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Cybersecurity & Privacy
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June 21, 2024
Google Ditches Wiretap Suit Over AI Customer Service Calls
A California federal judge has tossed, for now, a proposed class action accusing Google LLC of using a "human-like" customer service product powered by generative artificial intelligence to illegally eavesdrop on Verizon users' calls, finding that Google was exempt from liability because it was acting as Verizon's agent.
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June 21, 2024
Crypto Vet With FTX Ties Launches Fintech Policy Think Tank
Former congressional hopeful and cryptocurrency veteran Michelle Bond announced her formation of fintech policy think tank Digital Future, making a return to financial services policy after the recent sentencing of her partner, former FTX executive Ryan Salame, and FTX-linked donations to her 2022 campaign.
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June 21, 2024
Ex-Trump Aide Must Face Hunter Biden's Data Hack Suit
A California federal judge has refused to toss Hunter Biden's lawsuit accusing a former Trump White House aide of obtaining and publishing emails and photos purportedly taken from his laptop, finding Biden sufficiently alleged the aide illegally accessed a "protected computer" defined under the Computer Fraud and Abuse Act.
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June 21, 2024
Meta's Child Porn Defense 'Disingenuous,' MDL Judge Says
A California federal judge appeared skeptical Friday of Meta's bid to cut child pornography possession allegations from sprawling multidistrict litigation over social media platforms' allegedly addictive designs, telling defense counsel that Meta's claim it didn't know about the illegal content on its platforms is "a bit disingenuous."
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June 21, 2024
Treasury Unveils Rules Curtailing Outbound Tech Investments
The U.S. Department of the Treasury on Friday proposed rules to implement President Joe Biden's executive order aimed at restricting American investments in certain technologies that China is developing, including artificial intelligence systems, that are deemed threats to national security.
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June 21, 2024
Judge OKs Parents' Lawsuit Against Google For Tracking Kids
A California federal judge is letting a group of anonymous minors proceed with a proposed class action accusing Google of surreptitiously tracking the children's web activity to let marketers target them with behavioral advertising, all without parental consent.
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June 21, 2024
Ripple Defeats Class But Not Howey Over Token Sales
Crypto company Ripple Labs Inc. has escaped class claims that it violated federal and state law through unregistered sales of its digital token XRP, but the California federal judge who issued the ruling declined to go as far as declaring that the token was not a security under the so-called Howey Test.
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June 21, 2024
4th Circ. Revives TCPA Suit Over Fax Promoting Free Webinar
A chiropractic office in Ohio on Friday succeeded in reviving its putative class action against a healthcare technology company accused of sending junk faxes, with the Fourth Circuit finding the communication counts as an unsolicited advertisement under the Telephone Consumer Protection Act.
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June 21, 2024
Chase Didn't Stop Fraudulent Transfers, Fla. Biz Owner Says
Chase Bank has been sued in Miami-Dade County state court, accused of negligence by a business owner who alleged that the bank failed to stop more than $445,000 that was drained from his accounts in a series of fraudulent wire transfers earlier this year.
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June 21, 2024
Off The Bench: ACC-FSU Rematch, Supreme Win For Fla. Tribe
In this week's Off The Bench, the next round of venue tug-of-war begins between the Atlantic Coast Conference and Florida State University, the U.S. Supreme Court hands Florida and the Seminole Tribe a lucrative gaming win, and Roger Goodell and Jerry Jones defend the NFL's handling of its Sunday Ticket package.
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June 21, 2024
4 From Cybercrime Group Charged In $71M Hacking Scheme
Four members of the international cybercrime group known as FIN9 have been charged for their roles in hacking companies' computer networks and stealing more than $71 million through nonpublic information, employee benefits and other funds, Philip R. Sellinger, an attorney for the District of New Jersey, has announced.
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June 21, 2024
Rip And Replace 'Ruinous' Without Fed Funds, Carriers Say
A rural telecoms trade group is warning the Federal Communications Commission of potentially "ruinous" financial predicaments for small carriers if the "rip and replace" program targeting Chinese-made telecommunications equipment isn't fully funded soon, saying in a new filing that carriers are considering reducing service because of the lack of funding.
