Lookzy: all your daily legal news in 0.1 billable hours. Plain English coverage of deals, litigation and legal trends trusted by lawyers at Cravath, Latham, Skadden, Gunderson and elsewhere.

Welcome to Lookzy.  In today's Lookzy:

• Federal prosecutors' investigation into Commanders' Snyder

• Billion-dollar vape purchase

• A trial literally held in the metaverse

• ChatGPT writes an entire legal brief

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ECON SNAPSHOT

The difference between special bonuses and layoffs

THE VERDICT

Arguing today's litigation news

Secret loans.  The US Attorney’s Office for the Southern District of New York is reportedly investigating whether Commanders NFL team owner Dan Snyder violated federal law when he allegedly took a secret $55 million loan from Bank of America without informing his former minority partners. The former partners, who sold their stakes to Snyder last year, are suing him for breach of contract and fiduciary duty. Snyder even charged the team $4.5 million to put its logo on his private jet.

Student debt.  The Supreme Court is reviewing the legality of President Biden’s plan to cancel $10,000 in federal student loan debt for most borrowers. The Biden administration argues that the plan is authorized under a 2003 law called the HEROES Act, which allows student loan debt relief during wartime or national emergencies. However, at yesterday's oral arguments, some conservative justices expressed skepticism of this interpretation and questioned whether Congress intended to give such broad authority to the executive branch. 

Cost of bribery.  Mining firm Glencore Plc has been ordered by a US judge to pay $700 million as a criminal punishment for a global bribery scheme. The company pleaded guilty in May 2022 to one count of conspiracy to violate the Foreign Corrupt Practices Act, admitting that it paid millions of dollars in bribes to foreign officials in Nigeria, Chad, Venezuela and other countries to secure access to oil and other commodities. The sentence is part of a global settlement with US, UK and Brazilian authorities that could cost Glencore up to $1.5 billion.

Metaverse trial.  A Colombian court has held a hearing in the metaverse, using Meta’s Horizon Worlds technology and virtual avatars to represent the participants. The magistrate of the court said that this was an innovative way to ensure access to justice and due process during the pandemic. Check out screenshots and a video here.  

THE DEAL

Wheelin' and dealin' today's corporate news

Vaping is expensive.  Altria Group, the parent company of Marlboro, is reportedly in talks to buy e-cigarette startup NJOY Holdings for at least $2.75 billion. The deal would give Altria a second chance in the vaping market after its investment in Juul Labs turned sour. Altria reportedly also plans to sell its stake in Juul as part of a settlement with the US government over allegations that it helped fuel a youth vaping epidemic.

Big buy.  Apollo Global Management Inc. is reportedly in advanced talks to acquire Arconic Corp., a maker of aluminum products for the aerospace and automotive industries. The deal could value Arconic at around $4.5 billion, including debt. Arconic was spun off from Alcoa Corp. in 2020 and has been struggling with weak demand due to the pandemic. 

$10B shelf.  Graphics and computing company Nvidia Corp filed for a Form S-3 mixed shelf offering of up to $10 billion, providing the company flexibility to issue equity, debt and other securities in the face of a strong stock performance this year. Cooley represented Nvidia in the offering.

NBA M&A.  Marc Lasry, co-owner of the Milwaukee Bucks and CEO of Avenue Capital Group, agreed to sell his stake in the NBA team to Dee and Jimmy Haslam, owners of the Cleveland Browns. The deal values the Bucks at $3.5 billion, making them one of the most valuable franchises in sports. Lasry bought a majority stake in the Bucks for $550 million in 2014 and helped them win their first championship in 50 years last year.

BUSINESS OF THE FIRM

Lateral Moves: 

• The CFTC hired Akin Gump partner Ian McGinley, formerly a New York prosecutor with expertise in cryptocurrency and cyber crimes, to lead its enforcement unit.

Industry News: 

• Cravath Swaine & Moore is launching an English law practice in London with a finance team poached from Shearman & Sterling.

• Perkins Coie announced it is laying off 58 business professionals across its US offices, citing market conditions.

Something interesting:  Law professor Joe Regalia and a team used AI tool ChatGPT to write an entire legal brief from start to finish.  Check out the full thread with surprising results here.  

BOILERPLATE

Alright, back to billing.  That's all, folks!