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Cybersecurity & Privacy
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August 30, 2024
Wheeling & Appealing: The Latest Must-Know Appellate Action
Appeals courts have awakened from summertime slumber and crammed their early autumn calendars with arguments of national significance, which Law360 previews in this edition of Wheeling & Appealing. We're also recapping August's top appellate decisions, exploring new polling about U.S. Supreme Court opinions and testing your knowledge of Fifth Circuit history.
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August 30, 2024
New York Magazine Reader Drops Suit Over Data Disclosures
A subscriber to New York magazine has voluntarily dropped a potential class action accusing the periodical's publisher of violating a Michigan consumer privacy law by wrongfully disclosing readers' data to third parties.
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August 30, 2024
Period Tracker App Users Seek Class Cert. In Data-Selling Suit
Users of the menstrual cycle tracking app Flo Health Inc. are seeking class certification in their suit against Flo, Google and Meta, telling a California federal judge the proposed class would include millions of users whose personal health information was sold to the ad giants without consent.
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August 30, 2024
Conn. Mayor Says Scam Cost Town $208K, Finance Chief Out
The mayor of a Connecticut town has announced that it was the victim of a "social engineering scam" that cost it about $208,000, leading to the resignation of the town's finance director, although it has since recouped half the stolen funds.
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August 30, 2024
FTX Exec Drops Bid To Undo Plea Amid Partner's Indictment
Former FTX executive Ryan Salame is no longer seeking to vacate his guilty plea that he says Manhattan federal prosecutors induced with a false promise to halt a campaign finance probe into his partner Michelle Bond, though his claims that they broke their word will still be litigated before two different judges.
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August 30, 2024
Crypto Exchanges Illegally Took Facial Scans, Suits Say
Two cryptocurrency exchanges have been hit with proposed class actions in Illinois federal court alleging they unlawfully collected, stored, and disclosed users' facial geometry scans by making new customers go through a mandatory verification process in violation of Illinois' Biometric Information Privacy Act.
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August 30, 2024
Medical Tech Co. Exits MOVEit Hack MDL For $2.8M
Medical billing software firm Arietis Health LLC has agreed to pay $2.8 million to settle out of a multidistrict litigation brought by a class of victims of a 2023 data breach involving Progress Software's MOVEit file transfer tool.
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August 29, 2024
Ga. Health System Shakes Facebook Data Sharing Row
A Georgia federal judge has tossed a putative class action accusing Piedmont Healthcare Inc. of unlawfully sharing confidential health information with Facebook, finding that the plaintiffs failed to allege actual damages and that the "weight of authority" in similar online tracking cases supported the provider's contention that there was no privacy intrusion.
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August 29, 2024
PI Says He Didn't Publish Trade Secrets In Hacking Suit
A North Carolina private investigator is doubling down on his bid to defeat what's left of aviation tycoon Farhad Azima's lawsuit accusing him of taking part in an international hacking conspiracy.
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August 29, 2024
Ancestry.com Beats Claims It Used Yearbook Photos In Ads
Ancestry.com has snagged a quick win from an Ohio federal judge in a proposed class action claiming the genealogy website uses people's yearbook records without their consent to market its services with three unlawful advertising techniques.
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August 29, 2024
DLA Piper Steers Tech-Focused SPAC GigCapital's Latest IPO
GigCapital7 Corp., the latest special-purpose acquisition company led by technology-focused entrepreneur Avi Katz, began trading Thursday after completing a downsized initial public offering that raised $200 million, represented by DLA Piper and underwriters' counsel Lucosky Brookman LLP.
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August 29, 2024
HHS Withdraws Appeal In Hospital Web-Tracking Clash
The Biden administration on Thursday abandoned its appeal of a federal court decision that knocked down new guidance restricting how hospitals can use web-tracking tools, handing the American Hospital Association a victory in a closely watched case.
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August 29, 2024
Houston Law Firm Hit With 2nd Data Breach Suit
Houston personal injury firm Fleming Nolen & Jez has been hit with another proposed class action over a February 2023 data breach that exposed clients' personal and health information.
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August 29, 2024
Data Breach Victims Get Initial Green Light For $1.5M Deal
A proposed class of policyholders, employees and stakeholders has received an initial nod of approval from a federal judge in North Carolina on its $1.5 million settlement with a construction industry insurer over a 2022 data breach.
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August 28, 2024
Calif. Assembly OKs 1st-Of-Its-Kind AI Safety Bill
California lawmakers on Wednesday approved a groundbreaking proposal that would set safety and security standards for large artificial intelligence models.
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August 28, 2024
Telegram CEO Indicted In France Over Crimes On Platform
Paris prosecutors on Wednesday unveiled wide-ranging criminal charges against Pavel Durov, the founder and CEO of encrypted messaging-platform Telegram, accusing him of aiding illegal child-pornography, fraud and other crimes and obstructing investigations, and barring him from leaving the country.
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August 28, 2024
Orrick, Okla. Atty Deny Violating MOVEit MDL Judge's Orders
Orrick Herrington & Sutcliffe LLP and an Oklahoma attorney have denied violating court orders in multidistrict litigation over a 2023 data breach involving Progress Software's MOVEit file transfer tool, telling a Massachusetts federal court they were allowed to settle similar state litigation against a payroll software provider outside the federal action.
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August 28, 2024
Feds Say Multimillion-Dollar 'Surge' Scheme Bilked Uber Riders
New York federal prosecutors on Wednesday accused two men of leading a yearslong scheme that allowed hundreds of Uber drivers to use illicit apps, including some named Screwber and FakeGPS, to manipulate the rideshare market and gain millions of dollars from riders in fraudulent surge fees.
