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Cybersecurity & Privacy
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August 07, 2024
Khan 'Impermissibly Conflicted' In Cyber Probe, MGM Says
MGM Resorts International fought Wednesday to keep alive its lawsuit accusing the Federal Trade Commission of wrongly refusing to recuse chair Lina Khan from an investigation into the company's data security practices, arguing that its case involves core constitutional issues that belong in the D.C. federal court.
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August 07, 2024
NJ AG, Data Biz Say Judicial Privacy Law Is Constitutional
The New Jersey Office of Attorney General stepped in to defend the judicial privacy measure Daniel's Law this week, arguing alongside a data privacy company in federal court that a group of data brokers accused of violating it are relying on "hypotheticals and edge cases" to claim the law is unconstitutional.
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August 06, 2024
Convicted Mango Markets Crypto Trader Wants Acquittal
The crypto trader who was convicted of fraudulently draining more than $100 million from trading platform Mango Markets told a Manhattan federal judge that he should be fully acquitted on the grounds that federal prosecutors failed to prove at trial that he violated the law.
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August 06, 2024
Lensa AI App Creator Shakes Ill. Biometric Privacy Suit
An Illinois federal judge on Tuesday tossed a proposed class action accusing the developer of a popular "magic avatar" app of unlawfully harvesting biometric data to fuel its service, finding that the plaintiff had failed to show that his information was included in the massive database relied on by the company.
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August 06, 2024
Microsoft's Dechert Attys Slam Delta On Outage Suit Threat
Microsoft's attorneys at Dechert LLP fired back Tuesday at Delta Air Lines' recent threat to pursue litigation to recoup hundreds of millions in losses from last month's global CrowdStrike outage, saying the airline repeatedly refused Microsoft's offer for technical assistance.
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August 06, 2024
DC Circ. Says CIA Can No-Admit, No-Deny Gitmo Docs
The D.C. Circuit ruled Tuesday that the CIA could refuse to confirm the existence of documents related to its control of detainees at Guantánamo Bay, rejecting a military lawyer's arguments that those records were already public knowledge.
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August 06, 2024
Cadwalader Slams Lloyd's For 'Needless' Disclosure, Mockery
Cadwalader Wickersham & Taft LLP has opposed a bid by a Lloyd's of London syndicate to unseal the law firm's complaint seeking $1 million of coverage for a November 2022 data breach, telling the North Carolina Business Court that Lloyd's has chosen to "mock and insult their own customer" while exposing confidential information in its filing to the court.
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August 06, 2024
NYC Prof Found Guilty Of Acting As A Secret Chinese Spy
A Brooklyn federal jury on Tuesday unanimously convicted an academic and author of secretly acting as an agent of the Chinese government by feeding information about Chinese dissidents and pro-democracy activists to China's intel service, following a weeklong jury trial, according to the U.S. Attorney's Office for the Eastern District of New York.
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August 06, 2024
Cable Biz Likely To Oppose Cybersecurity Reporting Rules
Cable providers bristled at federal agencies' plans to impose new requirements aimed at beefing up network security, arguing that rules for reporting cyberattacks within certain time frames and sharing detailed security plans would be overly burdensome.
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August 06, 2024
Pennsylvania Hospital Gets Data Breach Suit Whittled
A Pennsylvania federal judge has shaved two counts off of a data breach lawsuit against Prospect Medical Holdings Inc., rejecting the hospital operator's argument that the plaintiffs lacked standing to bring the suit but agreeing that not all of them stated valid claims.
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August 06, 2024
Testing Lab Can't Add Bad Faith Claims In Income Loss Case
A Pennsylvania federal judge found Tuesday that a prior agreement between a medical testing lab and its insurer expressly precluded added allegations that the insurer acted in bad faith while handling the lab's claim for loss of records and business income.
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August 06, 2024
Lowe's Must Face Retail Logistics Co.'s Software IP Suit
Lowe's Home Centers LLC lost its bid to dismiss a retail logistics company's claims it ripped off a merchandise return management software and breached its contract with that software's manufacturer, with a North Carolina federal judge declining to fully toss any of the claims but flagging that some contradicted each other.
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August 06, 2024
AI Security Biz Sets Sights On IPO After $5.1B Valuation
Artificial intelligence company Abnormal Security, advised by Cooley LLP, announced Tuesday that it has hit a $5.1 billion valuation after closing its Series D funding round with $250 million in tow.
