Potential splits emerged Tuesday between D.C. Circuit judges questioning the legality of the U.S. Department of Defense's move to bar Anthropic from government contracting, with the AI company claiming it had been targeted and smeared as a national security threat for nothing more than a contract dispute.
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THURSDAY, MAY 21, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

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Anthropic Says Defense Dept. Smeared It Over AI Red Lines

By Jared Foretek

Potential splits emerged Tuesday between D.C. Circuit judges questioning the legality of the U.S. Department of Defense's move to bar Anthropic from government contracting, with the AI company claiming it had been targeted and smeared as a national security threat for nothing more than a contract dispute.

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KBR Argues CEO Said Nothing False Before DOD Program Ax

By Madeline Lyskawa

Engineering firm KBR Inc. has urged a Texas federal judge to toss a proposed class action alleging the company misled investors about a government partnership to help relocate military personnel, saying its CEO made no false statements before the deal's termination.

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DC Urges Panel To Uphold National Guard Injunction

By Madeline Lyskawa

The District of Columbia said neither federal law nor the D.C. Code authorizes the president's deployment of the D.C. National Guard for law-enforcement activities in the district, urging the D.C. Circuit to uphold an injunction barring the deployment.

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POLICY & REGULATION

Chinese Testing Lab Urges FCC Caution On 'Reciprocal' Rule

By Christopher Cole

A Chinese equipment testing lab says the Federal Communications Commission needs to tread carefully in crafting new rules demanding "reciprocal" agreements to test communications gear, or risk disrupting U.S. supply chains.

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ENFORCEMENT

Consulting Co. Execs Acquitted In Navy Admiral Bribery Case

By Hailey Konnath

A D.C. federal jury handed prosecutors a loss on Monday, finding that a pair of consulting company executives were not guilty of bribing a top U.S. Navy admiral with a lucrative post-retirement job in exchange for government contracts.

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LITIGATION

Colo. Co. Seeks More Boeing Discovery In NASA IP Fight

By Zach Dupont

A Colorado aerospace company claimed The Boeing Co. has failed to disclose numerous witnesses and records through discovery in the company's lawsuit accusing Boeing of stealing its patented technology to use on NASA's Artemis moon exploration program, according to a motion to compel filed in Washington federal court Monday.

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Brief

General Dynamics Seeks Pause In No-Poach High Court Bid

By Elaine Briseño

General Dynamics Corp. asked the U.S. Supreme Court to temporarily pause its petition after the plaintiffs dismissed the company from their suit that accused shipbuilders of conspiring to suppress wages and reached settlements with the remaining defendants.

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Intel Says Texas Law Doesn't Support Russian Missile Claims

By Spencer Brewer

Intel and other semiconductor manufacturers asked a Texas federal judge to throw out claims that they negligently sold products the Russian government used to build missiles that killed Ukrainian civilians, saying Tuesday that the civilians' claims have no basis in Texas law.

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GAO

GAO Backs NASA In Protest Over IT Contract Line Items

By Ganesh Setty

The U.S. Government Accountability Office said NASA was justified in terminating a company from competition to provide agency-wide IT services, finding the company provided conflicting information over its outside designated providers, thereby failing to satisfy contract line item requirements.

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GAO Denies Protest Of Alleged Sole-Source IRS Procurement

By Elaine Briseño

The U.S. Government Accountability Office said the IRS did not unreasonably restrict competition in its search for a company to help the agency migrate to a new platform, finding the listed requirements were justified.

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DEALS & CONTRACTS

Contractor Can't Seek $24M For Job It Agreed To Do 'Gratis'

By Elaine Briseño

The Armed Services Board of Contract Appeals rejected a workforce development company's efforts to recoup $24 million it voluntarily spent, even after being denied a formal contract, supporting its website that helped military reservists find civilian jobs.

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EXPERT ANALYSIS

AI Regulatory Gaps May Fuel FCA Enforcement Action

The intersection of artificial intelligence and False Claims Act enforcement presents legal risk for government contractors across several industries, particularly in the absence of a federal regulatory framework explicitly governing its development and use, say attorneys at O’Melveny.

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Bid Protest Spotlight: Discriminators, Fairness, Experience

In this month's bid protest roundup, Victoria Angle at MoFo surveys three recent decisions from the Government Accountability Office that show performance benchmarks may serve as qualitative discriminators, solicitation amendments and timelines must allow for fair competition, and past performance submissions must strictly comply with proposal requests.

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Becoming The Biz-Savvy GC That Portfolio Companies Need

Candidates for general counsel roles at private equity-backed portfolio companies should prioritize proving their sector-specific experience, commercial judgment and ease with uncertainty — and attorneys hoping to be candidates in five to 10 years should start working on those skills now, says Dimitri Mastrocola at Major Lindsey.

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LEGAL INDUSTRY

OpenAI Says ChatGPT Misuse Is Users' Responsibility

By Emily Sawicki

OpenAI has asked a federal judge in Chicago to end an insurance company's suit alleging it practices law without a license, arguing the complaint should be directed toward individuals who misuse the company's ChatGPT bot to file faulty motions, and not the generative AI platform itself.

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2nd Circ. Pick Questioned At Hearing On Role As Trump Lawyer

By Courtney Bublé

Matthew Schwartz, a nominee for the Second Circuit, was questioned by Democratic senators Wednesday about whether his current job as the president's personal attorney while his nomination process is underway poses a conflict of interest.