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August 28, 2024
Hunter Biden's Addiction Expert Knocked Out Of Tax Trial
A California federal judge on Tuesday barred Hunter Biden's expected addiction expert from testifying in his upcoming trial on tax charges, saying the expert's opinions hadn't been clearly linked to the specifics of Biden's own struggle.
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August 28, 2024
ACLU Offers Harris 'Roadmap' To Rein In Gov't Surveillance
The American Civil Liberties Union is urging the Democratic presidential nominee to stop what the group calls exploitation of the Foreign Intelligence Surveillance Act by the federal government by ending unwarranted surveillance of Americans if she wins office in November.
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August 28, 2024
US, Canada Agree To Work Together On Privacy Enforcement
The Federal Communications Commission said Wednesday it has inked an agreement with Canada's privacy regulator to share information and cooperate on enforcement actions to protect consumers' data.
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August 28, 2024
Yelp Sues Google Over Reviews Self-Preferencing
Yelp sued Google in California federal court Wednesday, targeting the self-preferencing of Google's own local search offerings as illegal monopolization after years of public lobbying against the search giant.
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August 28, 2024
SEC Omits 'Swing Pricing' Plan From Fund Disclosure Rules
A divided U.S. Securities and Exchange Commission on Wednesday agreed to require more detailed and frequent disclosures from mutual funds, though regulators dropped plans — at least for now — to implement a controversial "swing pricing" provision.
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August 28, 2024
TikTok Lawsuit, Kids' Privacy Bills Push Cos. 'Back To Basics'
The federal government's lawsuit challenging TikTok's policing of kids on its platform and mounting efforts to boost online protections for teens is ramping up pressure on a broad range of website operators, highlighting the importance for companies to think beyond existing legal frameworks to avoid growing legal scrutiny.
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August 28, 2024
Jones Walker Adds In-House Vet To Co-Lead Privacy, AI Team
Jones Walker LLP has a new co-leader of its privacy, data strategy and artificial intelligence team in Atlanta who has served in prominent in-house roles at both global consulting firm Vialto Partners and EY.
Expert Analysis
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Series
Playing Golf Makes Me A Better Lawyer
Golf can positively affect your personal and professional life well beyond the final putt, and it’s helped enrich my legal practice by improving my ability to build lasting relationships, study and apply the rules, face adversity with grace, and maintain my mental and physical well-being, says Adam Kelly at Venable.
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What FCA Cases May Look Like In The Age Of Generative AI
Generative artificial intelligence raises unique considerations both in the context of potentially leading to False Claims Act cases and in the discovery and litigation phases of these lawsuits, says attorney Rachel Rose.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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3 Ways To Limit Risks Of Black-Box AI In Financial Services
As regulators increasingly highlight the potential for artificial intelligence to make unfair consumer credit decisions, and require financial institutions to explain how these so-called black-box algorithms arrive at conclusions, companies should consider three key questions to reduce their regulatory risks from these tools, say Jeffrey Naimon and Caroline Stapleton at Orrick.
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Takeaways From EU's 'Pay Or Consent' Advertising Probe
Anne-Gabrielle Haie and Charles Whiddington at Steptoe examine key points from the European Commission's recent investigation into Big Tech's use of "pay or consent" advertising models, as well as the European Data Protection Board’s opinion on how such models can comply with EU competition and data protection laws.
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Energy And AI: Key Issues And Future Challenges
Artificial intelligence promises new technical advantages for the energy industry, but it is also responsible for vast, and growing, energy consumption — so the future of AI and energy will require balancing technological advancement with regulatory oversight, environmental responsibility and infrastructure development, say attorneys at Morgan Lewis.
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When Banks Unknowingly Become HIPAA Biz Associates
There appears to be significant confusion regarding the application of the Health Insurance Portability and Accountability Act to financial institutions when serving healthcare-related clients, so these institutions should consider undertaking several steps as a starting point in the effort to achieve compliance, say attorneys at Vorys.
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The Regulatory Headwinds Facing Lab-Developed Tests
Though the U.S. Food and Drug Administration's final rule regarding regulation of laboratory-developed tests outlines a four-year plan for ending enforcement discretion, and though this rule is currently being challenged in courts, manufacturers should heed compliance opportunities immediately as enforcement actions are already on the horizon, say attorneys at Kirkland & Ellis.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opting In To CIPA Risk Mitigation After New Precedent
A recent California federal court decision, adopting a new, broad interpretation of the California Invasion of Privacy Act, will likely increase the volume of CIPA claims and should prompt businesses to undertake certain preventative measures, including adopting an opt-in approach to using third-party website advertising technologies, say attorneys at Thompson Hine.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Why DOJ's Whistleblower Program May Have Limited Impact
The U.S. Department of Justice’s new whistleblower pilot program aims to incentivize individuals to report corporate misconduct, but the program's effectiveness may be undercut by its differences from other federal agencies’ whistleblower programs and its interplay with other DOJ policies, say attorneys at Milbank.
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What 7th Circ. Samsung Decision Means For Mass Arbitration
The Seventh Circuit's recent decision in Wallrich v. Samsung highlights the dilemma faced by mass arbitration filers in the face of nonpayment of arbitration fees by the defending party — but also suggests that there are risks for defendants in pursuing such a strategy, says Daniel Campbell at McDermott.
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Takeaways From Virginia's $2B Trade Secrets Verdict Reversal
The Virginia Court of Appeals' recent reversal of the $2 billion damages award in Pegasystems v. Appian underscores the claimant's burden to show damages causation and highlights how an evidentiary ruling could lead to reversible error, say John Lanham and Kamran Jamil at Morrison Foerster.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.