Microsoft Exec Backed OpenAI Deal Amid Concerns, Jury Told

By Dorothy Atkins

Microsoft's chief technology officer testified in a California federal jury trial Wednesday over Elon Musk's challenge to OpenAI's for-profit conversion, recalling that he proposed Microsoft invest significant resources into OpenAI's for-profit arm to stay competitive despite his initial concerns over whether OpenAI's nonprofit donors had agreed to the for-profit partnership.

Read full article » | Save to favorites »

Judge Asks If Musk Is Getting Special Treatment In SEC Deal

By Jared Foretek

A D.C. federal judge said Wednesday she would not simply "rubber-stamp" a deal to abruptly end the U.S. Securities and Exchange Commission's lawsuit against Elon Musk over his initial purchase of Twitter Inc. stock in 2022, asking at a status conference if Musk was getting special treatment.

Read full article » | Save to favorites »

Judge Says X Can't Make Tim Cook Custodian In ChatGPT Suit

By Spencer Brewer

A Texas federal judge shot down a request by X Corp. to make Apple Inc. CEO Tim Cook a custodian in a sprawling antitrust lawsuit X launched last year, but said Wednesday that it could make Apple's head of software a custodian.

Order attached | Read full article » | Save to favorites »

Apple Targets Hagens Berman 'Gamesmanship' In ICloud Suit

By Bryan Koenig

Apple has lashed out at Hagens Berman Sobol Shapiro LLP for trying to withdraw a named plaintiff from an iCloud antitrust case in California federal court without discovery into any directions she received to preserve now-deleted emails, raising concerns that the withdrawal is meant to "paper over lost evidence."

Response attached | Read full article » | Save to favorites »

Algorithms In Senate Spotlight After Social Media Suit Losses

By Emily Field

Lawyers and parents on Wednesday urged lawmakers to strengthen protections for children online, focusing on the addictiveness of social media algorithms after two recent trial losses for Big Tech.

Read full article » | Save to favorites »

Oversight Bill For FCC's High Cost Program Signed Into Law

By Nadia Dreid

The Rural Broadband Protection Act, which aims to establish a vetting process for internet service providers who are taking part in the Federal Communications Commission's "high cost" program, has finally made it into law after being filed several times over the last couple of years.

Bill attached | Read full article » | Save to favorites »

Rural Wireless Group Criticizes EchoStar Spectrum Deals

By Ganesh Setty

A trade group representing rural wireless providers said it opposes the Federal Communications Commission's recent approval of EchoStar's sales of spectrum to AT&T and SpaceX totaling roughly $40 billion, saying rural providers and consumers will likely suffer.

Read full article » | Save to favorites »

Brief

FCC Ramps Up Focus On Cybersecurity In Telecom Biz

By Christopher Cole

The Federal Communications Commission will kick off a pair of public workshops this week aiming to find ways to elevate cybersecurity in the telecom space.

Read full article » | Save to favorites »

Samsung Secures Indemnity Win In IP Case At Fed. Circ.

By Adam Lidgett

The Federal Circuit on Wednesday backed a California federal judge's ruling that a contract under which Finelite buys LED chips from Samsung does not require Samsung to indemnify Finelite in a patent suit by Seoul Semiconductor.

Opinion attached | Read full article » | Save to favorites »

Split 6th Circ. Affirms $1 Damages In Touch Screen Tech Case

By Elliot Weld

A split panel of the Sixth Circuit has upheld a $1 damages award that a Michigan federal judge gave to electronics manufacturer Oldnar Corp., with two judges saying they agreed that Oldnar had not proved higher damages with reasonable certainty.

Opinion attached | Read full article » | Save to favorites »

Fed. Circ. Sides With Roku Over Axed Remote Patent

By Elliot Weld

A decision from the Patent Trial and Appeal Board that invalidated a patent covering remote control technology asserted against Roku Inc. was affirmed by the Federal Circuit on Wednesday.

Opinion attached | Read full article » | Save to favorites »

Fed. Circ. Backs Google PTAB Wins That Moot $12M Verdict

By Dani Kass

The Patent Trial and Appeal Board properly invalidated all claims of the five Flypsi Inc. telecom patents Google LLC was found to infringe, the Federal Circuit said Wednesday.

Order attached | Read full article » | Save to favorites »

Entertainment Website 'Tester' Can Proceed With Tracking Suit

By Allison Grande

A California federal judge has refused to toss a proposed class action accusing Anschutz Entertainment Group of illegally using tracking tools that transmitted website visitors' data to third parties, finding that two of the plaintiff's three wiretap and privacy claims could move forward and that her status as a website "tester" did not preclude her from pressing the suit.

Opinion attached | Read full article » | Save to favorites »

NC Personal Injury Firm Blasts 'Baseless' Claims In DQ Bid

By Hayley Fowler

A personal injury law firm in North Carolina is rebutting allegations that it engaged in nefarious activity on the dark web to solicit plaintiffs for a data breach class action, saying it received the data legally from a cybersecurity consulting expert and should not be disqualified from the suit.

