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Cybersecurity & Privacy
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August 21, 2024
Staffing Co. Can't Duck Class Claims In Biometric Privacy Row
An Illinois federal judge ruled Monday that a staffing company must face most claims brought by employees alleging it violated Illinois' biometric privacy law by collecting their fingerprints for timekeeping without first securing their written, informed consent, and said it would be premature to grant the company's bid to strike the class allegations.
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August 21, 2024
How AI Could Shake Up Federal Evidence Rules
Judges, lawyers and academics say it's only a matter of time before the breakneck development of artificial intelligence collides with a cautious, slow-moving judicial system and gives rise to a thorny array of evidentiary issues. They're just not sure what to do about it.
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August 20, 2024
SEC Fines Equiniti Trust After Cyberattacks Stole $6.6M
New York-based Equiniti Trust Co. has agreed to pay a $850,000 fine over claims it did not safeguard clients' funds from two cyber intrusion incidents that resulted in over $6 million in total losses, the U.S. Securities and Exchange Commission announced Wednesday.
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August 20, 2024
9th Circ. Revives Google Chrome Users' Data Privacy Suit
The Ninth Circuit on Tuesday reversed the dismissal of a proposed class action accusing Google of surreptitiously collecting Chrome users' data, finding that the lower court had relied on the incorrect standard in determining whether a "reasonable" consumer would think they had consented to the disputed practice.
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August 20, 2024
Yale Health Liable For 840,000-Patient Data Breach, Suit Says
Yale New Haven Health, one of Connecticut's largest medical groups, is liable to 840,000 patients whose private records were hacked by the notorious online crime group Clop, a proposed class action lawsuit filed in Connecticut state court has alleged.
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August 20, 2024
Terrorized Air Passenger Case Tossed For Failure To Amend
Fifteen passengers can no longer pursue claims against American Airlines and regional carriers for negligently allowing a worker to tap into their private information so he could fuel a monthslong harassment campaign, a Connecticut federal judge ruled, saying the plaintiffs failed to meet a filing deadline.
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August 20, 2024
Anthropic Hit With Another Copyright Suit Over LLM Training
Anthropic PBC was hit with a proposed class action Monday in California federal court from a group of journalists and authors alleging the artificial intelligence giant is exploiting their copyrighted materials to train its large language model, Claude, without permission or a license, and has become enormously successful at their expense.
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August 20, 2024
Split 6th Circ. Revives FCRA Claims Against Experian
A partially divided Sixth Circuit has reversed a lower court's decision to toss a consumer's Fair Credit Reporting Act claims against Experian concerning alleged delinquent spousal support payments, ruling in part on Monday that Experian failed to properly investigate court orders acknowledging the man's compliance with the payments.
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August 20, 2024
Verizon Customer Says Stalker Got Her Info, Arrived With Knife
A Verizon Communications Inc. customer alleges in a North Carolina federal court complaint that the telecom violated federal privacy law when it gave her private information to a stalker who was threatening to kill her, allowing him to arrive at her house with a knife.
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August 20, 2024
Epic Will Pay Google $400K For Play Store Contract Breach
Epic Games has agreed to pay Google around $400,000 for implementing its own payment method in "Fortnite" and getting booted from the Play Store, as the court continues to mull what changes Google will have to make after a jury found that its policies violate antitrust law.
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August 20, 2024
A Deep Dive Into Law360 Pulse's 2024 Women In Law Report
The legal industry continues to see incremental gains for female lawyers in private practice in the U.S., according to a Law360 Pulse analysis, with women now representing 40.6% of all attorneys and 51% of all associates.
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August 20, 2024
These Firms Have The Most Women In Equity Partnerships
The legal industry still has a long way to go before it can achieve gender parity at its upper levels. But these law firms are performing better than others in breaking the proverbial glass ceiling that prevents women from attaining leadership roles.
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August 19, 2024
Hunter Biden Loses Bid To Duck Tax Case In Calif.
Hunter Biden cannot escape his criminal tax case set to go to trial next month, a Los Angeles federal judge ruled Monday, saying Biden's latest motion comes too late.
