensitive consumer data—is protected from unauthorized disclosure,” say ...

CLOUD Act Creates New Framework for Cross-Border Data Access

On March 23, 2018, Congress passed, and President Trump signed into law, the Clarifying Lawful Overseas Use of Data (“CLOUD”) Act, which creates a new framework for government access to data held by technology companies worldwide.The CLOUD Act, enacted as part of the Consolidated Appropriations Act, has two components.Part I: Extraterritorial Reach of U.S. ...

USTR Finds China’s IP Practices Cause at Least $50 Billion in Harm: Proposed Tariffs and Investment Restrictions Ratchet Up U.S.-China Trade Tensions

March 22, 2018 Earlier today, the administration announced its findings that China’s theft of U.S. technologies and intellectual property (“IP”) have caused at least $50 billion in harm to the U.S. economy per year. In response, President Trump issued an order announcing its intent to impose additional tariffs on Chinese imports, curtail Chinese investment ...

International Trade Commission Drops US Steel's Antitrust Claims Against Chinese Steelmakers

Derek Ludwin and James O'Connell are quoted by The American Lawyer in an article examining a decision by the ITC stating that United States Steel cannot bring antitrust claims against 40 Chinese steel manufacturers over alleged price-fixing. Ludwin, who represents Baosteel America with O'Connell and Sturgis Sobin, says that even though Section 337 is not often ...

GDPR drives global privacy compliance now, but still unclear whether it will become de facto global standard, experts say

Lindsey Tonsager recently spoke at the BCLT Privacy Law Forum in Silicon Valley is quoted in an mLex article discussing whether GDPR will automatically become a global privacy standard. Tonsager said that working with companies that depend on AI technology to become compliant with the GDPR “is incredibly, incredibly challenging." Commenting on modifications to ...

China hits back at up to $60 billion in U.S. tariffs with only with $3 billion of its own

Timothy Stratford is quoted in a CNBC article regarding China's response to U.S. tariffs on Chinese imports. "They want to show that they have taken note of U.S. actions and are going to be strongly resisting, but they don't want to be seen as escalating things further," says Stratford. "The Chinese recognize that everyone has a lot to learn if the U.S. and ...

Covington Lawyers Recognized with Daily Journal's 2018 CLAY Award

SAN FRANCISCO—Covington’s Jeffrey Davidson, Thomas Garten, Laura Muschamp, and Michael Plimack have been named among the 2018 “California Lawyer Attorneys of the Year” by the Daily Journal. This annual award recognizes lawyers in the state who have made a “significant impact on public policy, the law, the profession, or a particular practice area.” Mr. Davidson ...

USTR Finds China’s IP Practices Cause at Least $50 Billion in Harm: Proposed Tariffs and Investment Restrictions Ratchet Up U.S.-China Trade Tensions

Earlier today, the administration announced its findings that China’s theft of U.S. technologies and intellectual property (“IP”) have caused at least $50 billion in harm to the U.S. economy per year.

China to Target Trump's Base in Tariff Response

Timothy Stratford is quoted by The Wall Street Journal in an article regarding plans by China to impose tariffs in response to President Trump's punitive measures. According to Stratford, the current trade environment could prompt U.S. companies to reconsider the long-term importance of the Chinese market. “Gradually we may feel compelled to diversify until ...

Administration Announces Procedures for Product-Specific Exclusions from Steel and Aluminum Tariffs

On March 19, 2018, the U.S. Department of Commerce published procedures for seeking product-specific exclusions from the tariffs on steel and aluminum announced on March 8, 2018. According to these procedures, an exclusion may be granted only if (1) a particular product is not produced in the United States “in a sufficient and reasonably available...… Continue ...

Adam Studner Named One of Washington's Top Lawyers Under 40

WASHINGTON—DCA Live has named Covington’s Adam Studner to its “2018 Rising Stars of Law 40 Under 40” list. Mr. Studner’s practice focuses on white collar criminal matters, internal corporate investigations, and compliance counseling. He regularly represents clients in Foreign Corrupt Practices Act and corruption-related internal investigations and risk ...

US litigation: A time for optimism

Stephen Anthony is quoted in a CDR Magazine article examining litigation challenges in 2018 and beyond. According to Anthony, "Our clients generally are bullish about the business environment, with the stock market at record highs and consumer confidence relatively high.” He says, "Overall, we don’t foresee a drop in the volume or significance of US ...

What Every Defense Contractor Should Know About Insurance for Cyberattacks

Cyberattacks targeting defense contractors illustrate the need for cybersecurity, for thoughtful planning—and for insurance when security and planning prove insufficient. Understanding your insurance policies before things go wrong can help ensure financial protection when they do.

A Review of Pending FARA Reform Bills

In recent months, Congress’s efforts to reform dramatically the Foreign Agents Registration Act (“FARA”) have picked up steam. As we explained in our recent FARA guide, FARA is a complex and broadly worded criminal statute that requires any “agent of a foreign principal” to register with the Department of Justice and file detailed public reports...… Continue ...

CFIUS Developments: House Committee on Foreign Affairs Considers CFIUS Reform and Related Export Control Regimes

We are writing to report on the latest Congressional hearings related to reform of the Committee on Foreign Investment in the United States (“CFIUS”) and potential efforts to enhance and reform the U.S. export control regime.

Next Up: Section 301: Companies and Global Markets Should Prepare for the Risk of Rising U.S.-China Trade Tensions

Following the recent U.S. announcement of tariffs on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962, the United States is now poised to implement trade sanctions against China stemming from an investigation of that country’s intellectual property (“IP”) practices. Such sanctions, which could include significant and maybe even ...

Oregon HB 4005: New Reporting Requirements for Drug Manufacturers, Health Insurers

On Tuesday, March 13, 2018, Oregon Governor Kate Brown signed into law House Bill 4005 (HB 4005), which imposes substantial new state reporting requirements on pharmaceutical manufacturers regarding drug pricing, including details on manufacturer-sponsored patient assistance programs.

Next Up: Section 301 - Companies and Global Markets Should Prepare for the Risk of Rising U.S.-China Trade Tensions

House Weighs Export Controls, National Security At Hearing

Alan Larson recently spoke at a House Committee on Foreign Affairs hearing regarding export control regulations and foreign investment reviews that would protect national security and is quoted in a Law360 article. “It is important to manage the resources of CFIUS efficiently, so that it focuses especially intensely on transactions that are the most complex and ...

What To Know Before Asking The PTAB To Exclude Evidence

Scott Kamholz is quoted in a Law360 article examining what to know before asking the PTAB to exclude evidence. According to Kamholz, "Their preference is to have it in and make of it what they will, rather than go through the formal process of deciding whether to exclude it from the record." Kamholz adds that establishing that a piece of evidence is a printed ...

FCC Media Deregulation Should Tackle Kidvid, Biennial Ownership, Attorneys Tell FCBA

Ann Bobeck spoke at an FCBA event and is quoted in a Communications Daily article discussing views from broadcast lawyers who would like the FCC's monthly media deregulation effort to tackle kids' video rules, quarterly issues, and program lists and ownership reports. With content for kids available on nonbroadcast platforms and time-shifted viewing common, it's ...