2 documents attached | Read full article » | Save to favorites »

Nvidia, SK Hynix, Kioxia Face Memory Patent Litigation

By Adam Lidgett

A Texas-based technology company has launched new patent infringement suits at district courts in the Lone Star State and Delaware as well as at the U.S. International Trade Commission, targeting companies such as Nvidia Corp., Corsair Gaming and Western Digital.

6 documents attached | Read full article » | Save to favorites »

Toyota Foundation Accused Of 'Ugly Injustice' In IP Theft Suit

By Rae Ann Varona

A Toyota mobility systems foundation stole trade secrets from a small Zimbabwean social enterprise by inducing the enterprise to share its proprietary mobility solutions through a joint venture agreement before excluding the enterprise from a "Smart Village" program they collaborated on, the enterprise has alleged in California federal court.

Complaint attached | Read full article » | Save to favorites »

Roblox Exploits Kids' Labor To Build Games, Action Claims

By Jonathan Capriel

A Georgia mother accused gaming giant Roblox Corp. of turning her 13-year-old son into an unpaid game developer who worked more than 40 hours weekly, funneling him and millions of other children into a virtual currency system designed to trap their labor, according to a proposed class action filed in New York federal court.

Complaint attached | Read full article » | Save to favorites »

Apple Stiffed Call Center Workers On Boot-Up Time, Suit Says

By MJ Koo

Apple Inc. requires its hourly call center employees to boot up computers, log in to security networks and open multiple software programs before clocking in — and doesn't pay them for any of it, a former tech support adviser alleged in a proposed class and collective action filed in California federal court.

Complaint attached | Read full article » | Save to favorites »

Super Micro Hit With Investor Suit Over China Chip Sales

By Zak Kostro

A Super Micro Computer Inc. investor says he suffered losses as a result of a secret and illegal sale of servers embedded with Nvidia chips to China and the company's misleading statements, leading to a drop in its stock price, according to a proposed class action in California federal court.

Complaint attached | Read full article » | Save to favorites »

Zillow Sues Compass, MLS Over Private Listing 'Backup Plan'

By Nate Beck

Zillow has accused property brokerage Compass and a Chicago-area multiple listing service provider of hatching a "backup plan" to protect a private home sales network, even after the online real estate marketplace company established a rule last year banning home listings from its platform that have appeared elsewhere for more than a day.

Complaint attached | Read full article » | Save to favorites »

Tesla Shareholders Appeal Suit Dismissal Tied To Texas Move

By Sydney Price

Tesla shareholders, whose breach of fiduciary duty suit against Elon Musk and the automaker's directors was dismissed last month following the company's move to Texas, appealed the dismissal to the Delaware Supreme Court on Wednesday.

Notice attached | Read full article » | Save to favorites »

Brief

Fed. Circ. OKs Lululemon Win On Nike Fitness Tracking Patent

By Elaine Briseño

A Federal Circuit panel on Wednesday, in a one-line order, affirmed the Patent Trial and Appeal Board's determination that Nike's infringement claims against Lululemon Athletica Inc. related to fitness-tracking technology were invalid.

Order attached | Read full article » | Save to favorites »

Latham, Davis Polk Lead AI Chipmaker Cerebras' $5.6B IPO

By Jade Martinez-Pogue

Artificial intelligence computing company Cerebras Systems Inc. raised roughly $5.6 billion in its blockbuster initial public offering that priced above range late on Wednesday, representing the largest IPO this year.

Read full article » | Save to favorites »

Defense Tech Startup Anduril Raises $5B At $61B Valuation

By Jade Martinez-Pogue

Military technology company Anduril, led by Gunderson Dettmer Stough Villeneuve Franklin & Hachigian LLP, on Wednesday announced it reached a $61 billion valuation after raising $5 billion in its latest funding round.

Read full article » | Save to favorites »

Latham Guides Geothermal Startup Fervo's Upsized $1.9B IPO

By Jade Martinez-Pogue

Geothermal energy developer Fervo Energy hit the public markets on Wednesday after raising $1.9 billion in its upsized initial public offering.

Read full article » | Save to favorites »

Simpson Thacher-Led Blackstone REIT Prices $1.75B IPO

By Nate Beck

A Blackstone real estate investment trust focused on data centers is set to begin trading Thursday after raising $1.75 billion in an initial public offering, advised by Simpson Thacher & Bartlett LLP and underwriters' counsel Paul Hastings LLP.

Read full article » | Save to favorites »

E-Commerce Co. Hits Ch. 11 In Texas After $11M Judgment

By Emily Lever

E-commerce platform Society Pass has filed for Chapter 11 protection in Texas bankruptcy court with more than $10 million in liabilities and less than $10 million in assets, on the eve of a hearing Wednesday in New York state court to put the business into receivership.

2 documents attached | Read full article » | Save to favorites »

Shutterstock Inks $35M Deal In FTC's Autorenewal Suit

By Gina Kim

Shutterstock Inc. will pay $35 million to resolve the Federal Trade Commission's lawsuit alleging it knowingly deceived customers about its subscription plans' autorenewal policies, with one executive noting in internal communications they could "hopefully get away with it" when they saw competitor Adobe Inc. sued over its subscription practices in 2024.

