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Today: A federal judge vacated Trump's $1.776 billion self-dealt IRS settlement and referred his attorneys to the bar for fraud on the court. The EU General Court affirmed Apple's interoperability obligations under the Digital Markets Act, rejecting claims that security concerns exempt gatekeepers from competition requirements. Finland issued a wanted notice for hacker Aleksanteri Kivimäki after conviction for breaching 33,000 psychotherapy records. New York's 3D printer surveillance law takes effect despite privacy and First Amendment concerns. Federal prosecutors unsealed indictments against three Russians operating bulletproof hosting infrastructure used by LockBit, BlackSuit, and multiple carding forums.
Federal Judge Vacates Trump IRS Settlement, Refers Lawyers for Ethics Investigation
Federal Judge Kathleen Williams vacated a settlement where President Trump sued his own IRS for $10 billion over tax record leaks, then "settled" by creating a $1.776 billion fund for supporters and obtaining immunity from past tax violations. The court found the case lacked adversarial parties since Trump controlled both plaintiff and defendant sides, calling it "the very definition of sui generis" and "nothing ordinary." The 56-page ruling noted plaintiffs characterized Trump's dual role as President and plaintiff as "ordinary" despite being "public servants sworn to uphold the law, faithfully perform the duties of their office, and protect the interests of the American public." Williams referred attorneys to the bar for potentially manipulating the judicial process to "gain unprecedented access to the public fisc with the patina of legitimacy."
Finland Issues Wanted Notice for Vastaamo Psychotherapy Breach Hacker
Finland's Supreme Court refused Aleksanteri Kivimäki's appeal, finalizing his seven-year sentence for aggravated data breach, attempted extortion, and unlawful distribution of private information. Kivimäki hacked psychotherapy provider Vastaamo in 2018, stole records of 33,000 patients, extorted the company and then demanded ransom directly from over 24,000 patients. When victims refused payment, confidential therapy notes were published online. Eastern Uusimaa Police issued a wanted notice after Kivimäki failed to report to Vantaa Prison. The Court of Appeal called the crimes "carefully planned, driven by financial gain" causing "exceptional harm to a large number of especially vulnerable victims," many children or trauma patients. His lawyer stated Kivimäki is believed to be outside Finland.
US Unseals Indictment Against Russian Bulletproof Hosting Operators
Federal prosecutors unsealed indictments against three Russians operating Media Land and ML Cloud, bulletproof hosting services supporting ransomware groups LockBit, BlackSuit, and Play, plus carding forums Briansclub, Cardhouse, crdclub, Club2crd, Verified, Fullzinfo, Swipestore, and Bidencash. Aleksandr Volosovik (Media Land owner), Yulia Pankova (ML Cloud owner), and Kirill Zatolokin (payment coordinator) face conspiracy to commit computer fraud, wire fraud, and money laundering charges. The indictment cites 44 unnamed victims suffering $62 million in losses from cybercriminal groups aided by the services. The State Department posted a $10 million Rewards for Justice bounty emphasizing foreign government links to Media Land and ML Cloud activities. All three defendants are St. Petersburg residents and likely beyond extradition.
Las Vegas Grand Prix $3.04M Class Action Settlement Approved
Liberty Media Corp. and Las Vegas Grand Prix Inc. settled for $3,047,986 to resolve claims that they wrongfully revoked admission to the 2023 Las Vegas Grand Prix without refunds. Class members who purchased tickets subsequently canceled by organizers are eligible for compensation from the settlement fund.
Dude Wipes Class Action Challenges Plant-Based and Hypoallergenic Claims (Case No. 5:26-cv-06023)
Plaintiffs Rena Roman and Bryan Dawe filed suit in the Northern District of California alleging Dude Products falsely advertised Dude Wipes as "99% Water & Plant Based Ingredients" and "Hypoallergenic" despite containing synthetic ingredients (cocamidopropyl PG-dimonium chloride phosphate, sodium benzoate, citric acid, fragrance) and recognized contact allergens (sodium benzoate, fragrance, chamomile). Plaintiffs claim the fragrance-free variant contains chamomile functioning as fragrance. They allege violations of California's Consumers Legal Remedies Act, Unfair Competition Law, False Advertising Law, breach of express warranty, and unjust enrichment. Plaintiffs seek class certification, damages, attorneys' fees, and jury trial.
