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Cybersecurity & Privacy
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September 30, 2024
Ex-UNC Prof Claims Admin Tapped Classroom In Firing Suit
A Native American former professor at the University of North Carolina has taken the school to federal court for allegedly recording his lectures without his consent and terminating him in retaliation for his public comments criticizing what he says is a lack of proper diversity initiatives at the university.
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September 30, 2024
PE-Backed IT Provider Ingram Micro Files Long-Awaited IPO
Private equity-owned technology company Ingram Micro made public its U.S. initial public offering filing Monday, more than two years after the Irvine, California-based electronics distributor laid the foundation for its return to stock markets.
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September 30, 2024
Epic Accuses Samsung Of Helping Google Block App Fix
Epic Games filed a new federal lawsuit Monday against Google and Samsung, alleging the search giant and the phonemaker have teamed up "to preemptively undermine" a looming order forcing Google to permit competition with its Play Store.
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September 29, 2024
Hunter Biden's Tax Privacy Case Can Proceed, Judge Says
Hunter Biden can move forward with his lawsuit against the federal government alleging the unauthorized disclosure of his tax return information by special agents and their attorneys who talked publicly about an investigation that culminated in Biden's copping to criminal tax charges, a D.C. federal judge ruled.
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September 27, 2024
Bread's Banks Fork Over $2M To FDIC Over Rewards Issue
The Federal Deposit Insurance Corp. has fined Bread Financial's Comenity bank units a total of $2 million as part of a pair of consent orders made public Friday that resolve unfair practices claims tied to their rewards programs and automatic payments processing.
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September 27, 2024
FCC Chief Quotes Taylor Swift In Tough Stance On Deepfakes
Federal Communications Commission chairwoman Jessica Rosenworcel vowed during a speech Friday to take a strong position on enforcing the Telephone Consumer Protection Act against AI-generated robocalls and noted the FCC is considering new AI election-related disclosure regulations, quoting pop singer Taylor Swift who said, "The simplest way to combat misinformation is with the truth."
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September 27, 2024
Kappos' Bayh-Dole Warning To Clients Draws Debate
An advocate for lowering drug prices squared off Friday against a former U.S. Patent and Trademark Office director about the potential risk of accepting government funds to develop drugs, as part of a discussion at New York University School of Law.
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September 27, 2024
Meta's Password Storage Flub Draws €91M Irish Fine
Ireland's data protection authority has hit Facebook parent company Meta Platforms Inc. with a €91 million ($101.5 million) penalty for allegedly storing users' passwords without encryption or other necessary safeguards, the regulator announced Friday.
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September 27, 2024
Constitution Permits Blocked Anti-Laundering Law, Panel Told
The U.S. government urged the Eleventh Circuit on Friday to reinstate the Corporate Transparency Act passed in 2021, arguing that the anti-money laundering law is within Congress' powers to regulate economic activity and necessary to have businesses report beneficial ownership to combat crimes like tax evasion and terrorist financing.
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September 27, 2024
UK Man Indicted On $4M 'Hack-To-Trade' Scheme
New Jersey federal prosecutors announced Friday that a U.K. man has been arrested and is awaiting extradition on charges of hacking into the email accounts of several corporate executives in order to steal nonpublic information that he used to turn a profit of almost $4 million.
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September 27, 2024
FCC Chief Says Chevron's Fall Won't Slow Needed Regs
Upcoming Federal Communications Commission rules are likely to survive judicial scrutiny even after the Chevron doctrine's demise because the policies are grounded on not only legal analysis but in-depth economic and engineering studies, the agency's chief said Friday.
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September 27, 2024
L'Oréal Can't Turn Off Try-On Tool BIPA Suit
An Illinois federal judge on Friday refused to dismiss a proposed class action accusing L'Oréal USA of violating Illinois' biometric privacy law with its virtual try-on tool, saying the beauty giant failed to give the plaintiff constructive notice of its arbitration terms and that she'd done enough at this stage to plausibly allege it collected her biometric identifiers.
