US Supreme Court to Decide Fate of TikTok, Other High-Ranking Cases
The United States Supreme Court is gearing up for a packed schedule in 2025, with several high-stakes cases set to be heard that will have far-reaching implications for various industries and corporations. Among the most notable ones is the case of TikTok, which has filed an emergency appeal asking the court to block enforcement of a federal law signed by President Joe Biden in April that effectively bans the app on January 19 unless it is sold to an owner not controlled by a foreign adversary.
TikTok’s Battle with US Lawmakers
The app’s arguments that the law should be overturned in the name of free speech will be aired at a hearing scheduled for January 10, just 10 days before Donald Trump is sworn in as president. Notably, Trump had suggested during his campaign trail that he would "save TikTok." He has now asked the court to suspend the divestment deadline and consider his preference for a "negotiated resolution," given that as president, he will be responsible for national security.
Late on Friday, the Department of Justice asked the Supreme Court to reject Trump’s request, stating that no one is disputing that China seeks to undermine U.S. interests by amassing sensitive data about Americans and engaging in covert and malign influence operations. According to Mark Lightner, head of special situations legal research for CreditSights, a ruling from the Supreme Court to uphold the ban could be a long-term boon for TikTok’s social media rivals, redistributing advertising dollars to platforms like Meta.
TikTok is arguing that a law passed by Congress that could result in a ban of the app violates the First Amendment. Other US tech companies that supply microchips and cloud computing services to TikTok could see a dent in revenue. The court may have tipped its hand about how it may rule, Lightner said, when it decided to hold arguments on January 10 rather than first grant TikTok’s request to pause the new law and then hear arguments later in the court’s 2025 term.
One possible outcome is that the court will find the law constitutional and let it stand, leaving Congress to deal with it if lawmakers and Trump want to reverse it. "It’s possible there were not enough votes to grant a stay a couple weeks ago," Lightner noted, adding that it takes five justices to implement a stay and just four to take up the dispute.
California Emission Standards at Center of Supreme Court Case
Another high-profile case set to be heard by the court is Diamond Alternative Energy v. Environmental Protection Agency (EPA), which centers on longstanding opposition to how California sets vehicle emission standards, which are tougher than those imposed by the EPA. The EPA allowed California a waiver so the state could more aggressively address its smog issues.
Valero Energy Corp’s Diamond Alternative Energy and other plaintiffs said the EPA’s grant of this waiver let the state act as a "junior-varsity EPA" and quasi-federal regulator on global climate change. The case will be closely watched for its potential to impact the shift from fossil fuels to electric vehicles, with the Court addressing whether the petitioners have standing to bring their case and whether the waiver is unlawful.
Workplace Fairness Cases Ahead
The Supreme Court is also set to address workplace fairness cases in 2025. One of these, EMD v. Carrera, started with work done by sales representatives at a company (EMD) that distributes food brands. These reps said they didn’t receive overtime pay despite working more hours than a normal week.
They filed a lawsuit under the Fair Labor Standards Act (FLSA), and found a lower court willing to rule in their favor. The Supreme Court, however, ruled that EMD followed the wrong standard in classifying representatives as exempt from minimum wage and overtime pay. Although Congress passed the FLSA allowing employers to exempt certain workers from overtime pay, including those who work as outside sales reps, the lower court said a company must show "clear and convincing evidence" that a worker is exempt.
Forum Shopping Ahead
Another case set to be argued this month before the Supreme Court is Food and Drug Administration v. R.J. Reynolds Vapor Co., which started with tobacco maker R.J. Reynolds challenging an FDA ban on flavored e-cigarettes. They made the challenge in a New Orleans-based federal appeals court known as the Fifth Circuit, which covers Texas and nearby states.
A normal case against the FDA would be filed in Washington or where R.J. is based, but they chose to join with sellers of vapes in Texas to file in the Fifth Circuit. The Fifth Circuit ruled in R.J.’s favor last year, prompting the FDA to ask for a Supreme Court review. The Biden administration’s Justice Department argued that allowing this ruling undermines precedents of other courts and facilitates "blatant forum shopping."
Wire Fraud and Wrongdoing
Finally, another Supreme Court case set to come before the high court in 2025 deals with expanding or limiting the Justice Department’s reach on financial wrongdoing. The case is Stamatios Kousisis and Alpha Painting and Construction v. US and concerns a contractor who deceived the government in an application for a government contract.
The government argues that federal wire fraud statutes should be interpreted broadly to permit prosecution, even when the government did not suffer financial harm. According to Daniel Ahn, a white-collar defense attorney, if this interpretation is accepted, it could lead to more investigations into corporate conduct and to an increase in criminal and civil prosecutions.
Conclusion:
The United States Supreme Court has taken a prominent role to play in shaping key cases surrounding corporations, the auto industry, and even the realm of government policy. With several high-stakes cases set to be heard this year, it will be important for corporations and their executives to keep an eye on proceedings, as these rulings could potentially lead to huge impacts across the board – including how businesses operate within regulations – or have significant ripple effects in industries like oil and gas which rely heavily on government policy decisions.