Legal News for Weds 10/30 - Singh FTX Sentencing, Spike in Law School Apps tied to Harris Campaign, FDA Obesity Drug Shortage Review and NYC Jaywalking Decriminalized

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This Day in Legal History: Lend-Lease Act

On October 30, 1941, President Franklin D. Roosevelt approved an unprecedented $1 billion in aid to support Allied forces fighting in World War II, marking a critical milestone under the Lend-Lease Act. This act, passed earlier in March 1941, allowed the United States to provide essential military supplies to countries whose defense was deemed vital to U.S. interests, even as the U.S. maintained a stance of non-engagement. By authorizing such substantial aid, Roosevelt helped secure critical resources for Allies, particularly the United Kingdom and the Soviet Union, who were facing significant challenges against Axis powers. The agreement transformed the U.S. from a neutral party to an "arsenal of democracy," emphasizing its commitment to the Allies while avoiding direct involvement in combat.

Lend-Lease assistance encompassed a range of support, from food and raw materials to airplanes, ships, and ammunition. This aid was instrumental in sustaining Allied resistance, as it enabled countries like Britain to continue fighting even as they faced severe shortages. The success of the Lend-Lease program also laid the groundwork for formal alliances and collaborative military strategies between the U.S. and the Allied nations. While the U.S. would formally enter the war after the attack on Pearl Harbor in December 1941, the Lend-Lease Act solidified its role as a major force in the global conflict.

The Lend-Lease Act ultimately expanded beyond initial estimates, with over $50 billion in supplies and support sent to Allied nations by the war's end, demonstrating the scale of U.S. support. This historic decision on October 30 marked the beginning of the U.S.'s active yet indirect involvement in World War II, shaping not only the course of the war but also the post-war geopolitical landscape, where the U.S. emerged as a primary superpower.

Nishad Singh, former FTX engineering director, will be sentenced Wednesday for his role in the collapse of FTX, where his former boss, Sam Bankman-Fried, misappropriated $8 billion in customer funds. Singh previously pled guilty to six felony counts, cooperating with prosecutors as a witness in Bankman-Fried's fraud trial, where Bankman-Fried received a 25-year sentence.

Singh admitted to involvement in FTX's fraud and participation as a “straw donor” in political donations made by Bankman-Fried. Prosecutors have recommended leniency for Singh, who they say joined the conspiracy late and provided significant assistance, while his lawyers seek no prison time. U.S. District Judge Lewis Kaplan, who sentenced another FTX executive, Caroline Ellison, to two years for her role, will make the final decision. Singh testified he confronted Bankman-Fried about FTX's financial shortfall in September 2022, though Bankman-Fried assured him they could cover the losses.

Bankman-Fried's ex-deputy Singh to be sentenced over crypto fraud | Reuters

The University of California College of the Law, San Francisco, has reported a 64% surge in applicants this year, attributed partly to Vice President Kamala Harris, an alumna currently running for president. The school, formerly known as UC Hastings College of the Law, has received 633 applications, a significant increase from last year’s 385, and almost double the 33% rise in the national law school applicant pool. Dean David Faigman noted that many applicants are inspired by Harris’s legal career, which she highlights in her campaign.

As a public institution, the law school cannot endorse political candidates, but it prominently features Harris on its website with content about her time there. This trend mirrors a 33% increase in applications the school experienced in 2020 after Harris joined Joe Biden’s presidential ticket. Legal experts suggest that both Harris’s candidacy and the early application process this year have contributed to the heightened interest in law school.

Kamala Harris' law school reports an applicant surge as election nears | Reuters

The FDA faces scrutiny over its process for declaring drug shortages after reversing its decision on the availability of Eli Lilly’s popular weight-loss drug, tirzepatide. Due to high demand for such weight-loss treatments, compounding pharmacies have produced lower-cost versions of the drug, marketed by Lilly under Mounjaro and Zepbound, while it was in short supply. The FDA’s decision to declare the tirzepatide shortage resolved, after confirming increased supply with Lilly, prompted a lawsuit from the Outsourcing Facilities Association and a compounding pharmacy, FarmaKeio, arguing the FDA’s decision lacked transparency and public input.

The plaintiffs claim the FDA’s methods are unclear, especially since the law allows compounded versions of a drug only when a shortage is officially recognized. Attorneys argue that without clear guidelines on when shortages end, compounded alternatives may become less accessible, affecting patients who rely on affordable options. This case also comes amid broader judicial scrutiny of federal agency authority, as recent court rulings challenge long-standing deference to agency discretion. To avoid further legal conflicts, the FDA requested to reassess its shortage determination process, allowing for public input and additional data on tirzepatide availability.

Demand for Obesity Drug Copycats Pressures FDA's Shortage Review

New York City has officially decriminalized jaywalking, allowing pedestrians to cross streets outside of crosswalks and against traffic signals without risk of a fine, which previously could reach up to $300. Historically, jaywalking laws were used disproportionately against Black and Latino residents, a key factor motivating the City Council’s recent decision. Proponents argue that the new law will reduce unnecessary policing of a practice most New Yorkers see as routine, with some considering jaywalking integral to the city’s culture. However, the change comes amid rising pedestrian fatalities; nearly 200 jaywalking-related deaths have occurred over five years. Critics worry the law will make streets less safe, while city officials stress that pedestrians should remain cautious and use marked crossings when possible. The law will go into effect in 120 days, accompanied by a public safety campaign.

Jaywalking Is a New York Tradition. Now It’s Legal, Too.

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