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Cybersecurity & Privacy
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June 18, 2024
AIG Unit Says Exclusions Bar Pet Supply Co.'s BIPA Claims
An AIG unit has told a Michigan federal court a pet supply store isn't owed defense for an underlying class action brought by employees alleging the store violated the Illinois Biometric Information Privacy Act, maintaining that a "recording and distribution" exclusion and "employment-related practices exclusion" were triggered.
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June 18, 2024
Gov't Says New Guidelines Can't Cut Crypto Expert's Sentence
Federal prosecutors have told a Manhattan federal judge that the crypto computing expert who received five years for aiding North Korea's blockchain development shouldn't get to cut a year off his sentence just because sentencing guidelines have been updated while he's served his term.
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June 18, 2024
Apple Sanctioned In Siri Privacy Suit For Deleting Recordings
A California federal judge has sanctioned Apple Inc. in a privacy lawsuit brought by Siri users who claim the voice-activated software records their conversations, finding the tech giant spoiled evidence by deleting key data, but that a jury should determine whether Apple deprived the users of the data intentionally.
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June 18, 2024
Noncustomers Cinch Settlement In Citibank Robocall Suit
Citibank has reached a deal with a class of noncustomers who accused the bank of bombarding them with unauthorized robocalls, according to a notice filed in Arizona federal court, ending six years of litigation alleging Citibank had violated the Telephone Consumer Protection Act.
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June 18, 2024
FTC Escalates Probe Into TikTok's Privacy Measures For Kids
The Federal Trade Commission on Tuesday took the rare step of publicly disclosing its referral to the U.S. Department of Justice of a complaint against TikTok and its parent company over their compliance with a 2019 privacy settlement, saying there's "reason to believe" that the companies are out of step with their pledge to protect children on the platform.
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June 18, 2024
Chicago Cubs Will Pay $1.2 Million To End TCPA Suit
An Illinois federal judge granted final approval Monday to a $1.2 million settlement that resolves litigation accusing the Chicago Cubs of sending persistent marketing text messages that violated the Telephone Consumer Protection Act.
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June 18, 2024
Ariz. County Says New Kari Lake Vote Claims Merit Sanctions
Maricopa County officials are slamming former gubernatorial candidate Kari Lake's bid to unravel a Ninth Circuit decision affirming the toss of her lawsuit over Arizona's voting machines, contending that the "fatally flawed" effort warrants sanctions.
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June 17, 2024
Calif. Becomes Last State To Ink Deal Over Blackbaud Breach
Blackbaud Inc. has agreed to pay $6.75 million to resolve data security claims brought by California's attorney general, who was the only one to sit out a nearly $50 million settlement that the software provider reached last year with every other state over a 2020 ransomware attack that affected thousands of its customers.
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June 17, 2024
Judge Cements Decision Clearing Cisco From $2.75B Ruling
There will be not be a third trial for a cybersecurity startup that has seen its multibillion-dollar patent win turn into nothing at all, a Virginia federal judge has decided, after a second trial found that Cisco wasn't actually infringing its patents.
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June 17, 2024
BNSF's $75M BIPA Deal With Truckers Nears Final OK
A $75 million biometric privacy settlement between BNSF Railway Co. and a class of truck drivers who challenged the railroad's gate-access practices neared final approval Monday, resolving litigation that had been pending in Illinois' state and federal courts.
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June 17, 2024
US Surgeon General To Seek Warning Label On Social Media
U.S. Surgeon General Vivek H. Murthy has called on lawmakers to require social media companies to put warnings on their sites that say young people who use them have more mental health issues, according to an opinion article published on Monday.
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June 17, 2024
Hacker Facing Rare, Deadly Cancer Avoids Prison Time
Despite "vehemently" rejecting defense counsel's arguments seeking a more lenient sentence for a cybersecurity contractor facing up to five years in prison for hacking into a hospital's computer systems, a Georgia federal judge nevertheless handed down a two-year house arrest sentence on Monday, citing the defendant's extremely rare and aggressive form of cancer.
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June 17, 2024
9th Circ. Says Facebook 'Face Signatures' Not Subject To BIPA
The Ninth Circuit sided with Meta Platforms on Monday by declining to revive an Illinois resident's proposed class action accusing Facebook of breaking the state's Biometric Information Privacy Act, ruling that the "face signature" at issue isn't protected by the law because it cannot be used to identify someone.
