Insights

The rapid buildout of AI infrastructure has placed data centers at the heart of a new and expanding wave of class action litigation. Over the past several months, plaintiffs’ firms with significant experience in mass tort and environmental class actions have begun recruiting plaintiffs and filing lawsuits against data center operators, alleging that noise generated by their facilities — from cooling systems, diesel generators, and HVAC equipment — constitutes a public and private nuisance and reflects actionable negligence. Companies currently operating or constructing data centers near residential communities should treat this as a material and growing legal risk.

On June 18, 2026, the California Department of Toxic Substances Control (DTSC) added microplastics to the list of Candidate Chemicals maintained under the state’s Safer Consumer Products (SCP) regulations.  The listing of microplastics, which becomes effective on October 1, 2026, is the first step in the SCP regulatory process, which could lead to restrictions on products that contain or release microplastics. 

GAO’s recent dismissal of the protest in Tyonek Technical Innovations, LLC, B-424364, B-424364.2, June 30, 2026, carries an important lesson for government contractors: if you believe solicitation terms conflict with a statute or regulation, you must raise that challenge before proposals are due—not during discussions or afterwards.

It is well established that “[c]ompetitive prejudice is an essential element of every viable protest.” Yet, for decades, the U.S. Government Accountability Office (GAO) has tempered this requirement with two critical corollaries: protesters need only demonstrate a “reasonable possibility” that they were prejudiced by an agency’s actions, and GAO “will resolve doubts regarding prejudice in favor of the protester.” These principles have been consistent features of GAO’s bid protest jurisprudence for more than 30 years. See, e.g., United Int’l Eng'g, Inc., B-245448, Jan. 29, 1992, 71 CPD ¶ 177.

On July 13, 2026, the U.S. Court of Appeals for the 2nd Circuit affirmed a preliminary injunction against Nielsen, handing Cumulus Media a significant win in a constructive tying case with implications beyond the radio ratings industry. Cumulus Media New Holdings Inc. v. The Nielsen Co. (US), LLC, No. 26-88 (2d Cir. Jul. 13, 2026).

On July 17, 2026, the United States Department of Justice (DOJ) announced that it had entered into a Deferred Prosecution Agreement (DPA) with The Scoular Company (Scoular), an agricultural supply chain company based in Omaha, Nebraska, to resolve allegations that Scoular relied on customs brokers to bribe Mexican government officials to allow Scoular goods to pass customs inspections and be delivered to Mexico from the United States. As part of its resolution, Scoular agreed to pay a $9,769,521 criminal penalty and forfeit an additional $414,351. Scoular also committed to continue cooperating with DOJ on any ongoing or future criminal investigations, implement a compliance and ethics program designed to prevent and detect violations of the Foreign Corrupt Practices Act (FCPA), and periodically report to DOJ on remediation and implementation of compliance measures throughout the term of the DPA.

A recently filed class action lawsuit against Gymshark, a prominent athletic apparel company, highlights the escalating legal risks associated with influencer marketing. The complaint, brought in the U.S. District Court for the Southern District of New York on June 16, 2026, alleges that Gymshark systematically paid social media influencers to promote its products without ensuring that the influencers were providing clear and conspicuous disclosures about such payment, in violation of Federal Trade Commission (FTC) guidance and New York state law.

The FAR Council recently released an updated draft of the much-anticipated “FAR CUI Rule” that would apply to contractors government-wide.

On July 6, 2026, the U.S. Department of Justice (DOJ) and the U.S. Department of Homeland Security (DHS) published an Interim Final Rule (IFR) setting up a new federal framework that allows state, local, Tribal, and territorial (SLTT) law enforcement and correctional agencies to detect, track, and, in some cases, disable or seize drones. The rule directly affects SLTT agencies looking to stand up counter-drone programs, as well as drone and counter-drone technology companies whose products will be subject to federal review and approval. Although the IFR bypassed the Administrative Procedure Act’s standard notice-and-comment process on good cause grounds — citing the statutory 180-day deadline and urgent public safety needs — the rule is already legally binding and effective as of July 1, 2026. The Departments are nonetheless accepting post-promulgation comments through September 4, 2026.

