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Cybersecurity & Privacy
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September 25, 2024
DoorDash, Uber Eats, Grubhub Win NYC Diner Data Law Row
A New York federal judge on Tuesday granted DoorDash Inc. and other food delivery app companies a win in their lawsuit challenging a New York City law requiring delivery services to provide restaurants with certain customer info, ruling that the law is unconstitutional.
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September 25, 2024
Bumble Investor Says Dating App Overhyped Premium Model
A Bumble Inc. investor has launched a proposed securities class action in Texas federal court accusing the dating app's parent company of misleading investors about its financial outlook and success of a "premium plus" subscription tier, and causing a dramatic decline in Bumble's common stock price.
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September 25, 2024
FTC Targets 'Robot Lawyer,' Others In AI Enforcement Sweep
The Federal Trade Commission on Wednesday revealed a flurry of recent enforcement actions aimed at cracking down on the use of artificial intelligence to "supercharge" harmful and deceptive business practices, including a case targeting "lofty" claims made about a service that promised to provide "the world's first robot lawyer."
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September 25, 2024
City's Public Crash Reports Defy Privacy Law, NC Judge Says
The city of Charlotte violated federal privacy law by making car accident reports public such that law firms could use the disclosed data for marketing purposes, a North Carolina federal judge said in granting summary judgment and certification to a class of drivers.
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September 25, 2024
Meta Wants 'License' To Cover Up Past Events, Justices Told
Meta Platforms Inc. shareholders say the U.S. Supreme Court should not be swayed by the social media company's attempt to shake off a proposed class action tied to the Cambridge Analytica data scandal, warning a high court ruling in favor of Facebook's parent company could give publicly traded companies "license to intentionally mislead investors."
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September 25, 2024
Marriott Gets $8M Default Win In TM Robocall Scam Case
A Virginia federal judge has granted Marriott International Inc. the maximum damages that the law allows for the company's trademark infringement claims against a pair of Mexican firms it accused of using its "Marriott Marks" for a robocall scam, ending the claims with an $8 million default judgment.
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September 25, 2024
Imprisoned Ex-CEO's Attys Want Out Of Lawsuits With Co.
Citing an irretrievable breakdown in the attorney-client relationship, lawyers with the Connecticut firm Spears Manning & Martini LLC have moved for permission to stop representing an imprisoned former tech CEO in legal battles with the company he ripped off.
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September 25, 2024
Bloggers In EBay Stalking Case Can't Pinpoint Lost Sources
A Massachusetts couple suing eBay after their blog's critical coverage of the e-commerce giant made them the target of a corporate harassment scheme told a federal judge on Wednesday they aren't able to specifically identify potential sources who were allegedly chilled into silence by the scheme.
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September 25, 2024
Veteran Federal Prosecutor Joins King & Spalding In Texas
King & Spalding LLP has strengthened its government investigations, cybersecurity and special matters offerings with a counsel in Austin, Texas, who led efforts to combat cybercrime and pandemic-era fraud during his more than 15 years as a federal prosecutor.
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September 25, 2024
Prince Lobel Says Rapper Owes $237K For Fraud Defense
Prince Lobel Tye LLP says Chicago rapper G Herbo owes the Boston firm more than $237,000 for its work on a criminal case alleging he used stolen credit card information for personal luxuries like renting private jets and a Jamaican villa and buying puppies.
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September 24, 2024
Dentons Accused Of Hacking Laptop, Aiding Vape Co. Usurper
Dentons helped the founder of vape distributor Next Level sabotage and usurp manufacturer Avid Holdings' brand, including breaking into its founder's laptop to access confidential information, Avid alleged in a sprawling lawsuit filed Tuesday in California federal court.
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September 24, 2024
Google Can't Ditch Privacy Suit Over Period App Data Sharing
A California federal judge has refused to release Google from a proposed class action alleging the company used a data analytics tool to wrongfully retrieve data from menstruation tracking app Flo, rejecting the tech giant's arguments that the plaintiffs lacked standing and had consented to the disclosures.
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September 24, 2024
Amazon Scolded Over Improper Privilege In Alexa Privacy Suit
Amazon.com Inc. must re-produce documents it clawed back during discovery from unregistered Alexa users who allege they were illegally recorded, a Washington federal judge ruled Monday, scolding the e-commerce giant for "improperly" trying to conceal its business and strategic documents behind attorney-client privilege.
