Good morning – it’s Friday, June 5, 2026.
Here are six legal developments we’re tracking this week.
Estimated read time: 4 minutes
Lead Story
Supreme Court Allows Alabama to Use Congressional Map During Voting Rights Challenge
What happened: The U.S. Supreme Court stayed a lower-court injunction, allowing Alabama to use a Republican-drawn congressional map for the 2026 midterm elections. The order pauses a three-judge federal panel’s ruling that the map intentionally discriminated against Black voters, finding Alabama is likely to succeed on claims under the Voting Rights Act and Equal Protection Clause.
Why it matters: The ruling is the first major Voting Rights Act test since Louisiana v. Callais and offers an early indication of how the Court may evaluate racial-discrimination claims in congressional redistricting. The reinstated map includes one majority-Black district rather than the two required by the lower court, likely benefiting Republicans in the 2026 elections.
Implication: The order clarifies when states may obtain emergency relief from redistricting injunctions before an election and reinforces a narrower view of discrimination claims under the Voting Rights Act.
Read more: New York Times | Order
The Docket
Supreme Court Upholds SEC Disgorgement Without Proof of Investor Loss
A unanimous Supreme Court ruled that the Securities and Exchange Commission need not prove investors suffered financial losses before seeking disgorgement of ill-gotten gains. The Court affirmed a Ninth Circuit decision requiring securities-fraud defendant Ongkaruck Sripetch to disgorge more than $3 million in profits and interest from a penny-stock manipulation scheme.
Why it matters: The ruling confirms the SEC may seek disgorgement in federal court without proving investors suffered quantifiable harm. The decision preserves a key enforcement tool that generated roughly $1.4 billion in recoveries in fiscal 2025.
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Illinois Lawmakers Pass Bill Restricting Private Equity Control of Law Firms
Illinois lawmakers passed House Bill 5487, which would strengthen restrictions on nonlawyer control of law firms, including legal structures used by private equity firms and other investors to support law practices. Colorado passed a similar measure awaiting gubernatorial action, while a related proposal has advanced in California.
Why it matters: The legislation reflects growing state scrutiny of investment structures that may give nonlawyers influence over law firm operations without direct ownership. If enacted, the measure could require firms to reevaluate MSO-backed arrangements and other outside-investment models in Illinois.
Read more: Wall Street Journal | Enrolled Bill
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Supreme Court Bars Mexico’s Suit Against U.S. Gun Manufacturers
The Supreme Court unanimously reversed the First Circuit, holding that the Protection of Lawful Commerce in Arms Act bars Mexico’s lawsuit against U.S. gun manufacturers over firearms trafficked to drug cartels. The Court found that Mexico failed to plausibly allege the manufacturers aided and abetted unlawful downstream sales, holding that industry-wide practices and indifference were insufficient to invoke the Act’s predicate exception absent plausible allegations of affirmative assistance and intent.
Why it matters: The decision clarifies the standard for invoking the Act’s predicate exception under an aiding-and-abetting theory and limits claims based on generalized distribution practices or downstream criminal misuse.
Read more: SCOTUSblog | Opinion
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Trump Order Removes Job Protections From Nearly 8,000 Career Federal Employees
President Donald Trump signed an executive order removing job protections from nearly 8,000 career federal employees in policymaking roles, making them easier to dismiss. Covered positions include agency and program leaders, employees involved in drafting regulations, lawyers who help set agency policy, and personnel responsible for grant decisions.
Why it matters: The order raises questions about the president’s authority to remove protections from career officials involved in rulemaking, agency policy, and grant administration. The change could affect continuity and independence in those functions.
Read more: New York Times | Executive Order Appendix
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D.C. Circuit Blocks Discharge of Transgender Service Members While Allowing Enlistment Ban
A divided D.C. Circuit allowed the Pentagon to continue barring transgender people from enlisting while blocking the discharge of current transgender service members. The court said the 2025 policy was unlawfully motivated “by the bare desire to harm a politically unpopular group,” while recognizing the Pentagon’s authority to set enlistment standards.
Why it matters: The ruling preserves the status quo for current transgender service members while the equal-protection challenge proceeds. Defense Secretary Pete Hegseth said the government will seek Supreme Court review.
Read more: Associated Press | Opinion
Partner Signal
Milbank Raises Associate Pay Scale
Milbank raised salaries to $235,000 for first-year associates and $455,000 for eighth-year associates, with McDermott Will & Schulte matching the scale. The increases follow a strong 2025, with law firm revenue rising 12.6% and equity partner income up 15.5%.
Reuters
What We’re Watching
Florida Amends Rules to Address AI Use
The Florida Supreme Court will require filers to certify that cited authorities are accurate. The rule permits sanctions for inaccurate or fabricated authorities, including AI-generated citations, and replaces circuit-level AI disclosure requirements with a uniform statewide standard.
The Florida Bar
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