This Day in Legal History: Frontiero v. Richardson
On May 14, 1973, the U.S. Supreme Court decided Frontiero v. Richardson, a major case in the development of constitutional protections against sex discrimination. The case began when Sharron Frontiero, a lieutenant in the United States Air Force, sought dependent benefits for her husband. Under federal law at the time, a male service member could automatically claim his wife as a dependent, but a female service member had to prove that her husband depended on her for more than half of his support. Frontiero argued that this rule treated women in the military as less legitimate breadwinners than men. The Supreme Court agreed that the policy violated the Due Process Clause of the Fifth Amendment. A plurality of the Court reasoned that sex-based legal classifications often reflected outdated assumptions about women’s roles in family and public life.
The decision came only a year after Congress passed the Equal Rights Amendment and sent it to the states for ratification, giving the case a larger political and constitutional backdrop. Ruth Bader Ginsburg, then working with the ACLU Women’s Rights Project, filed an amicus brief urging the Court to treat sex discrimination with the same suspicion it applied to race discrimination. The Court did not produce a majority for strict scrutiny in sex-discrimination cases, but Frontiero still marked a sharp move away from judicial tolerance of laws based on gender stereotypes. Justice William Brennan’s plurality opinion emphasized that women had long faced legal and social discrimination, including restrictions on property ownership, voting, employment, and civic participation.
The ruling helped establish that administrative convenience was not a sufficient reason for the government to impose unequal burdens on women. It also signaled that servicewomen were entitled to equal treatment within institutions, including the military, that had historically been structured around male service members. In later cases, the Court would settle on an intermediate scrutiny standard for sex-based classifications, but Frontiero remains one of the key cases that pushed constitutional law in that direction.
The U.S. Department of Justice has settled an investigation into PayPal over a 2020 investment program aimed at supporting Black- and minority-owned businesses. The DOJ said PayPal’s Economic Opportunity Fund gave preferences based on race, color, and national origin without being tied to a specific remedy for past discrimination. PayPal did not admit liability, and the settlement says the DOJ did not make a formal finding that the company violated the Equal Credit Opportunity Act or other federal law. As part of the agreement, PayPal will create a new small business initiative that waives processing fees on $1 billion in transactions.
The fee waivers are valued at about $30 million and will apply to small businesses in farming, manufacturing, and technology, as well as businesses certified through the SBA’s Veteran Small Business Certification Program. PayPal must also submit plans for the initiative, train employees on ECOA requirements, and report annually to the government. Acting Attorney General Todd Blanche framed the settlement as part of the Trump administration’s broader effort to challenge corporate DEI programs. PayPal said it was pleased to launch the new initiative and emphasized its long history of helping small businesses use digital financial tools. The settlement follows another recent DOJ resolution with IBM over workforce diversity-related allegations, showing continued federal scrutiny of corporate DEI practices.
PayPal Settles Gov’t DEI Probe With Small Biz Program - Law360
The SEC and Elon Musk are scheduled to appear before a federal judge in Washington, D.C., to defend their proposed $1.5 million settlement over Musk’s 2022 purchase of Twitter. The SEC’s lawsuit accused Musk of delaying his disclosure that he had acquired a 5% stake in Twitter, allegedly allowing him to save about $150 million before the market reacted. Musk later bought Twitter for $44 billion.
U.S. District Judge Sparkle Sooknanan has not automatically approved the deal and said she must evaluate whether it is fair, in the public interest, and free from improper collusion or corruption. She ordered both sides to appear in court and be ready to suggest a schedule for briefing in support of the settlement. The SEC filed the case in January 2025, shortly before President Biden left office. Musk has argued the case was politically motivated and has said the late disclosure was accidental.
The proposed settlement would not require Musk to admit wrongdoing or surrender the money the SEC claimed he saved. Although the amount is much lower than what the SEC initially sought, a source told Reuters it was still the largest SEC penalty for that type of disclosure violation.
US SEC, Musk to argue for Twitter settlement before DC judge | Reuters
U.S. law firms saw strong client demand and higher billing rates in the first quarter of 2026, but those gains were limited by rising expenses and lower productivity. According to the Thomson Reuters Institute’s latest Law Firm Financial Index, the quarter was healthy overall but not as financially impressive as firms might have expected given the level of demand. The report suggests that 2026 may not match the strong profit growth many firms saw in 2025, though analysts said it is still too early to draw firm conclusions. Average demand rose 2.7% from the same period last year, which the report described as an unusually strong increase. M&A work grew 4.4%, while litigation and overall corporate work each rose 2.9%. Large firms continued to push billing rates sharply higher, with Am Law 100 firms raising rates by 9.8%, while midsized firms increased rates by 5.3%. But expenses climbed almost as quickly, with direct expenses up 8.1% and overhead up 8.3%. A major driver of overhead growth was spending on technology, including artificial intelligence tools.
Geopolitical instability, including the war in Iran, has also created uncertainty, with deal activity slowing in March and restructuring work not rising as expected. The report frames the market as still strong, but with enough warning signs that firms may need to watch costs, productivity, and client demand closely in the next quarter.
Rising US law firm expenses offset strong demand and rate hikes in first quarter - report | Reuters
A U.S. appeals court has temporarily paused a lower court ruling that had favored three challengers to the Trump administration’s 10% global tariff. The pause means the tariffs remain in effect for two businesses and Washington state while the appeal continues. The U.S. trade court had ruled against the tariffs last week but did not issue a broad order stopping their collection nationwide. The Trump administration appealed that decision, and the U.S. Court of Appeals for the Federal Circuit issued a short-term administrative stay while it considers whether to grant a longer pause. The challengers now have seven days to argue against keeping the lower court ruling on hold. Washington state qualified as an importer in the case because the University of Washington, a public research institution, paid tariffs. The tariff was imposed in February under Section 122 of the Trade Act of 1974, after the Supreme Court struck down most of Trump’s 2025 tariffs. Unless Congress extends it, the 10% global tariff is scheduled to expire in July.
US appeals court pauses ruling against Trump’s 10% global tariff | Reuters
