Judge Tosses XAI Trade Secret Case Against OpenAI

By Ivan Moreno

A California federal judge on Monday dismissed xAI Corp.'s trade secret lawsuit against OpenAI without leave to amend, finding that despite updating its complaint once previously, the company still failed to plausibly allege that OpenAI knowingly obtained or used confidential information from former xAI employees.

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DOJ Prepares To Seek Approval For Live Nation Deal

By Matthew Perlman

The U.S. Department of Justice is preparing to seek approval for its controversial midtrial settlement with Live Nation, according to recent court filings, as state enforcers continue pressing for a breakup of the company after a jury found it violated antitrust law.

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Supreme Court Skips Challenge To $168M Trade Secret Award

By Ivan Moreno

The U.S. Supreme Court on Monday declined to review Tata Consultancy Services Ltd.'s challenge to a $168 million trade secret judgment for Computer Sciences Corp.

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Ex-Google Worker Can't Get AI Secrets Retrial Over Jury Picks

By Bonnie Eslinger

A California federal judge has denied one of two motions from former Google engineer Linwei Ding seeking to overturn a jury decision that convicted him of trade secret theft and economic espionage, rejecting his claim that prosecutors improperly excluded jurors of Chinese descent.

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Anthropic Lied About Pricier Plans, Claude Max Users Say

By Hailey Konnath

Anthropic misleadingly markets its Claude Max 5x and 20x subscription plans as giving users five times and 20 times the amount of usage offered by its lower-tier subscriptions, when the pricier subscriptions offer far less than that, according to a proposed class action filed Sunday.

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Pa. School, AI Cos. Sued Over Deepfakes Of Female Students

By Rae Ann Varona

Over a dozen parents and their daughters sued a Pennsylvania private school and several unnamed artificial intelligence companies in federal court Monday, alleging the school sat by as male students used artificial intelligence to generate hundreds of sexually explicit "deepfake" images of at least 59 minor female students.

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Squires Rejects 7 AIA Cases, Explains Earlier Tesla Decision

By Theresa Schliep

U.S. Patent and Trademark Office Director John Squires has granted five patent challenges and rejected seven others, and he also issued a decision Monday explaining why he allowed a group of Tesla petitions to go ahead to the merits stage of review.

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PE Giants Face Dem Scrutiny Over Data Center Investments

By Katryna Perera

U.S. Sen. Elizabeth Warren is seeking information from several major private equity firms about their involvement in artificial intelligence data center development and operations, saying the increasing number of data centers across the country is putting pressure on American families and driving up utility costs.

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FCC Says ISP Can Nix Rural Buildout Plan In Arkansas

By Nadia Dreid

Wisper, an internet service provider that has taken over other companies' Connect America Fund projects in the past, received the Federal Communications Commission's permission Monday to ditch some Rural Digital Opportunity Fund obligations of its own in Arkansas.

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No Need To Speed Up C-Band Deployments, FCC Told

By Nadia Dreid

It's not necessary for the Federal Communications Commission to push companies to deploy in the upper C-band — once it's cleared out — any faster than it did when it opened up the lower C-band in 2020, according to a wireless industry trade group.

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'Delete' Cuts Didn't Trigger Public Notice Rules, FCC Says

By Christopher Cole

The Federal Communications Commission said Monday it did not find enough resistance to a round of deregulatory cuts last fall to justify requiring the agency to provide notice and a chance for the public to weigh in further.

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Network Cos. Call For Bill To Expand Broadband On Railroads

By Christopher Cole

High-speed network providers are pressing Congress to advance legislation that would expand broadband along freight railroads by touting the benefits of AI-driven inspections and real-time rail monitoring.

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FCC Urged To Revisit Verizon's $1B Array Spectrum Buy

By Christopher Cole

Multiple groups want the Federal Communications Commission to reconsider its staff decision to approve Verizon's roughly $1 billion purchase of spectrum rights from onetime rival UScellular, questioning why the full commission did not vote on the deal.

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Justice Alito Asks Texas To Respond To App Store Order Brief

By Spencer Brewer

U.S. Supreme Court Justice Samuel Alito on Monday asked the Texas attorney general to respond to a bid by a tech industry group and a student advocacy group seeking to reinstate an order blocking a Texas law that requires app store owners to verify users' ages and block minors from downloading apps without parental consent.

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Disney And YouTube Defeat Kids' Data Privacy Suit, For Now

By Craig Clough

A California federal judge on Monday tossed a proposed class action alleging Disney and YouTube allowed advertisers to illegally collect minors' personal information, saying the plaintiffs failed to list any specific videos they viewed that led to the improper collection of their data, but allowed them leave to amend the complaint.

