The U.S. Supreme Court’s new term, starting October 7, will tackle significant regulatory and business-related issues, potentially reshaping the landscape for federal agencies and private plaintiffs. The term will feature high-profile cases including one involving the vape industry, which presents an opportunity for the conservative majority to scrutinize the actions of regulatory bodies, such as the FDA’s denial of application for flavoured e-cigarette products.
This case follows the Supreme Court’s decision in June, which overturned the "Chevron deference" principle, previously requiring judicial deference to federal agencies’ interpretations of statutes. This significant shift arose from a case concerning a fish conservation program. The forthcoming case on flavoured vape products involves companies such as Triton Distribution and Vapetasia seeking approval for nicotine products in various flavours. The FDA contends that these products pose substantial risks to youth, which has led to the denial of over a million applications, with only 27 tobacco or menthol-flavoured products being approved.
Furthermore, the Court will deliberate on securities fraud cases involving major technology companies, Nvidia and Meta Platforms (Facebook). These cases could restrict private plaintiffs' ability to succeed in securities fraud claims. On November 6 and 13, the Court will hear arguments on Facebook’s motion to dismiss a lawsuit alleging misleading statements about the misuse of user data and Nvidia’s effort to dismiss litigation regarding alleged misrepresentations about sales connected to the cryptocurrency industry.
Legal experts suggest that these cases may result in heightened disclosure obligations for companies and modified pleading standards for plaintiffs. Karen Woody of Washington & Lee University School of Law anticipates rulings favouring the companies, potentially leading to increased liability exposure for them. The business community may need to adapt to these evolving legal standards, reflecting the broader impact of recent and forthcoming Supreme Court decisions.
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