Dig Inn Accused of Hiding Delivery Fees in Tax Line Items (Case No. 1:26-cv-03236)
Plaintiff J.R. Klein filed suit in the Southern District of New York alleging Dig Inn Restaurant Group bundles service fees into a "taxes and fees" line item, misleading consumers about true costs. Klein claims Dig Inn advertises $0.00 delivery fees while extracting delivery costs through the tax line, exploiting consumer belief that taxes are non-negotiable government charges. The complaint alleges breach of contract, unjust enrichment, and violations of New York General Business Law. Klein seeks nationwide class certification, actual damages, statutory damages of $500 per violation, treble damages, and injunctive relief.
Hilton Grand Vacations TCPA Class Action (Case No. 2:26-cv-00258)
Plaintiff Melissa Plenty filed suit in the Eastern District of Washington alleging Hilton Grand Vacations violated the Telephone Consumer Protection Act by making marketing calls after she registered her number on the Do Not Call Registry in 2012 and explicitly requested the company stop contacting her. Plenty claims she received calls from different numbers after attempting to cancel a reservation due to medical conditions. The complaint seeks statutory damages up to $1,500 per violation and injunctive relief to prevent continued telemarketing.
New Jersey Court Dismisses Glenmark Drug Recall Suit for Lack of Standing (Case No. 2:25-cv-02984)
The District of New Jersey dismissed a class action against Glenmark Pharmaceuticals alleging false representations about cholesterol drug safety despite product recalls. The court held plaintiffs failed to establish Article III standing because they did not allege purchasing or consuming drugs from recalled lots. Citing Huertas v. Bayer US LLC, 120 F.4th 1169 (3d Cir. 2024), the court found alleged injuries "conjectural and hypothetical" without proof plaintiffs' specific products were defective. The decision reinforces that class action plaintiffs must establish concrete, actual injury-in-fact for standing.
Twelve States Sue to Block Paramount-Warner Brothers Merger
California AG Rob Bonta led 12 states filing suit in the Northern District of California alleging Paramount/CBS' $111 billion merger with Warner Brothers violates Section 7 of the Clayton Act by reducing competition, causing layoffs, and raising consumer prices. The complaint notes the merger combines two of five major film distributors (leaving four controlling 85% of wide-release films) and two of five major basic cable channel owners (leaving two companies controlling 59% of basic cable). States include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. Oregon AG reported Paramount refused to comply with document requests about interactions with the Trump administration to expedite merger approval.
EU General Court Affirms Apple's Digital Markets Act Obligations
The General Court of the European Union rejected Apple's challenges to its gatekeeper designation under the Digital Markets Act, affirming interoperability requirements for iOS, iPadOS, and watchOS. Apple argued Article 6(7) interoperability requirements violated the Charter of Fundamental Rights and that its App Stores across platforms don't constitute a single core platform service. The court rejected both arguments, confirming developers will have more app distribution options and users more choices beyond Apple's App Store. Apple claimed interoperability requirements force lower security standards, but the court found security and interoperability are not inherently conflicting when properly implemented.
Russian Intelligence Compromising NATO Security Cameras for Military Intelligence
Dutch intelligence agencies AIVD and MIVD warned that Russian state-backed hackers systematically compromise internet-connected security cameras across Europe and Ukraine to gather intelligence on NATO military logistics and target Ukrainian troops for battlefield strikes. Attackers scan for exposed devices, exploit default passwords and outdated firmware, then use image-recognition software to identify military vehicles and cargo. The Netherlands identified compromised cameras along military transport routes supporting Ukraine. The advisory urged organizations to change default credentials, update firmware, review device configurations, and consider camera country of origin, noting China, Russia, and Iran actively conduct offensive cyber programs targeting Dutch interests.
