Category Archives: Compliance

Agentic AI in Retail Investing: Navigating Regulatory and Operational Risk

by Charu Chandrasekhar, Avi Gesser, Jeff Robins, Kristin Snyder and Achutha Raman

Left to Right: Charu Chandrasekhar, Avi Gesser, Jeff Robins, Kristin Snyder and Achutha Raman (Photos courtesy of Debevoise & Plimpton LLP)

The Rise of AI-Driven Investing in Retail Finance

Generative artificial intelligence (“GenAI”) innovations are rapidly transforming the formulation, analysis, and delivery of investment advice. Many broker-dealers and investment advisers are embracing GenAI to support one or more parts of the investment lifecycle—synthesizing investment research; undertaking trend analysis, anomaly detection, and pattern recognition for risk modeling and market surveillance; and performing large-scale data extraction and analysis.

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Extracting Value Amid Rising Risk: Compliance and M&A Pressures in the Global Resources Sector

by T. Markus Funk, PhD, Stephen Shergold, David Lewis, and Allan Taylor

photos of authors

Left to Right: T. Markus Funk, Stephen Shergold, David Lewis and Allan Taylor (Photos courtesy of White & Case LLP)

The natural resources extraction industry—spanning mining, oil and gas, and critical minerals—faces an increasingly complex compliance, legal and regulatory environment. Over the next three years, operators will encounter heightened scrutiny across environmental, social and governance (ESG) domains, as well as greater geopolitical and enforcement risks.

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10 Steps to Identify and Manage Tariff Risks and Opportunities

by Jonny Frank and Laura Greenman

Jonny Frank and Laura Greenman (photos courtesy of StoneTurn Group, LLP)

This article builds on “Tariffs Meet COSO: A Two-Way Street to Risk & Opportunity Management,” which introduces the COSO Integrated Internal Control Framework and explains how to use it to meet tariff operations, reporting and compliance objectives. Here, we present a 10-step process for using COSO’s risk assessment component to avoid tariff under- and overpayments, mitigate legal and reputational harm and identify potential opportunities for operational efficiencies.

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Federal AI Contracts and the New Era of False Claims Act Enforcement

by Henry Fina and Matthew P. Suzor 

Left to right: Henry Fina and Matthew P. Suzor (photos courtesy of Miller Shah LLP)

The explosion of the Artificial Intelligence market has drawn capital investment from almost every corner of the economy. The federal government is no exception. Between FY 2022 and 2023, the potential value of federal AI contracts increased from approximately $356 million to $4.6 billion. In July 2025, the Trump Administration released its AI Action Plan, outlining government initiatives to aggressively deploy AI in the health and defense sectors. Accordingly, the Department of Health and Human Services (HHS) and Department of Defense (DoD) have increased funding allocations toward AI contracts. As contractors compete for increasingly valuable awards with limited oversight, the potential for misrepresented capabilities and compliance gaps grows. While the industry’s strong tailwinds may translate into lucrative opportunities for investors and entrepreneurs, for qui tam litigators, the expansion of publicly contracted AI services signals a new frontier for False Claims Act (FCA) enforcement. In turn, the FCA will be essential in ensuring accountability as federal agencies gradually adjust oversight mechanisms to handle the inconsistent reliability and limited technological opacity of AI models.

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Federal Trade Commission Enforcement Action Suggests it Will Treat Employee Non-Competes as “Inherently Suspect”

by Bilal Sayyed

Bilal Sayyed (Photo courtesy of Cadwalader, Wickersham & Taft LLP)

The rule prohibiting the enforcement and use of employer-employee non-compete agreements (“Rule”) is dead. In September, the Federal Trade Commission (“FTC” or “Commission”) “took steps to dismiss its appeals in Ryan LLC v. FTC (5th Cir.) and Properties of the Villages v. FTC (11th Cir.) and to accede to the vacatur of the Non-Compete Clause Rule.” Federal Trade Commission Files to Accede to Vacatur of Non-Compete Clause Rule (Sept. 5, 2025).  The two appellate courts have granted the Commission’s requests for dismissal. Continue reading →

California Restricts Use of Common Pricing Algorithms, Reforms the Pleading Standard for Certain Antitrust Claims, and Increases Penalties

by Eyitayo “Tee” St. Matthew-Daniel, Joshua Hill Jr., Christopher M. Wilson, and Yoosun Koh

Photos of authors.