EU Reactions to the U.S. Steel and Aluminum Tariffs

In our March 9 client alert we outlined the proclamations issued by President Trump announcing tariffs on imports of steel and aluminum in the United States, which will go into effect on March 23. The European Union—which is the second-largest foreign supplier of steel and aluminum to the United States, after Canada—has expressed concern about the imposition of ...

SEC Settles Fourth Cherry-Picking Enforcement

Gerald Hodgkins is quoted in a Compliance Reporter article regarding a recent settlement between Valor Capital Asset Management and the Securities and Exchange Commission. According to Hodgkins, the settlement serves as an example of the way the agency’s improved data analytics can help regulators spot potentially problematic activity. “What is different in this ...

Sovereignty Issue With Arbitration Fading, OECD Official Says

Dirk Suringa spoke at a conference hosted by the Pacific Rim Tax Institute and is quoted in a Tax Notes International article regarding the current approach to mandatory binding arbitration. According to Suringa, some countries have said sovereignty issues prevent them from participating in mandatory binding arbitration (2017-102252) because they can't surrender ...

CIT denies Canadian solar companies’ plea to suspend safeguard measures

Shara Aranoff spoke at an event hosted by Georgetown Law and is quoted in an Inside U.S. Trade article regarding the U.S. Court of International Trade's decision to deny a request by three Canadian solar panel producers for a temporary restraining order that would have suspended safeguard measures the U.S. imposed on all countries in January. According to ...

It's omnibus week

Timothy Hester is quoted in a Politico article regarding Christopher Adams' recent arrival as a Senior Advisor in Covington's Public Policy and Government Affairs and International Trade practices. “Chris’ addition further strengthens the firm’s China practice and deepens our expertise and capability to help clients in one of the world’s largest and most ...

Five questions for CFPB nominee to replace Mulvaney

Jean Veta is quoted in an American Banker article regarding President Trump's eventual pick to replace current acting CFPB Director Mick Mulvaney. According to Veta, "The nominee is going to have to walk a fine line to make it through the confirmation process." She adds, "I think the biggest challenge is that Republicans and Democrats hold diametrically opposed ...

A Conversation on Board Diversity with Covington & Burling LLP Partner, Keir Gumbs

Keir Gumbs participated in a Q&A with 2engage to discuss the importance of board diversity. According to Gumbs, "I think there is a big focus on gender, and less service given to ethnic diversity, and zero attention given to sexual orientation—zero, whatsoever. I don’t believe we will ever get to a place where we stop talking about the lack of diversity on ...

China-Focused U.S. Treasury Department Official Joins Covington

WASHINGTON—Christopher Adams has joined Covington as a Senior Advisor in the Public Policy and Government Affairs and International Trade practices in Washington. Mr. Adams will focus on China policy and trade issues. Mr. Adams most recently served as the Senior Coordinator for China Affairs at the Treasury Department. He coordinated China policy issues across ...

Disputing Proposed Tax Regs Is Growing, Panel Says

Starling Marshall spoke at an event hosted by the Federal Bar Association and is quoted in a Law360 article regarding the growing legal strategy to challenge proposed tax regulations. According to Marshall, lawyers can challenge tax regulations on several grounds. Courts have ruled that the IRS must follow the Administrative Procedures Act, giving notice and ...

President Trump Imposes Steel and Aluminum Tariffs, Announces Process for Seeking Exemptions and Exclusions

On March 8, 2018, President Trump issued two proclamations announcing tariffs on steel and aluminum imports to the United States. As foreshadowed on March 1, the tariff levels will be 25 percent on steel imports and 10 percent on aluminum imports. These tariffs will go into effect on March 23.

Export Control Reform Act Introduced in Congress

On February 15, 2018, House Foreign Affairs Committee Chairman Ed Royce (R-CA) introduced bipartisan legislation—the Export Control Reform Act of 2018 (“ECRA”)⸺to modernize U.S. export control regulation of commercial and dual-use items. The bill is co-sponsored by the committee’s ranking Democratic member, Eliot Engel (D-NY). The proposed legislation seeks to ...

Dialogue with Yang Rui

Timothy Stratford appeared in CGTN's "Dialogue with Yang Rui" to discuss President Trump's announced tariffs on steel and aluminum imports. According to Stratford, "Usually what happens when you impose these sorts of measures is you're trying to protect one particular industry but often the overall costs to the economy are great."

Gun Reform And School Safety Are Hot Topics For Lawmakers & The Uncertain Future of The Dreamers

Alexander Berengaut appeared on Florida public radio to discuss his representation of the University of California, one of the plaintiffs in the case challenging the Trump Administration's decision to rescind the Deferred Action for Childhood Arrivals (DACA) program.

Jeffrey Davidson Named Among San Francisco’s "40 Under 40"

SAN FRANCISCO—The San Francisco Business Times has named Covington partner Jeffrey Davidson to its “40 Under 40” list recognizing him among the region’s “most promising young talent.” Mr. Davidson is the only litigation attorney named to the list. Mr. Davidson’s trial and appellate practice focuses on high-stakes commercial, insurance coverage, products ...

Global Investigations Review and WWL Recognize Covington’s White Collar Practice

WASHINGTON—Global Investigations Review and Who’s Who Legal: Investigations have recognized Covington’s White Collar Defense and Investigations Practice Group in its 2018 report. The publication named Covington partners Tammy Albarrán and Steven Fagell to the inaugural Future Leaders issue, a ranking of “the most eminent lawyers in the field under 45,” and ...

The Congressional Agenda for March

Upcoming Congressional action for the duration of March appears likely to resolve the budget and appropriations impasse of the last several months. House and Senate leaders and the White House were able to reach an agreement last month on topline spending numbers for Fiscal Year (FY) 2018, which began last October 1, and FY 2019. ...… Continue Reading

Trade wars: Trump’s national security argument to rock global trading system

John Veroneau is quoted in a Borderlex article regarding President Trump's planned tariffs on steel and aluminum imports. “The systemic concern is that at the WTO, there has been a practice of allowing countries to effectively self-define their own notions of national security and there has been an understandable deference to WTO members on this basis,” says ...

3rd Circ. Gives 'Hybrid' Med Devices New Liability Shield

John DeBoy is quoted in a Law360 article regarding a recent Third Circuit ruling that gives medical device makers a legal shield for products composed of parts with various levels of regulatory approval. "[The decision] marks a step forward in clarifying the law on the component question,” says DeBoy. “Some federal district courts have applied an analysis ...

Federal District Court Vacates Part of CMS’s ACA Risk Adjustment Methodology

Last week, in New Mexico Health Connections v. United States Department of Health and Human Services (HHS), No. 16-cv-0878 (D.N.M.), the U.S. District Court for the District of New Mexico granted summary judgment for plaintiff-New Mexico Health Connections (NMHC) in a case challenging the Centers for Medicare & Medicaid Services’ (CMS) methodology implementing ...

Carolyn Kubota Named to the American College of Trial Lawyers

LOS ANGELES—Covington partner Carolyn Kubota has been named a Fellow of the American College of Trial Lawyers, one of the premier legal associations in North America. Ms. Kubota is the seventh Covington lawyer among the current Fellows, joining Lanny Breuer, Robert Haslam, John Nields, George Pappas, William Phillips, and Robert Sayler. Ms. Kubota is a ...

