Expert Analysis

• When AI Puffery Becomes Actionable Securities Fraud

  

  Though courts usually hold that vague but optimistic corporate statements don’t constitute securities fraud, signs suggest that investors may give enough economic weight to references to artificial intelligence in public company disclosures that broad feel-good statements could cross into actionable misrepresentation, says Christine Polek at Keystone Strategy.

• State FARA Laws Pose Unique Constitutional Challenges

  

  Several states have recently enacted foreign agent registration and disclosure regimes that were modeled after the Foreign Agents Registration Act, but these state laws raise several constitutional questions, including concerns about preemption, speech and petition, and vagueness, says Alexandra Langton at Covington.

• In First For DOJ, Action Signals New CFIUS Enforcement Era

  

  The U.S. Department of Justice is seeking judicial enforcement of a divestment order, an unprecedented action for the agency that ushers in a new phase for the Committee on Foreign Investment in the United States, one in which judicial proceedings complement administrative oversight and presidential divestment orders may be enforced through litigation, says attorney Sohan Dasgupta.

• 6th Circ. Can Extend Insurance Valuation Clarity Beyond Auto

  

  In rehearing Clippinger v. State Farm, the Sixth Circuit can align itself with the recent drumbeat of other circuits rejecting class certification of auto total loss claims and set standards that apply to similar claims brought under homeowners and other types of insurance policies, say attorneys at Jackson Walker.

• 9th Circ. Ruling Clarifies Doc Protection Limits In Gov't Probes

  

  The Ninth Circuit's recent decision in Kalbers v. U.S. Department of Justice confirms that Rule 6(e) provides robust protections when documents are in the government's possession only through a grand jury subpoena, emphasizing for companies the importance of careful labeling from the outset of an investigation, say attorneys at Cooley.

• Spotlight On Legal Battles Over EEOC Subpoena Powers

  

  Attorneys at Wilson Elser consider the spate of litigation over the past year, spurred by the Equal Employment Opportunity Commission’s focus on alleged religious discrimination at universities, and corporate diversity, equity and inclusion practices, and how it may affect the attempts to assert privacy rights against the agency's broad subpoena powers.

• Verdicts Signal Product Liability's Expansion To Digital Realm

  

  Last week's landmark verdict in K.G.M. v. Meta Platforms Inc., along with other recent verdicts that apply product liability theories to online services that rely on algorithmic design and user engagement features, make it clear that companies must evaluate digital product design through a litigation lens, say attorneys at Arnold & Porter.

• Getting The Most Out Of Learning And Development Programs

  Excerpt from Practical Guidance

  

  Junior associates can better develop the legal, business and interpersonal skills they need for long-term success by approaching their firms’ learning and development programs armed with five tips for getting the most out of these resources, says Lauren Hakala at Reed Smith.

• Considering The Risks That Arise When IP Outlives Its Owner

  

  Federal and state court decisions show that the statutory regime for each category of intellectual property promises continuity after the owner's death, but the law does not provide a succession framework for how those rights are to be exercised, says Erin Daly at Daly Law & Strategy.

• How Cos. Can Prepare For California's Textile Recovery Act

  

  Staged implementation of California's Responsible Textile Recovery Act, establishing the state's first extended producer responsibility program for apparel and textile articles, has begun — and companies that review their data readiness, contracts and exposure risks now will be best prepared when the act comes into full effect, says Thierry Montoya at FBT Gibbons.

• Opinion

  AI Presents A Make-Or-Break Moment For Outside Counsel

  

  The rapid adoption of artificial intelligence by corporate legal departments is forcing a long-overdue reset of the relationship between inside and outside counsel, and introducing a significant opportunity to shed frustrating inefficiencies and strengthen collaboration for firms willing to embrace the shift, says Intel Chief Legal Officer April Miller Boise.

• State Carbon Cost Disparities Are Pivotal In Data Center Siting

  

  When choosing U.S. data center locations, developers must carefully consider the patchwork of state and regional carbon emission pricing regimes that are layered on top of the federal permitting framework, creating compliance cost differentials that could add up to billions of dollars, say attorneys at Davis Graham.

• Grammarly Suit Flags Right Of Publicity As Key AI Issue

  

  Angwin v. Superhuman Platform, filed recently in New York federal court against the parent company of Grammarly, highlights an overlooked question for any company using artificial intelligence — whether someone's identity has been used for commercial purposes without consent, possibly violating rapidly shifting state right-of-publicity laws, says Nicholas Schneider at Eckert Seamans.

• Series

  Watching Hallmark Movies Makes Me A Better Lawyer

  

  I realize you may be judging me for watching, and actually enjoying, Hallmark Channel movies, but the escapism and storylines actually demonstrate qualities and actions that lead to an efficient, productive and positive legal practice, says Karen Ross at Tucker Ellis.

• Fed. Circ. In February: When Grammar Trumps Patent Specs

  

  The Federal Circuit's decision in Netflix v. DivX last month highlights the challenge of interpreting potentially misplaced modifiers in complicated technological patents, and the potential for grammatical rules to provide a default interpretation for unclear claim language, say attorneys at Knobbe Martens.