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Cybersecurity & Privacy
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August 06, 2024
Cadwalader Slams Lloyd's For 'Needless' Disclosure, Mockery
Cadwalader Wickersham & Taft LLP has opposed a bid by a Lloyd's of London syndicate to unseal the law firm's complaint seeking $1 million of coverage for a November 2022 data breach, telling the North Carolina Business Court that Lloyd's has chosen to "mock and insult their own customer" while exposing confidential information in its filing to the court.
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August 06, 2024
NYC Prof Found Guilty Of Acting As A Secret Chinese Spy
A Brooklyn federal jury on Tuesday unanimously convicted an academic and author of secretly acting as an agent of the Chinese government by feeding information about Chinese dissidents and pro-democracy activists to China's intel service, following a weeklong jury trial, according to the U.S. Attorney's Office for the Eastern District of New York.
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August 06, 2024
Cable Biz Likely To Oppose Cybersecurity Reporting Rules
Cable providers bristled at federal agencies' plans to impose new requirements aimed at beefing up network security, arguing that rules for reporting cyberattacks within certain time frames and sharing detailed security plans would be overly burdensome.
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August 06, 2024
Pennsylvania Hospital Gets Data Breach Suit Whittled
A Pennsylvania federal judge has shaved two counts off of a data breach lawsuit against Prospect Medical Holdings Inc., rejecting the hospital operator's argument that the plaintiffs lacked standing to bring the suit but agreeing that not all of them stated valid claims.
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August 06, 2024
Testing Lab Can't Add Bad Faith Claims In Income Loss Case
A Pennsylvania federal judge found Tuesday that a prior agreement between a medical testing lab and its insurer expressly precluded added allegations that the insurer acted in bad faith while handling the lab's claim for loss of records and business income.
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August 06, 2024
Lowe's Must Face Retail Logistics Co.'s Software IP Suit
Lowe's Home Centers LLC lost its bid to dismiss a retail logistics company's claims it ripped off a merchandise return management software and breached its contract with that software's manufacturer, with a North Carolina federal judge declining to fully toss any of the claims but flagging that some contradicted each other.
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August 06, 2024
AI Security Biz Sets Sights On IPO After $5.1B Valuation
Artificial intelligence company Abnormal Security, advised by Cooley LLP, announced Tuesday that it has hit a $5.1 billion valuation after closing its Series D funding round with $250 million in tow.
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August 06, 2024
Gibson Dunn Guiding Veritas On $2.45B Cloud Banking Buy
Gibson Dunn is advising Veritas Capital on a deal to purchase the cloud-based digital banking business of NCR Voyix Corp., represented by King & Spalding, for $2.45 billion in cash plus a potential future payment of up to $100 million, NCR Voyix said in a statement Tuesday.
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August 05, 2024
Chamber, Others Back 9th Circ. Ax Of Shopify Privacy Row
The U.S. Chamber of Commerce and several tech trade groups are among those pushing the full Ninth Circuit to affirm the toss of a proposed class action accusing Shopify of unlawfully collecting shoppers' sensitive information, arguing that overriding the decision would unfairly allow plaintiffs to sue online businesses in any court across the country.
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August 05, 2024
Manufacturer Can't Get Coverage For BIPA Class Action
An Illinois federal judge awarded a win to an insurer Monday in a suit over coverage of underlying Biometric Information Privacy Act litigation, finding a contractual exclusion prevented coverage for a machine and plastics manufacturer accused of failing to secure employee data.
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August 05, 2024
TikTok Tells DC Circ. That Feds Can't Keep Filings Secret
TikTok told the D.C. Circuit on Monday that the U.S. government shouldn't be allowed to conceal its court filings in litigation over a federal law that could ban the popular social media platform in the United States.
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August 05, 2024
EBay Resists Calif. Damages In Mass. Stalking Case
Married Massachusetts bloggers who were stalked and terrorized by eBay Inc. employees shouldn't be able to seek punitive damages available under California law while having Massachusetts law otherwise govern liability for their myriad civil claims, the e-commerce giant is arguing.