FDA Issues Guidance on Dietary Fiber and Added Sugars and Announces “Next Steps”

On March 1, FDA issued several guidance documents related to the nutrition facts label (NFL) final rule, including: the long-awaited final guidance on the scientific evaluation of petitions requesting approval of ingredients as dietary fiber; a draft guidance on how to declare added sugars on honey, maple syrup, and certain cranberry products; a final guidance ...

Giving The Middle Class Credit: With Latest Bill, Congress Is Taking A Step In The Right Direction

Bank-fintech partnerships are good for consumers and banks, as I recently explained in testimony to Congress during a hearing on the opportunities and challenges in the fintech marketplace. Consumers benefit because banks are able to use fintech to deliver safer, more transparent, lower cost and more convenient financial products and services to consumers over ...

Trump finally gets his tariffs — and much of the world recoils

John Veroneau is quoted by The Washington Post in an article regarding President Trump's plan to impose tariffs on imported steel and aluminum. According to Veroneau, “Applying tariffs to Canada, despite its being part of the U.S. defense industrial base since the 1940s, will strengthen WTO claims that this decision is not really about national security."

Panel Convening at LSU to Discuss State of U.S. Patent System

Matthew Shapanka is quoted in a Greater Baton Rouge Business Report article regarding the state of the U.S. patent system. “The patent system is the backbone of invention,” says Shapanka. “The Stronger Patent Act tries to bring back some of the fairness to the patent system.”

Experts Worry Controlled Substances Bills Could Stifle Research

Thomas Cosgrove spoke at the Energy & Commerce health subcommittee hearing to discuss bills that would amend the CSA with a goal to stem the opioid crisis and is quoted in an FDA Week article. According to Cosgrove, "Virtually all manufacturers of 'solid oral' drugs in the United States use tableting or encapsulating machines in some form," including ...

Covington Advises In Deal Uniting Two of the Largest U.S. Auto Service Providers

NEW YORK—Covington advised Mavis Tire Holdings LLC, and its family owners, and other owners, including investment funds managed by ONCAP, in its agreement to merge with Express Oil Change & Tire Engineers, a Golden Gate Capital portfolio company, creating one of the largest independent automotive service platforms in the United States. Mavis Discount Tire, based ...

China unlikely to suffer the consequences from Trump tariffs

John Veroneau is quoted in a Financial Times article regarding President Trump's decision to impose new tariffs on imports of steel and aluminum. “This will either close the door on being able to self-define ‘national security’ or open the door on being able to block imports simply by waving the ‘national security’ flag," says Veroneau.

Now Is the Time for Latin American Arbitration

Nicole Duclos and Miguel López Forastier are quoted in a Commercial Dispute Resolution article regarding international arbitration in Latin America. According to Duclos, three indicators reflect the way the discipline “has continued to grow in popularity and acceptance.” These include: the proactive modernisation of many countries’ arbitration laws during the ...

Companies, Nonprofits Put Brakes on Foreign Lobbying Bills

Robert Kelner is quoted in a CQ News article regarding the current status of foreign lobbying bills. According to Kelner, the bills take a “blunt” approach to foreign lobbying that could inadvertently sweep in even U.S.-based companies as foreign agents.

SEC Adopts New Guidance on Public Company Cybersecurity Disclosures and Insider Trading

On February 21, 2018, the U.S. Securities and Exchange Commission (the “Commission”) approved a statement and interpretive guidance that provides the Commission’s views on a public company’s disclosure obligations concerning cybersecurity risks and incidents (the “2018 Commission Guidance”).

SEC Adopts New Guidance on Public Company Cybersecurity Disclosures and Insider Trading

Ninth Circuit Decision Provides Critical Win to FTC in its Authority over Internet Service Providers

In a ruling with implications for both net neutrality and privacy, the Ninth Circuit ruled en banc today that the common carrier exemption in Section 5 of the FTC Act is activity-based, reversing a 2016 panel ruling that the exemption was status-based. Today’s decision bolsters the FTC’s authority to bring consumer protection (including privacy) and...… ...

Handling Investigations of Members of Congress and Congressional Staff

In the highly politicized world of investigations involving Members of Congress and congressional staff, taking the right steps in the first hours and days can mean the difference between a swift resolution and a years-long crisis.

Investors Are Paying $1,300 Per Hour for ‘Expert’ Chats

Arlo Devlin-Brown is quoted in a Bloomberg article examining the uptick in European investors' using expert networks. “There’s no question that expert-networking firms can be misused by securities traders to obtain material non-public information from company insiders,” says Devlin-Brown. In Europe, “the securities industry would be well advised to use ...

Federal Judge Enjoins Prop 65 Glyphosate Warning

Yesterday (February 26, 2018), six days after hearing the motion, Judge William B. Shubb of the U.S. District Court granted, in part, a preliminary injunction, enjoining California’s Proposition 65 warning requirement for glyphosate. The court concluded that the Plaintiffs had demonstrated a likelihood of success on the merits that the State’s glyphosate warning ...

Supreme Court to hear case with major cross-border data flow implications

Alexander Berengaut recently spoke at an event hosted by the Representative of German Industry and Trade to discuss an amicus brief submitted by twelve U.S. business and tech associations warning that a decision against Microsoft in United States vs. Microsoft Corp. would undermine the U.S. cloud computing industry and create conflicting legal regimes for ...

Covington Successfully Represents Discovery Communications In DOJ Investigation Into Its Acquisition of Scripps Networks

WASHINGTON—Covington successfully represented Discovery Communications, Inc. in a U.S. Department of Justice investigation into Discovery’s acquisition of Scripps Networks Interactive. Discovery announced earlier today that the DOJ closed its investigation into the transaction. Discovery announced in July 2017 that it had reached a definitive agreement to ...

U.S. Clearing Banks Still Push for Leverage Ratio IM Offset

Randy Benjenk is quoted in a Risk article discussing how a potential cut in U.S. supplementary leverage ratio being considered by the Federal Reserve might not be sufficient to restore the economics of client clearing and avoid more firms exiting the business. According to Benjenk, HR 4569 has a good chance of becoming law if it gets to the Senate, as it is “the ...

In Digital Realty, the Supreme Court Hands the SEC a Big Loss, But Companies Should Remain Vigilant Against Whistleblower Retaliation

On Wednesday, the Supreme Court issued its much-anticipated decision in Digital Realty Trust, Inc. v. Somers. Ruling 9-0, the Court held that the Dodd-Frank Act prohibits retaliation against whistleblowers only if they reported suspected wrongdoing directly to the SEC.

U.S. banks set for M&A wave as Trump cuts red tape

Michael Reed is quoted in a Reuters article regarding the easing of financial rules that are expected to unleash pent-up mergers and acquisitions among mid-sized U.S. banks. According to Reed, “If there is relief on one or both of the Bank Secrecy Act/anti-money laundering or the Community Reinvestment Act ... that would be helpful for M&A by easing the ...

Update on U.S.-China Trade Relations

Recent U.S. Trade Actions Concerns about the possibility of a U.S.-China “trade war” remain strong, especially after the Trump administration announced (Section 201) safeguard decisions against imported solar panels in January, and the Commerce Department released its (Section 232) report in February on the national security impact of steel and aluminum imports ...

Chevron Spared As Justices Say 'Whistleblower' Term Clear

David Kornblau is quoted in a Law360 article regarding the Supreme Court's decision in Digital Realty Trust Inc. v. Paul Somers. According to Kornblau, the justices essentially found that the argument in favor of a narrow definition of whistleblower was “so lopsided” that “they didn’t really need to get into any of the subtleties about the Chevron doctrine.” He ...

