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THE DOCKET
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An internal investigation at CFPB reveals “a flagrant misuse of government resources to destroy a small business”; Pacific Legal Foundation attorneys file suit against the State of Arkansas; and PLF’s Alison Somin explores the impact of California’s AB5 on marginalized communities.
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HERE'S WHAT'S ON THE DOCKET.
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Following an internal investigation launched under the new administration, Consumer Financial Protection Bureau (CFPB) officials determined that their case—alleging racial discrimination against PLF client Barry Sturner and his small mortgage lending firm, Townstone Financial—was both legally and factually baseless.
On Wednesday evening, CFPB filed a joint motion with Townstone seeking to vacate a November 2024 settlement and return the $105,000 fine paid by the firm.
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On Wednesday afternoon, PLF attorneys filed a federal lawsuit on behalf of Do No Harm and the Foundation Against Intolerance & Racism challenging an Arkansas law that mandates race-based quotas on certain state licensing boards.
This challenge represents the latest chapter in our initiative to end unconstitutional discrimination on public boards across the country—following similar lawsuits we’ve launched in Louisiana, Montana, North Carolina, South Carolina, and Tennessee.
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Last week, President Donald Trump summarily fired two members of the Federal Trade Commission (FTC)—a seemingly unremarkable occurrence at the start of a new presidential administration. At least, it would’ve been, if not for the fact that Congress restricts the president’s ability to fire commissioners to instances of “inefficiency, neglect of duty, or malfeasance in office.”
So, did President Trump break the law? Did he interfere with the proper functioning of the FTC? PLF’s Josh Robbins and Oliver Dunford provide insight into those questions and more.
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Last week, in a case involving two feuding brothers who own a horseracing track, the Arizona Court of Appeals closed the loop on the State’s recent legislative mandate for de novo review of agency decisions.
That’s great news for Arizona and a shining example for other jurisdictions to follow—but what does it all mean? PLF attorney Ashley Levine breaks it down.
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Conventional wisdom suggests that legislation like California’s AB5 is good for marginalized communities—because racial and ethnic minorities and women tend to represent most of a state’s independent contractors.
But as PLF’s Alison Somin explains, “the breadth of testimony about AB5’s effects suggests a profoundly negative impact on many sectors of the workforce that are disproportionately minority and/or female.” Congress should take heed the next time the PRO Act—a bill essentially designed to federalize AB5—comes up for consideration.
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