Metro Nashville Finance Director Kevin Crumbo announced that $2 million earmarked for Nashville arts organizations is in jeopardy due to the mismanagement of the department budget. The Nashville Banner reports that Crumbo emphasized that monies paid to consultants and contractors are the greatest sources of concern: “One of the root causes of the internal audit review … are the reports of multiple [Metro Arts] employees who have alleged excess spending … and behaviors at the highest level of management that may violate Metro’s policies governing workplace conduct.” An internal report examining allegations of discrimination is due for release March 4.

A University of Memphis Law School Duberstein Bankruptcy Team of Alexandra Nabity, Carson Klepzig and Alton Smith won the Sixth Circuit's Shapero Cup Regional Duberstein Competition. Nabity also won the award for Best Oral Advocate. They will go on to compete in New York at the National Duberstein Competition. A second team consisting of Elizabeth Hunt, Tarik Terry and Olivia Cox made it to the semifinal round. See photos from the event. Additionally, the law school's Trial Law Team made it to the final round of regionals at the National Trial Competition in Birmingham. That team consists of Peyton Barrow, Annika Rush, Kelsey McClain, Cody Tolbert, Ciana Charity and Mary Cano. See photos from the event.

Community Health Systems (CHS) revealed in its recently-published annual report that it is under investigation by the Department of Justice (DOJ) for documents related to "practices and procedures related to utilization review, inpatient admissions and inpatient dialysis" at its hospitals, according to a U.S. Securities and Exchange Commission filing. The Nashville Business Journal reports that the DOJ has previously investigated CHS: in 2014, CHS paid $98.15 million to resolve a number of lawsuits related to billing issues and in 2018, the company paid $262 million to settle an investigation into Health Management Associates Inc., a company it purchased in 2014, for allegedly improperly billing the government for certain inpatient admissions following emergency room visits that occurred before the acquisition.

Lawyers for the state of Tennessee recently argued in front of the U.S. Sixth Circuit Court of Appeals, seeking to reverse a lower court's ruling declaring the 2023 Adult Entertainment Act unconstitutional, according to the Tennessean. Shortly after Gov. Bill Lee signed the legislation into law last summer, placing new restrictions on drag performances across the state, a federal judge in Memphis ruled it unconstitutional. Associate Solicitor General Matthew Rice, arguing on behalf of the state, told the court on Feb. 1 that the law, which restricts "male and female impersonators" from performing in public spaces or where children could witness them if the performances could be deemed "harmful to minors," could be used to police drag performances in homes as well.

According to a press release from the National Conference of Bar Examiners (NCBE), 4,124 participants from 88 law schools in 41 jurisdictions recently participated in a nationwide field test for the NextGen bar exam. The data gathered from the field test will help NCBE ensure that the NextGen bar exam fairly and accurately assesses the knowledge and skills needed by new lawyers, as well as confirm timing estimates, provide an opportunity to test computerized exam delivery and scoring systems, and give jurisdiction graders an opportunity to practice grading new types of questions. Belmont College of Law and the University of Memphis Cecil C. Humphreys School of Law were the two participating Tennessee law schools in the field test. The NextGen exam will have its first administration in July 2026.

As Shelby County works to build its budget for the next fiscal year, revenue information from last year's county-wide wheel tax increase will not be available. Shelby County Clerk Wanda Halbert has been submitting inaccurate reports or no reports at all during the last fiscal year, reports The Daily Memphian. “She provided three months — July, August and September — and those reports were inaccurate,” Shelby County Trustee Regina Newman told the news outlet. The county does not formally have the revenue figures it needs to accurately predict what money is on hand and report that in certified statements that meet accounting standards. Newman has been working with the Tennessee Comptroller’s audit division.

Eastern District of Tennessee Judge Clifton Corker today granted a preliminary injunction suspending NCAA rules regarding name, image and likeness (NIL) benefits, finding the rules likely violate federal antitrust law and caused irreparable damage to athletes. Knox News reports that while the federal case is not directly connected to an NCAA investigation into University of Tennessee, the injunction makes it more difficult to pursue. The decision could have a significant impact on college sports, as the NCAA's rules banning NIL recruiting inducements are suspended for more than 523,000 athletes at 1,088 institutions. College recruits and transfers can now negotiate and sign NIL contracts before enrolling at a university. Attorneys general in Tennessee and Virginia argued that the rules should be suspended immediately because recruits are losing leverage without the ability to negotiate their fair market value.

The 17th Annual Napier-Looby Bar Foundation (NLBF) Barristers’ Banquet and Awards Program was held yesterday in Nashville. The annual event honors distinguished attorneys and judges and supports NLBF's law school scholarships and charitable efforts throughout the year. Awards were presented to Chancellor Russell Perkins, who received the Alexander Looby Lifetime Achievement Award; Dannelle F.W. Whiteside, vice president for legal affairs and organizational strategy at Austin Peay State University, who received the J.C. Napier Trailblazer Award; and Davidson County General Sessions Court Judge Marcus Floyd, who was presented the Justice A.A. Birch Outstanding Service Award. The late Judge Richard H. Dinkins was honored at a reception immediately preceding the banquet. See a photo from the event.

Memphis Area Legal Services Inc. (MALS) has announced that retired judge Loyce Lambert Ryan has joined the organization as interim executive director following Cindy Ettingoff's departure. Lambert Ryan served as a Shelby County General Sessions Criminal Court judge for over 20 years, retiring in 2022. MALS has also appointed Gortria C. Banks as chief operating officer. Banks joined MALS in August 2023 after serving as associate executive director of the Community Legal Center. Banks is a graduate of the University of Memphis and a retiree of Shelby County Government. Read the full press release.

The American Bar Association yesterday declined to grant full approval to JD-Next, rejecting a proposal to put the alternative law school admissions program on par with the LSAT and the GRE, reports Reuters. The ABA's Council of the Section of Legal Education and Admissions to the Bar instead approved a recommendation from its standards committee that the program should not yet be deemed a "valid and reliable" predictor of an applicant's law school grades. Daniel Thies, chair of the standards committee, noted that "more data and more study be gathered" before deciding whether the JD-Next program meets the standard. An ABA-commissioned report found the exam "cannot be evaluated with the present data."