SEC's Expanded Cybersecurity Guidance Focuses on Insider Trading, Internal Controls

Keir Gumbs is quoted by The Recorder in an article regarding the SEC's recently issued guidance on cybersecurity. Gumbs says that he is disappointed the guidance does not give more clarity about how to determine when a cyber breach is material—or provide any kind of safe harbor for companies that make good-faith determinations about the scope of a breach that ...

SEC Exam Priorities Put Retail, Disclosure in Crosshairs

Keir Gumbs is quoted in a Compliance Reporter article regarding the SEC exam team's focus on retail investor protection. The 2018 priorities are “emphasizing the focus on the word ‘retail,’” says Gumbs. “This year it is notable the amount of space dedicated to those issues in the priorities." The SEC will also likely be investigating with BDs and IAs are ...

Latinvex Again Names Nicole Duclos and Gabriel Mesa Among "Top 100 Lawyers"

NEW YORK—Latinvex has named Covington partners Nicole Duclos and Gabriel Mesa among “Latin America’s Top 100 Lawyers” in 2018. Ms. Duclos represents clients in international commercial and investment arbitration, as well as transnational litigation. Clients interviewed by Latinvex praised Ms. Duclos’ extensive arbitration experience, noting that she is “ready to ...

Former SEC official joins Covington

Gerald Hodgkins is quoted in a Compliance Reporter article regarding his recent arrival as a partner in Covington's Securities Litigation and Enforcement and White Collar Defense and Investigations practices. “I bring to the table a deep understanding of what the issues are that drive the SEC and division of enforcement, along with what pressures affect them and ...

David Luttinger Joins Covington’s Insurance Practice

NEW YORK—David Luttinger has joined Covington as a partner in the firm’s Insurance Recovery practice in New York. Mr. Luttinger has more than 20 years of experience representing clients in the insurance coverage field, including extensive trial work in judicial and arbitral forums across the country. His experience in the coverage area includes disputes over ...

CFTC Collaborates With UK in First Non-US Fintech Partnership

Stephen Humenik is quoted by The National Law Journal in an article regarding the CFTC's collaboration with the UK Financial Conduct Authority to enhance innovation in the financial technology sector. According to Humenik, “The approach here is important because the derivatives markets are global in nature and these cross-border initiatives are very important to ...

President Trump Considering Global Tariffs and Quotas on Steel and Aluminum Products

On February 16, 2018, Secretary of Commerce Wilbur Ross announced the Department of Commerce’s recommendations in the ongoing national security investigations of steel and aluminum. These investigations were initiated in April 2017, pursuant to Section 232 of the Trade Expansion Act of 1962.

US eyes global tariff of ‘at least’ 24% on steel imports

John Veroneau is quoted in a Financial Times article regarding U.S. Commerce Secretary Wilbur Ross' recommendation to impose a global tariff on imports of steel and aluminum. According to Veroneau, the “failure to categorically exclude Canada” and other allies “shows that this is not really about national security." He adds, “Section 232 is simply being used as ...

New Tax Legislation’s Impact on Political Action and Tax-Exempt Organizations

On December 20, 2017, the Senate and the House voted to pass the conference version of H.R. 1, the Tax Cuts and Jobs Act (the “Act”), and President Trump signed the bill into law on December 22, 2017. Below, we summarize those provisions of the tax reform legislation that are most likely to be of particular interest to political action and tax-exempt ...

Gas-Tax Hike Finds Few Friends in Congress Despite Trump Support

Jack Schenendorf is quoted in a Bloomberg article regarding a proposal to raise gas tax. Increasing tax in an election year “will be quite difficult," says Schenendorf. “It’s quite necessary and Congress has known it’s necessary for a long, long time,” he adds. “This is a real opportunity with the president on board.”

ITC Says Delta's Bombardier Order Didn't Harm Boeing

Shara Aranoff is quoted in a Law360 article regarding an opinion issued by the ITC stating that Boeing was not harmed when Delta ordered Canadian plans from Bombardier. According to Aranoff, who represents Bombardier, “We are pleased with the ITC's decision, which gives Bombardier a resounding victory in this dispute."

Futures Regulator, Broker Settle Lax Cybersecurity Charges

Anne Termine is quoted in a Bloomberg Law article regarding the settlement reached with AMP Global Clearing LLC following charges from the CFTC stating that AMP's failure to diligently supervise a cybersecurity vendor resulted in a data breach. According to Termine, cybersecurity is “an area of increasing concern and scrutiny for the CFTC as it goes directly to ...

The Tax Cuts and Jobs Act of 2017: Employee Benefit and Fringe Benefit Provisions

The Tax Cuts and Jobs Act of 2017 (the “Act”) became Pub. Law 115-97 on December 22, 2017. Many of its more startling provisions have become well known since then. Of less dramatic impact are several provisions affecting qualified employer plans, fringe benefits, and certain kinds of compensation. These provisions are described in this client alert. This client ...

What's Next for the CFPB?

Eric Mogilnicki is quoted in a Credit Union Times article regarding what's next for the CFPB following a federal appeals court decision in late January upholding the lawfulness of the Bureau's structure. According to Mogilnicki, "The combination of that opinion and Acting Director Mulvaney's recent statement that the Bureau would stop 'pushing the envelope' on ...

9th Circuit says judge overreached in immigration checkpoint case

Winslow Taub is quoted in a Daily Journal article regarding a recent 9th Circuit decision stating that a district court judge gave too much deference to the Department of Homeland Security and didn't give proper judicial weight to the First Amendment in a case in which the government forced protestors to stay away from an immigration checkpoint in Arizona. ...

Level-setting the President’s Budget Blueprint and Rx Pricing: Putting the Process and Substance in Context

Today, the President will submit the Administration’s Fiscal Year 2019 budget blueprint to Congress. The document will set in motion an annual process to analyze the substance, business implications and prospects for various proposals. Draft documents have already begun to circulate that suggest that both the budget and a forthcoming addendum would, if ...

Former SEC Enforcer Joins Covington's DC Office

Gerald Hodgkins and David Kornblau are quoted in a Law360 article regarding Hodgkin's recent arrival as a partner in Covington's Securities Litigation and Enforcement and White Collar Defense and Investigations practices. Hodgkins says he is looking forward to “enhancing” Covington’s SEC enforcement practice, as well as complementing its white collar and ...

SEC Enforcer Hodgkins Lands at Covington & Burling

Gerald Hodgkins is quoted by The National Law Journal in an article regarding his recent move to Covington. "I was attracted to Covington because of the quality of its lawyers and its culture of teamwork and collaboration,” Hodgkins says. “I look forward to playing a key role in enhancing the firm’s SEC enforcement practice and complementing the firm’s prominent ...

Former SEC Enforcement Division Associate Director Joins Covington

WASHINGTON—Gerald Hodgkins has joined Covington as a partner in the Securities Litigation and Enforcement and White Collar Defense and Investigations practices in Washington. Mr. Hodgkins most recently served as an Associate Director in the Enforcement Division of the Securities and Exchange Commission and has worked at the SEC’s Enforcement Division since ...

Do Regulators Need a Hand From Congress to Police Virtual Currency Market?