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Cognizant, Infosys Can't Shield Execs From Depositions

By Elliot Weld

Infosys Ltd. and Cognizant TriZetto Software Group Inc. will each have to produce executives to speak on certain topics for depositions in a Texas federal lawsuit over claims that Infosys stole Cognizant's trade secrets to build a competing healthcare software, a special master ruled Monday.

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Workday Position In AI Bias Suit May Boomerang, Judge Says

By Bonnie Eslinger

A California federal judge pushed back Monday against Workday's "odd" claim that the state's civil rights laws don't apply in job bias litigation over its artificial intelligence tools, saying the California-based company's apparent argument would perversely subject it to "the laws of all 50 states and countries around the world."

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Amazon Workers In Colo. Seek Cert. In COVID Screening Suit

By Gina Kim

Roughly 13,000 current and former hourly Amazon employees at its Colorado fulfillment centers who underwent mandatory pre-shift COVID-19 screenings and post-shift exit security screenings without pay asked a federal judge to certify both their classes Friday, arguing that common evidence can resolve liability and damages on a classwide basis. 

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Microsoft Overhyped AI Tool Copilot, Investor Says

By Rachel Riley

A pension fund that purchased Microsoft stocks has brought a proposed class action in Washington federal court, accusing the technology conglomerate and its corporate leadership of making false promises about revenues from its artificial intelligence tool, Copilot, while downplaying user experience issues and other concerns that led consumers to favor Google Gemini and other rival chatbots.

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AI Co. Looks To Nix $6M Award Over Purchase Agreement

By Joyce Hanson

An artificial intelligence company has asked a New York federal judge to vacate a more than $6 million arbitral award issued over a failed asset purchase agreement involving a group of Kazakhstan technology companies, saying the arbitrator ignored provisions that clearly barred the underlying claims.

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Home Depot, Macy's, Others Targeted In Patent Suits

By Elliot Weld

Retailers Home Depot and Macy's, and restaurant chains Flower Child and Shake Shack were among several large companies sued in Texas federal court over accusations that they infringed a set of patents covering card-reading electronics components.

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Nano-X Investors Sue Over Korea Plant Restructuring Hit

By Emilie Ruscoe

Medical imaging company Nano-X Imaging Ltd. faces a proposed investor class action alleging it failed to tell investors that it had expanded its manufacturing operations beyond what customer demand justified, ultimately leading to a $17.5 million write-down.

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Catching Up With Delaware's Chancery Court

By Jarek Rutz

The Delaware Chancery Court this past week handled disputes involving shareholder voting rights, take-private transactions, merger disclosures, board control battles and investor litigation, while the Delaware Supreme Court heard arguments over the wind-down of an oil-and-gas investment fund.

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Brief

Facebook Users Ask 9th Circ. To Fix Jury Role 'Usurpation'

By Nadia Dreid

The Ninth Circuit must undo a lower court's ruling that killed an antitrust suit brought by Facebook users after the district court judge found the novel theory propping up the suit held no water, the users have said, and that Facebook's parent company cannot defend the lower court's "usurpation of the jury's role."

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Weil, Goodwin Advise On Fox Corp.'s $22B Roku Deal

By Al Barbarino

Fox Corp.'s legal adviser Weil Gotshal & Manges LLP and Roku Inc.'s counsel Goodwin Procter LLP are guiding a deal for Fox to acquire Roku at a $22 billion valuation, creating one of the largest streaming businesses in the U.S., according to a Monday deal announcement.

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Salesforce Paying $3.6B For Fin In AI Customer Service Push

By Al Barbarino

Salesforce said Monday it has agreed to acquire Fin, an AI customer support agent formerly known as Intercom, for $3.6 billion, with Wachtell Lipton Rosen & Katz as legal adviser to Salesforce and Cooley LLP advising the seller. 

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3 Firms Steer $2.75B Nuvei, Payoneer Global Payments Deal

By Al Barbarino

Nuvei said Monday it will acquire Payoneer in a $2.75 billion all-cash deal that will combine two major players in global payments as competition intensifies across cross-border financial infrastructure.

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Aerospace Engine Maker Targets $700M IPO

By Jade Martinez-Pogue

Aerospace engine maker Doncasters Group on Monday outlined plans to raise around $700 million in its initial public offering led by White & Case LLP and Davis Polk & Wardwell LLP.

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Gov't Probing Violations Of Trump's Illegal Tariffs, Experts Say

By Phillip Bantz

The federal government is investigating a potential wave of violations of Trump administration tariffs even after the U.S. Supreme Court struck them down, leaving some white collar lawyers and their corporate clients scratching their heads.

