As in-house legal departments adopt artificial intelligence tools, legal operations pros say that unauthorized use of AI by employees, known as “shadow AI,” raises security and governance concerns.
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WEDNESDAY, JULY 29, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

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In-House Legal Operations' Stubborn 'Shadow AI' Problem

By Anna Scott Farrell

As in-house legal departments adopt artificial intelligence tools, legal operations pros say that unauthorized use of AI by employees, known as “shadow AI,” raises security and governance concerns.

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Papaya Owes $719M, Atty Fees In Gaming False Ad Case

By Elliot Weld

A New York federal judge has granted Firy Inc.'s request to order Papaya Gaming Ltd. to disgorge $719 million and pay $10.1 million in attorney fees to Firy on top of a $420 million jury verdict in April for alleged misrepresentations about its mobile games being based on skill and not using bots.

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Judge Calls Off IP Trial, Threatens Sanctions Against Apple

By Elliot Weld

A Texas federal judge has vacated an impending trial date for a patent infringement suit against Apple, saying he needed time to resolve outstanding jurisdictional issues, but ordered Apple to explain why it shouldn't be sanctioned for raising those issues so close to trial.

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Albright Preserves Verdict Clearing Roku On Streaming Patents

By Elliot Weld

A Texas federal judge on Tuesday said he wouldn't grant a new trial or a favorable judgment to a company that asserted two patents against Roku after a jury cleared the streaming device maker in 2024.

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OpenAI Settles TM Dispute Over 'IO' Hardware Branding

By Ivan Moreno

OpenAI and startup IYO have reached a settlement in principle in their trademark dispute over the "IO" name for AI hardware, the parties told a California federal court.

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 XAI, SpaceX Say Power Plant Noise Suit Claims Are 'Flawed'

By Rae Ann Varona

XAI and SpaceX urged a Mississippi federal court to throw out several claims in a proposed class action filed over allegedly intrusive noises coming out of a power plant the companies operate in a suburban neighborhood, saying the claims rest on "flawed legal theories" and don't warrant discovery.

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Musk's XAI Wants Minn. Ban On Image 'Nudification' Blocked

By Hailey Konnath

Elon Musk's artificial intelligence company xAI asked a federal court to shut down Minnesota's ban on image "nudification" technology, claiming the new law is an "overbroad, content-based ban on free speech" that runs afoul of the First Amendment.

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POLICY & REGULATION

Ex-FCC Officials Call Agency's ABC Station Probe 'Retaliatory'

By Christopher Cole

Several former top officials at the Federal Communications Commission called on FCC Chair Brendan Carr on Tuesday to abandon an early review of eight Disney-owned ABC stations' licenses, calling the action a "grave violation" of federal law and free speech protections.

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FCC Says Starlink Routers Exempt From Nat'l Security Ban

By Nadia Dreid

The Federal Communications Commission has banned virtually all foreign-made routers from the United States, citing national security concerns, but it isn't worried about ones made by billionaire Elon Musk's satellite internet company Starlink.

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FCC Pulls Major Provider From Lifeline, Citing Violations

By Nadia Dreid

The Federal Communications Commission says it has banned one of the nation's biggest Lifeline providers from participating in the subsidy program after uncovering widespread violations of the program's rules, including a practice of transferring people back after they switched their service to another provider.

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LITIGATION

High Court Asked To Take Another Settled Expectations Case

By Adam Lidgett

E-learning company Kahoot Inc. is pushing the U.S. Supreme Court to take up its challenge to the U.S. Patent and Trademark Office's practice of using settled expectations as a reason to deny patent reviews, marking the second petition before the high court on the issue.

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Fed. Circ. Won't Rethink Expert Decision In Microsoft Case

By Adam Lidgett

The Federal Circuit has turned down Microsoft's request that it revisit a panel's decision that reopened the damages amount issue in a patent infringement case brought against the tech giant by Israeli company Exafer Ltd.

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Amazon To Pay $2M To End Suit Over Rest Breaks In Wash.

By Ben Adlin

Amazon will pay $2 million to resolve Amazon Fresh and Amazon Go store workers' accusations that the e-commerce giant failed to provide them with meal and rest breaks required under Washington state law, according to a settlement given final approval by a Pierce County judge.

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Zillow Judge Tosses Home Loan Claims, Leaves Door Open

By Nate Beck

A Washington federal judge has dismissed a lawsuit accusing Zillow of paying kickbacks to brokers that directed homebuyers to use the company's mortgage services, in a scheme that plaintiffs argued inflated the overall cost of home purchases and loans.