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August 06, 2024
Gibson Dunn Guiding Veritas On $2.45B Cloud Banking Buy
Gibson Dunn is advising Veritas Capital on a deal to purchase the cloud-based digital banking business of NCR Voyix Corp., represented by King & Spalding, for $2.45 billion in cash plus a potential future payment of up to $100 million, NCR Voyix said in a statement Tuesday.
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August 05, 2024
Chamber, Others Back 9th Circ. Ax Of Shopify Privacy Row
The U.S. Chamber of Commerce and several tech trade groups are among those pushing the full Ninth Circuit to affirm the toss of a proposed class action accusing Shopify of unlawfully collecting shoppers' sensitive information, arguing that overriding the decision would unfairly allow plaintiffs to sue online businesses in any court across the country.
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August 05, 2024
Manufacturer Can't Get Coverage For BIPA Class Action
An Illinois federal judge awarded a win to an insurer Monday in a suit over coverage of underlying Biometric Information Privacy Act litigation, finding a contractual exclusion prevented coverage for a machine and plastics manufacturer accused of failing to secure employee data.
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August 05, 2024
TikTok Tells DC Circ. That Feds Can't Keep Filings Secret
TikTok told the D.C. Circuit on Monday that the U.S. government shouldn't be allowed to conceal its court filings in litigation over a federal law that could ban the popular social media platform in the United States.
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August 05, 2024
EBay Resists Calif. Damages In Mass. Stalking Case
Married Massachusetts bloggers who were stalked and terrorized by eBay Inc. employees shouldn't be able to seek punitive damages available under California law while having Massachusetts law otherwise govern liability for their myriad civil claims, the e-commerce giant is arguing.
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August 05, 2024
Top Groups Lobbying The FCC
The Federal Communications Commission heard from advocates nearly 180 times in July on issues ranging from rural broadband to Wi-Fi hot spots for schools and libraries, new payment rates for phone call captioning, spectrum for the electric grid, and more.
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August 05, 2024
AT&T Chief Pushes FCC To Make FirstNet 4.9 GHz Manager
AT&T Inc. CEO John Stankey met with Federal Communications Commission members to lobby for the company's first responder network to lead the national public safety band, despite band users' concerns that AT&T could control the band for its own self-serving interests.
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August 05, 2024
Google, OpenAI Accused Of Using YouTube Videos To Train AI
A California man has hit Google and OpenAI with separate proposed class actions in federal court accusing the companies of unlawfully transcribing YouTube videos and using them to train their large language model artificial intelligence products without the permission of the people who uploaded those videos.
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August 05, 2024
Patreon To Pay $7.25M To End Subscribers' Video Privacy Suit
Patreon has agreed to pay $7.25 million to settle a proposed class action on behalf of 1.2 million users who claim the content subscription-based platform violated the Video Privacy Protection Act by sharing their video-watching data with Facebook-owner Meta Platforms Inc. without their consent, according to court documents filed Friday.
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August 05, 2024
Pegasystems Slams Appian's 'Animus' After $2B Verdict Axed
Business software maker Pegasystems says rival Appian's "animus" is behind a series of what it says are irrelevant, premature and burdensome discovery requests, after a Virginia appeals court vacated a $2 billion trade secrets judgment against Pegasystems.
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August 05, 2024
BIPA Reform Becomes Law, But Damages Concerns Persist
The Illinois Legislature heeded a call from the state's Supreme Court to shield business from potentially ruinous damages under the Illinois Biometric Information Privacy Act, but lawyers say the new protections can still leave large employers facing hefty verdicts.
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August 05, 2024
CrowdStrike Slams Delta Over Outage Lawsuit Threats
CrowdStrike has fired back at Delta Air Lines' recent threat to haul the cybersecurity firm to court to recoup hundreds of millions in losses from last month's global IT outage, saying the airline refused CrowdStrike's offer for technical assistance, then botched its own operational recovery.
Expert Analysis
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Takeaways From Nat'l Security Division's Historic Declination
The Justice Department National Security Division's recent decision not to prosecute a biochemical company for an employee's export control violation marks its first declination under a new corporate enforcement policy, sending a clear message to companies that self-disclosure of misconduct may confer material benefits, say attorneys at Perkins Coie.
