Attorney Wire Briefing: August 14, 2026
Includes Meta and TikTok’s Section 230 appeal, FinCEN’s Corporate Transparency Act exemptions, Eli Lilly’s retatrutide lawsuits, and the dismissal of fraud charges against Gautam Adani.
Good morning – it’s Friday, August 14, 2026.
Here are six key legal developments we’re following.
Estimated read time: 3 minutes
Lead Story
Ninth Circuit Rejects Meta, TikTok Bid for Immediate Section 230 Review
What happened: The U.S. Court of Appeals for the Ninth Circuit dismissed interlocutory appeals by Meta Platforms Inc. and TikTok in multidistrict social media addiction litigation. The panel held that Section 230 provides a defense to liability rather than immunity from suit, precluding immediate appeal under the collateral-order doctrine. The court did not reach the merits of the Section 230 defenses.
Why it matters: The decision limits immediate appellate review of adverse Section 230 rulings in the Ninth Circuit, leaving district courts to apply the defense claim by claim while preserving review after final judgment.
Implication: The ruling may shape litigation strategy in Section 230 cases by limiting when parties can seek appellate review of adverse district court decisions.
The Docket
New York Judge Temporarily Blocks Pied-à-Terre Tax Rollout
A New York Supreme Court justice temporarily blocked implementation of New York City’s pied-à-terre surcharge, ordering the Department of Finance to remove a newly published tax roll and halt related notices. Plaintiffs argue the city unlawfully shifted the burden of establishing primary residency to homeowners rather than making initial determinations from tax and property records.
Why it matters: The challenge tests the Department of Finance’s statutory authority and procedural compliance in levying municipal surcharges. An automatic stay triggered by the city’s appeal allows implementation to continue while litigation proceeds.
Read more: Wall Street Journal | Order to Show Cause
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FinCEN Finalizes Corporate Transparency Act Reporting Exemptions
The Financial Crimes Enforcement Network finalized a rule exempting U.S. companies and domestic persons from beneficial ownership reporting under the Corporate Transparency Act. FinCEN will purge previously reported data on U.S. persons. Foreign companies registered to do business in the U.S. remain subject to foreign beneficial ownership reporting.
Why it matters: The final rule narrows the Corporate Transparency Act’s reporting regime, eliminating requirements for U.S. companies while preserving limited obligations for certain foreign entities.
Read more: U.S. Department of the Treasury
…..
Fifth Circuit Vacates Parts of No Surprises Act Payment Formula
Sitting en banc, the Fifth Circuit vacated portions of federal regulations calculating qualifying payment amounts under the No Surprises Act. The court held that regulators improperly permitted insurers to include “ghost rates” for non-provided services and categorically excluded bonus payments. It sustained the exclusion of case-specific rates.
Why it matters: The ruling alters the methodology governing qualifying payment calculations, affecting legal leverage and administrative arbitration strategy in reimbursement disputes between insurers and out-of-network providers.
Read more: Reuters | Opinion
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Eli Lilly Sues Clinics, Distributors Over Unapproved Weight-Loss Drug
Eli Lilly & Co. filed six federal lawsuits in California and Texas against clinics, pharmacies, and distributors over the unauthorized sale of retatrutide. Lilly alleges defendants market the investigational weight-loss drug for human use despite “research use only” labeling and a lack of FDA approval.
Why it matters: The lawsuits illustrate potential civil and regulatory exposure from marketing investigational drugs before FDA approval, as well as manufacturers’ use of private civil claims alongside FDA enforcement.
Read more: Wall Street Journal | Complaint
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Federal Judge Dismisses Fraud Charges Against Gautam Adani
A federal judge in the Eastern District of New York granted the Justice Department’s motion to dismiss securities and wire fraud charges against Gautam Adani. The order accepted stated grounds involving evidentiary hurdles and the case’s predominantly foreign nature, but criticized a senior DOJ official for acting without input from line prosecutors and investigating agents.
Why it matters: The decision underscores the narrow scope of judicial review under Rule 48(a), affirming broad executive prosecutorial discretion even when courts question internal department procedures.
Read more: Reuters | Memorandum and Order
Partner Signal
Law Firm Demand, Billing Rates Continue to Rise
U.S. law firm demand rose 3% and billing rates grew 7.1% in Q2 2026. Non-equity partner demand rose 6% and associate demand grew 4.3%, while equity partner demand fell 1.2%. Direct expenses increased 8.3% and technology spending rose 11.6% year over year.
Reuters
What We’re Watching
DOJ Renews Supreme Court Bid to Enforce Mail-Ballot Order
The Justice Department filed a supplemental brief urging the Supreme Court to stay an injunction blocking President Trump’s executive order on mail voting ahead of the November midterms. The ruling will determine whether the challenged provisions take effect while underlying litigation continues.
Reuters
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