Expert Analysis

• State AI Safety Laws Raise New Liabilities For Healthcare Cos.

  

  Healthcare and life science companies using third-party artificial intelligence tools should pay particular attention to the changing state-level legal landscape, where the rollout of multiple AI safety laws is introducing both new compliance obligations and potential consumer protection liabilities, say attorneys at McDermott.

• AI And AML: Rulemakings Lean Into Responsible Innovation

  

  Recent federal rulemaking increasingly supports deployment of artificial intelligence tools for anti-money laundering compliance purposes, and institutions that build clear use and governance frameworks will be best positioned to defend programs when AI systems err, say attorneys at Paul Hastings.

• Series

  Juggling And Unicycling Make Me A Better Lawyer

  

  Because I juggle (sometimes with fire) and ride the unicycle, friends and family used to joke that I should join the circus, but I pursued the practice of law instead and learned that my hobbies benefit my profession in several important ways, says Morgan Eddy at Smith Currie.

• Unpacking Texas' New Grid Reliability Rules For Data Centers

  

  The Electric Reliability Council of Texas’ recently effective technical and compliance obligations, designed to prevent data centers and other large energy customers from causing cascading outages when they go offline, will challenge facilities to develop equipment and protocols to help protect the grid, says Casey Bell at Balch & Bingham.

• How Quantum Risk Could Reshape Legal Obligations

  

  As federal policy, National Institute of Standards and Technology standards, and major market practice converge around postquantum cryptography, companies may need to safeguard their data now to prove they took reasonable measures to protect trade secrets from quantum computers that do not exist yet, say attorneys at MoFo.

• AI Note-Taking Suits May Fill Gap In Privacy Law Structure

  

  A recent class action against Granola joins other pending lawsuits against AI note-taking providers, highlighting the legal uncertainty surrounding these tools, but there are practical steps companies using "invisible" AI services can take to mitigate risk, including conducting inventories and reviewing access permissions, say attorneys at Barnes & Thornburg.

• The Future Of DOL Judge Removal Challenges After Slaughter

  

  The U.S. Supreme Court's recent ruling in Trump v. Slaughter calls into question whether U.S. Department of Labor administrative law judges exercising significant governmental authority remain insulated from presidential removal, but the answer depends on the governing statute, its severability provisions and other factors, says Mark Ishu at Conn Maciel.

• DOJ Executive Privilege Opinion Portends 3rd-Party Dilemmas

  

  The recent opinion from the U.S. Department of Justice’s Office of Legal Counsel concluding that executive privilege can shield the president's communications with private advisers may lead to interbranch disputes, and companies must come up with a response plan now before they’re caught in the middle, say attorneys at Gibson Dunn.

• Planning For The Impact Of FinCEN's CTA Rollback

  

  The Financial Crimes Enforcement Network's recent rollback of Corporate Transparency Act reporting obligations should reduce compliance costs, but its plans to revisit customer due diligence rules should prompt companies and financial institutions to reassess state beneficial ownership programs, say attorneys at Sidley.

• How 'Swap' Fight Underpins Prediction Market Enforcement

  

  As courts around the country grapple with whether, and under what circumstances, event contracts qualify as swaps, federal enforcement authority hangs in the balance, with implications for companies that need to manage compliance risks during this period of legal uncertainty, say attorneys at Debevoise.

• EPA Guidance May Simplify On-Site Power For Data Centers

  

  At a moment when wait times to connect large loads to the electric grid can stretch into years, two recent U.S. Environmental Protection Agency guidance documents seek to make it easier for data center developers to set up on-site power generation — but much will depend on how quickly states and localities update their own rules, say attorneys at Alston & Bird.

• Fed's Capital Rule Proposal Could Help Banks Stay Mutual

  

  The Federal Reserve Board's recent proposal to comprehensively rewrite its capital rule and reduce procedural requirements for mutual holding companies would support community banking by allowing mutual institutions new ways to fund growth without converting to stock form, say attorneys at Nutter.

• SEC's Adit Case Maps 5 Fault Lines In Pre-IPO Funds

  

  The U.S. Securities and Exchange Commission's recent case brought against Adit Ventures Management offers fund counsel, limited partners and private market intermediaries a useful example of where a pre-initial public offering vehicle can fail, and how familiar fiduciary and anti-fraud principles apply, says Ben Dubin at VC Expert Services.

• 8(a) Firms Face New Risks From Pass-Through Arrangements

  

  ​Prime contractors and subcontractors with pass-through arrangements involving the Small Business Administration's 8(a) business development program should ensure they are prepared for heightened litigation risks created by the administration’s use of False Claims Act whistleblowers to target fraud in diversity, equity and inclusion programs, say attorneys at RJO.

• The State Of Prediction Market Litigation After 9th Circ. Ruling

  

  The Ninth Circuit's recent decision in Kalshi v. Assad gives state regulators significant appellate backing to enforce state gaming laws over prediction markets, creating a direct split with the Third Circuit that will likely lead to Supreme Court review of the question, say attorneys at Arnold & Porter.