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Cybersecurity & Privacy
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February 14, 2025
FCC Could Pull Equipment OKs For New Dahua US Owner
The Federal Communications Commission is threatening to pull authorizations for a Taiwanese network infrastructure company's U.S. subsidiary, saying the company appears to be selling video surveillance products that are restricted as part of the commission's "covered list" of equipment found to pose a national security risk.
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February 14, 2025
Convicted Email Scammer Must Return $1.5M To Victims
A Connecticut federal judge has ordered Okechuckwu Valentine Osuji to pay $1.5 million in restitution to 16 individuals and business entities in a Valentine's Day order, after a jury found him guilty of operating a $6 million email fraud scheme.
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February 14, 2025
Corporate Transparency Act Vital For Nat'l Security, Circs. Told
A nationwide registry of beneficial ownership information is critical to U.S. foreign policy and national security goals, which makes a law aimed at creating one, the Corporate Transparency Act, a valid exercise of congressional authority, groups told the Fourth and Fifth circuits.
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February 14, 2025
Womble Bond Adds BakerHostetler Business Partner In Irvine
Womble Bond Dickinson has hired a former BakerHostetler partner, who joined the firm's business litigation practice group as a partner in Irvine, California.
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February 14, 2025
Judge Leaves Curbs On DOGE Treasury Access After Hearing
A Manhattan federal judge left in place temporary curbs on sweeping powers handed by President Donald Trump to Elon Musk's government-slashing U.S. DOGE Service Temporary Organization, after 19 states challenged the organization's access to U.S. Treasury payment systems.
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February 13, 2025
DeepSeek's Rapid Rise Adds Fuel To AI Policy Push
Chinese startup DeepSeek has made waves globally with an artificial intelligence chatbot app that it claims to have made more efficiently than its competitors, but experts say its quick ascent is likely to accelerate efforts to broadly regulate data privacy and national security risks presented by the emerging technology.
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February 13, 2025
9th Circ. Won't Undo Meta's $725M Privacy Suit
The Ninth Circuit on Thursday affirmed Meta Platforms Inc.'s $725 million settlement resolving privacy claims over the Cambridge Analytica data harvesting scandal, finding that the California district court conducted a full review of the deal's terms before approving it.
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February 13, 2025
Apple Pushes DC Circ. To Intervene In Google Remedies Case
Apple has urged the D.C. Circuit to undo a district court order barring the company from intervening in the U.S. Justice Department's remedies case against Google, arguing it moved with all speed to step in when it saw a government proposal "designed to force Apple to develop its own general search engine."
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February 13, 2025
Artists, AI Image Cos. At Odds Over Scale Of Depositions
Artists in a proposed artificial intelligence copyright infringement class action against four companies that make or distribute software creating images with text prompts are at odds with the defendants over how many of their witnesses they should be allowed to depose, according to a filing in California federal court.
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February 13, 2025
Mass. Auto Telematics Data Law Not Preempted, Judge Says
A Boston federal judge's dismissal of an auto industry group's challenge to a Massachusetts vehicle telematics data law centered on a limited interpretation of the statute's reach and the lack of a clear conflict with federal laws, according to an order unsealed Thursday explaining the decision.
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February 13, 2025
Musk Must Pay Up For Illegal Access To Data, Class Suit Says
Elon Musk should be forced to compensate taxpayers and recipients of government benefits after gaining access to federal databases housing their data, a proposed class told a D.C. federal court, saying the billionaire violated the Computer Fraud and Abuse Act.
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February 13, 2025
Sandy Hook Families Seek To Enforce Alex Jones Judgment
Infowars founder Alex Jones should be forced to pay the judgment that Sandy Hook families won in their long-running defamation case, even though he lodged a "baseless" appeal with the Connecticut Supreme Court in an effort to create further delays, the plaintiffs said.
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February 13, 2025
Musk Says He'll Drop OpenAI Bid If It Scraps 'For Profit' Plans
Elon Musk has hit back at OpenAI's claim that his $97.375 billion takeover bid is improper, noting if the ChatGPT maker agrees to nix plans to become a for-profit business, his offer will be dropped.
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February 13, 2025
Kirkland, Davis Polk Steer SailPoint's Upsized $1.38B IPO
Private equity-backed cybersecurity firm SailPoint began trading Thursday following an upsized $1.38 billion initial public offering that priced at the top of its range, represented by Kirkland & Ellis LLP and underwriters' counsel Davis Polk & Wardwell LLP, marking its return to public markets three years after being taken private.
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February 12, 2025
House Republicans Launch Effort To Craft Data Privacy Law
The Republican leaders of an influential House committee on Wednesday established a working group to draft privacy legislation that would be able to overcome hurdles that have long stymied efforts to set a national standard for how companies collect, use and share consumers' personal information.
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February 12, 2025
Crypto CEO Made $425K Disappear, Investor Tearfully Testifies
A former business partner of a Texas man accused of running a $5 million fraud centered on a new "anti-money laundering" cryptocurrency testified tearfully before a California federal jury on Wednesday that her family invested about $425,000 in the defendant's previous cryptocurrency venture and lost every penny.
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February 12, 2025
OpenAI Says Musk Takeover Bid 'Exposes' Intent Behind Suit
OpenAI on Thursday told a California federal judge overseeing Elon Musk's lawsuit seeking to block OpenAI from becoming a for-profit enterprise that the Tesla founder has proposed acquiring OpenAI's business, saying the takeover effort reveals Musk's lawsuit to be "an improper bid to undermine a competitor."
