Court Rejects Substantial Continuity Test for Successor Liability
Client Alert | 1 min read | 09.22.14
In U.S. ex rel. Bunk v. Birkart Globalistics, the U.S. District Court for the E.D. of Virginia heldthat the "traditional rule," and not the more relaxed "substantial continuity" test prevalent in the labor context, governs whether a successor in interest can be held responsible for damages and penalties assessed under the False Claims Act against its predecessor (though acknowledging that the courts are split overwhich test applies). Under the "traditional" rule, the successor in interest does not assume the liabilities of the corporation from which it acquires the assets unless the plaintiff can establish that one of four exceptions applies: (1) the successor expressly or impliedly agreed to assume suchliabilities, (2) the transaction can be considered a de facto merger, (3) the successor can be considered "a mere continuation of the predecessor" (meaning that only one corporation remains, with identical stock, stockholders, and directors), or (4) the transaction was fraudulent.
Insights
Client Alert | 5 min read | 08.21.26
FTC Proposes Enforcement Policy Statement on Personalized Pricing: What Businesses Need to Know
On August 19, 2026, the Federal Trade Commission (FTC) announced a proposed Enforcement Policy Statement on personalized pricing — the practice of companies using consumers’ personal data to set individualized prices, discounts, coupons, or other incentives. The proposed statement, which is open for public comment for 30 days following publication in the Federal Register, marks a major step up in the FTC’s focus on data-driven pricing strategies and puts businesses across industries on notice that undisclosed or inadequately disclosed personalized pricing will not be tolerated. Importantly, while the proposed statement is not a binding legal requirement and does not create new legal obligations, it serves as an enforcement warning that the FTC is prepared to use its existing enforcement authority under Section 5 of the FTC Act (Section 5) and is also a potential harbinger of rulemaking. Businesses that engage in — or are considering — personalized pricing should carefully assess their disclosure practices and data collection procedures against the standards articulated in this statement.
Client Alert | 7 min read | 08.19.26
CMS’s Final Rule Bans Federal Medicaid Funding for Youth Gender-Affirming Care
Client Alert | 2 min read | 08.19.26
