How Groq-Nvidia Suit Tests Venture Capital Exit Math

A recent Delaware Court of Chancery suit concerning Nvidia's acquihire of certain Groq employees highlights that when such deals are challenged, the economic dispute turns on reconciling technology, people, cash and continuing ownership rather than on the headline number, says Ben Dubin at VC Expert Services.

Opinion

The Invisible AI Danger That May Undermine Legal Profession

A public database tracking cases involving hallucinations generated by artificial intelligence recently surpassed 2,200 entries, but the bigger risk underlying attorneys’ use of such tools is that they will slowly surrender their judgment to AI and lose analytical skills, says Massachusetts District Court Associate Justice Brian Palmucci.

What Axing ERISA Exhaustion Rule Means For Plan Sponsors

The Eleventh Circuit’s recent reversal of a 40-year precedent requiring plaintiffs to exhaust administrative remedies before filing statutory Employee Retirement Income Security Act claims eliminates a common threshold defense in fiduciary breach suits, making it important for plan sponsors to reassess their internal review and litigation strategies, say attorneys at Nelson Mullins.

Courts Signal Higher FCRA Bar For Identity Theft Claims

Recent rulings adopting a heightened, "objectively and readily verifiable" inaccuracy standard may give credit furnishers stronger defenses to identity theft-related Fair Credit Reporting Act claims in the Ninth Circuit, while requiring them to continue documenting thorough dispute investigations, says Brian Kiolbasa at Ballard Spahr.

Lessons For Cannabis Dispensaries From Web Tracking Suits

The trajectory of health-tracking litigation in Florida and elsewhere suggests that patient privacy claims will not disappear quickly, so dispensaries should audit their sites, tighten consent and align their disclosures with their actual practices, say attorneys at Buchanan Ingersoll.

A Defense Attorney Playbook For Challenging Flock Evidence

As law enforcement continues to bring charges based on evidence from Flock cameras and other automated license plate readers, defense counsel should consider four key categories for discovery requests and motions to compel such evidence, says Tamar Lerer at the New Jersey Office of the Public Defender.

Defending Hospital Antisteering Clauses From DOJ Scrutiny

The Trump administration has recently made clear that pursuing antitrust challenges to antisteering provisions in hospital-insurer contracts is a priority — but a review of similar cases against hospital systems and important precedent from the U.S. Supreme Court illuminates some potential defenses in such cases, says Derek Moore at Rule Garza.

Washington Email Law Still Puts Marketers At Litigation Risk

Despite legislative efforts to curtail abusive litigation after the 2025 Brown v. Old Navy decision extending Washington's Commercial Electronic Mail Act to misleading email subject lines, CEMA can still trigger class actions with statutory damages, even for national campaigns run by companies with no physical presence in Washington, say attorneys at Wilson Elser.

How AI Could Help Judges Spot Their Own Biases

In close cases where there’s room for discretion, artificial intelligence could challenge judges’ implicit biases by running counterfactual tests at scale — but any judicial use of such tools would need guardrails, say Arnold Peter at Peter Law and Nancy Rapoport at University of Nevada.

Assessing Hidden Risk Of Administrative Agency Settlements

Though administrative resolutions of U.S. Securities and Exchange Commission investigations may seem preferable to settled federal court actions, the possibility that private plaintiffs may use commission orders in follow-on litigation poses an extra risk, increasing the importance of negotiating the settlement's form and language, say attorneys at Debevoise.

AI Litigation Risks Are Expanding To Affiliated Cos.

Litigation targeting artificial intelligence companies is underway, with claims reaching beyond primary developers and operators to include parties that supply technology and data, invest in and profit from platforms, validate systems, and provide services — so participants in the extended AI ecosystem must prepare, say attorneys at Arnold & Porter.

3 Strategies To Reduce AI Sycophancy In Legal Work

The tendency of generative artificial intelligence models to tell users what they want to hear can reinforce attorneys’ confirmation bias when testing the strength of arguments, and it can’t simply be prompted away — but a few practices can help mitigate it, says Michael Ott at Ice Miller.

NFL Coverage Ruling Sets Limits On Long-Tail Claim Defenses

A New York appellate court's recent decision — holding that National Football League players who sustained neurological injuries had suffered multiple occurrences for insurance coverage purposes — may also be used to limit insurers' efforts to declaim coverage for other long-tail injury cases, including sexual abuse claims, say attorneys at SDV Fenchurch.

2nd Circ. EFAA Ruling Shifts Employer Litigation Strategy

In Diaz-Roa v. Hermes Law, the Second Circuit recently held that, under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, employers can't carve out nonharassment claims and send them to arbitration, which has implications for discovery, litigation costs and resolution strategy in EFAA-covered disputes, say attorneys at Krevolin Horst.

3rd Circ. Ruling Opens Door For Fraud-On-The-Market Rethink

The Third Circuit's recent decision in Ocugen, holding that a stable stock price after publication of restated financials does not prove immateriality, could be a vehicle for the U.S. Supreme Court to overturn the doctrine undergirding certification of securities class actions, says Jonathan Richman at Brown Rudnick.