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August 19, 2024
Parents Not Bound By Schools' Arbitration Pact, FTC Argues
The Federal Trade Commission has stepped into a proposed class action accusing education technology company IXL Learning of unlawfully collecting and selling children's personal information, telling a California federal court that the company's agreement with schools to arbitrate disputes doesn't extend to the parents pressing the data privacy suit.
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August 19, 2024
Frost & Sullivan Shouldn't Beat Data Breach Suit, Judge Says
A magistrate judge on Monday recommended a Texas federal court trim but not toss a putative class action accusing consulting firm Frost & Sullivan Inc. of failing to protect its employees and clients from a data breach last year, rejecting the firm's contention that a former employee lacked standing to sue.
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August 19, 2024
MOVEit MDL Judge's Call For Order Met With Atty Squabbles
A federal judge's effort to streamline multidistrict litigation over a 2023 data breach involving Progress Software's MOVEit file transfer tool instead led to a lengthy and contentious joint filing in which the parties accused one another of gamesmanship.
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August 19, 2024
Feds Trim Sentencing Request For Atty In Email Fraud Case
Massachusetts federal prosecutors have shaved 11 months off of a nine-year sentencing request for an Illinois attorney who was convicted of collecting proceeds from an email fraud scheme, after the First Circuit vacated three of the lawyer's six counts on venue grounds.
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August 19, 2024
Net Neutrality Akin To Federal Law Rewrite, 6th Circ. Told
A pair of think tanks told the Sixth Circuit it should reject the Federal Communications Commission's net neutrality rules in part because the agency's decision to hold back its legal authority in some areas, like rate regulation, shows why the regime lacks statutory authority in the first place.
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August 19, 2024
Doctor Accused Of Taking Connecticut Practice's Patient Data
An obstetrician-gynecologist took trade secrets including confidential patient information when she left a Connecticut practice, and solicited its employees and "hundreds" of patients to come to her new competing business, according to a lawsuit in state court.
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August 16, 2024
The Biggest Texas Rulings Of 2024: A Midyear Report
Texas has seen a bevy of major decisions, including a $1.4 billion settlement with Facebook over alleged biometric data collection, a ruling banning gender-affirming care for minors, and the conclusion of a long-running securities case against Attorney General Ken Paxton. Here's some of the biggest decisions so far this year.
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August 16, 2024
49ers Can't Beat Data Breach Suit, But Damages In Question
A California federal judge has rejected the San Francisco 49ers bid to toss a proposed class action claiming that the NFL team didn't protect 20,000 current and former employees' personal information from hackers, but he said a filing issue could put California Consumer Privacy Act statutory damages out of reach.
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August 16, 2024
TikTok Nonusers Fight Uphill For 100M-Member Privacy Class
A California federal judge on Friday tentatively declined to certify a class of over 100 million nonusers of TikTok over allegations it illegally scraped their personal data from third-party websites, noting the "extraordinary" class size and questioning whether the plaintiffs have shown their injuries are typical of the proposed class.
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August 16, 2024
Customer Says AAA Must Improve Oversight Of Arbitrators
The American Arbitration Association allows its arbitrators' decisions to go unchecked because the AAA operates without any formal audit mechanism, a disgruntled T-Mobile USA Inc. customer told a Florida federal judge as he fights an arbitral award favoring the company.
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August 16, 2024
Feds To Appeal Platinum Win Over Zero Loss, Count Toss
Federal prosecutors have notified the Second Circuit that they'll appeal a judge's findings that the loss amount in the case of Platinum Partners co-founder Mark Nordlicht was zero and the wire fraud conspiracy counts against Nordlicht and another would be dismissed, despite Nordlicht's conviction.
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August 16, 2024
Calif. State Court Tosses Antitrust Case Against MultiPlan
A California state court has tossed a suit accusing MultiPlan Inc. of violating antitrust law through pricing tools used by health insurance providers, similar to claims being made in multidistrict litigation that were recently centralized in Illinois federal court.
Expert Analysis
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Tips For Balanced Board Oversight After A Cyberincident
The U.S. Securities and Exchange Commission's cybersecurity disclosure rules, as well as recent regulatory enforcement actions bringing board governance under scrutiny, continue to push boards toward active engagement in relation to their cyber-oversight role, despite it being unclear what a board's level of involvement should be, say attorneys at Alston & Bird.