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June 21, 2024
Sens. Introduce 'Complementary' Bill To TikTok Ban
A bipartisan bill introduced Thursday would require websites and apps to disclose to their users if they are owned wholly or partially by China, North Korea, Russia or Iran or if data collected through those sites or apps is accessible to those countries.
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June 20, 2024
TikTok Says Alternatives To 'Dangerous' Ban Were Ignored
TikTok said Thursday that federal lawmakers likely didn't even consider its "exhaustive, multi-year efforts" to address national security concerns before deciding to ban the social media platform, slamming the law as "unprecedented" and warning that it sets "a dangerous precedent."
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June 20, 2024
SEC Official Seeks To Ease Concerns Over Cybersecurity Rule
The director of the U.S. Securities and Exchange Commission's corporation finance division reassured public companies on Thursday that the agency's recently adopted rule requiring them to make certain disclosures regarding material cybersecurity incidents does not prohibit them from sharing additional details with third parties.
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June 20, 2024
Calif. AG, City Atty Target SpongeBob App Over Kids' Privacy
California's attorney general and the Los Angeles city attorney have teamed up to secure a deal that requires the operator of a SpongeBob SquarePants-themed app to pay $500,000 and overhaul its data-handling practices to resolve claims that the company gathered and shared children's personal information without consent.
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June 20, 2024
Web-Tracking Guidance Exceeded HHS' Authority, Judge Says
A Texas federal judge ordered the Biden administration Thursday to rescind its new guidance restricting hospitals' use of online tracking technology, declaring that federal officials had overstepped their authority by redefining what they consider protected health information.
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June 20, 2024
FCC Slams Bid In 6th Circ. To Put Net Neutrality On Hold
The Federal Communications Commission told the Sixth Circuit on Tuesday it should pay no heed to a collection of net neutrality challengers arguing that "dire consequences" will ensue if the appellate court doesn't stop the agency from reinstating open internet regulations while the two sides argue the matter out in court.
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June 20, 2024
Competition Raids Don't Need Warrant For Emails, ECJ Told
European Union law doesn't bar member states from permitting competition authorities to search emails without a warrant amid a so-called dawn raid, according to an advisory opinion submitted to the bloc's top appeals court Thursday.
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June 20, 2024
Deals Rumor Mill: Carlyle-KKR, Didi IPO, Open AI
The deals rumor mill is often overflowing with transactions that are reportedly close to being signed, so it can be hard to know which ones to stay on top of.
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June 18, 2024
Novant Pays $6.7M For Sharing Patient Data With Facebook
A North Carolina federal judge on Monday gave the final seal of approval to a proposed $6.7 million deal resolving litigation alleging Novant Health Inc. shared sensitive patient data with Facebook, certifying a nationwide settlement class of roughly 1.3 million individuals.
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June 18, 2024
RR Donnelley Pays $2.1M To Settle SEC Claims Over Hack
Marketing and communications giant R.R. Donnelley & Sons has reached a deal with the U.S. Securities & Exchange Commission to pay over $2.1 million to settle claims over a 2021 cybersecurity incident that stemmed from poor internal controls and disclosure failures, the agency announced Tuesday.
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June 18, 2024
No Reason To Move Net Neutrality Suits To DC Circ., ISPs Say
Nearly a dozen industry groups are calling on the Sixth Circuit to reject an effort by the Federal Communications Commission to move a raft of lawsuits over the FCC's net neutrality rules to the D.C. Circuit.
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June 18, 2024
Texas Atty Pares Border Phone Search Suit To Just APA Claim
A Texas attorney has significantly trimmed a lawsuit over cellphone searches at the border, dismissing claims he brought under the First and Fourth Amendments but leaving intact allegations the practice represents a violation of the federal Administrative Procedure Act.
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June 18, 2024
6th Circ. Asks Who's A 'Consumer' In Meta Data Sharing Case
Sixth Circuit judges questioned how a decades-old federal privacy law aimed at protecting people's video rental history applies to website users, as one customer argued Tuesday that the court should revive claims that Paramount unlawfully shared his data with Meta, Facebook's parent company.
Expert Analysis
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Navigating The FCC's Rules On AI-Generated Robocall Voices
The Federal Communications Commission's declaratory ruling issued last week extends the agency's regulatory reach under the Telephone Consumer Protection Act to calls that use artificial intelligence technology to generate voices, laying out a compliance roadmap, but not making AI-cloned voices in robocalls illegal per se, say attorneys at Wiley Rein.