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September 24, 2024
Fox Exec Must Show Cell Data In Smartmatic Defamation Suit
A Florida state court judge has ordered a Fox News board member to turn over cellphone data in connection to a New York defamation lawsuit over unfounded reports that Smartmatic USA Corp.'s voting systems helped rig the 2020 election, finding the phone may contain relevant information to the case.
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September 24, 2024
Google Investors' Atty Defends Fees For $350M Privacy Deal
Counsel for Google LLC shareholders who reached a $350 million settlement with Alphabet Inc. over claims they were deceived about a 2018 data breach urged a California federal judge Tuesday to approve the deal, including about $66.5 million for attorneys, calling the fees more than reasonable.
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September 24, 2024
Feds Say BitMEX Should Owe $428M For Flouting AML Rules
Federal prosecutors urged a Manhattan federal judge to impose a $428 million penalty for offshore crypto derivatives exchange BitMEX after the firm admitted to lax anti-money laundering procedures, arguing the more than $100 million the firm and founders have already paid to regulators is not enough to deter other crypto firms from Bank Secrecy Act violations.
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September 24, 2024
1st Circ. Affirms Tossing Of IRS Crypto Doc Seizure Case
A New Hampshire federal court correctly dismissed a bitcoin investor's claim that the IRS violated his privacy and property rights when it seized his records from the cryptocurrency exchange Coinbase, the First Circuit ruled Tuesday, agreeing that he lacked a reasonable expectation that his account information would be kept private.
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September 24, 2024
Musk, X Seek To End Ex-CNN Anchor's Talk Show Fraud Suit
Elon Musk and his social media platform X have asked a California federal judge to toss former CNN anchor Don Lemon's suit against over a collapsed talk show deal, saying the claims are insufficiently supported, Musk wasn't properly served, and there's no jurisdiction to proceed in the Golden State.
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September 24, 2024
Think Tank Can't Get Prince Harry's Visa Records, Judge Says
A D.C. federal judge has shot down conservative think tank's attempt to pry loose Prince Harry's visa records, saying the U.S. Department of Homeland Security rightfully withheld them to protect the Duke of Sussex's privacy.
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September 24, 2024
SEC Says Blockchain Cybersecurity Co. Ran $5M Fraud
The U.S. Securities and Exchange Commission sued a former blockchain cybersecurity and supply chain management company and its founder, alleging they deceived investors and fraudulently raised more than $5 million by falsely claiming that the company had secured contracts and that it expected to generate millions in revenue.
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September 24, 2024
Ex-Google Privacy Chief Joins Gibson Dunn As Practice Head
Gibson Dunn & Crutcher LLP has hired a former vice president and chief privacy officer at Google, who for more than 13½ years has helped lead a team of privacy specialists working to achieve Google's data protection and privacy goals.
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September 24, 2024
Firms Allowed To Exit IP Case After Gaining Philips' Consent
A North Carolina federal judge allowed Dentons and Morningstar Law Group to withdraw as Transtate Equipment Co. Inc.'s counsel in a copyright and unfair competition case, after a stipulation was struck with opposing attorneys representing a Dutch health technology conglomerate that initially scoffed at the request.
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September 24, 2024
Man In Mueller Report Asks DC Circ. To Revive Privacy Claim
A Georgian American businessman named in special counsel Robert Mueller's report on 2016 Russian election interference has petitioned the D.C. Circuit for an en banc review of a panel's decision not to revive his Privacy Act damages claim related to supposed inaccuracies, arguing the panel erred in finding he had abandoned damages arguments.
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September 24, 2024
Star Witness Against Bankman-Fried Gets 2 Years In FTX Case
A Manhattan federal judge sentenced former cryptocurrency executive Caroline Ellison to two years in prison Tuesday, crediting her decision to testify against FTX founder Sam Bankman-Fried but saying the $11.2 billion fraud was too big to warrant a "get out of jail free card."
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September 24, 2024
Ex-MoFo Cybersecurity Partner Joins Cooley In NY
Cooley LLP announced on Tuesday the hiring of a former global privacy and data security partner at Morrison Foerster LLP.
