A Microsoft Corp. shareholder has launched a derivative suit against the company's top brass, claiming they misled shareholders about the company's artificial intelligence business strategy and products, and caused it to violate copyright and intellectual property laws by "training its AI software on copyrighted works for which it did not possess lawful licenses."
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TOP NEWS

Microsoft Brass Face Investor Suit Over AI Business Hype

By Katryna Perera

A Microsoft Corp. shareholder has launched a derivative suit against the company's top brass, claiming they misled shareholders about the company's artificial intelligence business strategy and products, and caused it to violate copyright and intellectual property laws by "training its AI software on copyrighted works for which it did not possess lawful licenses."

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Wash. AI Task Force Forgoes Data Center, Labor Safeguards

By Rachel Riley

A Washington state task force made a series of recommendations to lawmakers Wednesday for promoting responsible use of artificial intelligence while declining to endorse proposed guardrails on data center development and the use of generative AI by state agencies, according to a final report.

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Zillow Loses Bid To Exit IBM Sign-On Tech Patent Suit

By Adam Lidgett

A Washington federal judge has refused to let Zillow out of IBM's lawsuit accusing the online real estate marketplace company of infringing a user sign-on patent, rejecting Zillow's argument that the company's processes weren't covered by what the patent requires.

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Unions Sue HHS Over Rollback Of Childcare Rule

By Katherine Smith

Several unions have challenged a new rule from the U.S. Department of Health and Human Services that rescinded changes made to a federal grant program that helps low-income families pay for childcare, according to a complaint filed in Washington federal court.

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Lululemon Targeted In New Shopper Tariff Refund Lawsuit

By Rachel Riley

Lululemon has been accused of boosting prices in response to the Trump administration's global tariffs then failing to refund customers when the U.S. Supreme Court invalidated the duties, becoming one of the latest household brand names to face such claims.

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LITIGATION

Wash. Atty Loses Bid For Jury In Dispute Over Bar Sanctions

By Emily Sawicki

A Washington lawyer sanctioned and disciplined for bringing a "frivolous" election suit in 2021 against then-Gov. Jay Inslee has lost her bid to have her ethics charges heard by a jury, with a state appeals panel finding no error in a trial court's ruling that it lacked jurisdiction to take on the disciplinary matter.

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Chinese Investors Say Wash. EB-5 Developer Misused Funds

By Elaine Briseño

Chinese investors have filed a RICO Act lawsuit in Washington federal court, alleging that developers of a partially completed mixed-use project on a former copper smelter Superfund site along Puget Sound misused funds from their $39 million investment in the venture and let it fall into default.

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Big Pharma Cos. Want 340B Drug Price FCA Suit Tossed

By Craig Clough

Four major pharmaceutical companies Wednesday urged a California federal court to toss False Claims Act allegations revived by the Ninth Circuit claiming they filed false ceiling prices for drugs and overcharged entities covered by a federal discount program, saying the suit is precluded by the FCA's public disclosure bar.

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DC Judge Blocks More USDA Grant Terminations

By Ganesh Setty

A D.C. federal court has preliminarily reinstated U.S. Department of Agriculture grants totaling roughly $127 million under a program aimed at helping underserved farmers, finding the department's grant terminations likely flouted Congress' priorities under two Biden-era laws.

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EXPERT ANALYSIS

Attorney Mental Health Is An Ethical Obligation In The AI Era

As attorneys cope with the increasing unpredictability that artificial intelligence and constant policy changes have created, particularly in practice areas where they carry the emotional weight of clients’ most consequential life events, otherwise soft discussions about self-care are a matter of professional competence, says attorney Jack Jrada.

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LEGAL INDUSTRY

Legal Sector Jobs Spike With Work 'Churning Right Along'

By Aebra Coe

The legal sector added 5,100 jobs in June, the largest increase the industry has seen in more than two years, according to preliminary, seasonally adjusted data released by the U.S. Bureau of Labor Statistics on Thursday.

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Law360's Legal Lions Of The Week

By Kevin Penton

The American Civil Liberties Union Foundation, the Asian Law Caucus and the Democracy Defenders Fund lead this week's edition of Law360 Legal Lions, after the U.S. Supreme Court rejected President Donald Trump's bid to limit birthright citizenship.

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Feds Seek Up To 21 Months For Ex-Judge On ICE Obstruction

By Elizabeth Daley

A former Wisconsin judge who was convicted of obstructing ICE officers' courthouse arrest of a man facing misdemeanor charges by pointing him to a side door should spend up to 21 months in prison, the government said in a sentencing memo, recommending she be made an example.