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June 17, 2024
Google Says Texas Took Opposing Positions On Key Law
Google told a Texas federal court the state attorney general's office made arguments in the case accusing the tech giant of monopolizing display advertising technology that directly contradict arguments the state is making in a case challenging the Pregnant Workers Fairness Act.
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June 17, 2024
Consulting Firms To Pay $11.3M Over Rent Help Site Breach
A consulting firm and its subcontractor have agreed to pay $11.3 million to resolve a False Claims Act suit alleging that they allowed the personal data of low-income New Yorkers to be compromised while operating a pandemic-era rental assistance program website.
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June 14, 2024
Meta Halts AI Tech Debut In EU After Regulatory Backlash
Meta Platforms Inc. said Friday that it was putting on hold plans to expand its artificial intelligence offerings to the European market after the Irish privacy regulator raised concerns about the company's efforts to use public content posted on Facebook and Instagram to fuel these models.
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June 14, 2024
FCC Settles Probe Into Data Breach At Liberty Latin America
Liberty Latin America has been slapped with a $100,000 fine for failing to tell the Federal Communications Commission about a data breach that exposed data before the telecom took control of the company.
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June 14, 2024
France Offers $750M For Atos' Cyber, Data Assets
Information technology firm Atos SE said Friday that it has received a nonbinding offer from the French government to buy certain big data and cybersecurity operations at an enterprise value of €700 million ($750 million).
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June 14, 2024
X Dodges Porn Filter BIPA Suit For Now
An Illinois federal judge has thrown out a proposed class action accusing X Corp. of violating the state's biometric privacy law through its use of software to police pornographic images, saying the lead plaintiff failed to allege that the tool can be used to identify specific individuals.
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June 14, 2024
Feds Lob New Charges Over $430M Dark Web Market
Two owners of an online marketplace known as Empire Market were hit Thursday with additional charges alleging that over a period of years they allowed users worldwide to buy and sell $430 million worth of illegal goods and services.
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June 14, 2024
Political Speech Groups Challenge NJ Judicial Privacy Case
Two voting-integrity groups moved Friday to dismiss federal claims brought against them under New Jersey's Daniel's Law on the grounds that their business of publishing voter registration information is political speech protected by the First Amendment and federal voting rights laws.
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June 13, 2024
CFPB's Chopra Sees 'Pressing Need' For Data Protections
Consumer Financial Protection Bureau Director Rohit Chopra zeroed in on data usage and privacy during a Thursday hearing with House lawmakers, calling for sharper limits on what financial firms can do with customer data while also seeking to assuage concerns about his agency's plans for data sharing and data broker rules.
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June 13, 2024
Vt. Gov. Blocks 'Outlier' Data Privacy Bill With Lawsuit Trigger
Vermont's governor on Thursday vetoed a legislative proposal that would have given consumers not only new data privacy rights but also the rare opportunity to sue large businesses for certain violations, expressing concerns with the significant "risks" created by the "outlier" measure and urging the Legislature to instead embrace the model adopted by Connecticut and more than a dozen other states.
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June 13, 2024
Zoom's $150M Investor Deal Nears OK, But $50K Award Iffy
A California federal judge indicated Thursday that he'll preliminarily approve Zoom's $150 million deal to end claims it misled investors by stating that it offered end-to-end encryption on its videoconferencing software, but told the plaintiffs' lawyers, "You're going to have to persuade me" to award the lead plaintiff $50,000.
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June 13, 2024
KeyBank Borrowers' $6M Data Breach Deal Gets Initial OK
A Georgia federal judge on Thursday granted preliminary approval to a $6 million settlement deal resolving a class suit over data breaches at KeyBank and other regional lenders and a technology contractor despite objections from a subclass of borrowers — who had previously settled their claims — saying the deal was inequitable.
Expert Analysis
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A Close Look At The FCC's Revised SIM Card Fraud Rules
Carolyn Mahoney and John Seiver at Davis Wright break down recently proposed revisions to the Federal Communications Commission's customer proprietary network information and local number portability rules for wireless providers, discuss the revisions' implications on artificial intelligence regulation, and provide tips to prevent SIM swap and port-out fraud.
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What Retailers Should Note In Calif. Web Tracking Suits
As retailers face a deluge of class actions alleging the use of conventional web analytic tools violate wiretapping and eavesdropping provisions of the California Invasion of Privacy Act, uncovering the path toward a narrow interpretation of the law will largely depend on how these cases proceed, say Matthew Pearson and Kareem Salem at BakerHostetler.