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Digital Ad Co. Beats Investor Suit Over Client Loss Claims

By Sydney Price

Digital advertising firm PubMatic has escaped a shareholder's suit accusing it of concealing the loss of a key customer for its digital marketing business, with a California federal court ruling that the suit's claims are too vague as-is.

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Split PTAB Upholds Fiber Optics Component Patent

By Ryan Davis

A divided panel of the Patent Trial and Appeal Board has decided that Cambridge Industries USA Inc. failed to show that any challenged claims are invalid in an Applied Optoelectronics Inc. patent on technology used in fiber optic networks.

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LG Can't Arbitrate Stockholder Suit, Chancery Says

By Jarek Rutz

The Delaware Chancery Court has refused to send fiduciary duty claims against LG, its U.S. subsidiary and several executives to arbitration, ruling that an investor's derivative lawsuit over the governance of advertising technology company Alphonso must remain in the Delaware court.

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Watchdog Org. Asks Court For Trump-IRS Deal Docs

By Zak Kostro

A watchdog organization asked a D.C. federal court to order the government to disclose communications relating to the settlement between President Donald Trump and the Internal Revenue Service over leaks of his tax information.

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Fish & Richardson Slams IP DQ Bid As Possibly Manufactured

By Lynn LaRowe

LVMH urged a Texas federal court to reject a bid to boot Fish & Richardson PC from defending the luxury goods business against an infringement lawsuit over patents for nonfungible token display technology, saying the company behind the suit may have tried to "manufacture" a conflict to disqualify the firm.

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HR Giant Rippling Stole Startup's AI Trade Secrets, Suit Says

By Bonnie Eslinger

Human resources services provider Rippling stole confidential information about Runlayer's artificial intelligence platform technology to develop its own competing product, the startup claims in litigation filed Tuesday in New York federal court.

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DEALS

Analysis

Activists Shift Focus To M&A, AI In Quieter Proxy Season

By Al Barbarino

A surge in mergers and acquisitions-focused activist campaigns in the first half of 2026 came as companies adjusted to the universal proxy regime and activists increasingly turned to artificial intelligence to identify targets, according to a Diligent Market Intelligence report released on Tuesday.

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REAL ESTATE

4 Firms Guide Meta, BlackRock's $14B Data Center Project

By Isaac Monterose

Meta and BlackRock are teaming up to develop a $14 billion, 1-gigawatt data center campus in El Paso, Texas, with guidance from Latham, Eversheds Sutherland, Kirkland and Milbank, the companies announced Tuesday.

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ENFORCEMENT

Trader In BigLaw Deal-Tipping Scheme To Plead Guilty

By Chris Villani

A Florida resident is set to plead guilty to his alleged role in a sweeping scheme to trade on insider information about impending acquisitions that was stolen from major law firms, according to a court filing Tuesday.

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Brief

Humanoids, Other Robotics Added To FCC's Nat'l Security List

By Christopher Cole

The Federal Communications Commission said Tuesday that humanoids and other advanced robotics newly produced in foreign countries will be included on the "covered list" of products restricted from U.S. importation and marketing.

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LEGAL INDUSTRY

Simpson Thacher Stock Work Hurt 2 Companies, Jury Told

By Madison Arnold

The chief financial officer for an insurance company told a Florida jury Tuesday that a stock drop for Patriot National Inc. — which is suing Simpson Thacher & Bartlett LLP for malpractice for allegedly putting together a shoddy securities offering — dramatically affected his own business as well.

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AT&T Whistleblower Told To Cut Facts From Ethics Case Filing

By Sue Reisinger

Former AT&T in-house counsel and whistleblower Theodore Marcus has been asked to delete part of his response to professional misconduct charges pending against him in Washington, D.C., because the filing allegedly contains privileged information.

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1st Circ. Asked To Save Mayer Brown $21M Fee Bid In RI Suit

By Linda Chiem

The American Trucking Associations told the First Circuit that its attorneys at Mayer Brown LLP reasonably justified their request for $21 million in fees and costs after securing "substantial" wins in long-running litigation over Rhode Island's truck tolling program, disputing a district court's determination that the trucking trade group wasn't actually a "prevailing party."

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Winston Taylor Seeks Sanction Against Ex-Client Hunter Biden

By Rae Ann Varona

Winston Taylor urged a D.C. state court on Monday to sanction its former client Hunter Biden in its legal bills collection suit, saying the former president's son destroyed Signal communications that would have proved he understood that he owes the law firm more than $50,000.

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Court Is In Session Whenever A Judge Says It Is, 6th Circ. Told

By Susan Smiley

Court is wherever and whenever a judge says it is, counsel for a Detroit judge told a Sixth Circuit panel Tuesday, arguing that subjecting a student to a mock arrest and trial because she fell asleep during a field trip was within his jurisdiction.

