Alerts

As the first quarter comes to a close, the ArentFox Schiff Hospitality Industry team reviews 10 of the most pressing legal issues for hospitality companies for 2025.

On April 2, California Attorney General (AG) Rob Bonta issued an alert reminding businesses operating in California that it is illegal to violate the Foreign Corrupt Practices Act (FCPA).

Noncompete provisions continue to be governed by a constantly changing patchwork of state level legislation. In general, recent laws tend to limit their use among low wage earners or individuals in certain professions, such as health care workers or veterinarians.

AFS Automotive’s Franjo M. Dolenac appeared on a panel with alumnus, Rob Cohen of Vitu, at the New Motor Vehicle Board’s Roundtable held in Sacramento, California on April 27, 2025 to talk about late title transfers for used vehicles.

The US Department of Justice (DOJ) is planning a major reorganization of the Environment and Natural Resources Division (ENRD) that includes consolidating several sections within the division into other DOJ divisions, as well as eliminating field offices.

President Trump recently announced new and increased tariffs affecting key construction materials. The on-again, off-again nature of the Trump Administration’s tariff measures are contributing to the economic uncertainty in the construction industry, including short- and long-term price escalation and supply instability.

Right now, much about the world is uncertain. Risks posed by political changes dominate the headlines and also weigh heavily on many decisions made by businesses, their advisors, and their stakeholders.

The protection of intellectual property (IP) is vital in the fiercely competitive artificial intelligence (AI) industry, necessitating a deep understanding of how the complex IP framework can be effectively leveraged to safeguard technological innovations in this rapidly evolving sector.

The Trump Administration’s latest tariff announcements are set to send shockwaves through the fashion and retail sectors, potentially upending supply chains industry wide. Consumers can expect higher costs for their favorite apparel, footwear, handbags, and accessories.

Headlines that Matter for Companies and Executives in Regulated Industries

As a further update to our alert from March 27, the Trump Administration began mass layoffs at US health agencies on April 1.

As promised by the US Department of Treasury in early March, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule removing the requirement for US companies, their beneficial owners, and US persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act (CTA).

In a highly unusual move, on March 27, the US Food and Drug Association (FDA) issued a Drug Safety Notice that calls into question both pending and approved abbreviated new drug applications (ANDAs) and new drug applications (NDAs) that relied on bioequivalence studies conducted by Raptim Research Pvt. Ltd, a contract research organization based in Navi Mumbai, India.

On March 27, the US Securities and Exchange Commission (SEC) announced that it will no longer defend Biden-era regulations requiring large corporations to disclose the impacts of climate change on their businesses. This announcement follows a vote by the SEC’s three-member governing body to end its defense of the rule and comes amid industry complaints that the rule was an overstep of the SEC’s authority.

Right now, much about the world is uncertain. Risks posed by political changes dominate the headlines and also weigh heavily on many decisions made by corporations, their advisors, and their stakeholders.

Prop 65 Counsel: What To Know

This past year, in the wake of significant economic challenges facing the health care industry, an unprecedented number of receiverships were imposed upon skilled nursing facilities in Massachusetts. Historically, Massachusetts receiverships have been used sparingly as a tool to address distressed or insolvent situations, with bankruptcy being the favored option.

The US District Court for the Eastern District of New York in Manalapan Surgery Ctr., et al. v. 1199 SEIU National Benefit Fund, No. 23-CV-03525 (EDNY March 12, 2025), recently granted a motion to dismiss a complaint filed by four out-of-network ambulatory surgery centers against 1199 SEIU National Benefit Fund.

Headlines that Matter for Companies and Executives in Regulated Industries

On March 26, the Trump Administration announced a sweeping new trade action: a 25% tariff on imported automobiles and certain automobile parts from all countries, under Section 232 of the Trade Expansion Act of 1962.

On March 27, the US Department of Health and Human Services (HHS) announced a significant restructuring initiative in accordance with President Trump’s Executive Order, “Implementing the President’s Department of Government Efficiency Workforce Optimization Initiative.”

In December 2024, the Nasdaq Stock Market LLC submitted a proposal to the US Securities and Exchange Commission (SEC) to modify its requirements for calculating the minimum Market Value of Unrestricted Publicly Held Shares in connection with an initial listing on Nasdaq.

It is not all doom and gloom for the cannabis industry this year; positive developments across states and the potential (albeit remote) for federal rescheduling means the cannabis industry can expect ongoing advancements.

Sony Music Entertainment and its affiliate record labels have filed a lawsuit against the University of Southern California (USC) for copyright infringement.

This month, after half a decade of litigation, the copyright infringement case against Disney over its beloved animated film Moana finally reached a conclusion, with a jury finding non-infringement after deliberating for just over three hours.