Insights & Regulatory Updates
DOJ Takes Aim at Visa’s Dominance in Debit Card Market: Antitrust Lawsuit Alleges Anti-Competitive Tactics
The U.S. Department of Justice has launched an antitrust lawsuit against Visa, accusing the payments giant of exploiting its dominance in the debit card market to stifle competition and impose exorbitant fees on consumers and businesses. The suit, filed in the U.S. District Court for the Southern District of New York, claims that Visa uses its market power to pressure merchants, banks, and financial institutions into using its proprietary payment processing network, resulting in billions of dollars in fees that are ultimately passed on to consumers.
DOJ and SEC Crack Down on Market Manipulation: Enforcement Actions Against Short Sellers Signal Increased Scrutiny
In a decisive move against market manipulation, the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have launched parallel enforcement actions targeting prominent activist short seller Andrew Left and his firm, Citron Capital LLC. These actions underscore the increased scrutiny short sellers face and highlight the enduring prevalence of "short-and-distort" campaigns—where short sellers spread false or misleading information to drive down a company's stock price for financial gain.
Nvidia Faces DOJ Antitrust Investigation: A Potential Turning Point in the AI Industry
The U.S. Department of Justice (DOJ) has significantly escalated its antitrust investigation into Nvidia Corp., the world’s leading AI chipmaker, by issuing subpoenas not only to Nvidia but also to third-party companies. This marks a critical step forward in a probe that has been quietly gaining momentum over the past several months. The investigation centers on whether Nvidia’s business practices have unfairly restricted competition in the rapidly growing AI chip market, with potential implications for the broader tech industry.
DOJ Announces New Pilot Program for Voluntary Self-Disclosures: What You Need to Know
The Department of Justice (DOJ) has introduced a new pilot program aimed at incentivizing individuals involved in corporate wrongdoing to voluntarily disclose information. This initiative, highlighted by Principal Deputy Assistant Attorney General Nicole M. Argentieri, underscores the DOJ’s commitment to enhancing accountability and uncovering hidden corporate misconduct.
California Law Firm Settles False Claims Act Allegations Over Misuse of PPP Loan Funds
On August 15, 2024, a California-based law firm, along with senior managers, agreed to a settlement totaling $274,000 to resolve allegations of False Claims Act violations related to the misuse of Paycheck Protection Program (PPP) loan funds.
New Corporate Whistleblower Awards Pilot Program: A Game Changer for Corporate Accountability
On August 1, 2024, Principal Deputy Assistant Attorney General Nicole M. Argentieri unveiled a significant new initiative: the Corporate Whistleblower Awards Pilot Program. This program represents a strategic enhancement to the Department of Justice’s (DOJ) enforcement capabilities and aims to fortify corporate accountability across multiple sectors.
Activist Short Seller Indicted for $16M Market Manipulation Scheme
On July 26, 2024, a federal grand jury in the Central District of California returned an indictment charging Andrew Left, a well-known activist short seller, with multiple counts of securities fraud. The indictment alleges that Left orchestrated a sophisticated market manipulation scheme that generated at least $16 million in illicit profits.