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Bad AI Citation Sanction Slashed Amid 7th Circ. Guidance

By Hailey Konnath

An Indiana federal judge Wednesday rejected a magistrate judge's recommendation that an attorney be sanctioned $7,500 for including faulty, artificial intelligence-generated legal citations in a discovery brief, pointing to recent Seventh Circuit guidance and sanctioning him $2,000 instead.

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2 Fla. County Courts Requiring AI Disclosure In Court Filings

By Sarah Martinson

Two Florida circuit courts in Miami-Dade and Broward counties are requiring attorneys and self-represented litigants to disclose when they use generative text tools to prepare their court filings and to certify they checked the generated content for accuracy.

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Hagens Berman Says Apple Smear Job Can't Stop Withdrawal

By Bonnie Eslinger

Hagens Berman Sobol Shapiro LLP urged a California federal judge to allow one of its named plaintiffs to withdraw from an Apple iCloud antitrust case, saying Apple Inc.'s filed opposition is rife with "misdirection and ad hominem" attacks and not about the merits of the dispute but "smearing opposing counsel."

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Atty Withdrawals Not Limited To Fee Conflicts, ABA Says

By Emily Sawicki

Lawyers whose clients fail to hold up their end of valid engagement agreements are clear to cease their representation, so long as certain criteria are met, according to the American Bar Association's ethics committee's latest guidance, published Wednesday.

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Comey Wants Arraignment Pushed For Dismissal Bid

By Phillip Bantz

Former FBI Director James Comey asked a North Carolina federal court Wednesday to postpone his arraignment on charges alleging he threatened President Donald Trump, telling a judge that he is preparing to seek to have the case thrown out on constitutional grounds.

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Mich. Supreme Court Mulls Remote Court Access Rules

By Susan Smiley

The Michigan Supreme Court held administrative hearings on Wednesday concerning several proposed amendments to Michigan court rules, including adding more specific guidelines for remote hearings, making language services free for civil cases, and allowing law students and recent law graduates to appear on behalf of indigent people in all Michigan courts.

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COMPANIES IN TODAY'S NEWS

Advanced Micro Devices Inc.

Amazon.com Inc.

American Bar Association

Anthropic PBC

Apple Inc.

Burke Inc.

Epic Games Inc.

FCN Inc.

General Dynamics Corp.

Google LLC

HP Inc.

Hewlett Packard Enterprise Co.

Huntington Ingalls Industries Inc.

Intel Corp.

KBR Inc.

Major Lindsey & Africa LLC

Meta Platforms Inc.

Michigan Immigrant Rights Center

Mouser Electronics Inc.

Next Jump

Nippon Life Insurance Company of America

Nutanix Inc.

OpenAI OpCo LLC

Otis Worldwide Corp.

Reeds Inc.

Sutter Health

Texas Instruments Inc.

The Boeing Co.

The Florida Bar

Walmart Inc.

LAW FIRMS IN TODAY'S NEWS

A&O Shearman

Ashbrook Byrne

Baker & Hostetler

Berger Montague

Blank Rome

Carabin & Shaw

Cohen Milstein

Crowell & Moring

Faegre Drinker

Gibson Dunn

Godfrey & Kahn

Greenberg Traurig

Hagens Berman

Handley Farah

Impresa Legal Group

Jenner & Block

King & Spalding

Kirkland & Ellis

Latham & Watkins

Lockridge Grindal

McGuireWoods

Meritz Reddy

Morrison & Foerster

Munger Tolles

Nixon Peabody

O'Melveny & Myers

Paul Hastings

Paul Weiss

Pillsbury Winthrop

Quinn Emanuel

Rosen Law Firm PA

Sidley Austin

Sullivan & Cromwell

Susman Godfrey

Tillotson Johnson

Watts Law Firm

Wiley Rein

WilmerHale

Wilson Sonsini

GOVERNMENT AGENCIES IN TODAY'S NEWS

Armed Services Board of Contract Appeals

Centers for Medicare & Medicaid Services

Federal Acquisition Regulatory Council

Federal Bureau of Investigation

Federal Communications Commission

Federal Election Commission

Federal Emergency Management Agency

Federal Trade Commission

Internal Revenue Service

Michigan Supreme Court

National Aeronautics and Space Administration

Office of the Attorney General for the District of Columbia

U.S. Air Force

U.S. Army

U.S. Army Corps of Engineers

U.S. Attorney's Office

U.S. Attorney's Office for the Eastern District of North Carolina

U.S. Court of Appeals for the District of Columbia Circuit

U.S. Department of Commerce

U.S. Department of Defense

U.S. Department of Health and Human Services

U.S. Department of Justice

U.S. Department of Veterans Affairs

U.S. Department of the Treasury

U.S. District & Bankruptcy Courts of Southern District of Texas

U.S. District Court for the District of Columbia

U.S. District Court for the Eastern District of North Carolina

U.S. District Court for the Northern District of California

U.S. District Court for the Northern District of Illinois

U.S. District Court for the Northern District of Texas

U.S. District Court for the Western District of Washington

U.S. Government Accountability Office

U.S. Navy

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

United States District Court for the District of the Virgin Islands

United States District Court for the Southern District of Indiana

World Trade Organization