Justices Doubt Gov't Venue Theory In Twitter Employee Case

By Marco Poggio

The U.S. Supreme Court on Monday appeared sharply skeptical that a former Twitter employee convicted of emailing a falsified document to FBI agents from his Seattle home could be prosecuted in San Francisco, with several justices questioning the federal government's justification for bringing the case where none of the charged conduct occurred.

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FTC's Meador Eyeing Platform Design In Kids' Safety Reviews

By Allison Grande

While the Federal Trade Commission isn't interested in "telling companies how to run their businesses," the agency will continue to police online hazards facing children and adults, including those that may be caused by the way that websites are designed, and could impose more "extreme" remedies when necessary, Republican Commissioner Mark Meador said Monday.

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Match, OkCupid Settle FTC Suit Over Info Sharing With AI Co.

By Gina Kim

Match and its dating platform subsidiary OkCupid settled a civil suit Monday by the Federal Trade Commission alleging they shared millions of users' photos and other data with an artificial intelligence company specializing in facial recognition technology, known as Clarifai Inc., without giving users the chance to opt out.

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US Judge Duo Urge Simplicity In Complex AI, Privacy Fights

By Allison Grande

A pair of U.S. district judges Monday implored litigants to take more time to walk those deciding their disputes through the complex data privacy, artificial intelligence and other technological issues underpinning claims, cautioning that acting otherwise is likely to result in bored juries and discarded legal briefs.

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5th Circ. Hesitant To Revive CrowdStrike Class Action

By Spencer Brewer

A panel of the Fifth Circuit wanted counsel for a group of passengers who sued cybersecurity company CrowdStrike Inc. after their flights were delayed or canceled during a crippling IT outage to explain who else could get sued under their liability theory, weighing Monday whether the Airline Deregulation Act bars the claims.

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Ill. Judge Keeps Coverage Fight Over $20M BIPA Deal Alive

By Celeste Bott

An Illinois federal judge on Friday rejected an insurer's bid for summary judgment in a suit seeking coverage for a $20 million settlement of biometric privacy claims, saying disputes remain over whether it waived an exclusion by failing to raise it in earlier litigation or if the company's change in strategy prejudiced the plaintiffs enough to bar its application.

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Newsom Tightens AI Contract Rules Over Safety Fears

By Rae Ann Varona

California Gov. Gavin Newsom on Monday ordered state agencies to strengthen guardrails for all contracts connected to generative AI tools, highlighting what he sees as risks to free speech, voting rights and mass surveillance, and at the same time encouraging statewide adoption of safe forms of the technology. 

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Crypto Hacker Stole $53M For Pokemon Cards, DOJ Says

By Gina Kim

A Maryland man was charged with hacking cryptocurrency exchange Uranium Finance and taking $53 million, and using the money to buy rare Pokemon and Magic: The Gathering trading cards, as well as a piece of the Wright brothers' original plane that Neil Armstrong took to the moon.

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FINRA Sanctions Upheld At 6th Circ. Against Unregistered CEO

By Emilie Ruscoe

The Sixth Circuit won't reverse Financial Industry Regulatory Authority sanctions against the owner of a consulting company who argued he'd been unfairly ruled against by a self-regulatory organization he never joined, though the judges stopped short of weighing the petitioner's constitutional challenges to the FINRA findings.

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Ex-Yale Student's Defamation Suit Tossed, Misconduct Cited

By Brian Steele

An ex-Yale student suing the university and a sexual assault accuser engaged in "repeated and escalating" litigation misconduct including violating anonymity orders and withholding key information from numerous courts, warranting dismissal as a punishment, a Connecticut federal judge has ruled in tossing the case.

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Sanofi Claims IP Life Extension Needed For Double Patenting

By Dani Kass

The Patent Trial and Appeal Board rightly found a Sanofi patent application shouldn't be rejected for obviousness-type double patenting, as it doesn't improperly extend patent life, the French drugmaker and its allies have told U.S. Patent and Trademark Office Director John Squires.

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J&J Unit Wants Forensic Exam Of Ex-Director's Devices

By George Woolston

A Johnson & Johnson subsidiary urged a New Jersey federal court to order a former associate director to submit to a court-supervised forensic inspection of any device or account in which she could have stored confidential information it claims she downloaded in order to start her own competing company.

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Pillsbury Asks To Toss Suit Over Nonclient Data Breach

By Matt Perez

Pillsbury Winthrop Shaw Pittman LLP sought dismissal of a consolidated data breach action in New York federal court Friday due to the plaintiffs' alleged lack of relationship with the firm and inability to identify any cognizable damages.

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Colo. Suit Says Data Brokers Listed Numbers Without Consent

By MJ Koo

A pair of Florida-based data-broker companies were hit with a proposed class action in Colorado state court, alleging they violated a state telemarketing privacy law by listing thousands of Colorado residents' cellphone numbers in their commercial people-search directories without consent.

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HPE Seeks Fix After States Expose Confidential Bidding Info

By Ben Adlin

Hewlett Packard Enterprise Co. urged a California federal judge to order a dozen states and Washington, D.C., to take corrective measures after they publicly filed thousands of pages of confidential documents related to the company's planned $14 billion acquisition of Juniper Networks Inc.