Read full article » | Save to favorites »

Meta Must Share Option Costs Post-Altera, IRS Says

By Molly Moses

The Ninth Circuit's 2019 ruling against Altera Corp., which upheld rules requiring companies to share the cost of employee stock options with foreign affiliates, means that Meta's income for 2017-18 should be increased by roughly $3 billion, the IRS told the U.S. Tax Court.

2 documents attached | Read full article » | Save to favorites »

Data Center Insurance Boom May Obscure Claims' Difficulty

The rush of carrier capital into the data center space should not obscure a distinct and evolving set of policyholder risks that existing insurance products were not designed to address, along with the further complexity of layered claims for the extremely valuable properties, says Carlton Wilde at Bracewell.

Read full article » | Save to favorites »

How 'Bundling' Enforcement Is Parsing Efficiency, Access

Recent antitrust enforcement actions have taken a selective view of companies' bundling of products or services — challenging it when it shuts out rivals, but tolerating it when it creates efficient scale — making the real test now less about lower prices than about whether competition is being blocked, says attorney Alan Kusinitz.

Read full article » | Save to favorites »

Key Tronic Case Shows SEC Isn't Ignoring Controls Violations

The U.S. Securities and Exchange Commission's first nonfraud enforcement action against a public company during Chairman Paul Atkins' tenure reflects the commission’s willingness to bring enforcement actions that charge books and records and internal controls violations, despite deviating from policing technical violations, say attorneys at Cooley.

Settlement attached | Read full article » | Save to favorites »

Series

The Biz Court Digest: Georgia Court Has Business On Its Mind

Thanks to recent legislation, the Georgia State-wide Business Court will soon offer business litigants greater access to the court than ever before, further enhancing the court's emphasis on efficiency, predictability and accessibility for sophisticated commercial disputes, says former GSBC judge Walt Davis at Jones Day.

Read full article » | Save to favorites »

Analysis

Insider Trading Case Shows BigLaw Associate Vetting Gaps

By Chris Villani

A BigLaw attorney who was able to move through three major firms while allegedly orchestrating a massive insider trading scheme may have been aided by relatively loose hiring practices for associates that firms may consider strengthening moving forward, recruiting experts told Law360.

Read full article » | Save to favorites »

DOJ Asserts Broad Power In BigLaw Executive Order Appeal

By Jared Foretek

A Trump administration attorney told the D.C. Circuit on Thursday that the courts have no authority to review the president's decision to revoke someone's security clearance for any reason, including race, religion, or even refusal to pay a $1 million bribe.

Read full article » | Save to favorites »

Trump's 8th Circ. Pick Clears Senate Panel Vote

By Courtney Bublé

President Donald Trump's nominee for the Eighth Circuit, who represented the president in the cases brought by writer E. Jean Carroll, advanced to the full Senate on Thursday.

Read full article » | Save to favorites »

Thomas Urges Defense Of Constitution At Judicial Conference

By Carolina Bolado

U.S. Supreme Court Justice Clarence Thomas urged attendees at the Eleventh Circuit Judicial Conference on Thursday to "stand up" for the U.S. Constitution and to see the positives in the country, despite its flaws, on its 250th birthday.

Read full article » | Save to favorites »

Fenwick Hit With FTX Suit In DC Over $525M Losses

By Emily Lever

A group of former FTX customers has sued Fenwick & West LLP in federal court in Washington over its work representing FTX from 2018 to 2022, seeking to recover more than $525 million for losses stemming from the cryptocurrency exchange's collapse.

Complaint attached | Read full article » | Save to favorites »

NYC Bar Endorses Random Audits For Law Firm Accounts

By Emily Sawicki

The New York City Bar Association's Professional Discipline Committee on Thursday threw its support behind a statewide bill to institute a random audit program for law firm financial accounts.

Report attached | Read full article » | Save to favorites »

Ogletree Fights Atty's Discovery Bid For DQ Push In Bias Suit

By Lynn LaRowe

A Georgia federal court should deny a bid for discovery aimed at disqualifying Ogletree Deakins Nash Smoak & Stewart PC from defending a security company against discrimination claims because the request stems from the plaintiff's lawyer's "personal grievances," the company said Thursday.

1 document attached | Read full article » | Save to favorites »

Lover's Ex-Wife Fights Sinema's Request For Therapy Notes

By Abigail Harrison

A bid by former U.S. Sen. Kyrsten Sinema of Arizona to unearth notes and communications from a therapist working with her lover's ex-wife should be summarily denied, as the ex-wife, Heather Ammel, told a North Carolina federal court Thursday that the request is a clear overreach.

Motion attached | Read full article » | Save to favorites »

8th Circ. Backs Dismissal Of Horse Breeder's Malpractice Suit

By Tom Lotshaw

The Eighth Circuit said a federal judge was right to dismiss a malpractice suit a Minnesota horse breeder brought against Porter Wright Morris & Arthur LLP and one of its former attorneys for mishandling malpractice cases against three other firms.

Opinion attached | Read full article » | Save to favorites »