Expert Analysis

• How AI Fraud Alerts May Raise Banks' Elder Exploitation Risk

  

  As banks deploy artificial intelligence fraud detection, documented alerts and review decisions may shape elder exploitation claims, discovery disputes and defenses over what institutions knew before releasing suspect payments, say Michael Gilfix and Benjamin Gicqueau at Gilfix & La Poll.

• 9th Circ. Ruling Marks New Chapter In Risk Factor Tug-Of-War

  

  The Ninth Circuit's recent dismissal of a securities fraud class action against SunPower is the latest in a growing line of cases addressing whether, if ever, a company's risk factor disclosures can give rise to potential liability, an area where the law remains unsettled, say attorneys at Alston & Bird.

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  Law School's Missed Lessons: Cultivating Good Judgment

  

  Law schools generally overlook the role that solid judgment skills play in real-world practice, but attorneys can bridge the gap by strengthening their abilities to assess a case’s strengths and weaknesses, develop and execute effective strategies, and provide clear recommendations to clients, says Manny Caixeiro at Venable.

• DOJ Letter Rescission Portends Proxy Firm Antitrust Risk

  

  The U.S. Justice Department's recent withdrawal of its 1987 business review letter issued to Institutional Shareholder Services, which shielded certain proxy advisory activities from anticompetitive enforcement, likely foreshadows renewed antitrust scrutiny of proxy advisory firms, say attorneys at Paul Weiss.

• New Del. Corp. Law's Technical Tweaks Bring Broad Changes

  

  While the new amendments to the Delaware General Corporation Law, which took effect on Aug. 1, appear technical, they have broad implications for wound-down corporations and carry personal exposure for whoever signed the certificate of dissolution, hinting at where entity law is heading next, says Ashwin Ram at Buchalter.

• A Lender's Guide To Fraud: Safeguarding Collateral

  

  Recent bankruptcies illustrate that lenders should strengthen credit covenants, collateral field exams and third-party verification in order to detect double-pledging, fabricated assets and documentation fraud enabled by artificial intelligence before losses become unrecoverable, say attorneys at Moore & Van Allen.

• Money Transmission Issue Looms For Prediction Markets

  

  The circuit split recently created by the Ninth Circuit's ruling in Kalshi v. Assad has implications reaching beyond gaming regulation as, depending on the ultimate characterization of prediction market event contracts, platforms may face differing obligations under federal and state money transmission laws, say attorneys at Manatt.

• AI And AML: Governance Plays Critical Role In Innovation

  

  Financial institutions adopting artificial intelligence for anti-money laundering compliance should implement governance specific to individual use cases, testing, documentation and human oversight to manage regulatory and enforcement risks as agentic tools expand, say attorneys at Paul Hastings.

• Del. Ruling Emphasizes High Bar To Pleading A Control Group

  

  The Delaware Court of Chancery's recent decision in Le Clair v. KnowBe4 illustrates the high burden to which courts hold plaintiffs trying to establish a control group, as well as the continued power of an informed stockholder vote, say attorneys at Sidley.

• Attorneys Using AI May Have Ethical Duty To Redact Docs

  

  The trajectory of legal ethics guidance in recent years strongly suggests that as redaction technology becomes more accessible, the failure to use it when uploading highly confidential materials into artificial intelligence tools will become increasingly difficult to defend as reasonable, say attorneys at Lewis Brisbois.

• Compliance Lessons From Agriculture Co. Mexican Bribe DPA

  

  Agricultural company Scoular’s recently announced deferred prosecution agreement over alleged Foreign Corrupt Practices Act violations at the U.S.-Mexico border reinforces the U.S. Department of Justice’s focus on cartels, and companies must accordingly ensure they address risks associated with the use of customs brokers, says Adam Safwat at Foley Hoag.

• Assessing The Early Days Of Woodcock's SEC Tenure

  

  Since David Woodcock took over the U.S. Securities and Exchange Commission's Division of Enforcement four months ago, the division has pursued a scaled-back caseload centered on fraud and manipulative conduct, largely following the enforcement outlook that emerged under SEC Chairman Paul Atkins, say attorneys at Akerman.

• Voyager Ruling Maps Out Ch. 11 Exculpation Lessons

  

  Chapter 11 plan proponents drafting exculpation provisions may benefit from contrasting the exculpatory language recently invalidated by a New York federal court in the Voyager Digital Holdings case with successful recent use of these provisions in confirmed bankruptcy plans, say attorneys at Debevoise.

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  Juggling And Unicycling Make Me A Better Lawyer

  

  Because I juggle (sometimes with fire) and ride the unicycle, friends and family used to joke that I should join the circus, but I pursued the practice of law instead and learned that my hobbies benefit my profession in several important ways, says Morgan Eddy at Smith Currie.

• 2nd Circ. Ruling Lays Out Administrative Right-Of-Access Blueprint

  

  In Civil Rights Corps v. LaSalle, the Second Circuit recently held that the First Amendment dictates a presumptive right of access to sealed attorney grievance proceedings, providing a framework for challenging other administrative regimes that operate behind closed doors, says Jonathan Ginsberg at Carlton Fields.