Stephen Humenik is quoted by The National Law Journal in an article regarding questions raised by the Senate committee hearing on virtual currency. According to Humenik, the CFTC will have hearings itself, including its upcoming meeting for the CFTC’s technology advisory committee. He adds that “the CFTC traditionally has also held roundtables trying to ...

Consumer Protection Bureau Still Facing Constitutional Challenges

Eric Mogilnicki is quoted in a Bloomberg Law article regarding potential constitutional challenges faced by the CFPB following the U.S. Court of Appeals ruling on January 31. According to Mogilnicki, plenty of questions are still up in the air. The CFPB could settle some cases that otherwise would keep working through the constitutional question, while other ...

Securities Cops Wary Of Bitcoin Morphing Into Madoff

Keir Gumbs is quoted in a Law360 article regarding the approach that U.S. securities regulators are taking toward the dangers posed by cryptocurrencies and related technologies. According to Gumbs, “The advice for potential entrepreneurs who want to conduct virtual currency offerings is first and foremost to be really thoughtful about what it is that we’re ...

Wade Ackerman and Aaron Lewis Named Among LA's Most Influential Diverse Lawyers

LOS ANGELES—The Los Angeles Business Journal recognized Wade Ackerman and Aaron Lewis in its second annual list of the most influential diverse lawyers in Los Angeles. The list recognizes 50 "stellar diverse lawyers in the LA region." In Mr. Ackerman’s profile, the Business Journal emphasized his work in the FDA regulatory space. The profile noted that “with a ...

Covington Earns Five “Practice Group of the Year” Awards

WASHINGTON—Law360 has named five Covington practice groups among its “2017 Practice Groups of the Year.” The practice groups recognized by Law360 are as follows: Government Contracts International Trade Product Liability Sports White Collar

Taxpayers Should Prepare Now for GILTI and FDII

Michael Caballero spoke at a District of Columbia Bar Taxation Community event and is quoted in a Tax Notes article examining why taxpayers should evaluate their current structures to minimize their potential tax burdens from global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII). According to Caballero, an issue affecting ...

Lawyers Expect FDA To Continue Regulating Cosmetics With Warning Letters In 2018

Inside Health Policy highlights a Covington alert in an article regarding FDA's approach to the regulation of cosmetics. "As we begin 2018, the cosmetic industry marketing products in the United States faces a range of legal and regulatory considerations -- from labeling and marketing claims to ingredient safety and environmental issues," the alert says.

Sports Group Of The Year: Covington & Burling

Covington was named a 2017 Sports Practice Group of the Year by Law360. According to Ben Block, one of the most rewarding aspects of the sports group is the opportunity to work with repeat clients. "But," he adds, "every year and every day is a new, different, and exciting challenge." Commenting on the Tax Court victory on behalf of the Boston Bruins in a ...

PHH v. CFPB: The Impact on the Bureau's Future

On Wednesday, January 31, 2017, the D.C. Circuit, sitting en banc, issued its long awaited decision in PHH v. CFPB, holding that the Bureau’s structure is constitutional and overruling an earlier decision that would have permitted the President to replace the Bureau’s Director at will.

White Collar Group Of The Year: Covington & Burling

Covington was named a 2017 White Collar Practice Group of the Year by Law360. Commenting on the firm's representation of Takata Corp. in its highly sensitive $1 billion deal with the U.S. Department of Justice over air bag inflators, Steven Fagell says, "It was a very sensitive and very complicated matter, and there were other regulators that had taken an ...

4 Ideas For How The PTAB Could Provide More Guidance

Scott Kamholz is quoted in a Law360 article examining how the Patent Trial and Appeal Board [PTAB] can improve its guidance. Commenting on streamlining the process, Kamholz says it could assign much of the responsibility of designating precedential opinions to the board's lead judges, with the rest of the members having more of an advisory role. "The board ...

It's recommended Mexico review its fiscal regime

Robert Culbertson is quoted in an El Financiero article regarding the possible review of Mexico's tax regime. Culbertson, who spoke at a conference discussing the impact of tax reform in the U.S., said that given the fiscal environment in the U.S., it might be advisable for Mexico to revise its tax system.

In stock deals, bank sellers need to look at much more than price

Michael Reed spoke at the Bank Director's annual Acquire or Be Acquired conference and is quoted in an S&P Global article providing insight on what bank sellers should focus on during stock deals. According to Reed, it is vital for sellers to learn as much as they can about a buyer's M&A history and its relationships with regulators. A seller wants to see that ...

What CFPB gained, lost in appeals court ruling

Eric Mogilnicki is quoted in an American Banker article regarding a federal appeals court decision upholding the constitutionality of the CFPB’s single-director structure. "It's a victory for the CFPB in the long-long run, but the Democrats may have to wait two or three years to replace a Trump nominee," says Mogilnicki. "I do think that the win on independence ...

The DC Circuit's Big CFPB Ruling Carries Wide Implications. Here's What's Next

Eric Mogilnicki is quoted by The National Law Journal in an article regarding the significance of a federal appeals court ruling upholding the lawfulness of the CFPB’s single-director structure. “The combination of that opinion and Acting Director Mulvaney’s recent statement that the bureau would stop ‘pushing the envelope’ on enforcement matters will provide ...

Court upholds constitutionality of Consumer Financial Protection Bureau

Eric Mogilnicki is quoted in a Politico article regarding the federal appeals court ruling upholding the constitutionality of the CFPB’s structure. According to Mogilnicki, it's “quite likely” PHH would prevail in its argument against the penalty following today’s decision, and that an appeal from the administration would be unlikely due to political ...

CFPB Constitutional Fight Faces Tough Supreme Court Path

Eric Mogilnicki is quoted in a Law360 article regarding the D.C. Circuit’s ruling that the CFPB's single-director structure is not a violation of the president’s powers under Article II of the Constitution. According to Mogilnicki, because of the for-cause protection in place for any Senate-confirmed director, a Democrat president may be prevented from putting ...

FDA Releases FSVP and Supply Chain Program Draft Guidances and Announces FSVP Enforcement Discretion

Last week (January 24, 2018), FDA issued a series of guidance documents and an enforcement discretion policy intended to help the food industry comply with the requirements of the Food Safety Modernization Act (FSMA). The documents further FDA’s goal to ensure that all food under its jurisdiction is produced under procedures that comply with its risk-based food ...

Product Liability Group Of The Year: Covington & Burling

Covington was named a 2017 Product Liability Practice Group of the Year by Law360. According to Paul Schmidt, "It's a pretty new group, relatively speaking, and a younger group. Our practice probably started 10 years ago and has really been completely built into a top-tier practice over that time-frame. … I think that gives us a certain nice energy." He adds ...

2017 M&A Suits Push Securities Class Actions To Record High

Jonathan Sperling is quoted in a Law360 article regarding the increase in the number of federal securities class actions. “The increase in federal securities class actions as reflected in the Cornerstone Report is largely due to a significant jump in M&A filings, and that jump is likely driven by the elimination of so-called disclosure-only settlements in ...

Law360 Names Attys Who Moved Up The Firm Ranks In Q4

Law360 highlights the promotion of Covington's newest partners, including John Balzano, Lindsay Burke, Bradley Chernin, Christopher DeCresce, Guy Dingley, Matthew Dunn, Laura Flahive Wu, Pamela Forrest, Alexa Hansen, Megan Keane, Sam Pyun, Kyle Rabe, Ansgar Simon, Andrew Soukup, Emily Ullman, and Mark Young.