Expert Analysis
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Action Steps To Address New Restrictions On Outbound Data
Companies should immediately assess all their data-based operations so they can consider strategies to effectively mitigate new compliance risks brought on by recently implemented transaction restrictions, including a Justice Department proposal and landmark data legislation, say attorneys at Wiley.
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E-Discovery Quarterly: Recent Rulings On Text Message Data
Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.
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CFPB Reality Check: Video Game Cash Is Still Money
The Consumer Financial Protection Bureau's recent report examining payments within online video games indicates that financial services offered within the game marketplace are quickly evolving to the point where they are indistinguishable from traditional financial services subject to regulation, say attorneys at Sheppard Mullin.
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Keeping Up With Class Actions: A New Era Of Higher Stakes
Corporate defendants saw unprecedented settlement numbers across all areas of class action litigation in 2022 and 2023, and this year has kept pace so far, with three settlements that stand out for the nature of the claims and for their high dollar amounts, says Gerald Maatman at Duane Morris.
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How New Rule Would Change CFIUS Enforcement Powers
Before the May 15 comment deadline, companies may want to weigh in on proposed regulatory changes to enforcement and mitigation tools at the disposal of the Committee on Foreign Investment in the United States, including broadened subpoena powers, difficult new mitigation timelines and higher maximum penalties, say attorneys at Venable.
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8 Questions To Ask Before Final CISA Breach Reporting Rule
The Cybersecurity and Infrastructure Security Agency’s recently proposed cyber incident reporting requirements for critical infrastructure entities represent the overall approach CISA will take in its final rule, so companies should be asking key compliance questions now and preparing for a more complicated reporting regime, say Arianna Evers and Shannon Mercer at WilmerHale.
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Series
Swimming Makes Me A Better Lawyer
Years of participation in swimming events, especially in the open water, have proven to be ideal preparation for appellate arguments in court — just as you must put your trust in the ocean when competing in a swim event, you must do the same with the judicial process, says John Kulewicz at Vorys.
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Mid-2024 FCA Enforcement And Litigation Trends To Watch
Reviewing notable False Claims Act trends and enforcement efforts in the last year and a half reveals that healthcare is a key enforcement priority for the U.S. Department of Justice, and the road ahead may bring clarification on Anti-Kickback Statute causation and willfulness standards, along with increased focus on private equity, cybersecurity and self-disclosure, say attorneys at Epstein Becker.
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Best Practices For Space Security In Our Connected World
NASA's recently published space security guide is another indication that cyber-resilience has become a global theme for the space and satellite sector, as well as a useful reference for companies and organizations reviewing their cybersecurity frameworks or looking to partner with the U.S. agency, says Hayley Blyth at Bird & Bird.
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Manufacturers Should Pay Attention To 'Right-To-Repair' Laws
Oregon’s recently passed "right-to-repair" statute highlights that the R2R movement is not going away, and that manufacturers of all kinds need to be paying attention to the evolving list of R2R statutes in various states and consider participating in the process, says Courtney Sarnow at Culhane.
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Opinion
Viral Deepfakes Of Taylor Swift Highlight Need For Regulation
As the nation grapples with addressing risk from artificial intelligence use, the recent circulation of AI-generated pornographic images of Taylor Swift on the social platform X highlights the need for federal legislation to protect nonconsenting subjects of deepfake pornography, say Nicole Brenner and Susie Ruiz-Lichter at Squire Patton.
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New Federal Bill Would Drastically Alter Privacy Landscape
While the recently introduced American Privacy Rights Act would eliminate the burdensome patchwork of state regulations, the proposed federal privacy law would also significantly expand compliance obligations and liability exposure for companies, especially those that rely on artificial intelligence or biometric technologies, says David Oberly at Baker Donelson.
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Social Media Free Speech Issues Are Trending At High Court
The U.S. Supreme Court's recent decision examining what constitutes state action on social media can be viewed in conjunction with oral arguments in two other cases to indicate that the court sees a need for more clarity regarding how social media usage implicates the First Amendment, say attorneys at Kean Miller.
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Opinion
CFPB Could, And Should, Revise Open Banking Rulemaking
In light of continued global developments in open banking, the Consumer Financial Protection Bureau should evaluate whether it actually should use its proposed rule on Section 1033 of the Dodd-Frank Act to amplify personal financial data rights in the U.S., says Brian Fritzsche at the Consumer Bankers Association.
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Don't Use The Same Template For Every Client Alert
As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.