Expert Analysis

• Attys Beware: Generative AI Can Also Hallucinate Metadata

  

  In addition to the well-known problem of AI-generated hallucinations in legal documents, AI tools can also hallucinate metadata — threatening the integrity of discovery, the reliability of evidence and the ability to definitively identify the provenance of electronic documents, say attorneys at Law & Forensics.

• How 9th Circ. Ruling Deepens SEC Disgorgement Circuit Split

  

  The Ninth Circuit's recent decision in U.S. Securities and Exchange Commission v. Sripetch creates opposing disgorgement rules in the two circuits where the SEC brings a large proportion of enforcement actions — the Second and Ninth — and increases the likelihood that the U.S. Supreme Court will step in, say attorneys at Cahill Gordon.

• When Atty Ethics Violations Give Rise To Causes Of Action

  

  Though the Model Rules of Professional Conduct make clear that a violation of the rules does not automatically create a cause of action, attorneys should beware of a few scenarios in which they could face lawsuits for ethical lapses, says Brian Faughnan at Faughnan Law.

• A Shift To Semiannual Reporting May Reshape Litigation Risk

  

  While the U.S. Securities and Exchange Commission's proposed change from quarterly to semiannual reporting may reduce the volume of formal filings, it wouldn't reduce litigation risk, instead shifting it into less predictable terrain — where informal disclosures, timing ambiguities and broader materiality debates will dominate, says Pavithra Kumar at Advanced Analytical Consulting Group.

• TikTok Divestiture Deal Revolves Around IP Considerations

  

  The divestiture deal between the U.S. and China to resolve a security dispute over TikTok's U.S. operations is seen as a diplomatic breakthrough, but its success hinges on the treatment of intellectual property and may set a precedent in the global contest over digital sovereignty and IP control, say attorneys at Brownstein Hyatt.

• How Gov't May Use FARA To Target 'Domestic Terrorism'

  

  After the Trump administration’s recent memo directing law enforcement to use the Foreign Agents Registration Act to prosecute domestic terrorism, nonprofit organizations receiving funding from foreign sources must assess their registration obligations under the statute, say attorneys at Pillsbury.

• What CFTC Push For Tokenized Collateral Means For Crypto

  

  The Commodity Futures Trading Commission's recent request for comment on the use of tokenized products as collateral in derivatives markets signals that it is expanding the scope and form of eligible collateral, and could broaden the potential use cases for crypto-assets held in tokenized form, say attorneys at Dechert.

• H-1B Fee Guidance Is Helpful But Notable Uncertainty Persists

  

  Recent guidance narrowing the scope of the $100,000 entry fee for H-1B visas will allow employers to plan for the hiring season, but a lack of detail about the mechanics of cross-agency payment verification, fee exemptions and other practical matters still need to be addressed, say attorneys at Klasko Immigration Law Partners.

• Justices' LabCorp Punt Leaves Deeper Class Cert. Circuit Split

  

  In its ruling in LabCorp v. Davis, the U.S. Supreme Court left unresolved a standing-related class certification issue that has plagued class action jurisprudence for years — and subsequent conflicting decisions among federal circuit courts have left district courts and litigants struggling with conflicting and uncertain standards, say attorneys at Cozen O'Connor.

• Lessons From Del. Chancery Court's New Activision Decision

  

  The Delaware Court of Chancery's recent decision in AP-Fonden v. Activision Blizzard, declining to dismiss certain fiduciary duty claims at the pleading stage, offers takeaways for boards considering a sale, including the importance of playing an active role in the merger process and documenting key board materials, say attorneys at Cleary.

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  Practicing Stoicism Makes Me A Better Lawyer

  

  Practicing Stoicism, by applying reason to ignore my emotions and govern my decisions, has enabled me to approach challenging situations in a structured way, ultimately providing advice singularly devoted to a client's interest, says John Baranello at Moses & Singer.

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  The Biz Court Digest: Texas, One Year In

  

  A year after the Texas Business Court's first decision, it's clear that Texas didn't just copy Delaware and instead built something uniquely its own, combining specialization with constitutional accountability and creating a model that looks forward without losing touch with the state's democratic and statutory roots, says Chris Bankler at Jackson Walker.

• AG Watch: Illinois A Key Player In State-Level Enforcement

  

  Illinois Attorney General Kwame Raoul has systematically strengthened his office to fill federal enforcement gaps, oppose Trump administration mandates and advance state policy objectives, particularly by aggressively pursuing labor-related issues, say attorneys at Troutman.

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  Law School's Missed Lessons: Educating Your Community

  

  Nearly two decades prosecuting scammers and elder fraud taught me that proactively educating the public about the risks they face and the rights they possess is essential to building trust within our communities, empowering otherwise vulnerable citizens and preventing wrongdoers from gaining a foothold, says Roger Handberg at GrayRobinson.

• How A 9th Circ. False Ad Ruling Could Shift Class Certification

  

  The Ninth Circuit's July decision in Noohi v. Johnson & Johnson, holding that unexecuted damages models may suffice for purposes of class certification, has the potential to create judicial inefficiencies and crippling uncertainties for class action defendants, say attorneys at Alston & Bird.