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Constitution Shields Livestreamed ICE Agent Chase, Attys Say

By Rae Ann Varona

Attorneys for two women convicted of stalking after they livestreamed their pursuit of an off-duty U.S. Immigration and Customs Enforcement deportation officer to his home urged a California federal judge to overturn their convictions, arguing at a hearing Monday that the First Amendment protected their clients' actions.

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Arkansas Calls Roblox 'Breeding Ground' For Child Predators

By Mike Curley

The state of Arkansas is suing Roblox Corp. and Discord Inc. in California state court, alleging that their lax moderation, lack of effective age verification and indifference have made them a "two-stage predatory pipeline" for child predators.

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Fla. AG Sues TikTok Over Minors' Access, 'Unsafe' Content

By Allison Grande

TikTok is violating Florida's restrictions on social media use and engaging in deceptive business practices by allowing young users unfettered access to the platform and failing to inform consumers about the short-form video app's allegedly addictive nature and "large amounts" of inappropriate content, the state's attorney general alleged in a lawsuit announced Monday.

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Meta's AI Deals Test Scope Of China M&A Scrutiny

The Chinese government's recent approval of Meta's purchase of an AI and robotics company, shortly after blocking a similar deal, raises questions about how far China's legal authority extends over foreign companies connected to China, and highlights the regulatory and compliance risks involved in cross-border acquisitions of AI businesses, says Minda Huang at TsingLaw Partners.

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UCC Digital Asset Update Is Altering Lender, Obligor Diligence

The rollout of the Uniform Commercial Code's Article 12 is transforming digital asset secured lending, forcing lenders and obligors to rethink diligence, control, custody, monitoring and contract terms, as well as collateral practices and financing structures, as jurisdictions continue to adopt the amendments, say attorneys at Lowenstein Sandler.

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Mapping 5 Fronts Of The Prediction Markets Regulatory Battle

The legal framework governing prediction markets is under simultaneous challenge in five independent areas, and the outcomes will determine not just who can operate prediction markets, but the compliance obligations of every participant in the ecosystem, says Ivor Wolk at Manatt.

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3 Things To Know About Trump's Pick To Lead SDNY

By Daniel Moritz-Rabson

President Donald Trump has announced that he plans to appoint Sullivan & Cromwell LLP partner James M. McDonald to lead the Southern District of New York. Here are three things to know about him.

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Trump Personal Atty In Carroll Cases Confirmed To 8th Circ.

By Courtney Bublé

The Senate voted 48-43 on Monday evening to confirm Justin Smith, who represented the president in the defamation and sexual abuse cases brought by writer E. Jean Carroll, to the U.S. Court of Appeals for the Eighth Circuit.

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Hagens Berman Must Cover Fees After Misconduct Findings

By Adrian Cruz

Hagens Berman Sobol Shapiro LLP must cover the fees and costs of a special master who alleged the firm committed misconduct in product liability litigation over the morning sickness drug thalidomide, a Pennsylvania federal judge has said.

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Analysis

Newman's Appeal Loss Shows Limits On Suspension Reviews

By Ryan Davis

The U.S. Supreme Court's rejection on Monday of Federal Circuit Judge Pauline Newman's appeal in the long-running dispute over her suspension made clear that the available routes to challenge such orders are narrow, and spurred critics to contemplate ways to revise the system.

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Justices Turn Down Judge Newman's Suspension Case

By Ryan Davis

The U.S. Supreme Court on Monday rejected Federal Circuit Judge Pauline Newman's effort to revive her lawsuit against her colleagues for suspending her, leaving intact a D.C. Circuit decision that her challenges to the order are not subject to judicial review.

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Attys Want Up To $33M In Long-Running UBH Benefits Fight

By Kellie Mejdrich

Attorneys for employee benefit plan participants who sued to change how United Behavioral Health processed claims for mental health and substance use disorder treatment asked a California federal court for up to $33 million in fees and expenses for their work on the "groundbreaking" case.

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Ex-SEC Atty Reprimanded Over Misstatements In Crypto Case

By Julie Manganis

A former U.S. Securities and Exchange Commission attorney has received a public reprimand for misleading a judge in a cryptocurrency fraud case that led to sanctions against the agency.

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Barnes & Thornburg Profit-Share Admin Wants Legal Bills Paid

By James Boyle

A company that oversaw recordkeeping duties of Barnes & Thornburg LLP's profit-sharing plan says in a complaint in Pennsylvania state court it is owed legal fees over a previous suit filed by a former firm partner.

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FBI Misplaced Nadine Menendez's Jewelry, Judge Told

By Parker Quinlan

An attorney for Nadine Menendez on Monday told a Manhattan federal judge that the FBI is still unable to locate pieces of her jewelry seized as part of the investigation that led to Menendez and her husband, former U.S. Sen. Bob Menendez of New Jersey, being convicted of participating in a bribery scheme.

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