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February 12, 2025
DOJ Removes For-Cause Protection For FTC, Other Agencies
The U.S. Department of Justice has determined that for-cause removals for members of the Federal Trade Commission, National Labor Relations Board and Consumer Product Safety Commission are unconstitutional, acting Solicitor General Sarah Harris informed Sen. Dick Durbin, D-Ill., ranking Democrat of the Senate Judiciary Committee, in a letter Wednesday.
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February 12, 2025
Colo. Judge Tosses Online Fax Co.'s Junk Ad Suit
A Colorado federal judge dismissed an online fax service provider's Telephone Consumer Protection Act suit alleging a group of companies overwhelmed its system with "junk" faxes, finding in a Wednesday order that the law's prohibition specifically applies to a "machine" that receives and prints faxes.
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February 12, 2025
Dementia Society, CEO Must Face Workplace Spying Suit
Three former Dementia Society of America employees who claim they found listening devices hidden in their workspaces can move forward with their lawsuit against the nonprofit, a Pennsylvania federal judge has ruled, holding that that they put forth plausible claims that the organization violated the federal and Pennsylvania wiretap acts.
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February 12, 2025
Western Digital Told To Pay $553M Sooner Rather Than Later
Hard drive manufacturer Western Digital now has less than seven days to put up over half a billion dollars to satisfy a patent judgment after a California federal judge said he "has concerns about potential corporate restructuring."
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February 12, 2025
Allstate Hit With Another Class Action Over Data Collection
Allstate has been hit with another proposed class action in Illinois federal court accusing the auto insurer of illegally obtaining the personal driving data of millions of policyholders via software embedded in third-party apps and using that data for the insurer's own underwriting purposes.
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February 12, 2025
OPM Violated Employees' Privacy Rights, Unions Say
The U.S. Office of Personnel Management violated federal privacy laws when it gave Elon Musk's recently established Department of Government Efficiency access to its employment records, unions representing federal employees and administrative law judges said in a lawsuit filed in New York federal court.
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February 12, 2025
Mnuchin, Others Face Fiduciary Suit From Cybersecurity CEO
The CEO of AI-driven cybersecurity venture Cybereason has sued former U.S. treasury secretary and company director Steven Mnuchin, along with others, in Delaware's Court of Chancery over financing roadblocks that allegedly threaten to tip the company into bankruptcy.
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February 12, 2025
Google Must Face Wiretapping Suit Over AI-Powered Assistant
A California federal judge has refused to toss a proposed class action accusing Google of using a "human-like" customer-service product powered by artificial intelligence to illegally eavesdrop on users' calls with Hulu, Verizon and others, finding the consumers adequately allege Google is a third party that can benefit from the data.
Expert Analysis
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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What To Make Of Dueling Corporate Transparency Act Rulings
Although challenges to the Corporate Transparency Act abound — as highlighted by recent federal court decisions from Alabama and Oregon taking opposite positions on its constitutionality — the act is still law, so companies should comply with their filing requirements or face the potential consequences, say attorneys at Lowenstein Sandler.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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California's AI Safety Bill Veto: The Path Forward
California Gov. Gavin Newsom's veto of a bill that sought to impose stringent regulations on advanced artificial intelligence model development has sparked a renewed debate on how best to balance innovation with safety in the rapidly evolving AI landscape, say Bobby Malhotra and Carson Swope at Winston & Strawn.
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New TCPA Rule Faces Uncertain Future Post-Loper Bright
The Federal Communications Commission's new rule aiming to eliminate lead generators' use of unlawful robocalls is now in doubt with the U.S. Supreme Court's Loper Bright decision, and the Eleventh Circuit's Insurance Marketing Coalition v. FCC is poised to be a test case of the agency's ability to enforce the Telephone Consumer Protection Act post-Chevron, say attorneys at Baker McKenzie.
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A Look At Calif.'s New AI Law For Health Insurers
A newly enacted California law prohibits artificial intelligence tools from making medical necessity determinations for healthcare service plans or disability insurers, addressing core questions that have arisen around AI's role in coverage decisions, say attorneys at DLA Piper.
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To Report Or Not To Report Others' Export Control Violations
A recent Bureau of Industry and Security enforcement policy change grants cooperation credit to those that report violations of the Export Administration Regulations committed by others, but the benefits of doing so must be weighed against significant drawbacks, including the costs of preparing and submitting a report, says Megan Lew at Cravath.
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Can SEC's Consolidated Audit Trail Survive Post-Chevron?
The U.S. Securities and Exchange Commission is currently in a showdown at the Eleventh Circuit over its authority to maintain a national market system and require that the industry spend billions to maintain its consolidated audit trail, a case that is further complicated by the Loper Bright decision, says Daniel Hawke at Arnold & Porter.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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How BIS' Rule Seeks To Encourage More Voluntary Disclosure
Updated incentives, penalties and enforcement resources in the Bureau of Industry and Security's recently published final rule revising the Export Administration Regulations should help companies decide how to implement export control compliance programs and whether to disclose possible violations, say attorneys at Freshfields.
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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Navigating Complex Regulatory Terrain Amid State AG Races
This year's 10 attorney general elections could usher in a wave of new enforcement priorities and regulatory uncertainty, but companies can stay ahead of the shifts by building strong relationships with AG offices, participating in industry coalitions and more, say Ketan Bhirud and Dustin McDaniel at Cozen O’Connor.
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Recent Securities Cases Highlight Risks In AI Disclosures
Increasing public disclosure about the use and risks of artificial intelligence, and related litigation asserting that such disclosures are false or misleading, suggest that issuers need to exercise great care with respect to how they describe the benefits of AI, say Richard Zelichov and Danny Tobey at DLA Piper.
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Opinion
This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.