Legal News for Mon 10/7 - SCOTUS Term Opens Under Scrutiny, Legal Job Market Growth, McDonald's Lawsuit Over Beef Price Fixing

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This Day in Legal History: GDR Established

On October 7, 1949, the German Democratic Republic (GDR), commonly known as East Germany, was officially established. This marked the formal division of Germany into two separate states after World War II. The creation of East Germany came in response to the formation of the Federal Republic of Germany (West Germany) earlier that year, in May 1949. Backed by the Soviet Union, the GDR was a socialist state governed by the Socialist Unity Party (SED), and its formation signaled the deepening divide between the Eastern and Western blocs during the Cold War.

East Germany’s legal and political structure was heavily influenced by Soviet-style socialism, with a focus on state control over the economy and a one-party system that suppressed political opposition. The GDR also became notorious for its secret police, the Stasi, which played a significant role in monitoring and controlling the population. Over time, East Germany built the Berlin Wall in 1961, a physical symbol of the broader ideological and geopolitical divisions of the Cold War.

The existence of two Germanys, one capitalist and the other socialist, persisted for 41 years until the fall of the Berlin Wall in 1989, leading to German reunification in 1990. The legal creation of East Germany on this day stands as a key moment in the Cold War era, illustrating the legal and ideological rift that shaped post-war Europe.

The U.S. Supreme Court begins its new term with a docket of significant cases, including disputes over guns, transgender rights, workplace discrimination, and online pornography. After a busy summer of emergency decisions, the Court's first case focuses on the Biden administration's appeal regarding "ghost guns," which can be purchased online and assembled without traceable serial numbers. Another key case involves Oklahoma death row inmate Richard Glossip, who seeks a new trial amid questions about his conviction.

Additional cases involve Tennessee's ban on gender-affirming care for minors, workplace discrimination claims brought by "majority background" workers, and the authority of federal agencies like the Nuclear Regulatory Commission and FDA. The Court also faces potential involvement in election disputes surrounding the 2024 presidential race. Despite its heavy docket, the shadow of ethical controversies and a proposal for Supreme Court reforms loom over the term.

Trump’s Election Bid Is a Wild Card as Supreme Court Term OpensUS Supreme Court kicks off new term with important cases ahead | Reuters

The U.S. legal services sector added 1,600 jobs in September 2024, ending a four-month decline, according to the Labor Department. The legal job market's rebound mirrors broader U.S. job growth, with unemployment falling to 4.1%. Recruitment firms report steady demand for legal personnel, especially at large law firms, across various regions and practice areas. Legal sector employment had peaked at 1,190,300 jobs in February 2024. Law firms saw an 11.4% rise in revenue in the first half of the year, with increased demand for transactional practices.

US legal jobs rebound after 4-month slump, Labor Dept says | Reuters

McDonald's has filed a lawsuit against several of its beef suppliers, including Tyson Foods, JBS, and Cargill, accusing them of conspiring to inflate beef prices in violation of federal antitrust laws. The fast-food chain alleges that the suppliers colluded to fix and raise beef prices by reducing the supply of slaughter-ready cattle, which artificially elevated prices. The alleged conspiracy, which began in 2015, was aimed at recovering profit margins impacted by years of drought.

McDonald's claims that the suppliers limited production by closing plants and restraining market supply. The lawsuit seeks a declaratory judgment, damages three times the amount of losses sustained, and a permanent injunction to prevent future collusion. The U.S. Department of Justice had already investigated price-fixing in 2020, and testimonies from cattle ranchers have reportedly confirmed the conspiracy. During this period, the suppliers saw record profits, with JBS reporting a significant revenue increase between 2014 and 2021.

McDonald's Says Tyson and Other Suppliers Fixed Beef Prices

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