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GC Cheat Sheet: The Hottest Corporate News Of The Week 

By Sue Reisinger

Amid the changes coming for general counsel, the policies and enforcement priorities of federal regulators may fluctuate more rapidly after a U.S. Supreme Court ruling this week that could dramatically remake independent government agencies. And the EEOC rescinded affirmative action documents that have guided employers for decades.

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Georgia Atty Can't Revive Defamation Suit Over Ethics Case

By Emily Johnson

The Georgia Court of Appeals has upheld the dismissal of a Georgia attorney's defamation suit against two people involved in an unsuccessful disciplinary action against her, saying her rambling appeal failed to prove that the trial court erred in dismissing her claims.

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When Does A Firm's 'Breakup' Fee-Split Contract Go Too Far?

By Rachel Rippetoe

It looked like a win for plaintiffs' firms when the Kentucky Supreme Court recently upheld a firm's 75% claim on fees from cases an attorney took with him when he launched his own practice, but the narrow ruling may leave room for lawyers to challenge similar agreements as penalties for leaving their firms.

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Judges To Tour Rust Belt To Build Trust In Courts

By James Boyle

Days after the Fourth of July celebration of America's 250th birthday, a group of current and retired judges will lead a four-day bus tour through three states to promote one of the bedrock principles of the country's independence: the rule of law.

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Analysis

Breaking Down The Vote: The High Court Term In Review

By Jack Karp

The U.S. Supreme Court's stark ideological divisions were on full display this term, particularly as it issued long-awaited rulings in the last few days of June. Here, Law360 dives into the numbers behind this court term.

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Mass Tort Titan Paul J. Napoli Dies

By Daniel Moritz-Rabson

Paul J. Napoli, an influential plaintiffs attorney who worked on some of the nation's highest-profile mass tort matters in recent decades, died on Tuesday at the age of 58.

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Skadden Adds Mass Torts Litigator As Partner In Chicago

By Christine DeRosa

Skadden Arps Slate Meagher & Flom LLP has grown its mass torts litigation offerings in Chicago with the addition of a Goldman Ismail Tomaselli Brennan & Baum LLP attorney, the firm said.

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'Embarrassed' Conn. Atty Details ChatGPT Briefing Errors

By Aaron Keller

With a sanctions hearing on the horizon, a Connecticut attorney has told the state's highest court he is "extremely embarrassed" by artificial intelligence errors in briefs filed in two recently decided cases, explaining he used ChatGPT to edit his research without knowing it could make "unprompted changes to the content."

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Del. Magistrate Orders JPMorgan To Advance Javice Fees

By Jarek Rutz

The Delaware Chancery Court ruled Thursday that JPMorgan Chase & Co. must advance millions more in disputed legal fees to cover the appeal of the convicted founder of college financial aid startup Frank, concluding the bank failed to meet Delaware's demanding standard for withholding advancement by showing the billing requests reflected "clear abuse."

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Ex-DOJ Fraud Section Chief Joins Fried Frank

By Nadia Dreid

Fried Frank Harris Shriver & Jacobson LLP has added a veteran litigator from the U.S. Department of Justice who also brings more than a decade of experience representing financial institutions in white collar, enforcement and complex litigation spaces.

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Reed Smith Adds Ex-Norton Rose Partner, RE Atty In Munich

By Nate Beck

Reed Smith LLP has bolstered its private equity practice with the hire of a former Norton Rose Fulbright group leader in Munich.

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McCarter Atty Knew 'Magic Words' For $20M Deals, Court Told

By Brian Steele

If a onetime McCarter & English LLP partner had raised a single red flag about a Long Island town's legally flimsy agreement to repay $20 million worth of a businessman's loans, the ill-fated deals never would have gone forward, a Connecticut court heard Thursday.

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In Case You Missed It: Hottest Firms And Stories On Law360

For those who missed out, here's a look back at the law firms, stories and expert analyses that generated the most buzz on Law360 last week.

