SpaceX Inks $60B Cursor Deal As Gibson Dunn, Kirkland Lead

By Al Barbarino

Elon Musk's SpaceX disclosed Tuesday that it has agreed to acquire Anysphere Inc., the developer of artificial intelligence coding assistant Cursor, in an all-stock transaction valuing the company at about $60 billion.

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Consumers Call Google Search Damages 'Palpably Obvious'

By Bryan Koenig

Consumers want a California federal judge to preserve their antitrust claims accusing Google of shutting out rival search engines that offer better privacy safeguards and no ads, arguing they don't yet need to articulate damages each has borne because it's "impossible" for them not to have been harmed.

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Midjourney Faces Discovery Limits Into Studios' AI Use

By Dorothy Atkins

A California federal magistrate judge Monday ordered Disney, Universal and Warner Bros. to produce some data on their own use of artificial intelligence in the studios' copyright lawsuit against Midjourney, finding that some requested information is appropriate, but Midjourney's broader requests are irrelevant or shielded under work product privileges.

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Amazon Says YouTubers' DMCA Suit Rests On 'Guesswork'

By Rae Ann Varona

Amazon has urged a Seattle federal court to toss three YouTube creators' proposed Digital Millennium Copyright Act class action that accuses the e-commerce giant of scraping millions of copyright-protected videos to train its generative artificial intelligence model Nova Reel, saying the YouTubers' failure to link it to certain datasets makes their allegations "entirely speculative."

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DOJ Wants NAACP's Air Permit Suit Against XAI Tossed

By Rae Ann Varona

The Trump administration has urged a Mississippi federal court to let it step in as a plaintiff and dismiss the NAACP's lawsuit that seeks to bar X.AI Corp.'s operation of a data center-powering gas plant in Southaven, saying the NAACP can't pursue the lawsuit over the government's objection.

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Book Publishers Want WeLib 'Shadow Library' Dismantled

By Elliot Weld

A group of large book and text publishers is suing to dismantle WeLib, an online "shadow library" that the publishers said was built off the "notorious pirate site" Anna's Archive.

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Scrap AT&T's Bid To Get Out Of Copper Line Rules, Calif. Says

By Christopher Cole

California officials urged the Federal Communications Commission to reject AT&T's push to escape state rules that the company says are blocking its transition from copper to fiber networks.

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FCC Urged To Revise Test Rule Language

By Aneeta Mathur-Ashton

A trade group representing commercial, scientific and testing laboratories in the U.S. has asked the Federal Communications Commission to narrowly tailor the language of a planned rule that would restrict accreditation for labs that test communications equipment.

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Illinois Adds Taxes On Digital Ads, Crypto, Prediction Markets

By Maria Koklanaris

Illinois will tax digital advertising, social media platforms, cryptocurrency, prediction markets and more under a nearly $56 billion budget signed Tuesday by Democratic Gov. JB Pritzker.

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Montanans Say Data Center Electricity Rates Need Their Input

By Elaine Briseño

Environmental advocacy groups seek to intervene in NorthWestern Energy's application to establish new rates for future data centers, telling the Montana Public Service Commission that their input is needed to protect residential customers from unpredictably higher costs.

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EU Parliament Approves Trade Deal With US

By Dylan Moroses

European Union lawmakers voted Tuesday to approve legislation implementing the bloc's safeguard-bolstered trade deal with the U.S. founded on a series of tariff cuts, moving one step closer to implementation that is expected before the end of the month.

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Brief

FCC Lifts Security Ban On Some Foreign-Made Toy Drones

By Christopher Cole

The Federal Communications Commission said that "toy drones" manufactured in foreign countries or using parts from overseas will no longer fall under an FCC ban on most drones produced outside the U.S.

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2nd Circ. Judge Blasts 'Wrong' Video Privacy Test In NBA Suit

By Allison Grande

The Second Circuit appeared poised Tuesday to uphold the dismissal of a proposed class action accusing the NBA of illegally sharing newsletter subscribers' video-viewing habits with Meta although one judge said prior rulings set the "wrong" circuit precedent for what data disclosures are prohibited by the Video Privacy Protection Act.