#MCNWW 2018: Women to Watch

Robyn Polashuk was named to Multichannel News' 2018 class of “Women to Watch.” Commenting on what she likes most about her job, Polashuk says, "I love the diversity of the clients and projects, and the interesting new issues I am asked to address nearly every day in our evolving industry." In her profile, Polashuk also stresses the importance of growing ...

An Unexpected Win for Covington in a Trade Case with Big Implications

The Litigation Daily highlights Covington's successful representation of Bombardier before the International Trade Commission (ITC). After finding that Bombardier's C-Series commercial jets are not threatening to U.S. producer Boeing, the ITC struck down a planned 300-percent tariff on the Canadian jetliners. "The unanimous decision in our favor was particularly ...

Robyn Polashuk Named Among Multichannel News’ “Women to Watch”

LOS ANGELES—Multichannel News has named Covington partner Robyn Polashuk to its 2018 class of “Women to Watch.” Ms. Polashuk is the only outside counsel named to the list. “This year’s group of Women to Watch is pushing the boundaries in both personal and professional achievements,” said Mark Robichaux, Editorial Director of Multichannel News. The award ...

How #MeToo Is Changing Internal Investigations

Nancy Kestenbaum is quoted in a Law360 article regarding the impact of the #MeToo movement on internal investigations. “The #MeToo movement has empowered more people to come forward and raise these issues at their companies or organizations,” says Kestenbaum. “And that has caused the organizations to examine those specific issues, or issues of harassment and ...

White House Support for CFIUS Reform and Affirmation of U.S. Open Investment Policy / Senate Committee on Banking, Housing, and Urban Affairs Hearing on CFIUS Reform

We are writing to report on the latest significant developments in the effort to reform the Committee on Foreign Investment in the United States (“CFIUS”).

2017 End-of-Year Summary of FDA Advertising and Promotion Enforcement Activity

This e-alert reviews trends emerging from warning letters and untitled letters concerning therapeutic product advertising and promotion issued in 2017 by the Office of Prescription Drug Promotion (OPDP) of the Center for Drug Evaluation and Research (CDER), the Office of Compliance and Biologics Quality (OCBQ) of the Center for Biologics Evaluation and Research ...

Bombardier Spared Tariffs After ITC Finds Boeing Not Harmed

Law360 highlights Covington's successful representation of Bombardier before the International Trade Commission (ITC). The ITC recently ruled that Bombardier's C-Series commercial jets are not threatening to U.S. producer Boeing, and therefore, should not be subject to hefty tariffs.

Covington Prevails for Bombardier in Significant ITC Victory

WASHINGTON—Covington won a significant trade case today before the U.S. International Trade Commission (ITC) on behalf of its client Bombardier. In a 4-0 ruling, the ITC rejected Boeing Co.’s complaint that it was threatened with material injury by imports of Bombardier’s new C Series aircraft. The decision means that the U.S. Department of Commerce can no ...

Clarifications On Tax Reform Will Come, Officials Say

Michael Caballero spoke at a tax conference in Washington and is quoted in a Law360 article regarding the recently enacted U.S. tax legislation. According to Caballero, the tax law’s creation of reasonably low-tax foreign income that’s now returned means that “we’ve got partially exempt and partially taxed income that we now have to take and push through the ...

Cosmetic Regulatory Update: Key U.S. Issues for 2018

As we begin 2018, the cosmetic industry marketing products in the United States faces a range of legal and regulatory considerations – from labeling and marketing claims to ingredient safety and environmental issues. This alert for our cosmetic clients analyzes federal regulatory activities in 2017 and summarizes key issues to consider for 2018, including ...

IAB/4A’s Release Draft Standard Addendum for Digital Video Advertising in TV Long Form Video for Public Comment

Digital advertising typically involves a vast network of publishers, advertisers and their agencies, advertising exchanges and networks, technology platforms, and measurement and data analytics providers. To help streamline the commercial dealings of all of these parties in this complex ecosystem, advertising industry self-regulatory groups have developed ...

China’s toolbox to turn the retaliatory screws in trade tensions with the United States

Timothy Stratford is quoted in a South China Morning Post article regarding China's retaliatory options that might be considered if a trade war breaks out with the U.S. According to Stratford, there are a number of things that foreign companies could be worried about in terms of retaliatory action from China. “Some foreign companies may have a more difficult ...

Gov't Contracts Group Of The Year: Covington & Burling

Covington was named a 2017 Government Contracts Practice Group of the Year by Law360. According to Fred Levy, the group is unique due to the breadth and depth of experience that its attorneys have, and its seamless interaction with other top-tier practice groups at the firm. “I think we’re a very cohesive practice group,” he says. “It really incentivizes our ...

Communication breakdown risks escalating Sino-US trade row, say former officials

Timothy Stratford is quoted in a South China Morning Post article regarding escalating trade tensions between the U.S. and China, and how the World Economic Forum in Davos might be a place for officials to discuss trade issues. "As far as we’ve been able to tell, there has been a strong debate going on at the most senior level in Washington on how to deal with ...

Second dispute under Bangladesh accord settles

Marney Cheek is quoted in a Global Arbitration Review article regarding a recent settlement that was reached between labor union federations and a global fashion brand under the Accord on Fire and Building Safety in Bangladesh. Cheek, who led the Covington team acting for IndustriALL Global Union and UNI Global Union, says, "The Bangladesh accord arbitrations ...

Fashion Brand To Pay $2.3M In Bangladesh Accord Deal

Marney Cheek is quoted in a Law360 article regarding a $2.3 million settlement between labor unions and a global fashion brand over garment factory conditions under the Accord on Fire and Building Safety in Bangladesh. “These settlements show that an enforcement mechanism like arbitration can be a critical part of ensuring compliance with the Bangladesh Accord,” ...

Fight Against Sexual Misconduct Bringing Regulations, Protections for Lobbyists

As sexual abuse, assault, harassment, and other misconduct have dominated national headlines, state capitols and lobbyists have not escaped scrutiny. Amidst a spate of allegations and member resignations, some state legislatures and ethics commissions are taking action. While a variety of measures are being considered, including tightening gift rules, it is ...

FDA Announces Broad Plan to Improve and Expedite Dissemination of Recall Information to Consumers

FDA announced the availability of a new draft guidance in last Friday’s Federal Register that Commissioner Gottlieb explains describes FDA’s policy on public warning and recall notifications, which “gives industry clear direction on how to navigate and work with the FDA to make sure recalls are communicated promptly,” and “will empower consumers by providing ...

CFIUS Developments: Senate Committee on Banking, Housing, and Urban Affairs Hearing to Examine CFIUS Reform

On January 18, 2018, the Senate Committee on Banking, Housing, and Urban Affairs (“the Committee”) held a hearing to consider the Foreign Investment Risk Review Management Act (FIRRMA), a bill introduced by Senator John Cornyn (R-TX) in the Senate and Congressman Robert Pittenger (R-NC) in the House to reform the Committee on Foreign Investment in the United ...

Feds to Ramp Up Online Purchasing Presence

Susan Cassidy is quoted in an E-Commerce Times article regarding efforts to create an online marketplace for government purchasers. "One model that was discussed would require a portal provider to contract with GSA to provide an online interface. Under this approach, suppliers would then sign up to use the portal, potentially via a contract with the portal ...

