tariffs

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Last week, the U.S. Supreme Court heard oral argument in the legal case in which the claimants are challenging the constitutionality of President Trump’s tariffs. While we await the Court’s decision in the case, the tariffs remain in place, with consequences both for the global economy and for individual businesses. In the latest example of the ways in which these consequences can translate into tariff-related securities litigation, a plaintiff shareholder has sued used car retailer CarMax, alleging that the company tried to portray the quarterly sales surge that preceded the tariffs’ impact as being due to longer-term company advantages rather than tariff-motivated consumer behavior. A copy of the new CarMax complaint can be found here.Continue Reading CarMax Hit with Tariff-Related Securities Suit

For those who, like me, watch bankruptcy filing developments for signs about the current and possible future state of the economy, recent data may be worrisome. Just Monday, the Wall Street Journal cited two recent auto parts companies’ bankruptcy filings as evidence of potential trouble in the U.S. credit markets, saying the developments and raising concerns that “something more profound is ailing American borrowers.” Consistent with these concerns, a recent report from Cornerstone Research shows that large company bankruptcy filings are indeed trending upward, with the largest increases in the most recent period. Signs are that these trends will continue going forward, as well.Continue Reading Worrying Signs in Bankruptcy Statistics?

In my recent roundup of the top current stories in the world of D&O, I noted the increasing importance of geopolitical issues as a source of D&O claims risk. Among the factors supporting this trend is the rising relevance of cross-border enforcement initiatives, which in many instances had led to D&O claims. In the latest sign of the importance of cross-border enforcement issues, the SEC has announced the formation of a cross-border task force to “identify and combat cross-border fraud harming U.S. investors.” The SEC’s September 5, 2025, press release about the task force can be found here.  A September 10, 2025, post on TheCorporateCounsel.net blog about the new task force’s formation can be found here.Continue Reading SEC Forms Task Force to Combat Cross-Border Fraud

Since the outset of President Trump’s efforts to conduct trade policy through an active use of tariffs, I have been concerned about the possibility of tariff-related corporate and securities litigation. Inevitably, I have been concerned, investors will say that companies tried to soft-pedal the likely impact of tariffs on the companies’ financial results. But while…

In the following guest post, Ed Whitworth, the Head of Financial Lines at Inigo, and Yera Patel, Head of Casualty & Financial Lines Claims and Analytics for Inigo, summarize the results of a recent survey Inigo conducted of U.S. securities litigation defense counsel. The original of the survey summary previously was published on Inigo’s blog, here. I would like to thank Ed, Yera, and Inigo for allowing me to publish the report summary on this site. I welcome guest post submissions from responsible authors on topics of interest to the blog’s readers. Please contact me directly if you would like to submit a guest post. Here is the authors’ article. Continue Reading Guest Post: Inigo’s 2025 Defense Counsel Survey

In prior posts (most recently here), I have noted the risk to companies in the current global trade environment of governmental enforcement actions relating to the collection and payment of tariffs. Indeed, in a May 12, 2025, memo, Assistant Attorney General Matthew Galeotti identified “trade and customs fraud, including tariff evasion” as the Department of Justice’s number two corporate criminal enforcement priority.

In the latest sign that the Trump administration is ready to aggressively deploy its enforcement tools to ensure compliance with tariffs and other trade goals, the U.S. government has filed a complaint in intervention in a pending qui tam action against a South Carolina furniture company, alleging that the company used false documentation to underreport the price of furniture the company imported from China, resulting in tariff underpayment. The new case underscores the fact that as the current Trump rolls out and enforces its sweeping tariff program, companies will face significant scrutiny and potential claims risk.Continue Reading Trump Administration Brings Tariff Evasion Claim

In numerous public statements, Trump Administration officials have said the Administration intends to use the False Claims Act (FCA) to enforce certain policy priorities. For example, in connection with statements concerning the Administration’s intent to combat “illegal DEI,” officials have declared that corporate DEI policies or practices violating anti-discrimination laws could trigger FCA liability.  There are a number of levels on which potential FCA liability represents a serious corporate liability risk, not least because of the possibility of whistleblowers (including company employees or competitors) launching FCA whistleblower claims. In addition, as discussed below, a recent Southern District of New York ruling highlights how potentially massive FCA liability can be.Continue Reading More About the Trump Administration and Potential False Claims Act Liability

Sarah Abrams

As I have noted in previous post on this site (most recently here), the Trump Administration’s tariff and trade policies not only pose potential operating and financial challenges to many businesses, but they may also present companies with corporate liability exposures as well. In the following guest post, Sarah Abrams, Head of Claims Baleen Specialty, a division of Bowhead Specialty, considers the liability risks that companies may face under the current tariff regime. I would like to thank Sarah for allowing me to publish her article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Sarah’s article.Continue Reading Guest Post: Whiplash

As the Trump administration has launched, postponed, reinstated, and negotiated its evolving tariff policies, companies have been forced to deal with a changing and unpredictable business environment. As I have previously discussed, these changing circumstances not only have implications for companies’ business operations and financial results, they also have implications for companies’ potential liability exposures as well. One important area of tariff-related potential liability has to do with companies’ disclosures – that is, what the companies are saying about the impact of the tariffs on their operations and financial results.Continue Reading Tariffs and Disclosures: Corporate Risks in a Global Trade War