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Capital One Clients Denied Class Cert. In Data Sharing Suit

By Hailey Konnath

A California federal judge Tuesday refused to certify a class of Capital One customers claiming their personal financial information was illegally disclosed to Meta Platforms Inc., Google LLC and others, ruling that there are too many individualized factors at play.

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Monolithic Wins Bid To Send Patent Case From WDTX To Calif.

By Adam Lidgett

A Texas federal judge has shipped a suit accusing Monolithic Power Systems of infringing a power conversion patent to California, finding that neither the power management parts maker nor the patent owner is based in Texas.

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Chamberlain Hrdlicka Gets New Look At $700K Award In Texas

By Lynn LaRowe

The Texas Supreme Court has granted a request from Chamberlain Hrdlicka White Williams & Aughtry to review lower court rulings that left the firm on the hook for $700,000 in a breach of contract dispute with a cost-cutting consultant, which the firm claims should have received no more than $40,000.

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AGs Face Opposition To RealPage Intervention Bid

By Matthew Perlman

Renters and building owners in multidistrict litigation alleging landlords used RealPage's software to inflate rental rates have told a Tennessee federal court the deals they reached cover any damages that attorneys general for four states and the District of Columbia might seek on behalf of their citizens.

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GM Says Cadillac EV Owners' Design Defect Suit Falls Flat

By Susan Smiley

General Motors has asked a Washington federal judge to toss a proposed class action accusing the automaker of false advertising and concealing design defects in its Cadillac Lyriq electric vehicle, saying the complaint fails to make any specific claims or show how the plaintiffs were harmed by the alleged electrical malfunctions.

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Trade Desk Brass Face Derivative Suit Over New Ad Platform

By Katryna Perera

A Trade Desk shareholder has launched a derivative suit against the company's top brass, claiming they misled investors about the adoption and performance of the company's Kokai advertising platform and knew customers were slow to adopt the product and were encountering significant usability and functionality problems, but represented otherwise. 

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Software Co. Says Exec Is Taking Trade Secrets To Rival

By Julie Manganis

Software company EnterpriseDB asked a Massachusetts judge to stop a former vice president from jumping to competitor Couchbase, citing both a noncompete agreement and evidence that he downloaded hundreds of documents prior to his departure.

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Game-Maker Seeks $13.5M Over Alleged Counterfeits

By Carla Baranauckas

The maker of Fusion skill game platforms has accused a Philadelphia route operator and his company of selling hacked and counterfeit versions of its game systems on eBay and Facebook Marketplace, alleging in a federal lawsuit that the knockoffs duplicate its copyrighted artwork and registered trademarks.

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THC Drink Co. Hid Auto-Renewal Fee, Calif. Suit Claims

By Jonathan Capriel

The maker of cannabis-infused beverage Brez intentionally concealed automatic renewal terms on its website in "small" gray font in order to charge an online shopper a recurring $54.21 subscription fee, according to a Los Angeles County lawsuit, which will be getting a new judge, according to a Monday order.

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Brief

Carnegie Mellon, LSI Settle Ahead Of Memory Patent Trial

By Elliot Weld

Carnegie Mellon University has settled patent infringement claims it brought against an indirect subsidiary of Broadcom Inc. related to memory storage technology.

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Brief

ITC To Review Hoverboard Patent Infringement Decision

By Jack McLoone

The U.S. International Trade Commission said Tuesday that it will review portions of an administrative law judge's decision finding two companies infringed two Razor USA LLC patents for self-balancing hoverboards.

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Kirkland-Led Clearlake Wraps $14.8B Flagship Fund

By Jade Martinez-Pogue

Kirkland & Ellis LLP-advised private equity shop Clearlake Capital Group LP on Tuesday revealed it had closed its eighth flagship fund with $14.8 billion in tow, targeting investments in the artificial intelligence, software modernization, digital transformation and operational efficiency sectors.