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Brief

Justices Won't Touch Ex-CTA Worker's Deleted Text Sanction

By Nadia Dreid

The U.S. Supreme Court on Monday declined to take up the appeal of a former Chicago Transit Authority employee whose retaliation lawsuit was dismissed by the Seventh Circuit as a sanction for spoiling evidence.

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How A High Court Music Piracy Ruling Shrinks ISP Liability

The U.S. Supreme Court's recent opinion in Cox Communications Inc. v. Sony Music Entertainment, which concerned the boundaries of contributory copyright infringement for internet service providers, dramatically lessens both the risk that an ISP will be held contributorily liable and, relatedly, the incentives an ISP may have to help combat online copyright infringement, say attorneys at Debevoise.

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Del. Blackbaud Ruling Signals A New Era For Cyberinsurance

The recent Delaware Supreme Court ruling in Travelers v. Blackbaud shows that cyberinsurance is moving into a second maturity phase, in which insurers will increasingly attempt to recover their payments from vendors and insureds will face new pressure to justify cyber incident reimbursements, say Steven Teppler at Mandelbaum Barrett and Jade Davis at Shumaker.

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AI And Threats To Privilege In Financial Sector Probes

The recent spotlight on the potential for artificial intelligence platforms to serve as a source for discoverable information is especially important for financial institutions to understand, as the industry navigates increasingly complex regulatory expectations and AI tools become embedded in investigative efforts, say attorneys at Jackson Lewis.

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'A-C-T' Agenda Signals New Regulatory Era At SEC Speaks

At this year's SEC Speaks, U.S. Securities and Exchange Commission Chairman Paul Atkins unveiled his ambitious A-C-T agenda — advance, clarify and transform — to align the federal securities regulatory regime with modern markets, illustrating that the conference was not merely a status update but an action plan, say attorneys at Perkins Coie.

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Opinion

AI Presents A Make-Or-Break Moment For Outside Counsel

The rapid adoption of artificial intelligence by corporate legal departments is forcing a long-overdue reset of the relationship between inside and outside counsel, and introducing a significant opportunity to shed frustrating inefficiencies and strengthen collaboration for firms willing to embrace the shift, says Intel Chief Legal Officer April Miller Boise.

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Burford Considers Arbitration After 2nd Circ. Tosses $16B Win

By Nadia Dreid

Burford Capital Ltd. says it is contemplating taking its $16 billion fight with Argentina into international arbitration after the Second Circuit wiped out a judgment the litigation funding firm had won against the nation in New York federal court, sending its stock prices tumbling.

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'Is It Kafka?' Judge Presses Pentagon On Press Restrictions

By Jared Foretek

A D.C. federal judge requested additional briefing Monday from the Trump administration before deciding whether to toss the U.S. Department of Defense's revised rules restricting journalists' access to the Pentagon but said some new allegations from reporters read like the revisions came from a Franz Kafka novel.

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Ex-Laffey Bucci Atty Accused Of Stealing Over $1.3M

By James Boyle

Laffey Bucci D'Andrea Reich & Ryan has accused a former name partner in a Pennsylvania state court suit of misdirecting more than $1.3 million in referral and case fees through a secret agreement with another firm and misusing the plaintiffs firm's resources for personal expenses, including an affair with a client.

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Analysis

Exchanges Are First Line In CFTC Prediction Market Policing

By Aislinn Keely

As the U.S. Commodity Futures Trading Commission insists it will be the primary cop for the growing expanse of prediction markets, experts said the agency is signaling that its first line of defense will be the internal enforcement programs of registrants like Kalshi.

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FCA Qui Tams Are Unconstitutional, Eli Lilly Tells Justices

By Mark Payne

The False Claims Act's whistleblower provisions are unconstitutional, drugmaker Eli Lilly has told the U.S. Supreme Court, asking it to overturn a Seventh Circuit decision upholding a $183 million trial win for a whistleblower who claimed the drug company hid how much it charged for Medicaid-covered drugs. 

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Justices Wary Of 'Odd' Arbitration Jurisdiction Theory

By Caroline Simson

A lawyer urging the U.S. Supreme Court to find that federal courts that have sent a dispute to arbitration do not automatically have jurisdiction to confirm or vacate a subsequent award faced heavy skepticism Monday from the justices, who called his argument during oral arguments "odd" and "peculiar."

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Catching Up With Delaware's Chancery Court

By Jarek Rutz

The Delaware Chancery Court's docket this past week featured disputes involving globally recognized companies, high-dollar contract fights, revived claims from the state's high court and the resolution of a closely watched de-SPAC case.

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Blumenthal Questions SEC Over Crypto Cases, Ryan Exit

By Katryna Perera

U.S. Sen. Richard Blumenthal is demanding answers from U.S. Securities and Exchange Commission Chairman Paul Atkins about the sudden resignation of the regulator's enforcement director and whether her departure was related to cryptocurrency cases, including one touching on the Trump family's ventures.

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