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Series
Coaching High School Wrestling Makes Me A Better Lawyer
Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.
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SG's Office Is Case Study To Help Close Legal Gender Gap
As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.
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Despite Risks, AI Is A Worthy Tool For Healthcare Industry
Artificial intelligence appears to provide a productive path forward for the healthcare industry, improving economic and human health outcomes, though companies must continue to address certain technology and compliance pain points, says Sarah Abrams at Bowhead Specialty Underwriters.
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Bitcoin ETF Approval Doesn't Mean SEC Approves Of Crypto
While the U.S. Securities and Exchange Commission's approval last month of 11 applications for spot exchange-traded funds tracking bitcoin is a landmark moment for the crypto-asset industry, investors who are hopeful that the SEC will approve similar crypto-based ETFs may be disappointed, says attorneys at Mintz.
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Key Considerations For Evaluating An AI Vendor
As artificial intelligence technology advances across industries, businesses can mitigate risks, while maximizing the value of their investment, by evaluating technology, expertise, support services, transparency and more when selecting an AI vendor, say Rahul Kapoor and Shokoh Yaghoubi at Morgan Lewis.
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SAG-AFTRA Contract Is A Landmark For AI And IP Interplay
SAG-AFTRA's recently ratified contract with the Alliance of Motion Picture and Television Producers introduced a framework to safeguard performers' intellectual property rights and set the stage for future discussions on how those rights interact with artificial intelligence — which should put entertainment businesses on alert for compliance, says Evynne Grover at QBE.
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FTC AI Inquiry Signals Intensified Focus On Emerging Tech
The Federal Trade Commission's recent inquiry into investments and partnerships between Big Tech companies and artificial intelligence startups appears to be directed at guiding future enforcement decisions in competition, privacy and consumer protection — and three principles discussed at a related tech summit give insight on the agency's approach, say attorneys at Skadden.
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Reimagining Law Firm Culture To Break The Cycle Of Burnout
While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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Amazon's €32M Data Protection Fine Acts As Employer Caveat
The recent decision by French data privacy regulator CNIL to fine Amazon for excessive surveillance of its workers opens up a raft of potential employment law, data protection and breach of contract issues, and offers a clear warning that companies need coherent justification for monitoring employees, say Robert Smedley and William Richmond-Coggan at Freeths.
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Series
Competing In Dressage Makes Me A Better Lawyer
My lifelong participation in the sport of dressage — often called ballet on horses — has proven that several skills developed through training and competition are transferable to legal work, especially the ability to harness focus, persistence and versatility when negotiating a deal, says Stephanie Coco at V&E.
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Potential Defendant Strategies Amid Calif. Privacy Questions
Although the current case law surrounding the California Consumer Privacy Act is in its infancy, courts have begun addressing important issues related to the notice-and-cure provisions of the statute, and these decisions show defendant-businesses would be wise to assert their notice rights early and repeatedly, say Viola Trebicka and Dan Humphrey at Quinn Emanuel.
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Legal Issues Loom For Driverless Trucking
Companies' recent experiments with driverless trucking technology herald a transformation of the logistics sector — but stakeholders must reckon with increasing regulatory scrutiny, emerging liability issues, and concerns around ethical guidelines, insurance and standardization, say Zal Phiroz at Pier Consulting Group and Nicolas Bezada at Unishippers.
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The Double-Edged Sword Of Biometrics In Financial Services
Financial institutions are increasingly turning to biometrics for identity verification and fraud prevention, and while there are many benefits to such features, banks must remain vigilant against growing AI technologies that could make users' information vulnerable to biometrics hackers, say Elizabeth Roper at Baker McKenzie and Chris Allgrove at Ingenium Biometric Laboratories.
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How 2 CFPB Advisory Opinions Affect Reporting Agencies
The Consumer Financial Protection Bureau issued two advisory opinions last month that demonstrate a continued commitment to address inaccuracies in background check reports and consumer file disclosures through broad interpretation of the Fair Credit Reporting Act, expanding on a coordinated federal agency effort, say attorneys at Cooley.