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Crypto Firm BlockFills Gets OK For $3.25M Ch. 11 Sale

By Clara Geoghegan

A Delaware bankruptcy judge on Tuesday agreed to approve the $3.25 million sale of cryptocurrency financial technology firm BlockFills to a Belgian digital asset investment group as BlockFills prepares for a Chapter 11 plan confirmation hearing.

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NC Man Must Pay $36K To End SEC's Suit Over 'Free-Riding'

By Abigail Harrison

A U.S. Securities and Exchange Commission lawsuit accusing a North Carolina man of taking advantage of broker-dealer services to trade hundreds of thousands in securities despite not having the funds came to an end Monday in a final judgment after he failed to appear.

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AI Deals Call For Tailored Approach To Address Hidden Risks

As artificial intelligence deals continue to advance, they raise complex intellectual property questions with hard-to-verify technical facts that require a different approach to due diligence, risk allocation and execution, say lawyers at Katten.

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How Boards Can Shrink The AI Governance Gap

While companies have overwhelmingly embraced artificial intelligence, most lack corresponding governance structures and director-level fluency to oversee these programs, highlighting the importance of board and executive supervision to keep pace with growing litigation risk, say attorneys at Alston & Bird.

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Fannie, Freddie AI Rules Raise Stakes For Mortgage Lenders

Artificial intelligence governance frameworks recently released by Fannie Mae and Freddie Mac impose monitoring and vendor oversight standards on mortgage lenders, potentially reshaping secondary-market eligibility, fair lending reviews and risk management as compliance deadlines approach, says Brendan Palfreyman at Harris Beach.

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The Paradoxical Duty To Adopt AI When You Can't Bill For It

Both billing for hours saved using artificial intelligence and preserving billable time by not adopting AI may violate rules of professional conduct, but until bar associations' ethics rules catch up to this emerging economic dilemma, firms must decide how to adjust fee structures themselves, says Ines Lassalle at Peyrot & Associates.

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Full Fed. Circ. To Hear Immigration Judges' Firing Challenge

By Ganesh Setty

The Federal Circuit on Wednesday agreed to conduct en banc review over the firing of two immigration judges, after the Merit Systems Protection Board ruled that they constituted inferior officers who are subject to at-will removal by the president.

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No Discipline For DOJ Atty's 'Lapse Of Judgment' In ICE Case

By Emily Sawicki

A Rhode Island federal prosecutor who knowingly withheld information about a detainee's criminal history at the behest of immigration enforcement, leading to an "unfounded attack" against a federal judge by U.S. Immigration and Customs Enforcement following the detainee's release, violated his duty of candor but will not face discipline, the district's chief judge determined.

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Trump Halts Clayton Director Hearing Over Blue-Slip Dispute

By Courtney Bublé

President Donald Trump directed Jay Clayton, U.S. attorney for the Southern District of New York, not to appear for his confirmation hearing Wednesday on his nomination to be director of national intelligence, in part over a blue-slip issue.

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Maya Kowalski Sues Ex-Atty Over Fees, Funding Loan

By Carolina Bolado

Maya Kowalski, the subject of the Netflix documentary "Take Care of Maya," filed a malpractice suit against her former attorney on Wednesday, accusing him of charging excessive fees and improperly orchestrating an advance funding loan after winning a $213 million judgment.

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Sanctioned IP Atty Tells Fed. Circ. 'Integrity' On The Line

By Elliot Weld

An attorney who was sanctioned in a trade dress infringement case due to what a judge said were his repeated misrepresentations has asked the Federal Circuit to lift the penalties against him and his client, saying his "professional and personal integrity, and my family, depends on it."

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Bosch Receives First DOJ Declination Under New Policy

By Sarah Jarvis

German technology company Bosch on Wednesday became the first company to avoid criminal prosecution under a new U.S. Department of Justice enforcement policy after it cooperated with the federal government and agreed to pay $36 million to settle allegations it improperly exported technology products to sanctioned Chinese company Huawei.

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DOJ's Pot Shift Leaves Key Questions For Cannabis Industry

By Sam Reisman

The Trump administration's recent moves to relax federal restrictions on marijuana through the administrative process will have unclear ramifications for all industry players unless Congress steps in to rewrite cannabis law, attorneys heard Wednesday.

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