10 Ways AI Labs Can Limit Antitrust Risks Of Safety Pacts

The OpenAI CEO’s recent call for artificial intelligence laboratories to collectively slow development to allow safety research to catch up invites antitrust scrutiny, but the risks to coordinating competitors can be managed by carefully structuring pacing agreements and layering their approach to compliance, say attorneys at Holland & Knight.

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.

Coinbase Ruling Showcases A Texas Reincorporation Benefit

The Texas Business Court's recent decision in Guillaume v. Armstrong, finding that a shareholder's claims against Coinbase, originally incorporated in Delaware, are nonetheless subject to Texas presuit demand law if made after reincorporation, provides a procedural advantage for companies that have made the move, say attorneys at Cleary.

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.

Open Issues After 2nd Circ.'s Airport Phone Search Ruling

While the Second Circuit’s recent U.S. v. Alisigwe decision confirms border agents' broad authority to conduct routine manual cellphone searches at ports of entry, significant questions remain about more wide-ranging forensic searches at the border, say attorneys at Baker Botts.

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.

5 Issues To Watch As Fed. Circ. Hears Moderna Vax IP Case

Upcoming oral arguments before the Federal Circuit in Arbutus v. Moderna will test whether patent liability protections for government contractors extend to vaccines distributed to the public, and the resolution of certain questions, such as how to define “for the government,” may be key to the outcome, say attorneys at Honigman.

Series

Being In The Peace Corps Made Me A Better Lawyer

When I served in the Peace Corps, the people of the West African village where I was stationed helped me acclimate to my new surroundings and enabled me to develop problem-solving, teamwork and empathy skills that have bolstered my legal practice far beyond the ability to offer technical advice, says Brian Bewley at McGuireWoods.

Del. Ruling Shows How AI Meeting Transcripts Can Backfire

In ATG Capital Opportunities Fund v. Lane, the Delaware Court of Chancery reviewed board meeting transcripts generated by an artificial intelligence tool as part of its assessment of the board's motivations, highlighting potential risks of AI-generated corporate records, say attorneys at Debevoise.

When Indemnity, Purchase Price Adjustment Claims Overlap

The Delaware Court of Chancery's recent decision in WSP v. Versar highlights that courts are willing to enable a buyer to select either indemnity or purchase price adjustment mechanisms, even if the parties did not envision that when negotiating the purchase agreement, says Claire Frost at Arnold & Porter.

5 Prediction Market Queries For Every League, Athletic Dept.

The NFL's recent amicus brief urging the U.S. Supreme Court to resolve a circuit split over regulating prediction markets and operators like Kalshi raises important, enterprisewide governance questions for leagues, teams and athletic departments, and highlights that regulatory oversight and institutional integrity are related but distinct, say attorneys at Robins Kaplan.

SEC's Insider Trading Duty Rule May Face Loper Bright Test

In U.S. v. Jennings, pending in New Jersey federal court, the defense has an opportunity to challenge the rule defining the boundaries of the misappropriation theory of insider trading under Loper Bright, as the only litigated case testing the rule's limits relied on Chevron deference, say attorneys at O'Melveny.

How A New Case Redefines The Birthright Citizenship Battle

After the U.S. Supreme Court's birthright citizenship ruling last term in Trump v. Barbara, the Trump administration issued a new executive order attempting to limit the categories of individuals eligible for this status — and a pending court challenge to the new order shows where the legal battle lines are being redrawn, say attorneys at Fragomen.

What Lawyers Should Know Before Accepting Crypto Payment

As clients increasingly request to pay legal fees, retainers and escrow funds using cryptocurrency, lawyers should consider how only a handful of state bar authorities have addressed the issue with varying ethics opinions, as well as the related questions that no authority has yet answered, says attorney Felix Shipkevich.