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What Cos. Are Reporting Under New SEC Cybersecurity Rule
Four months after its effective date, 14 companies have made disclosures under the U.S. Securities and Exchange Commission's mandatory cybersecurity incident reporting rule, and some early trends are emerging, including a possible rush to file, say attorneys at Debevoise.
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Data Protection Steps To Consider After Biden Privacy Order
A recent White House executive order casts a spotlight on the criticality of securing sensitive content communications, presenting challenges and necessitating a recalibration of practices, especially for lawyers, says Camilo Artiga-Purcell at Kiteworks.
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The Future Of BIPA Insurance Litigation After Visual Pak
A recent Illinois appellate court decision, National Fire Insurance v. Visual Pak, may have altered the future of insurance litigation under the state's Biometric Information Privacy Act by diametrically opposing a prominent Seventh Circuit ruling that found insurance coverage for violations of the act, say attorneys at Jenner & Block.
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Consumer Privacy Takeaways From FTC Extraterritorial Action
With what appears to be its first privacy-related consent agreement with a non-U.S. business, the Federal Trade Commission establishes that its reach is extraterritorial and that consumer internet browsing data is sensitive data, and there are lessons for any multinational business that handles consumer information, say Olivia Greer and Alexis Bello at Weil.
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Series
Whitewater Kayaking Makes Me A Better Lawyer
Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.
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Navigating Kentucky's New Consumer Privacy Law
On April 4, Kentucky passed a new law that imposes obligations on affected businesses relating to the collection, use and sale of personal data — and those operating within the state must prepare for a new regulatory landscape governing the handling of consumer data, say Risa Boerner and Martha Vázquez at Fisher Phillips.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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New Proposal Signals Sharper Enforcement Focus At CFIUS
Last week's proposed rule aimed at broadening the Committee on Foreign Investment in the United States' enforcement authority over foreign investments and increasing penalties for violations signals that CFIUS intends to continue expanding its aggressive monitoring of national security issues, say attorneys at Kirkland.
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4 Ways AI Tools Can Improve Traditional Merger Analyses
Government officials at the American Bar Association's annual antitrust spring meeting last week reinforced the view that competition cases will increasingly rely on sophisticated data analysis, so companies will likewise need to use Big Tech quantitative techniques to improve traditional merger analyses, say Patrick Bajari, Gianmarco Calanchi and Tega Akati-Udi at Keystone.
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What FinCEN Proposed Customer ID Number Change Means
The Financial Crimes Enforcement Network's recent request for comment on changing a requirement for banks to collect full Social Security numbers at account sign-up represents an important opportunity for banks to express their preferability, as communicating sensitive information online may carry fraud or cybersecurity risks, say attorneys at Crowell & Moring.
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How Companies Can Use Big Data As A Strategic Asset
Artificial intelligence technology powered by big data has the potential to create radical improvements to business operations, but if big data is improperly protected or monetized, this same information can give competitors similar advantages, or at the very least undermine a company's edge, say Gary Weinstein and Hudson Peters at Faegre Drinker.
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Cos. Should Mind Website Tech As CIPA Suits Keep Piling Up
Businesses should continue evaluating their use of website technologies and other data-gathering software and review the disclosures in their privacy policies, amid an increase so far in 2024 of class actions alleging violations of the California Invasion of Privacy Act's pen register and trap-and-trace provisions, say attorneys at Sheppard Mullin.
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Questions Persist After Ruling Skirts $925M TCPA Award Issue
After an Oregon federal court's recent Wakefield v. ViSalus ruling that the doctrine of constitutional avoidance precluded it from deciding whether a $925 million Telephone Consumer Protection Act damages award was constitutionally sound, further guidance is needed on when statutory damages violate due process, says Michael Klotz at O'Melveny.
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An NYDFS-Regulated Bank's Guide To Proper Internal Audits
As certification deadlines for compliance with the New York State Department of Financial Services’ transaction monitoring and cybersecurity regulations loom, lawyers should remember that the NYDFS offers no leeway for best efforts — and should ensure robust auditing and recordkeeping processes for clients, say attorneys at Arnall Golden.