DC Circ. Affirms Injunction Against IRS-ICE Data Sharing

By Asha Glover

The D.C. Circuit affirmed a lower court's preliminary injunction Tuesday barring the IRS from sharing taxpayer data with immigration authorities, finding that the coalition challenging the deal has standing and that the arrangement likely violates the law.

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Ostium Faces $15M Asset Freeze After $23M Hack

By Caroline Simson

The assignee of a lender owed some $15 million by crypto trading platform Ostium Labs has obtained a temporary restraining order from a New York federal court as it pursues arbitration over an alleged default that followed a July hacking incident, court records showed Tuesday.

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Parler Legal Dustup Revealed Rifts, Jury Hears From Ex-CEO

By Cara Salvatore

Parler's ousted CEO testified Tuesday in his trial against former partner Rebekah Mercer that in 2020, her lawyers' pushback on restructuring provisions recommended by Parler's lawyers was an early clue that "something didn't seem right."

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XAI Hit With Ill. Biometric Privacy Suit Over Grok Photos

By Celeste Bott

Elon Musk's xAI collects users' facial geometry when they upload photos to Grok for AI-powered image editing without obtaining the informed consent required under Illinois' biometric privacy law, according to a proposed class action filed in Cook County court Friday.

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DC Circ. Seems To Back SEC FOIA Withholding In Data Breach

By Jared Foretek

A D.C. Circuit panel appeared skeptical Tuesday that a civil liberties group should get access to the identities and internal documents of U.S. Securities and Exchange Commission officials involved in a 2022 "control deficiency" that resulted in the dismissals of over 40 administrative cases.

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FCC Data Breach Reg Can't End-Run Congress, 6th Circ. Told

By Nadia Dreid

Now that the Sixth Circuit has decided hold a full panel rehearing of its decision upholding the FCC's expanded data breach notification rules for telecommunications carriers, conservative legal groups are coming together to urge the appellate court to reject the Biden-era rule.

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Kik App Is 'A Parent's Worst Nightmare,' Conn. AG Says

By Brian Steele

The mobile messaging app Kik is "a cesspool of sexual abuse, exploitation and bullying" and "a parent's worst nightmare," Connecticut Attorney General William Tong said Tuesday in announcing his office would investigate allegations that inadequate privacy and content moderation measures endanger children.

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Meta Accused Of Using Photos To Train AI Without Consent

By Adam Lidgett

Facebook and Instagram users hit Meta with a proposed class action accusing the company of harvesting biometric data from photos posted to its platforms without consent to develop its artificial intelligence and facial recognition technology.

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Medical Cannabis Co. Can't Shake Data Breach Claims

By Sam Reisman

An Ohio federal judge Tuesday rejected a bid to dismiss a consolidated class action claiming a company that helps people secure medical marijuana cards failed to protect users' personal data from a cyberbreach.

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Mich. Lawyer Can't Shake Cybersecurity Firm's $550K Claim

By Melanie Dorsey

A Detroit attorney who promoted voter fraud claims after the 2020 election must face a cybersecurity company's breach of contract and defamation suit after a Michigan federal judge found the company plausibly alleged the attorney and her law firm retaliated against its investigators after they found no evidence of election fraud and allegedly declined a request to report otherwise.

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Ex-Facebook Exec Must Arbitrate Memoir Publicity Fight

By Dorothy Atkins

A California federal judge ruled Friday that a former Facebook executive waited too long to challenge in court an interim arbitral award that bars her from promoting her "Careless People" whistleblower memoir, finding that she waived her court challenge by "thoroughly" participating in arbitration for over a year before suing.

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Motorola Tells DC Circ. That Google Search Payments 'Vital'

By Bryan Koenig

Motorola on Friday backed Google with a D.C. Circuit amicus brief arguing the U.S. Department of Justice is wrong to call for a complete ban on Google paying cellphone-makers like Motorola to incorporate Google search into their devices.

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How Rogue AI May Shape Corporate Liability, Responsibility

Recent artificial intelligence cyber incidents offer a window into how companies deploying autonomous systems should document risk controls even when systems exceed their intended boundaries, as jurors may treat unexpected AI conduct as foreseeable evidence of inadequate safeguards, says Jorge Monroy at Verdict Insight Partners.

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ABA Law School Accrediting Arm Repeals Diversity Standard

By Emma Cueto and Andrea Keckley

The American Bar Association council responsible for law school accreditation voted Tuesday to eliminate its diversity and inclusion standard, the final step in a process that the council hopes will ensure it remains an accreditor recognized by the U.S. Department of Education.

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Ex-DLA Piper Partner Must Face Claim He Raped Associate

By Lynn LaRowe

A Massachusetts state court has ruled it has jurisdiction over an assault and battery claim alleging a former DLA Piper partner raped a former Boston-based associate in Delaware, finding that purported incident was part of "a larger course of conduct encompassing multiple torts across several states, all circling around plaintiff's residence and work in Massachusetts."

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5th Circ. Backs Ax Of $125M Judgment Over Judge Friendship

By Mike Curley

A split Fifth Circuit panel Tuesday affirmed the vacatur of a trial by a magistrate judge that resulted in a $125 million judgment against Port of Lake Charles, finding the district court correctly found that the magistrate judge didn't fully disclose her 40-year, "close, multifaceted, and personal friendship" with IFG Port Holdings LLC's attorney.

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AG Blanche To Speak At GOP Midterm Convention

By Courtney Bublé

Attorney General Todd Blanche will speak at the Republican midterm convention this week in his "personal capacity."

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Catching Up With Delaware's Chancery Court

By Jarek Rutz

The Delaware Chancery Court this past week saw disputes involving a former NFL star and a $2.5 million solar venture, Morgan Stanley's role in Fox Corp.'s planned $22 billion acquisition of Roku Inc., and JPMorgan Chase & Co.'s effort to pause more than $20 million in legal-fee payments to former Frank executives.

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