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LAW FIRMS IN TODAY'S NEWS

Alston & Bird

Arnall Golden

Arnold & Porter

Barnard Iglitzin

Baron & Budd

Bartlit Beck

Brockstedt Mandalas

Cascadia Law Group

Clement & Murphy

Cooley LLP

Cotchett Pitre

Cozen O'Connor

Davis Polk

Desmarais LLP

Fisher & Phillips

Fried Frank

Gibson Dunn

Gimbel Reilly

Goldman Ismail

Greenberg Traurig

Hagens Berman

Harris Beach Murtha

Hogan Lovells

Isaacs & Isaacs

Jenner & Block

Jones Day

Kilpatrick Townsend

King & Spalding

Kirkland & Ellis

Kobre & Kim

Lankler Siffert

Latham & Watkins

Logan Vance

Lowell & Associates

Marc J. Bern & Partners

Matthew G. Miller PC

McCarter & English

McGavick Graves

Mignott Law Group

Mintz Levin

MoloLamken

Morgan & Morgan PA

Morgan Lewis

Napoli Shkolnik

Norton Rose

Pillsbury Winthrop

Potter Anderson

Powers Pyles

Quinn Emanuel

Reed Smith

Ropes & Gray

Sidley Austin

Silver Golub

Skadden Arps

Smith Gambrell

Squire Patton

Strang Bradley

Susman Godfrey

Troutman

Walden Haran

Wiggin & Dana

WilmerHale

Withersworldwide

COMPANIES IN TODAY'S NEWS

3M Co.

AT&T Inc.

AbbVie Inc.

Adventist Health System Inc.

Alibaba Group Holding Ltd.

American Civil Liberties Union

American Civil Liberties Union of Massachusetts

American Civil Liberties Union of Washington

American Federation of Labor & Congress of Industrial Organizations

American Hospital Association

American Immigration Lawyers Association

Ant Financial Services Group

Apple Inc.

Asian American Center for Advancing Justice

AstraZeneca PLC

Bayer AG

Capital One Financial Corp.

Chevron Corp.

Cisco Systems Inc.

Connecticut Fair Housing Center

Corteva Inc.

Costco Wholesale Corp.

Cox Communications Inc.

Dealogic LLC

Democracy Forward Foundation

Earthjustice

Entergy Corp.

Epic Games Inc.

Exxon Mobil Corp.

GE Aerospace

Gerson Lehrman Group Inc.

Giant Eagle Inc.

Google LLC

Hikma Pharmaceuticals PLC

Huawei Technologies Co. Ltd.

Intel Corp.

Inter IKEA Systems BV

International Business Machines Corp.

JPMorgan Chase & Co.

Justice in Motion

LexisNexis Legal & Professional

LinkedIn Corp.

Major Lindsey & Africa LLC

Merck & Co. Inc.

Meta Platforms Inc.

Michaels Stores Inc.

Microsoft Corp.

Monsanto Co.

NAACP Legal Defense & Educational Fund Inc.

National Association of Criminal Defense Lawyers

New England Asset Management Inc.

New York University

Nike Inc.

Novartis AG

OpenAI OpCo LLC

Palantir Technologies Inc.

PepsiCo Inc.

Pfizer Inc.

Pro Bono Institute

RELX PLC

Robert Bosch GmbH

Sanofi

Service Employees International Union

Snap Inc.

State Bar of Georgia

Suncor Energy Inc.

The Goldman Sachs Group Inc.

The Kroger Co.

The New York Times Co.

TikTok Inc.

Virginia State Bar

Washington State Bar Association

YouTube Inc.

Zillow Group Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

Administration for Children and Families

Bureau of Industry and Security

Bureau of Labor Statistics

Delaware Court of Chancery

Equal Employment Opportunity Commission

Federal Bureau of Investigation

Federal Communications Commission

Federal Energy Regulatory Commission

Federal Reserve System

Federal Trade Commission

Food and Drug Administration

Georgia Court of Appeals

Georgia Supreme Court

House Committee on Energy and Commerce

Los Angeles Superior Court

Massachusetts Board of Bar Overseers

Michigan Supreme Court

National Labor Relations Board

Office of the U.S. Trade Representative

Ohio Supreme Court

U.S. Attorney's Office

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

U.S. Citizenship and Immigration Services

U.S. Customs and Border Protection

U.S. Department of Agriculture

U.S. Department of Commerce

U.S. Department of Health and Human Services

U.S. Department of Homeland Security

U.S. Department of Justice

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

U.S. District Court for the District of Columbia

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

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

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

U.S. District Court for the Southern District of Florida

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. Environmental Protection Agency

U.S. Securities and Exchange Commission

U.S. Supreme Court

United States District Court for the Eastern District of Wisconsin

Washington Attorney General's Office