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September 27, 2024
Ga. Hospital Patients Ask Judge to Revive Facebook Data Suit
A proposed class of patients claiming Piedmont Healthcare Inc. unlawfully shared their confidential health data with Facebook urged a federal judge to rethink his late-August decision tossing their suit, saying the judge failed to consider their claims the health system criminally violated HIPAA's privacy rule.
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September 27, 2024
Insurer Says No Coverage For Conn. Firm's Data Breach
A Connecticut personal injury firm's insurance company says it won't foot the bill for claims stemming from a hacker breaking into the firm's email system and stealing over $750,000 from a client, saying the firm's professional liability policy excluded "cyber security events."
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September 27, 2024
Gunster Says Absence Of Damages Sinks Data Breach Case
Gunster Yoakley & Stewart PA wants a proposed class action lawsuit against it tossed in Florida federal court, arguing plaintiffs who had their personal information compromised when the law firm fell victim to a cyberattack can't show any harm was done.
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September 27, 2024
Feds Charge 3 Iranians In Trump Campaign Hack
The U.S. Department of Justice on Friday unsealed an indictment accusing three Iranian citizens of hacking Donald Trump's presidential campaign as part of a "wide-ranging" cyber scheme that sought to sow distrust in U.S. elections.
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September 26, 2024
Attys Worry OpenAI IP Row Will Drag On Amid AI Policy Push
A BigLaw attorney and consumer advocates found common ground during the seventh annual Berkeley Law AI Institute on Thursday expressing concerns that courts won't timely adjudicate copyright claims against OpenAI and others, while an FTC attorney noted the commission is already enforcing the Federal Trade Act against companies for over-hyping their AI.
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September 26, 2024
Legal Pros Grapple With Best Use Of AI As Clients Divide
BigLaw attorneys and in-house counsel speaking at the annual Berkeley Law AI Institute on Thursday talked about how they've recently grappled with using the tools known as artificial intelligence in representing clients, saying some clients have either demanded or prohibited attorneys from using the tools, and others have taken seemingly contradictory positions.
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September 26, 2024
HHS Flags Ransomware Rise In New Deal With Wash. Provider
A Washington state-based healthcare provider has agreed to pay $250,000 and boost its data security to resolve the U.S. Department of Health and Human Service's enforcement action over a 2017 ransomware attack, amid what the agency said has been a steep rise in reports of such cyberattacks over the past six years.
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September 26, 2024
Senate Bill Calls For Stronger Healthcare Cyber Standards
Democratic lawmakers introduced legislation Thursday aiming to better protect patient health information and avoid cyberattacks by strengthening cybersecurity standards, months after a highly publicized data breach earlier this year of a UnitedHealth unit that lacked basic security measures like two-factor authentication.
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September 26, 2024
Colo. AG Says He Won't Call 'Ticky Tack' Privacy Fouls
Colorado Attorney General Phil Weiser told an audience of attorneys and privacy professionals Thursday that part of his privacy enforcement strategy is not to needle companies that are trying to comply with the law for minor violations.
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September 26, 2024
Snowflake, AT&T Data Breach Suit Must Be Joined, JPML Told
An attorney for plaintiffs suing cloud provider Snowflake Inc., which counts AT&T Inc. among its clients and suffered a series of high-profile hacks, urged the Judicial Panel on Multidistrict Litigation Thursday to consolidate all related litigation, saying the disputes revolve around common issues.
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September 26, 2024
En Banc 9th Circ. Doubts Dismissal Of Shopify Privacy Suit
Ninth Circuit judges sitting en banc Thursday appeared dubious of an earlier panel's conclusion that a California federal court lacked personal jurisdiction over Golden State consumers' privacy claims against Shopify Inc., questioning how internet companies could ever face tort claims if this were the law.