The Board of Directors of the Qatar Financial Markets Authority (QFMA) has issued Decision No. 3 of 2026, introducing the Instructions for the International License to Practice Certain Activities in International Financial Markets (the Instructions).

In the underlying litigation, Epic Games alleged that Apple violated antitrust and unfair competition laws by engaging in anti-steering behavior related to purchases on Apple’s in-app payment system. Apple received a percentage of payments made through this system, and Epic Games argued that Apple prohibited app developers from informing users about alternative payment options.  

As discussed in more detail here, the U.S. Department of War (DoW) recently issued a memorandum (Memo 26-P-1023, dated July 13, 2026) directing the immediate suspension of Cybersecurity Maturity Model Certification (CMMC) Phase II requirements (Level I and II self assessments are still permitted). Significantly, the memo directs that “all pending and future CMMC implementation milestones across DoW solicitations and contracts are held in abeyance until further notice.” Moreover, the DoW issued a memorandum on implementing these requirements (available here), directing agencies to issue amendments removing CMMC Level 2 and 3 requirements from active solicitations “as soon as practicable.” Contractors should monitor the government’s compliance with this requirement and should be prepared, if needed, to file a bid protest to protect their rights.

On June 30, 2026, the U.S. Supreme Court issued its decision in West Virginia v. B.P.J. / Little v. Hecox, holding that Title IX permits schools to limit participation in girls’ and women’s sports to students assigned female at birth and that state laws limiting such teams to students assigned female at birth do not violate the federal Equal Protection Clause. The decision provides significant guidance for K-12 schools, colleges and universities, athletic departments, and state policymakers navigating participation rules for school-sponsored athletics.

On June 18, 2026, the Illinois Department of Labor took a long-anticipated step by adopting comprehensive amendments to 56 Ill. Adm. Code Part 320, the administrative rules implementing the pay transparency requirements of the Illinois Equal Pay Act of 2003 (820 ILCS 112, the Act).

Following the 10th Circuit's April 21, 2026, decision affirming the disallowance of Liberty Global’s $2.4 billion deduction under the codified economic substance doctrine, I.R.C. § 7701(o), Liberty Global filed a petition for panel rehearing or rehearing en banc on June 5, 2026. That petition has since drawn significant amicus support from various industry groups representing large taxpayers, as discussed below.

The Department of War (DoW) is immediately suspending Cybersecurity Maturity Model Certification (CMMC) Phase II requirements, which had been scheduled to take effect on November 10, 2026.

In Utech, Inc. v. United States, No. 24-1586 (Fed. Cir. June 24, 2026), the U.S. Court of Appeals for the Federal Circuit clarified that in most cases, a pre-award protest must be filed before the proposal submission deadline to avoid the Blue & Gold waiver rule.  This decision, while nonprecedential, is in line with U.S. Government Accountability Office (GAO) precedent, which has long held that pre-award protests must be filed before the proposal submission deadline.

This news bulletin is provided by the International Trade Group of Crowell & Moring. If you have questions or need assistance on trade law matters, please contact Anand Sithian or Simeon Yerokun or any member of the International Trade Group.

The EU’s steel safeguard under Implementing Regulation (EU) 2019/159 expired on 30 June 2026 and has been replaced by a new permanent instrument — the EU Steel Overcapacity Regulation (Regulation (EU) 2026/1384) (the Regulation”). It imposes tariff-rate quotas and an out-of-quota duty, similarly to the steel safeguard measures that expired. The out-of-quota duty has been raised from 25% to 50% to minimize the risk of trade diversion. The Regulation reduces duty-free imports of 26 categories of steel products into the EU by an average of 47% compared with the quotas under the until recently applicable safeguard measures.

The United States had barely finished blowing out 250 candles on its birthday cake when the Federal Trade Commission (FTC) decided to remind corporate America what “Made in USA” is actually supposed to mean. On July 6, 2026, the FTC sent a pointed message to the marketplace: unsubstantiated “Made in USA” claims will not go unnoticed. The FTC sent warning letters to several companies advertising products as “Made in USA” — and, in at least one case, “Made in Texas” — despite information suggesting that the products were imported in whole or in significant part.