Steptoe LLP

Steptoe’s First Tuesday Update is our monthly take on current issues in commercial disputes, international arbitration, and judgment enforcement.   In our recent update, members of our Commercial Litigation team, Steve Davidson, Michael Baratz, Molly Fox, and Michael G. Scavelli discuss the latest updates from “The Summer of the FSIA,” providing a rundown on several significant developments concerning the application of the Foreign Sovereign Immunities Act (FSIA) from the federal appellate courts in recent weeks, along with an update on the ability to obtain discovery in aid of investor-state arbitration.   Read more on our website: https://lnkd.in/edz_--np

Steptoe partner and co-chair of the Investigations and White-Collar Defense group, Brian Heberlig appeared on Season 2, Episode 5 of the Athena Rising podcast, hosted by attorney Vanessa Singh Johannes. During the episode, Brian shared insight into his recent criminal trial win on behalf of Dr. Mike Lynch and the trial process, in addition to diversity in the legal profession and his prolific career to date. Brian discussed his secret to federal jury trial victories: “You’ve got to put in the work and be extraordinarily prepared. That’s hugely important—to be prepared and know the case as well as you can possibly know it. A lot of it is judgment, how much to go into certain issues, when to press a witness on their credibility, when to take the good stuff from the witness before challenging their credibility. There’s no black and white playbook.” Visit the Athena Rising website to listen to the full interview: https://lnkd.in/eyZNtapV

Today, Vice President Kamala Harris, the Democratic nominee for president, announced that Governor Tim Walz of Minnesota will be her running mate. Since Governor Walz is a current governor, the Democratic ticket will now be subject to various pay-to-play rules, including: • Securities and Exchange Commission Rule 206(4)-5 for investment advisers • Municipal Securities Rulemaking Board Rule G-37 for municipal securities dealers and municipal advisors • Commodity Futures Trading Commission Rule 23.451 for swap dealers Contributors subject to pay-to-play rules (specifically in the financial services sector) may be limited in how much they can contribute to the Harris-Walz ticket. For further analysis of this topic and contributor best practices, read our recent client alert “Pay-to-Play Considerations for the 2024 Presidential Election,” authored by partners Jason Abel and Adie Olson, associate Elizabeth Goodwin, and attorney Jennifer Jackson: https://lnkd.in/eE39f4SY

Steptoe and the UMD SAFE Center congratulate Prince George's County, Maryland on passing groundbreaking legislation aimed at combating sex and labor trafficking in the county. The new law prohibits contractors and subcontractors in the county from engaging in trafficking. Susan G. Esserman, Steptoe partner and founder of the UMD SAFE Center, stated: "We are grateful for and inspired by the commitment shown by Prince George's County Executive Angela Alsobrooks. The passage of this legislation provides an important mechanism to deter trafficking and to protect vulnerable workers against exploitation. It represents the culmination of several years of work, and we at the UMD SAFE Center and Steptoe are immensely proud to have been part of this collaborative endeavor. This law is a testament to what can be achieved when we unite for a common cause." The Steptoe attorneys involved in this initiative were partner Susan Esserman and associate Caitlin Conroy, whose procurement knowledge ensured the effective integration of human trafficking prohibitions with technical procurement policy. Read more on our website: https://lnkd.in/e5VBHM6A 

Carbon market participants are now learning about the effects of the Commodity Futures Trading Commission’s (CFTC) Environmental Fraud Task Force, a year after its creation. On July 3, 2024, a federal court in Chicago granted the CFTC summary judgment in its first enforcement action relating to environmental fraud. With the decision, any lingering question of whether additional action from the Environmental Fraud Task Force will be completed, becomes a matter of when the next action will be publicized.   For more information, read our recent client alert, “CFTC “Heats Up” Pursuit of Bad Environmental Actors Involved in Carbon Offsets,” authored by attorneys Ryan Hayden, Daniel Mullen, Coy Garrison, Micah Green, and Vito Arethusa, on our website: https://lnkd.in/eEZez7A8

On July 23, 2024, a bipartisan group of senators and representatives introduced the Ending Corporate Bankruptcy Abuse Act of 2024. This proposed legislation aims to curtail the use of an increasingly common controversial corporate bankruptcy strategy known as the “Texas Two-Step,” which has been employed by several major companies, including Johnson & Johnson, to address mass tort liabilities. For additional information, including key takeaways, read our recent client alert, “Proposed Legislation Targets "Texas Two-Step" Bankruptcy Tactic,” authored by partner Jeffrey Reisner, of counsel Joshua Taylor, and law clerk Matt Carmody, on our website: https://lnkd.in/eg24vzCG

Partners Wendy Wysong and Ali Burney, and associates Wilson Zhao and Zoey Hong authored an article for Export Compliance Manager titled, "Next Version of US Outbound Investments Rule Targeting China." The article discusses ramifications of the preliminary version of the US Outbound Investment Rule implementing Executive Order 14105, which authorized a new national security regulatory regime to prohibit or require notification of certain US investments concerning China (including Hong Kong and Macau) that involve semiconductors and microelectronics, quantum computing, and artificial intelligence (AI). Read the full article in Export Compliance Manager (subscription required): https://lnkd.in/eMCjhZTB

Please join Steptoe, the Chemical Industries Association, and Ramboll on Tuesday, September 24 at the Hyatt Regency Manchester for an in-depth program about the evolving landscape of UK chemicals regulation and policy. The program will cover topics such as UK REACH Alternative Transitional Registration model (ATRm) and initial improvements, Classification, Labelling and Packaging (CLP) and biocides. The work of key public sector actors will be discussed including the Department for Environment, Food & Rural Affairs (DEFRA), Health and Safety Executive (HSE), the Environment Agency, Office for Product Safety and Standards (OPSS), and Office for Environmental Protection (OEP). Space is limited, visit the following link for more information and to register for this not-to-be-missed event: https://lnkd.in/eHAiQjKF

Current discussions on artificial intelligence center around the lack of laws and regulations, and the need for policymakers to catch up to rapidly evolving industry developments. Despite this narrative, AI is already subject to a significant amount of national security-related laws, with several new legal regimes to be implemented. These national security-related regimes can apply to obvious cases such as the use of AI in weapons systems, however, can also apply to AI with no direct connection to national security. We’re pleased to share that Steptoe attorneys have authored a white paper that provides a comprehensive overview of the various US national security laws that apply to AI today or will apply in the future. Visit our website to read “Artificial Intelligence and National Security Law,” a full copy of the white paper is available for download here: https://lnkd.in/gSYrVh4X Brian Fleming Evan Abrams Tyler Evans Tod Cohen Anne-Gabrielle HAIE Chris Forsgren

We’re delighted to share that Steptoe IP and Technology partner Christopher A. Suarez co-edited “Artificial Intelligence: Legal Issues, Policy, and Practical Strategies,” published by the American Bar Association Science & Technology Law Section. The book was created through a collaboration between the Presidential ABA Task Force on Law and Artificial Intelligence and the ABA Science & Technology Law Section. It covers a wide range of important topics concerning AI and the law, and serves as a valuable resource for navigating AI's complex technology. Christopher also contributed two chapters to the book, including a co-authored chapter on Intellectual Property titled “Artificial Intelligence and the Intellectual Property Explosion,” and a solo authored chapter titled “Legal Issues at the Convergence of AI and the Internet of Things.” Visit the ABA website for more information and to purchase a copy of “Artificial Intelligence: Legal Issues, Policy, and Practical Strategies.” https://lnkd.in/eTaT8-df