Covington Represents Bacardi in Acquisition of Patrón Tequila

WASHINGTON—Covington advised Bacardi Limited in its definitive agreement to acquire Patrón Spirits International AG and its PATRÓN® brand, the world’s top-selling ultra-premium tequila, from John Paul DeJoria, a founder of Patrón. The transaction reflects an enterprise value for Patrón of $5.1 billion. The transaction follows the successful relationship the ...

Covington Helps Secure Historic Settlement in Arbitration Under the Accord on Fire & Building Safety in Bangladesh

WASHINGTON—Covington has helped secure a historic settlement on behalf of global union federations, Industrial Global Union and UNI Global Union, in an arbitration under the Accord on Fire and Building Safety in Bangladesh, a legally binding agreement to create a framework for safe working conditions in the Bangladeshi Ready-Made Garment industry. Signed in ...

International Trade Group of the Year: Covington & Burling

Covington was named a 2017 International Trade Group of the Year by Law360. According to Peter Lichtenbaum, the Bombardier trade remedies case, which "presents very significant economic, legal, and political issues," was one of the group's biggest from the past year. "The company remains confident that the ITC will conclude that Boeing will not be harmed by the ...

Beware of Employment Law Issues Amidst a Potential Government Shutdown

As Congress scrambles in a last ditch attempt to pass a funding proposal, government contractors face the various employment law implications of furloughs caused by the potential government shutdown. During the last government shutdown in 2013, many federal agencies furloughed employees and instructed contractors to implement similar reductions in contract ...

Insurance Coverage for Opioid Lawsuits & Investigations

Dozens of pharmaceutical manufacturers, wholesale distributors, and retailers have been named as defendants in opioid-related lawsuits, investigations, and congressional inquiries across the country. These actions and investigations include allegations that defendants misleadingly marketed opioids, failed to comply with regulatory requirements to report ...

House Judiciary Advances Foreign Lobby Overhaul

Robert Kelner is quoted in a Roll Call article regarding steps taken by House Republicans to overhaul the nation’s foreign lobbying disclosure regulations. “DOJ’s career staff have long wanted the authority to investigate FARA violations more aggressively, and the Democratic-aligned government reform community has generally agreed,” says Kelner. “So it was a bit ...

Three Things Companies Hate About the CFPB's Investigative Demands

Eric Mogilnicki is quoted by The National Law Journal in an article regarding the CFPB's investigative demands. Commenting on the time crunch, Mogilnicki says, “That timetable is too fast, especially when the [civil investigative demand] includes a laundry list of requests that require detailed investigation to determine what documents are available.” He adds, ...

Leading CFIUS Risk Analyst Joins Covington

WASHINGTON—Brian Williams has joined Covington as a Senior Advisor in the firm’s Cross-Border Investment and National Security practice. Mr. Williams draws on over 20 years of public and private sector experience advising on issues at the intersection of national security, technology, and law. A non-lawyer, he led multi-agency analyst teams that authored the ...

DOL Proposes to Relax Regulations Governing Association Health Plans

On January 5, 2018, the Department of Labor (DOL or the “Department”) published a proposed rule to allow more Association Health Plans (AHPs) to be regulated as large group health plans. 83 Fed. Reg. 614 (Jan. 5, 2018) (to be codified at 29 C.F.R. pt. 2510). The proposed regulation was developed in response to President Trump’s October 12, 2017 Executive Order ...

FDA Announces “Nutrition Action Plan” while Stakeholders await Final Guidance on Nutrition Labeling

As we near the two year mark since FDA issued the new Nutrition Facts Label (NFL), stakeholders anxiously await FDA’s final NFL guidance, particularly FDA’s conclusions on the pending fiber petitions and other fiber ingredients. Although FDA proposed last fall to extend the July 26, 2018 compliance date until January 1, 2020 (for large companies and January 1, ...

Covington Named to GCR's Global Elite

WASHINGTON—Global Competition Review has once again named Covington to its 2018 "Global Elite," a list of the top 25 antitrust practices worldwide, as well as including the firm in the list of top ten practices globally for both Mergers and Antitrust Litigation. Each year, GCR undertakes extensive analysis of antitrust and competition law groups in 50 ...

The Foreign Agents Registration Act (“FARA”): A Guide for the Perplexed

Eighty years ago, Congress enacted the Foreign Agents Registration Act (“FARA”), requiring “foreign agents” to register with the Attorney General. As amended over the years, it applies broadly to anyone who acts on behalf of a “foreign principal” to, among other things, influence U.S. policy or public opinion. Until recently, it was a backwater of...… Continue ...

Department of Labor Scraps Prior Unpaid Intern Test and Adopts More Flexible Approach

The U.S. Department of Labor (DOL) recently announced that it will apply a new, more flexible test for determining whether interns working for “for-profit” companies are entitled to minimum wage and overtime protection under the federal Fair Labor Standards Act (FLSA). The new test is set forth in DOL Fact Sheet #71 (updated January 2018).

Litigator of the Week: Keeping the Dream Alive

Jeffrey Davidson was named "Litigator of the Week" by The Litigation Daily for his representation of the University of California, one of the plaintiffs in the case challenging the Trump Administration's decision to rescind the Deferred Action for Childhood Arrivals (DACA) program. On January 9, U.S. District Judge William Alsup of the Northern District of ...

Medicaid Work Requirement Decision Stokes Backlash

Philip Peisch is quoted in a Bloomberg BNA article regarding the Trump Administration's announcement that it will move forward with allowing states to implement Medicaid work requirements. "One big question that remains is how much of the Medicaid population will actually be impacted by work requirements, in the States that want to implement them,” says Peisch. ...

The Foreign Agents Registration Act (“FARA”): A Guide for the Perplexed

FSIS Releases Proposed Egg Products HACCP Rule

On Tuesday, January 9, 2018, USDA’s Food Safety and Inspection Service (FSIS) released a proposed rule that would require egg products plants to develop and implement hazard analysis and critical control point (HACCP) plans, Sanitation Standard Operating Procedures (SOPs), and include safe-handling instructions on the labels of certain egg products.

CBP Revises Rules for Border Searches of Electronic Devices

Last week, U.S. Customs and Border Protection (“CBP”) released a revised Directive governing searches of electronic devices at the border. These are the first official revisions CBP has made to its guidelines and procedures for devices since its 2009 Directive. The new Directive is intended to reflect the evolution of technology over the intervening ...

San Francisco’s tallest building, Salesforce Tower, opens at 97 percent leased

Simon Frankel is quoted in a San Francisco Business Times article regarding the opening of Salesforce Tower, the new location of Covington's San Francisco office. "We are delighted to become one of the anchor tenants of the new Salesforce Tower, which is at the center of a flourishing area of downtown San Francisco," Frankel says. "This new building will allow ...

Judge Blocks Trump's DACA Rollback Nationwide

Jeffrey Davidson is quoted in a Law360 article regarding a nationwide injunction issued by U.S. District Judge William Alsup that prevents the government from proceeding with its plan to roll back the Deferred Action for Childhood Arrivals (DACA) program. Davidson, who serves as counsel for the University of California, one of the plaintiffs in the case, says ...

