Although the implied covenant of good faith and fair dealing applies to nearly every contract governed under Delaware law, many claims alleging its breach fail at the earliest stages of litigation. Even when an implied covenant claim survives such preliminary
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Sidley Austin LLP is a global law firm that publishes detailed legal analysis and commentary primarily focused on corporate governance, securities litigation, regulatory compliance, and related litigation matters. Its blog content often covers court decisions, regulatory developments, and best practices affecting corporate charters, bylaws, and compliance risks. The firm provides insights into jurisdictional issues, whistleblower implications, and evolving regulatory frameworks impacting financial institutions, pharmaceutical pricing, and digital regulations. Sidley Austin's publications serve legal professionals and corporate clients seeking updates and expert perspectives on complex legal and regulatory challenges.
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Second Circuit Clarifies Scope of “Property” that an FCA “Claim” May Seek
Earlier this month, the Second Circuit issued a notable decision on a rare FCA topic—whether a request to the government seeks “property,” such that the request falls within the FCA’s definition of a “claim.” The Second Circuit determined that a…
DOJ’s $5.15 Million FCA Settlement Reinforces Focus on Tariff and Customs Compliance
On August 5, 2026, DOJ announced a $5.15 million settlement with a Taiwanese light-emitting diode (“LED”) manufacturer and its Texas-based subsidiary to resolve allegations under the False Claims Act (“FCA”), the common law, and the Tariff Act of 1930, as…
Concessions and Particularity: How a Derivative Challenge to a Discounted Insider Financing Failed at the Pleading Stage
In the recent decision Marstrand Partners, L.P. v. Israel Biotech Fund I, L.P., C.A. No. 2024-0421-KSJM (Del. Ch. May 27, 2026), Chancellor McCormick dismissed a derivative challenge to a steeply discounted insider financing after holding that the plaintiff failed to plead demand…
$14.1 Million FCA Settlement Underscores Medicare Advantage Coding Scrutiny
On August 3, 2026, DOJ announced a $14.1 million settlement with a management services organization (“MSO”) for primary care groups to resolve allegations that the organization violated the False Claims Act by causing inaccurate diagnosis codes to be submitted to…
SB 253/SB 261 Update: What CARB’s 15-Day Modifications Mean for Business Compliance Plans
U.S.-based entities with at least $1 billion in global annual revenue that do business in California should revisit their 2026 SB 253 compliance plans following the release, by the California Air Resources Board (CARB), of 15-day modifications to its proposed…
NHTSA Announces a Host of Actions on Autonomous Vehicles
On July 30, on the last day of the SAE International Automated Transportation Symposium, the National Highway Traffic Safety Administration (NHTSA) released several rulemakings and announcements focused on automated driving systems (ADS). These announcements further NHTSA’s efforts to, in…
Zync v. Porsche: Omissions in Hydrogen Bombs and Corporate Filings
Vice Chancellor Laster begins his May 26, 2026 opinion in the Zync, Inc. v. Porsche Investments Management, S.A. case with a Cold War era tale of a malfunctioning safety switch that prevented a hydrogen bomb from exploding over Goldsboro, North…
South Carolina Takes a Hard Line on Age-Appropriate Design – Audits, Parental Controls, Employee Personal Liability, and More
The recently enacted South Carolina Age Appropriate Design Code Act (S.C. Code Sec. 39-80-10 et seq.) (the “Act”) has the potential to become one of the country’s most consequential privacy laws. It combines prescriptive privacy-by-design controls with restrictions on facilitating…
New York Ethics Opinion Addresses Ethical Limits on Attorney Participation in Whistleblower Investigations
Lawyers representing False Claims Act whistleblowers need to be mindful of a practical question before a qui tam complaint is filed: how far may counsel go in helping a client develop additional evidence? Ethics Opinion 1297, recently issued by…