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September 26, 2024
Investor Ordered To Deposit $336K In Pot Co. Contract Suit
A Nevada magistrate judge has ordered Capital Pure Assets Ltd. to deposit $336,000 with the court as part of a dispute with a cannabis payment company's subsidiary over a failed business venture, finding the subsidiary is likely to succeed on its claims that CPA tricked it into putting that amount into an escrow fund.
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September 26, 2024
Arthur J. Gallagher To Pay $21M To End Data Breach Suits
Insurance broker Arthur J. Gallagher & Co. has agreed to pay $21 million to resolve several lawsuits consolidated in Illinois alleging that it failed to protect more than 3 million customers from a data breach that compromised their personally identifiable information, with an Illinois federal judge giving her initial blessing to the deal Thursday.
Expert Analysis
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Lessons From Epic's Dutch Fine For Unfair Marketing To Kids
Dutch regulators' imposition of a €1.1 million fine on Epic Games for unfair commercial practices targeting children marks a significant moment in the ongoing scrutiny of digital market practices, and follows an increased focus on children's online safety in the U.S. and European Union, say attorneys at Crowell & Moring.
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Opinion
California Has A Duty To Curtail Frivolous CIPA Suits
As plaintiffs increasingly file class actions against companies for their use of website tracking cookies and pixels, the Legislature should consider four options to amend the California Invasion of Privacy Act and restore the balance between consumer privacy and business operational interests, say Steven Stransky and Jennifer Adler at Thompson Hine and Glenn Lammi at the Washington Legal Foundation.
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Risks And Promises Of AI In The Financial Services Industry
Generative artificial intelligence has immense potential to revolutionize the financial services industry, but firms considering its use should first prepare to show their customers and the increasingly divided international regulatory community that they can manage the risks inherent to the new technology, say attorneys at Gibson Dunn.
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Playing The Odds: Criminal Charges Related To Sports Betting
In light of recent sports betting scandals involving MLB player Shohei Ohtani and NBA player Jontay Porter, institutions and individuals involved in athletics should be aware of and prepared to address the legal issues, including potential criminal charges, that sports gambling may bring to their door, say attorneys at Steptoe.
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Series
Playing Chess Makes Me A Better Lawyer
There are many ways that chess skills translate directly into lawyer skills, but for me, the bigger career lessons go beyond the direct parallels — playing chess has shown me the value of seeing gradual improvement in and focusing deep concentration on a nonwork endeavor, says attorney Steven Fink.
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Key FCC Enforcement Issues In AT&T Location Data Appeal
AT&T’s decision to challenge a $57 million fine from the Federal Communications Commission for its alleged treatment of customer location information highlights interesting and fundamental issues about the constitutionality of FCC enforcement, say Patrick O’Donnell and Jason Neal at HWG.
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Crafting An Effective Workplace AI Policy After DOL Guidance
Employers should take proactive steps to minimize their liability risk after the U.S. Department of Labor released artificial intelligence guidance principles on May 16, reflecting the reality that companies must begin putting into place policies that will dictate their expectations for how employees will use AI, say David Disler and Courtnie Bolden at Porzio Bromberg.
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How SEC Could Tackle AI Regulations On Brokers, Advisers
The U.S. Securities and Exchange Commission held an open meeting of its Investor Advisory Committee on June 6 to review the use of artificial intelligence in investment decision making, showing that regulators are being careful not to stifle innovation or implement rules that will quickly be made irrelevant after their passage, says Brian Korn at Manatt Phelps.
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Litigation Inspiration: Attys Can Be Heroic Like Olympians
Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.
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Unpacking NY's Revised Hospital Cybersecurity Rule Proposal
The New York State Department of Health's recently revised hospital cybersecurity rule proposal highlights increased expectations and scrutiny around cybersecurity in the healthcare sector, while adapting to both recent industry developments and public comments, say Christine Moundas and Gideon Zvi Palte at Ropes & Gray.
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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.