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Lessons From Epic's Dutch Fine For Unfair Marketing To Kids
Dutch regulators' imposition of a €1.1 million fine on Epic Games for unfair commercial practices targeting children marks a significant moment in the ongoing scrutiny of digital market practices, and follows an increased focus on children's online safety in the U.S. and European Union, say attorneys at Crowell & Moring.
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Opinion
California Has A Duty To Curtail Frivolous CIPA Suits
As plaintiffs increasingly file class actions against companies for their use of website tracking cookies and pixels, the Legislature should consider four options to amend the California Invasion of Privacy Act and restore the balance between consumer privacy and business operational interests, say Steven Stransky and Jennifer Adler at Thompson Hine and Glenn Lammi at the Washington Legal Foundation.
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Risks And Promises Of AI In The Financial Services Industry
Generative artificial intelligence has immense potential to revolutionize the financial services industry, but firms considering its use should first prepare to show their customers and the increasingly divided international regulatory community that they can manage the risks inherent to the new technology, say attorneys at Gibson Dunn.
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Playing The Odds: Criminal Charges Related To Sports Betting
In light of recent sports betting scandals involving MLB player Shohei Ohtani and NBA player Jontay Porter, institutions and individuals involved in athletics should be aware of and prepared to address the legal issues, including potential criminal charges, that sports gambling may bring to their door, say attorneys at Steptoe.
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Series
Playing Chess Makes Me A Better Lawyer
There are many ways that chess skills translate directly into lawyer skills, but for me, the bigger career lessons go beyond the direct parallels — playing chess has shown me the value of seeing gradual improvement in and focusing deep concentration on a nonwork endeavor, says attorney Steven Fink.
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Key FCC Enforcement Issues In AT&T Location Data Appeal
AT&T’s decision to challenge a $57 million fine from the Federal Communications Commission for its alleged treatment of customer location information highlights interesting and fundamental issues about the constitutionality of FCC enforcement, say Patrick O’Donnell and Jason Neal at HWG.
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Crafting An Effective Workplace AI Policy After DOL Guidance
Employers should take proactive steps to minimize their liability risk after the U.S. Department of Labor released artificial intelligence guidance principles on May 16, reflecting the reality that companies must begin putting into place policies that will dictate their expectations for how employees will use AI, say David Disler and Courtnie Bolden at Porzio Bromberg.
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How SEC Could Tackle AI Regulations On Brokers, Advisers
The U.S. Securities and Exchange Commission held an open meeting of its Investor Advisory Committee on June 6 to review the use of artificial intelligence in investment decision making, showing that regulators are being careful not to stifle innovation or implement rules that will quickly be made irrelevant after their passage, says Brian Korn at Manatt Phelps.
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Litigation Inspiration: Attys Can Be Heroic Like Olympians
Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.
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Unpacking NY's Revised Hospital Cybersecurity Rule Proposal
The New York State Department of Health's recently revised hospital cybersecurity rule proposal highlights increased expectations and scrutiny around cybersecurity in the healthcare sector, while adapting to both recent industry developments and public comments, say Christine Moundas and Gideon Zvi Palte at Ropes & Gray.
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What TikTok's Race Against The Clock Teaches Chinese Firms
The Biden administration's recent divestiture deadline on TikTok parent ByteDance provides useful information for other China-based companies looking to do business in the U.S., including the need to keep products for each market separate and implement firewalls at the design stage, says Richard Lomuscio at Stinson.
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Updated Federal Rules Can Improve Product Liability MDLs
The recent amendment of a federal evidence rule regarding expert testimony and the proposal of a civil rule on managing early discovery in multidistrict legislation hold great promise for promoting the uniform and efficient processes that high-stakes product liability cases particularly need, say Alan Klein and William Heaston at Duane Morris.
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Lean Into The 'Great Restoration' To Retain Legal Talent
As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.
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AI-Generated Soundalikes Pose Right Of Publicity Issues
Artificial intelligence voice generators have recently proliferated, allowing users to create new voices or manipulate existing vocals with no audio engineering expertise, and although soundalikes may be permissible in certain cases, they likely violate the right of publicity of the person who is being mimicked, says Matthew Savare at Lowenstein Sandler.