In Le Clair v. KnowBe4, Inc., the Delaware Court of Chancery recently dismissed a putative class action brought by former stockholders who claimed that two institutional investors and KnowBe4’s CEO had joined forces as a control group, and that the
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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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Laboratory, Owners, and Investors Settle COVID-19 Testing Fraud Allegations for $24 Million
On July 23, 2026, the Department of Justice announced that clinical lab Magnolia Diagnostics and its owners agreed to pay $19.2 million to resolve allegations that they violated the False Claims Act by billing Medicare for medically unnecessary respiratory pathogen…
EDPB Publishes Draft Guidelines on Anonymisation
On 7 July 2026, the European Data Protection Board published its long-awaited draft Guidelines 02/2026 on Anonymisation. The draft Guidelines – which are intended, once finalised, to replace the former Article 29 Working Party’s Opinion 05/2014 on Anonymisation Techniques –…
What Do the European Data Protection Board’s Web Scraping Guidelines Mean for AI Training Datasets?
On July 7, 2026, the European Data Protection Board (EDPB) published draft guidelines on web scraping for generative AI (Guidelines). The Guidelines are intended to provide practical GDPR guidance in one of the more complex areas of AI development and…
Timing Is Everything: Section 220 Standing After a Merger Closes
On April 24, 2026, the Delaware Court of Chancery adopted a recommendation by the Magistrate in Chancery to dismiss an action to enforce a demand to inspect books and records under Delaware General Corporation Law (DGCL) Section 220 where the…
DOJ Releases FOCUS Questionnaire to Assist in Evaluating Qui Tams Filed by Data Miners
Court Order Blocks Enforcement of California’s SB 343 Recycling Law and Could Impact State’s Extended Producer Responsibility Program
Companies that manufacture products bearing recyclability labels have received temporary relief from impending compliance obligations. On July 14, 2026, the U.S. District Court for the Southern District of California issued a preliminary injunction preventing California, “the State,” from enforcing SB…
Federal Agencies Rescind Endangered Species Act Definition of “Harm,” Narrowing the Scope of Prohibited Activity Affecting Wildlife
The U.S. Fish and Wildlife Service and National Marine Fisheries Service have issued a final rule rescinding the regulatory definition of “harm” under the Endangered Species Act (ESA). The change is significant because the longstanding definition provided that prohibited “harm”…
June DOJ/SBA FCA Settlement Highlights Continued Focus on Contractor Compliance
On June 9, 2026, DOJ announced a settlement with Broadway Electric Inc. (“Broadway”); its subsidiary, Cornerstone Contracting Inc. (“Cornerstone”); and two of their individual executives, for $21.3 million to resolve False Claims Act allegations. The settlement targeted alleged fraud against…
Inspection Rights, Internal Affairs, and Personal Jurisdiction: Orchid Global’s Procedural Lesson
In Orchid Global, Inc. v. Salamon, Vice Chancellor Will addressed an important procedural question left open by the Delaware Court of Chancery’s 2020 decision in JUUL Labs, Inc. v. Grove. In JUUL, the Court of Chancery held that, under the…