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August 05, 2024
Top Groups Lobbying The FCC
The Federal Communications Commission heard from advocates nearly 180 times in July on issues ranging from rural broadband to Wi-Fi hot spots for schools and libraries, new payment rates for phone call captioning, spectrum for the electric grid, and more.
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August 05, 2024
AT&T Chief Pushes FCC To Make FirstNet 4.9 GHz Manager
AT&T Inc. CEO John Stankey met with Federal Communications Commission members to lobby for the company's first responder network to lead the national public safety band, despite band users' concerns that AT&T could control the band for its own self-serving interests.
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August 05, 2024
Google, OpenAI Accused Of Using YouTube Videos To Train AI
A California man has hit Google and OpenAI with separate proposed class actions in federal court accusing the companies of unlawfully transcribing YouTube videos and using them to train their large language model artificial intelligence products without the permission of the people who uploaded those videos.
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August 05, 2024
Patreon To Pay $7.25M To End Subscribers' Video Privacy Suit
Patreon has agreed to pay $7.25 million to settle a proposed class action on behalf of 1.2 million users who claim the content subscription-based platform violated the Video Privacy Protection Act by sharing their video-watching data with Facebook-owner Meta Platforms Inc. without their consent, according to court documents filed Friday.
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August 05, 2024
Pegasystems Slams Appian's 'Animus' After $2B Verdict Axed
Business software maker Pegasystems says rival Appian's "animus" is behind a series of what it says are irrelevant, premature and burdensome discovery requests, after a Virginia appeals court vacated a $2 billion trade secrets judgment against Pegasystems.
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August 05, 2024
BIPA Reform Becomes Law, But Damages Concerns Persist
The Illinois Legislature heeded a call from the state's Supreme Court to shield business from potentially ruinous damages under the Illinois Biometric Information Privacy Act, but lawyers say the new protections can still leave large employers facing hefty verdicts.
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August 05, 2024
CrowdStrike Slams Delta Over Outage Lawsuit Threats
CrowdStrike has fired back at Delta Air Lines' recent threat to haul the cybersecurity firm to court to recoup hundreds of millions in losses from last month's global IT outage, saying the airline refused CrowdStrike's offer for technical assistance, then botched its own operational recovery.
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August 05, 2024
Sen. Urges CFPB To Investigate Banks' Zelle Dispute Practices
U.S. Sen. Richard Blumenthal, D-Conn., has urged the Consumer Financial Protection Bureau to investigate the nation's three largest banks and the operator behind payments network Zelle after he said the firms gave "circuitous answers" to lawmakers during a hearing on their handling of fraud and dispute resolutions on the platform.
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August 05, 2024
Former Bowling Exec Asks For Denial Of Attorney Fee Award
A former bowling company executive who last month ridiculed the size of the requested attorney fee award in a suit by his ex-employer told a Virginia federal judge this weekend that he should not have to pay the fees at all.
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August 05, 2024
Catching Up With Delaware's Chancery Court
Sunken treasure, rock band discord, a wrestling competition, and more news about Elon Musk — all in all, a colorful week in Delaware's Court of Chancery. The First State's famous court of equity also pushed forward on disputes involving a famous social media app, Delaware's largest hospital system, an artificial intelligence company and a budding commodity futures exchange.
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August 05, 2024
Musk Accuses OpenAI Of Fraud, RICO Over Business Model
Elon Musk on Monday accused OpenAI Inc. and its leaders of violating several laws related to fraud, conspiracy, contract violations and false advertising by claiming he was wrongly told the company would remain a nonprofit, in a suit filed in California federal court.
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August 05, 2024
TikTok Removes 'Addictive' Feature In EU Amid Pressure
TikTok has agreed to permanently discontinue a viewing rewards program from the European Union after regulators there said its "addictive" nature could pose a risk to users' mental health, the European Commission announced Monday.