Eyitayo “Tee” St. Matthew-Daniel, Joshua Hill Jr., Christopher M. Wilson, and Yoosun Koh (Photos courtesy of Paul, Weiss)

On October 6, 2025, California enacted AB 325 and SB 763. These two laws amend the state’s primary antitrust statute, the Cartwright Act, which generally prohibits combinations or agreements between two or more entities in restraint of trade, such as agreements to fix prices or to limit production. These amendments are effective as of January 1, 2026.

Together, AB 325 and SB 763:

  • Add two new Cartwright Act violations related to the use or distribution of “common pricing algorithms.”
  • Lower the pleading standard for Cartwright Act claims.
  • Establish civil penalties for violations of the Cartwright Act and increase maximum criminal penalties.
  • Make remedies and penalties for Cartwright Act violations cumulative.

Below, we provide a high-level overview of the new laws and offer some observations.

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Beware the Tariff DDP Trap: Managing Hidden Import Liabilities Before They Bite

by Jonny Frank and Jerry McAdams 

Photos of authors

Left to right: Jonny Frank and Jerry McAdams  (photos courtesy of StoneTurn Group, LLP)

Looking to mitigate tariffs, companies are purchasing foreign products through Duty Paid (“DDP”) transactions marketed by foreign suppliers as turnkey solutions.  DDPs promise efficiency but often deliver exposure. Under U.S. law, the importer—not the supplier—remains legally responsible for accurate customs declarations, tariff payments, and regulatory compliance. When suppliers cut corners or game the system, the importer inherits the fallout, including potential Customs Border Protection (“CBP”) penalties, DOJ criminal prosecution and False Claim Act (“FCA”) exposure.

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DOJ Defines “Illegal DEI,” Warns Recipients of Federal Funds to Take Notice

by Adam S. Hickey, Marcia E. Goodman, Ruth Zadikany, and Hiral D. Mehta

Left to right: Adam S. Hickey, Marcia E. Goodman, Ruth Zadikany, and Hiral D. Mehta (photos courtesy of Mayer Brown)

On July 29, 2025, U.S. Attorney General Pam Bondi issued Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination (the “Guidance”). Following the creation of the Civil Rights Fraud  Initiative by the Department of Justice (“DOJ”), and joint guidance issued by DOJ and the U.S. Equal Employment Opportunity Commission (“EEOC”) on “unlawful DEI-related discrimination“, the Guidance is the most tangible guidance released to date on what the administration views as “illegal DEI” and a likely roadmap for DOJ’s False Claims Act (“FCA”) investigations under the Civil Rights Fraud Initiative.

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DOJ Announces First FCPA Enforcement Activity After Months-Long Pause

by Kimberly A. Parker, Jay Holtmeier, Erin G.H. Sloane, and Christopher Cestaro

Left to Right: Kimberly A. Parker, Jay Holtmeier, Erin G.H. Sloane, and Christopher Cestaro (photos courtesy of WilmerHale)

Over the past week, the U.S. Department of Justice (“DOJ”) unsealed its first Foreign Corrupt Practices Act (“FCPA”) enforcement action and issued its first declination since the pause in FCPA enforcement mandated by President Donald Trump’s February 10, 2025 Executive Order (“February Executive Order”)[1] and the subsequent issuance of updated FCPA enforcement guidelines, the Guidelines for Investigations and Enforcement of the Foreign Corrupt Practices Act (FCPA) (“June Guidelines”).[2]  

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White House’s AI Action Plan: Winning the Race in a Patchwork Regulatory Era

By Joshua Ashley Klayman, Ieuan Jolly, Jeffrey Cohen, and Caitlin Potratz Metcalf

Left to right: Joshua Ashley Klayman, Ieuan Jolly, Jeffrey Cohen, and Caitlin Potratz Metcalf (photos courtesy of Linklaters)

On July 23, 2025, the White House published Winning the AI Race: America’s AI Action Plan (the AI Action Plan), a comprehensive effort aimed to solidify United States leadership in artificial intelligence. The AI Action Plan acknowledges the U.S.’ uniquely complex—and, at times, conflicting—regulatory landscape, including the patchwork of state-level laws that impact innovation, compliance, and policy predictability. The Action Plan calls for national leadership and seeks a unified, pro-innovation regulatory approach, with an understanding that states will continue to develop their own laws. Businesses should prepare for both the opportunities and the compliance challenges that will arise as the Action Plan is implemented.

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