Expert Analysis

• How Feds' Shifting Guidance Hits Bank-Fintech Partnerships

  

  A slew of recent Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency reforms will ultimately give banks and fintechs more flexibility in third-party oversight and supervisory information sharing, but institutions still must document risk-based decisions and engage proactively with regulators, say attorneys at Husch Blackwell.

• What To Watch As Florida Stablecoin Framework Takes Shape

  

  As Florida's new payment stablecoin licensing framework enters its second month, requiring issuers to map applicable state and federal obligations and account for certification and rulemaking uncertainty, businesses should build core controls while keeping launch plans and contracts flexible, says Rob Brighton at Becker.

• 2 Del. Rulings Show Postclosing Earnout Arrangement Risks

  

  Two recent Delaware Court of Chancery decisions illustrate the contractual and fiduciary duty risks associated with earnout provisions in M&A transactions, offering lessons on allocating postclosing control, drafting enforceable earnout covenants and managing executives whose pay depends on the outcome, says Chris Brown at Taft.

• How Cos. Can Reassess Ad Tech After Wash. Pixel Use Ruling

  

  The Washington Supreme Court's decision in Baker v. Seattle Children's Hospital, holding that the hospital website's use of Meta Pixel didn't violate the state’s privacy act, may provide a powerful defense against privacy claims, but shouldn’t be read as a blanket approval of advertising technologies, say attorneys at Duane Morris.

• Opinion

  Judges Must Turn To Merits Earlier To Fix Civil Justice System

  

  The U.S. justice system is long overdue for a cultural shift that encourages judges to engage with the merits of a case from the outset, which would help to cut through procedural complexities and deliver high-quality justice efficiently and at lower cost, says Steven Kayman at Rottenberg Lipman.

• Justices' Intel Ruling Could Aid 401(k) Alternative Asset Push

  

  Following the U.S. Supreme Court's recent oral arguments in Anderson v. Intel, a decision favoring Intel over a prudence claim against fiduciaries based on underperformance by comparing two funds that aren't meaningfully similar would undercut the most common litigation theory against including alternative investments in 401(k) plans, say attorneys at Simpson Thacher.

• FCRA Ruling Previews Future Business Transaction Litigation

  

  The Ninth Circuit's overturning of a class verdict against CenturyLink is a win for businesses facing Fair Credit Reporting Act willfulness claims, but the question of when a consumer initiates a transaction remains unanswered, say attorneys at Thompson Hine.

• How Cos. Should Prepare For Democratic Oversight

  

  Companies should begin preparing now for a new, Democratic-majority Congress — understanding how the oversight landscape has changed in recent years and monitoring leadership elections, new rules and potential select committees, say attorneys at Wiley.

• Series

  Open-Water Swimming Makes Me A Better Lawyer

  

  Swimming long distances in open waters is not necessarily an escape from my intellectual property practice, but a complementary discipline that similarly rewards sustained attention, intellectual curiosity, resilience and the ability to pursue a distant objective without losing command of the immediate task, says Christina MacDougall at Morgan Lewis.

• How Contracts Can Address Agentic AI Monitoring Risk

  

  In light of two recent OpenAI incidents of artificial intelligence agents disabling their monitoring safeguards, companies deploying agentic AI should draft contracts reflecting the possibility that controls can fail, and identify who controls each safeguard, whether the AI agent can interfere, and how a failure will be detected, say attorneys at Zova Law.

• How Groq-Nvidia Suit Tests Venture Capital Exit Math

  

  A recent Delaware Court of Chancery suit concerning Nvidia's acquihire of certain Groq employees highlights that when such deals are challenged, the economic dispute turns on reconciling technology, people, cash and continuing ownership rather than on the headline number, says Ben Dubin at VC Expert Services.

• A Lesson On How Courts Approach Impossible Patent Claims

  

  The Federal Circuit's recent decision in Satius v. Samsung, concluding that a scientifically impossible patent claim lacks enablement, underscores important considerations when drafting patent claims with potentially incompatible alternatives, and highlights an uncommon strategy for attacking patent validity via claim construction, say attorneys at Buchanan Ingersoll.

• Opinion

  The Invisible AI Danger That May Undermine Legal Profession

  

  A public database tracking cases involving hallucinations generated by artificial intelligence recently surpassed 2,200 entries, but the bigger risk underlying attorneys’ use of such tools is that they will slowly surrender their judgment to AI and lose analytical skills, says Massachusetts District Court Associate Justice Brian Palmucci.

• How Cos. Using AI Agents Can Avoid Protected Data Incidents

  

  For businesses whose deployed artificial intelligence agents could enter other companies' systems and steal protected data, deployers can take several steps before an incident to test the configured agent, such as limiting it to approved systems and destinations and requiring human escalation when tasks stall, says Steven Carlson at von Briesen & Roper.

• Courts Signal Higher FCRA Bar For Identity Theft Claims

  

  Recent rulings adopting a heightened, "objectively and readily verifiable" inaccuracy standard may give credit furnishers stronger defenses to identity theft-related Fair Credit Reporting Act claims in the Ninth Circuit, while requiring them to continue documenting thorough dispute investigations, says Brian Kiolbasa at Ballard Spahr.