How an obscure SCOTUS employment ruling put the brakes on DACA rollback

Jeffrey Davidson is quoted in a Reuters article regarding a preliminary injunction issued by U.S. District Judge William Alsup in San Francisco that temporarily blocks the government from rescinding the Deferred Action for Childhood Arrivals (DACA) program. Davidson, who represents the University of California in challenging the government's action, says that ...

Consumer Finance Lawyers Prep Wish Lists as CFPB Retools

Eric Mogilnicki spoke at an American Bar Association meeting and is quoted in a Bloomberg BNA article regarding potential changes at the Consumer Financial Protection Bureau (CFPB). According to Mogilnicki, “There’s going to be as much change coming in with the new Administration as when CFPB was created."

Covington Secures Injunction of DACA Rescission

SAN FRANCISCO—Covington secured a victory on behalf of its clients the University of California and UC President Janet Napolitano when Northern District of California Judge William Alsup issued a nationwide injunction blocking the federal government’s effort to shut down the Deferred Action for Childhood Arrivals program (DACA). On September 5, 2017, the ...

Competition Law Enforcement Trends in the U.S., Europe and China: Looking Ahead to 2018

2017 was another year of active enforcement globally—including in the U.S., despite the start of a new Presidential Administration touting an aggressive deregulatory agenda. Transactions in consolidated industries drew enforcement fire in both Europe and the United States (Dow/DuPont, ChemChina/Syngenta, Bayer/Monsanto, AT&T/TimeWarner). And, in March, the UK ...

Republicans, Democrats Far Apart on Deal as Shutdown Clock Ticks

Muftiah McCartin is quoted in a Bloomberg article regarding the government spending bill that could lead to a government shut down if Republicans and Democrats in Congress do not reach an agreement. According to McCartin, if both parties can agree this week on raising budget limits, Congress may be able to pass a short-term spending bill, known as a continuing ...

DFARS Cyber Rule – What Questions Should Contractors Ask Themselves in the New Year?

Since August 2015, defense contractors have been on notice that they were required to implement the security controls in National Institute of Standards and Technology (“NIST”) Special Publication (“SP”) 800-171 no later than December 31, 2017 on covered contractor information systems. Although the focus has been on meeting this deadline, contractors should add ...

The Congressional Agenda for January

The Republican-led Congress and President Trump secured their first significant legislative victory with the December passage of tax reform legislation. Following that success, the GOP passed another temporary funding bill to avert a government shutdown before adjourning for the Christmas-New Year break. As a result, congressional leaders have again put off a ...

Russian hacker claims there's proof of his DNC breach

Susan Cassidy is quoted in Politico Pro's "Morning Cybersecurity" newsletter regarding the December 31st deadline for defense contractors to meet minimum cybersecurity requirements for the systems they operate for the Pentagon. According to Cassidy, the cybersecurity rule presents “a problem for DoD because there’s a lot of subjectivity in what is ‘adequate ...

2018 Should See Trump’s Bank Rule Rollback Gain Steam

Michael Nonaka is quoted in a Law360 article providing a look ahead at bank regulations in 2018. According to Nonaka, leadership changes should mean that banks will see a shift in their operating environment that they had been expecting for some time to come over the course of 2018. “The people will be in place, the will will be there, so I think there will be ...

Attys Eye Cases Impacting SEC Enforcement Powers In 2018

David Kornblau is quoted in a Law360 article regarding upcoming Supreme Court cases that could impact how the SEC regulates the financial industry. Commenting on the Digital Realty litigation, which could lead to a ruling on the broader issue of the Chevron doctrine, Kornblau says, “If the court goes down that road, it might call into question all kinds of ...

The Regulator Whisperers: Covington & Burling, Finalist for White Collar/Regulatory Litigation Department of the Year

The American Lawyer named Covington a finalist for White Collar/Regulatory Litigation Department of the Year and highlights Eric Holder, Steven Fagell, Lanny Breuer, Nancy Kestenbaum, and Mythili Raman in its profile.

North America

Representative Matters

Telephone systems antidumping proceedings

Telehealth IT System Development

Technology control plan for an aerospace company

Synchrony Financial IPO on NYSE

Supporting overseas military banking services

Support of derivative sovereign immunity defense through Supreme Court amicus brief

Smart Home Device Privacy and Security Advice

Insurance Coverage for AI, Autonomous Vehicles, and Other IoT Products

Technology and IP Transactions

Geo-Location Counsel

M&A Counsel

Joint Venture and Licensing Agreement

Recovery for Data Security Breaches

Global Legislative and Regulatory Counsel

IoT Electronics and Big Data

Emerging IoT Government Contracts Standards

Autonomous Vehicles AI Technology

National Security Issues for IT Firms

CFIUS Counsel

Apparel Company Wearable Technology

Smart Game Venues and Equipment

Fintech Regulatory and Transactional Counsel

Salix Acquisition Financing and Credit Facility

Salix $2.6 billion Tender offer Acquisition

Sale of Wolfcamp Shale leasehold to Sinochem

Sale of ThreatGRID, Inc.

Sale of ThermaCare Brand

Sale of Specialty Pharma Company Omthera Pharmaceuticals

Shareholder Proposals in Proxy Materials

Sherwin-Williams TCPA class action

Shoe Show FACTA class action

Significant prime-sub dispute victory

Successfully protested $1.6 billion DoD award

Successfully defended prime contractor in data rights lawsuit

Successfully defended bidder against claims of misuse of competitors data

Successfully defended $50 million MDA award

Successfully defended $150 million FDA award

Successfully Defended $1 Billion Coast Guard Award

Successfully Defended $1 Billion Award for Embassy Services

Successfully defeated infringement suit in the Court of Federal Claims

Successful resolution of best pricing investigation

Successful representation of major defense IT contractor in GSA IG audit

Successful jury trial defense of Schedule contractor in False Claims Act case in the Eastern District of Virginia

Successful Defense Against Bid for Board Seats by Activist Investor

Sale of satellite sports content to the U.S. Army

Structuring subaward practices under new uniform grant requirements

Steel products antidumping investigation

Statoil’s acquisition of Brigham Exploration

JD.Com in Investment in and Joint Venture with ZestFinance, Inc.

Innovative New Product for Global Communications Firm

Public Capital Raising by Fintech Issuer

Prosper in Acquisition of American Healthcare Lending

Prosper in Acquisition of BillGuard

Pre-Incident Advice and Assessments

Pursuing Recovery for the Largest Documented Data Security Breaches

Data Breach Response and Compliance

Legg Mason Investment in Precidian Investments LLC

501(c)(6) association advice

Shummi Enterprise Co., Ltd and Shumei Industrial Co., Ltd. ITC Section 337 Investigation

Microjet Technology ITC Section 337 Investigation

Trial Win in Civil Forfeiture Case For Car Exporters Who Had to Prove Their Innocence

FTC reviews of advertising practices in the alcoholic beverage industry

Financing of foreign military sales

Financing of a cleared contractor

Transfer of major construction dispute from state to federal court

Trade remedy investigations

Trade controls due diligence in M&A transaction

TouchTunes Acquisition of Portable Entertainment Tablet Company

TINA dispute

Think tank internal review

The Walt Disney Company in CrossBorder Acquisition

Textile and apparel producer CITA petition

Temasek Holdings acquisitions

Telular in Going Private Transaction

Cross-border trade, anti-corruption, and data compliance

China life sciences transactional

China life sciences transactional

China licensing and joint venture