New York 3D Printer Surveillance Law Takes Effect Despite First Amendment Concerns
New York became the first state to mandate surveillance and censorship capabilities in all 3D printers sold in-state. The law criminalizes possession and sharing of firearm component print files, though final provisions reduced felony charges to Class A misdemeanors and added a reasonable belief exception for file sharing (but not file possession with intent to share). The law originally required face-to-face sales but that provision was removed. Implementation details will be developed over the next year. EFF warns the law enables manufacturers to lock in users, collect data, and chill speech of artists, researchers, engineers, and hobbyists under the banner of reducing gun violence committed primarily with commercial firearms.
ICE Camera Crews Disguised as Media Film Anti-ICE Protesters
ICE deployed camera crews wearing "MEDIA" vests to film anti-ICE protesters in Danbury, Connecticut, despite the crews arriving in ICE vehicles and working alongside ICE agents. Connecticut Mirror reported ICE has used similar tactics in other states, embedding far-right media outlets and producing content similar to "COPS" reality TV. The Washington Post noted ICE has used misleading footage "muddying the reality of events in viral clips." The operations occurred in Connecticut after the state sued the administration multiple times and legislators pushed Yale to resist politically-motivated extortion attempts. Observers documented ICE agents using facial recognition technology and professional video cameras to identify and intimidate protesters exercising First Amendment rights.
Supreme Court Justice Thomas Argues Equal Protection Doesn't Apply to Federal Government
Justice Clarence Thomas wrote a concurring opinion in Mullin v. Doe arguing equal protection does not apply to the federal government because the Fifth Amendment contains no Equal Protection Clause. Thomas stated the Court erred in Bolling v. Sharpe (1954) by reading equal protection into the Fifth Amendment's Due Process Clause. The case involved Trump suspending Temporary Protected Status for Haitians and Syrians. Justice Alito's majority opinion found no overt racism and adequate alternative explanations for the suspension. Justice Kagan dissented, quoting Trump statements showing racial animus. Thomas' position would mean segregated schools violate equal protection when mandated by states but not when imposed by Congress.
Supreme Court Limits Presidential Power to Federalize National Guard
The Supreme Court ruled 6-3 on December 23, 2025, that President Trump has limited ability to federalize state National Guard units for domestic law enforcement. The decision interpreted two federal statutes restricting presidential use of troops domestically. The ruling significantly constrains executive power to deploy military forces within the United States.
Supreme Court Budget Request Increases $20M for Security
Justices Elena Kagan and Amy Coney Barrett testified before House and Senate subcommittees requesting a $228 million budget for FY2027, a $20 million increase primarily for security expenses. The court seeks funding for a new visitor screening facility outside the Capitol Hill building and $14.6 million to expand the Supreme Court Police force. Kagan noted security became urgent after the Dobbs leak in 2022. Barrett recounted receiving a bulletproof vest after Dobbs threats and experiencing a swatting incident six weeks prior. Both justices stated individual security details range from four to eight officers compared to 20 for cabinet officials, creating overtime and burnout risks. The court needs 100-150 additional officers.
Federal agencies settling litigation must demonstrate genuine adversarial positions with independent counsel to avoid fraud on the court allegations. Document dispute resolution processes showing both sides operated independently despite organizational relationships.
Healthcare providers holding sensitive patient data should implement defense-in-depth security: encryption at rest and in transit, intrusion detection, access logging, breach response plans with law enforcement notification protocols, and extortion insurance for patient notification costs.
Organizations using internet-connected security cameras must change default passwords immediately, enable automatic firmware updates, segment camera networks from critical infrastructure, audit camera placement near sensitive facilities, and review vendor country of origin for cameras monitoring defense or government activities.
Companies using telemarketing must scrub lists against the National Do Not Call Registry before each campaign, maintain internal do-not-call lists with documented opt-out requests, and implement technical controls preventing calls from multiple phone numbers to opted-out consumers. TCPA statutory damages reach $1,500 per violation.
Tech companies with EU operations should review Digital Markets Act gatekeeper criteria (seven companies currently designated: Alphabet, Amazon, Apple, Booking, ByteDance, Meta, Microsoft) and prepare interoperability roadmaps. Security objections to interoperability must be supported by specific technical evidence, not general policy claims.