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Copyright Lessons Following Ruling In Artist AI Suit
The recent California district court ruling in Andersen v. Stability AI — that artists needed to specify how the training of artificial intelligence tools violated their copyrights — shows that lawyers on either side of generative AI matters must carefully navigate copyright issues including temporary copying and data sourcing, says Carlos Araya at Magnolia Abogados.
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The Legal Industry Needs A Cybersecurity Paradigm Shift
As law firms face ever-increasing risks of cyberattacks and ransomware incidents, the legal industry must implement robust cybersecurity measures and privacy-centric practices to preserve attorney-client privilege, safeguard client trust and uphold the profession’s integrity, says Ryan Paterson at Unplugged.
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5 Reasons Associates Shouldn't Take A Job Just For Money
As a number of BigLaw firms increase salary scales for early-career attorneys, law students and lateral associates considering new job offers should weigh several key factors that may matter more than financial compensation, say Albert Tawil at Lateral Hub and Ruvin Levavi at Power Forward.
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SEC Registrants Likely Won't Get Cyber Disclosure Delays
The U.S. Securities and Exchange Commission's sweeping cybersecurity disclosure final rules, its SolarWinds enforcement action and recent U.S. Department of Justice guidance show the pressure is on registrants to disclose incidents timely and accurately, but the circumstances in which an extension will be granted are extremely rare, say attorneys at Pillsbury.
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Following Banking Regulators' Breadcrumbs To 2024 Priorities
Through blog posts, speeches, and formal guidance and regulations, prudential and other federal and state financial regulators laid out a road map last year pointing to compliance priorities that should be reflected in financial institutions' planning this year, say Laurel Loomis Rimon and Gina Shabana at Jenner & Block.
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Directors And Officers Face Unique AI-Related Risks
As privacy, intellectual property and discrimination lawsuits focusing on artificial intelligence increase, corporate directors and officers must stay aware of associated risks, including those related to compliance, litigation and cybersecurity, says Jonathan Meer at Wilson Elser.
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Series
Playing Competitive Tennis Makes Me A Better Lawyer
My experience playing competitive tennis has highlighted why prioritizing exercise and stress relief, maintaining perspective under pressure, and supporting colleagues in pursuit of a common goal are all key aspects of championing a successful legal career, says Madhumita Datta at Lowenstein Sandler.
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New Strain Of Web Tracking Suits Pose Risks For Retailers
Amid an ongoing surge of California state and federal lawsuits that are using novel theories to allege companies used certain recording technologies to illegally track website users, retailers should take steps to develop a potential argument that customers consented to any alleged uses of these devices, say attorneys at Benesch.
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Series
The Pop Culture Docket: Judge Djerassi On Super Bowl 52
Philadelphia Court of Common Pleas Judge Ramy Djerassi discusses how Super Bowl 52, in which the Philadelphia Eagles prevailed over the New England Patriots, provides an apt metaphor for alternative dispute resolution processes in commercial business cases.
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Unraveling The Bundled Benefits Of Retail Memberships
The recent prevalence of paid retail memberships and the associated findings of a consumer survey suggest that assessing consumer preferences and welfare may be important when considering resolution mechanisms in antitrust contexts, say Rosa M. Abrantes-Metz at Berkeley Research Group, Mame Maloney at The Brattle Group and Jeff Brazell at the University of Utah.
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NC TikTok Order Holds Lessons On Handling State AG Probes
Earlier this month, a North Carolina appeals court compelled TikTok to give the state attorney general information relating to 98,000 recorded Zoom meetings, reminding companies that successful civil litigation strategies may have the opposite effect in the state or regulatory investigation context, say attorneys at Troutman Pepper.
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Takeaways From SEC's Aggressive Cybersecurity Moves
The U.S. Securities and Exchange Commission's intensifying policy on cybersecurity and securities violations in the wake of a data breach — like its enforcement action against SolarWinds and its security officer — has emboldened shareholders to file related suits, creating a heightened threat to public companies, say attorneys at Baker McKenzie.
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Considerations For Lawyer Witnesses After FTX Trial
Sam Bankman-Fried's recent trial testimony about his lawyers' involvement in FTX's business highlights the need for attorney-witnesses to understand privilege issues in order to avoid costly discovery disputes and, potentially, uncover critical evidence an adversary might seek to conceal, says Lawrence Bluestone at Genova Burns.