The California Court of Appeal recently reversed a summary judgment ruling in favor of a geotechnical engineering firm that had conducted a brief inspection of a residential construction project's footing trench for $360. The case arose when homeowner Cheryl Lynch experienced significant property damage after her home's foundation failed and the structure began subsiding into a slope. Lynch sued Peter & Associates for professional negligence and nuisance, despite having no direct contractual relationship with the firm, which had been hired by her contractor to perform the geotechnical inspection.

A recent Delaware Court of Chancery opinion addressed the not infrequent situation where a distressed company is sold or merged but only the preferred stockholders receive consideration — and the common stockholders receive nothing. In Jacobs v. Akademos, Inc., Del. Ch., C.A. No. 2021-0346-JTL (Del. Ch. Oct. 30, 2024), a scholarly work of art, the court conducts an analysis of the fiduciary duties of the directors who approved the deal.

In response to President Biden’s October 2023 Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, on October 17, 2024, the U.S. Department of Labor (“DOL”) published its long-awaited guidance on Artificial Intelligence (“AI”) and Worker Well-Being. The DOL guidance provides a roadmap to ensure that employers’ use of artificial intelligence enhances job quality and safeguards, rather than undermines workers’ rights and well-being. Although the DOL notes that this guidance is neither binding nor intended to modify or supplant existing law, regulations, or policies, employers should take note because the DOL’s guidance is a blueprint for best practices to follow across all sectors and workplaces.

On October 9, 2024, the Department of Commerce’s Bureau of Industry and Security (BIS) published best practice recommendations (Guidance) for complying with the Export Administration Regulations (EAR). Noting that "[E]very export – every single one – has a related financial transaction,” BIS is providing direction to financial institutions on how best to comply with its regulations so banks can spot red flags and avoid being used to facilitate sanctions violations.

On October 21, 2024, the U.S. Securities and Exchange Commission’s (“SEC”) Division of Examinations (“Division”) released its 2025 examination priorities. The examination priorities outline the key risks, examination topics and priorities that the Division intends to focus on in the coming year when conducting examinations and inspections of SEC-registered investment advisers, investment companies, broker-dealers, transfer agents, municipal advisers, securities-based swap dealers, clearing agencies, and self-regulatory organizations.

For fiscal year 2025, in addition to typical areas such as disclosures and governance practices, the Division plans to also examine for compliance with new rules, the use of emerging technologies, and controls intended to protect investor information, records, and assets.

On July 26, 2024, the U.S. Department of the Treasury's Office of Foreign Assets Control (“OFAC”) announced a substantial $7,452,501 settlement with State Street Bank and Trust Company (“State Street”) and its subsidiary, Charles River Systems, Inc. (“Charles River”) related to its potential civil liability for apparent violations of OFAC’s Ukraine-/Russia-Related Sanctions (the “Sanctions”).

On September 30, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued a new General License (“GL”) and updated its Specially Designated Nationals (“SDN”) and Sectoral Sanctions Identifications (“SSI”) Lists. Earlier in September, OFAC issued two additional GLs, an updated Russia-related Frequently Asked Question (“FAQ”), and a Final Rule.

The UK’s Office of Financial Sanctions Implementation on August 20, 2024 published new guidance on its approach to ‘ownership and control’, the intention of which, it says, “is to ensure that sanctions cannot be easily circumvented.”

If a person (which includes an entity) is designated, or a ship is specified, under regulations made under the Sanctions and Anti-Money Laundering Act of 2018, their name will be recorded on the UK Sanctions List (a “Designated Person”). An entity for these purposes includes a body of persons corporate or unincorporated, or any organization, or association or combination of persons. An asset freeze and some financial services restrictions will apply to entities that are owned or controlled, directly or indirectly, by a Designated Person. Those entities might not be designated in their own right, so their names might not appear on the consolidated list of Designated Persons. However, those entities are similarly subject to financial sanctions. And determining who qualifies as a Designated Person is set forth in the guidance below.