Del. Dispatch: No Safe Harbor For Another Conflicted Deal

The Delaware Court of Chancery's recent decision preliminarily enjoining a planned recapitalization of Cloudflare that would preserve the control of the company by its founder-controlling stockholders highlights that Delaware's new safe harbor statute for conflicted transactions doesn't protect founders or independent directors from liability, say attorneys at Fried Frank.

Meta, TikTok Cases Show How AGs May Redefine Governance

The Meta Platforms settlement and TikTok lawsuit addressing social media harms to minors highlight that state attorneys general are not merely extracting payments, but are also using litigation and settlements to impose durable product, institutional and policy change, say attorneys at Snell & Wilmer.

How NYC Consumer Bill Could Expand Private Claims

New York City's proposed Power Act could expose companies to sweeping private claims under its prohibition on unfair, deceptive, and abusive acts and practices, making regulatory compliance reviews and litigation-risk planning essential for businesses serving city residents, says Brian Turetsky at Hinshaw.

NYC Power Act May Spur Algorithmic Pricing And Other Suits

New York City’s proposed Power Act would create a private right of action for unfair, deceptive, abusive and unlawful practices, broadening litigation exposure for businesses using algorithmic and other types of pricing technology, though its path to enactment still remains uncertain, say attorneys at Skadden.

NLRB Ruling Redraws Arbitration Confidentiality Limits

The National Labor Relations Board's recent decision in Ralphs Grocery adds to a growing body of board precedent that offers takeaways for how employers can maximize the enforceability of confidentiality restrictions and discovery procedures in arbitration agreements, say attorneys at Morgan Lewis.

How Cos. Can Reassess Ad Tech After Wash. Pixel Use Ruling

The Washington Supreme Court's decision in Baker v. Seattle Children's Hospital, holding that the hospital website's use of Meta Pixel didn't violate the state’s privacy act, may provide a powerful defense against privacy claims, but shouldn’t be read as a blanket approval of advertising technologies, say attorneys at Duane Morris.

Opinion

Judges Must Turn To Merits Earlier To Fix Civil Justice System

The U.S. justice system is long overdue for a cultural shift that encourages judges to engage with the merits of a case from the outset, which would help to cut through procedural complexities and deliver high-quality justice efficiently and at lower cost, says Steven Kayman at Rottenberg Lipman.

Health Plan Sponsors Must Inspect 3rd-Party Admin Payments

A newly filed class action against Cigna spotlights issues surrounding how self-funded group health plan fiduciaries pay their third-party administrators, and the outcome could shape what plan sponsors are expected to know about such compensation structures, say attorneys at Thompson Hine.

Justices' Intel Ruling Could Aid 401(k) Alternative Asset Push

Following the U.S. Supreme Court's recent oral arguments in Anderson v. Intel, a decision favoring Intel over a prudence claim against fiduciaries based on underperformance by comparing two funds that aren't meaningfully similar would undercut the most common litigation theory against including alternative investments in 401(k) plans, say attorneys at Simpson Thacher.

FCRA Ruling Previews Future Business Transaction Litigation

The Ninth Circuit's overturning of a class verdict against CenturyLink is a win for businesses facing Fair Credit Reporting Act willfulness claims, but the question of when a consumer initiates a transaction remains unanswered, say attorneys at Thompson Hine.

What 3 Cases Reveal About Solar Co. Financial Disclosures

Three recent securities suits involving Nextracker, SolarEdge and Enphase illustrate the challenges of evaluating financial representations in the solar industry, raising a common issue: Financial projections cannot be fully understood without examining the operating information and assumptions supporting them, says Rand Manasse at Green Lane Partners.

Series

Open-Water Swimming Makes Me A Better Lawyer

Swimming long distances in open waters is not necessarily an escape from my intellectual property practice, but a complementary discipline that similarly rewards sustained attention, intellectual curiosity, resilience and the ability to pursue a distant objective without losing command of the immediate task, says Christina MacDougall at Morgan Lewis.

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.