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August 05, 2024
Goodwin Adds Prudential Cybersecurity CLO As Partner
Goodwin Procter LLP announced Monday the hiring of the former chief legal officer in charge of cybersecurity, data privacy and artificial intelligence at Prudential Financial as a partner in its New York office.
Expert Analysis
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What TikTok's Race Against The Clock Teaches Chinese Firms
The Biden administration's recent divestiture deadline on TikTok parent ByteDance provides useful information for other China-based companies looking to do business in the U.S., including the need to keep products for each market separate and implement firewalls at the design stage, says Richard Lomuscio at Stinson.
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Updated Federal Rules Can Improve Product Liability MDLs
The recent amendment of a federal evidence rule regarding expert testimony and the proposal of a civil rule on managing early discovery in multidistrict legislation hold great promise for promoting the uniform and efficient processes that high-stakes product liability cases particularly need, say Alan Klein and William Heaston at Duane Morris.
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Lean Into The 'Great Restoration' To Retain Legal Talent
As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.
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AI-Generated Soundalikes Pose Right Of Publicity Issues
Artificial intelligence voice generators have recently proliferated, allowing users to create new voices or manipulate existing vocals with no audio engineering expertise, and although soundalikes may be permissible in certain cases, they likely violate the right of publicity of the person who is being mimicked, says Matthew Savare at Lowenstein Sandler.
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Beware Of Trademark Scammers Leveraging USPTO Data
Amid a recent uptick in fraudulent communications directed at trademark applicants, registrants must understand how to protect themselves and their brand from fraudulent schemes and solicitation, say Michael Kelber and Alexandra Maloney at Neal Gerber.
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Series
Fishing Makes Me A Better Lawyer
Atop the list of ways fishing makes me a better lawyer is the relief it offers from the chronic stress of a demanding caseload, but it has also improved my listening skills and patience, and has served as an exceptional setting for building earnest relationships, says Steven DeGeorge at Robinson Bradshaw.
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A Look At US-EU Consumer Finance Talks' Slow First Steps
The unhurried and informal nature of planned discussions between the U.S. Consumer Financial Protection Bureau and the European commissioner for justice and consumer protection suggests any coordinated regulatory action on issues like AI and "buy now, pay later" services is still a ways off, say attorneys at DLA Piper.
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A Healthier Legal Industry Starts With Emotional Intelligence
The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.
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Calif. Web Tracking Cases Show Courts' Indecision Over CIPA
Several hundred cases filed to date, and two recent conflicting rulings, underscore California courts' uncertainty over whether the use of web analytics tools to track users' website interactions can give rise to a violation of the California Invasion of Privacy Act, says Patricia Brum at Snell & Wilmer.
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To Make Your Legal Writing Clear, Emulate A Master Chef
To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.
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Takeaways From SEC's New Data Breach Amendments
The U.S. Securities and Exchange Commission's recent amendment of its consumer privacy rules to require investment advisers and broker-dealers to put procedures in place to uncover data breaches and report them to customers evidences that protecting client records and information remains an SEC priority, say attorneys at Simpson Thacher.
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Circuit Judge Writes An Opinion, AI Helps: What Now?
Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.
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'Food As Health' Serves Up Fresh Legal Considerations
The growth of food as medicine presents a significant opportunity for healthcare organizations and nontraditional healthcare players to improve patient outcomes and reduce costs, though these innovative programs also bring compliance considerations that must be carefully navigated, say attorneys at McDermott.
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Series
In The CFPB Playbook: Regulatory Aims Get High Court Assist
Newly emboldened after the U.S. Supreme Court last month found that the Consumer Financial Protection Bureau's funding is constitutional, the bureau has likely experienced a psychic boost, allowing its already robust enforcement agenda to continue expanding, say attorneys at Husch Blackwell.
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Novel Web Privacy Suits Under Calif. Credit Card Law From '71
A new surge in web-tracker litigation could make application of the California Song-Beverly Credit Card Act far more complex, despite the law far predating the rise of e-commerce, as plaintiffs continue to push the bounds of privacy litigation in the Golden State, say Matthew Pearson and Desirée Hunter-Reay at BakerHostetler.