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Senate Confirms Jay Clayton As National Intelligence Chief

By Madeline Lyskawa

The U.S. Senate voted Tuesday to confirm Jay Clayton as director of national intelligence, two weeks after Clayton, the former U.S. attorney for the Southern District of New York, refused to answer who he thought won the 2020 election during his confirmation hearing.

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Queens Defenders Head Gets 3.5 Years For Looting The Nonprofit

By Pete Brush

A Brooklyn federal judge on Tuesday sentenced the former director of the Queens Defenders to more than 3.5 years in prison after the longtime attorney admitted to a course of embezzlement that destroyed the group dedicated to legal services for the poor.

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COMPANIES IN TODAY'S NEWS

AT&T Inc.

Air Force One

Alcon Vision LLC

Amazon.com Inc.

American Bar Association

American Trucking Associations Inc.

Apple Inc.

Applied Optoelectronics Inc.

BlackRock Inc.

Blickstein Group

Brooklyn Defender Services

Citizens for Responsibility & Ethics in Washington

Citrix Systems Inc.

Corning Inc.

Cumberland Farms Inc.

Deel Inc.

Delinea Inc.

Duke Energy Corp.

Enstar Group Ltd.

FTI Consulting Inc.

Global Infrastructure Partners

Google LLC

HighLevel Inc.

Icertis Inc.

JPMorgan Chase & Co.

Johnson & Johnson

LG Electronics Inc.

LVMH Moet Hennessy

Media Research Center

Meta Platforms Inc.

Microsoft Corp.

Momenta Pharmaceuticals Inc.

Morgan Stanley

OpenAI OpCo LLC

Patriot National Inc.

Poshmark Inc.

PubMatic Inc.

Roku Inc.

STAAR Surgical Company

Simpluris Inc.

Space Exploration Technologies Corp.

Starboard Value LP

The District of Columbia Bar

TripAdvisor Inc.

Trump Organization Inc.

Universal Service Administrative Co.

Warner Bros. Discovery Inc.

YouTube Inc.

Zillow Group Inc.

Zillow Home Loans LLC

iRobot Corporation

LAW FIRMS IN TODAY'S NEWS

Adler Pollock

Ashurst Perkins

Burns Charest

Butler Snow LLP

Cherry Johnson Siegmund James

Cohen Milstein

Conrad & Scherer

Cooley LLP

Cozen O'Connor

Daignault Iyer

Davis Polk

Davis Wright Tremaine

Dechert LLP

DiCello Levitt

Duane Morris

Eimer Stahl

Emery Reddy

Entente Law

Eversheds Sutherland

Fieger Law

Fish & Richardson

Garteiser Honea

Gibson Dunn

Gillam Smith

Glancy Prongay

Goodwin Procter

Hagens Berman

Jeffer Mangels

Jones Day

Jones Walker LLP

Keith & Lorfing

King & Spalding

Kirkland & Ellis

Latham & Watkins

Mayer Brown

McKool Smith

Meritz Reddy

Milbank LLP

Mintz Levin

Morris Nichols

Morrison & Foerster

Nixon Peabody

Pakis Giotes

Paul Hastings

Perkins Law

Perkins Law Group PLLC

Quinn Emanuel

Ross Aronstam

Russ August

Scott & Corley

Scott Douglass

Sidley Austin

Simpson Thacher & Bartlett

Stearns Weaver

Stinson LLP

Sullivan & Cromwell

Walker Stevens

Waltzer Wiygul

Weintraub Tobin

White & Case

Williams & Connolly

WilmerHale

Wilson Robertson & VanDeventer

Winston Taylor

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Public Utilities Commission

Delaware Court of Chancery

Federal Communications Commission

Federal Housing Finance Agency

Internal Revenue Service

International Chamber of Commerce

Minnesota Attorney General's Office

Office of the Director of National Intelligence

Patent Trial and Appeal Board

Rhode Island Department of Transportation

Rhode Island Turnpike and Bridge Authority

U.S. Attorney's Office for the District of Massachusetts

U.S. Attorney's Office for the Eastern District of New York

U.S. Court of Appeals for the Federal Circuit

U.S. Court of Appeals for the First Circuit

U.S. Department of Justice

U.S. District Court for the District of Columbia

U.S. District Court for the District of Delaware

U.S. District Court for the District of Massachusetts

U.S. District Court for the District of Minnesota

U.S. District Court for the District of Rhode Island

U.S. District Court for the Eastern District of New York

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

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

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

U.S. District Court for the Southern District of New York

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

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

U.S. Patent and Trademark Office

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Senate Select Committee on Intelligence

U.S. Supreme Court