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This post was originally published to Seyfarth’s Trading Secrets blog.

Once again surprising the country by acting ten days before her own self-appointed deadline, a federal judge in the United States District Court for the Northern District of Texas issued a ruling on August 20 in the Ryan v. FTC case setting aside the FTC Rule banning non-competes, and held (quoting Fifth Circuit precedent) that the ruling had “nationwide effect” that is “not party restricted” and “affects persons in all judicial districts equally.” This will undoubtedly elicit an immediate appeal from the FTC.

The Court’s reasoning is almost word-for-word identical to its Order staying the FTC Rule on July 3, 2024 (which we analyzed here). The Court once again limited its ruling to conclude that the FTC violated the APA because “[1] the FTC exceeded its statutory authority in implementing the Rule, and [2] the Rule is arbitrary and capricious.”Continue Reading Federal Texas Court Sets Aside with “Nationwide Effect” the FTC Rule Banning Non-Competes

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Seyfarth Synopsis: Orders issued by the Eastern District of Texas on Thursday July 25 and the Northern District of Texas on Friday July 26 indefinitely delayed the September 23, 2024 effective date of the Department of Labor’s revised regulation defining when a party becomes an “investment advice” fiduciary (the “New Fiduciary Rule”) and amendments to seven related prohibited transaction exemptions (“PTEs”).

In Federation of Americans for Consumer Choice v. Department of Labor (the “FACC Case”), the plaintiffs, a trade group representing the insurance industry, whose mission is “to promote a level playing field for independent insurance professionals by advocating and influencing practices, regulations, and legislation that foster consumer choice” and certain insurance professionals who are members of FACC, challenged the New Fiduciary Rule and amendments to PTE 84-24 (“PTE 84-14 Amendments”) under the Administrative Procedures Act (the “APA”). The plaintiffs moved for a stay of the effective date of New Fiduciary Rule and the PTE 84-24 Amendments, or a preliminary injunction prohibiting enforcement of the New Fiduciary Rule and PTE 84-24 Amendments, while the FACC Case is pending.Continue Reading Two Texas District Courts Issue Orders Delaying the Effective Date of DOL Fiduciary Rule and Related Amendments to Seven Prohibited Transaction Exemptions