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Cybersecurity & Privacy
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November 26, 2024
Sundance Can't Ditch Suit Over Purchase Data Disclosures
A Utah federal judge has refused to toss a proposed class action accusing specialty retailer Sundance of unlawfully sharing its customers' private information with various third parties, finding that a ban on class actions contained in the state law being relied on by the plaintiffs didn't doom the dispute.
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November 26, 2024
X Partially Revives Lawsuit Against Israeli Data Scraping Firm
X Corp. partially revived its lawsuit Tuesday against Israeli data scraping firm Bright Data after a California federal judge allowed the social media company to amend some of its claims and add new ones, finding X now plausibly alleges the defendant's "sophisticated efforts" to access the platform caused harm.
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November 26, 2024
Truepill's $7.5M Patent Data Theft Settlement Gets Initial OK
A California federal judge Tuesday preliminarily backed a $7.5 million deal resolving a proposed class action alleging that online pharmacy PostMeds Inc., which does business as Truepill, failed to protect the sensitive information of millions of patients from a data breach.
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November 26, 2024
Smart Devices Fail To Disclose Security Lifespan, FTC Says
As holiday shopping gets underway, the Federal Trade Commission is raising alarm about smart device update disclosures, saying an overwhelming majority of devices – from hearing aids to home security cameras and fitness devices — come without clear information on how long the manufacturer will keep them protected from security risks.
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November 26, 2024
T-Mobile, Sprint Slam FCC Privacy Fine At DC Circ.
T-Mobile and Sprint are asking the D.C. Circuit to knock down $92 million in fines the FCC slapped them with for selling users' sensitive location data, saying that a recent U.S. Supreme Court decision backs their contention they deserved a jury trial.
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November 26, 2024
Victim Shares Blame For $1.4M Scam, Connecticut Atty Says
A New Jersey real estate development company is at least partly to blame after it transferred more than $1.4 million to a fraudster without taking proper precautions, a Connecticut attorney said Tuesday in response to a federal lawsuit that accuses her of involvement in the scam.
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November 26, 2024
FTC Says AI Weapons-Screening Biz Hyped Faulty Scanners
The Federal Trade Commission on Tuesday accused Evolv Technologies of making false and unsupported claims that its AI-powered security screening products detect weapons while ignoring harmless personal items.
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November 26, 2024
Bojangles' Restaurants Sued Over Weekslong Cyberattack
A former employee of Southern-style fast-food chain Bojangles' Restaurants Inc. said the company negligently failed to protect his and his proposed class members' personal information, allowing hackers to access it earlier this year in a cyberattack that lasted for weeks.
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November 25, 2024
Mich. Atty's Voting Machine Criminal Trial Delayed Again
A Michigan state judge on Monday yet again delayed the criminal trial of an attorney accused of accessing 2020 voting machines after reiterating that he would not disqualify special prosecutors from arguing the case, giving more time for others similarly charged to chime in about newly discovered evidence.
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November 25, 2024
Fla. IT Worker Gets 4 Years In Chinese Spying Case
An information technology worker who pled guilty to working as a "cooperative contact" for the Chinese government was sentenced in Florida federal court Monday to four years behind bars, the U.S. Department of Justice said.
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November 25, 2024
Geico, Travelers To Pay NY $11.3M To Settle Data Security Row
New York's financial services regulator and attorney general revealed Monday that they've hit Geico and Travelers with $11.3 million in penalties for the auto insurers' alleged failure to adequately secure driver's license numbers, birth dates and other personal information that was compromised as part of a hacking campaign targeting online rate quote tools.
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November 25, 2024
'Shameful': Dems Rip Credit Bureaus Over Scrapped Hearing
Democratic senators on Monday lit into the Big Three credit bureaus for allegedly backing out of preelection commitments to testify last week before the Senate Banking Committee, calling the move "shortsighted and shameful."
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November 25, 2024
Pitt Ordered To Disclose Docs Jolie Says Will Prove Abuse
A California judge overseeing a dispute between Brad Pitt and Angelina Jolie over a multimillion-dollar French winery ruled Monday that Pitt must disclose documents and communications that Jolie says will prove he sought to cover up his domestic violence against her and their children.
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November 25, 2024
Construction Co. Seeks Coverage For $1.9M Email Spoof
A construction company told an Alaska federal court that a Travelers unit acted in bad faith by refusing to provide directors and officers coverage for an email spoofing scheme that caused the company to wire roughly $1.9 million of a partner construction company's funds to an "imposter."
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November 25, 2024
Spectrum, Rip And Replace Are Top FCC Priorities, Carr Says
Congress needs to focus next year on restoring the Federal Communications Commission's authority to auction spectrum bands and figure out how to pay for adequate telecom cybersecurity, says Brendan Carr, the agency's upcoming Republican chair.
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November 25, 2024
Calif. Board Seeks Comment On AI Rules Amid Pushback
The California Privacy Protection Agency on Friday opened the public comment period for its latest rulemaking package proposing expansive draft rules regulating technologies fueled by artificial intelligence — including in the employment, education, healthcare, consumer protection, banking and insurance contexts — which business groups have already criticized as being overly broad and burdensome.
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November 25, 2024
Medical Info. Co. Beats Junk Fax Suit Over Free E-Book Offer
A medical information company has once again defeated a long-running Telephone Consumer Protection suit over unsolicited faxes it sent in 2013, with a West Virginia federal judge ruling the plaintiffs produced no evidence that the company got paid when recipients responded to their faxes.
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November 25, 2024
Texas Judge Tosses Remainder Of Border Phone Search Suit
A federal judge in Texas has tossed a lawsuit from an attorney who claimed U.S. Customs and Border Patrol officers illegally seized and searched his cellphone at the border.
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November 25, 2024
Condo Boards Likely Safe From Corporate Transparency Law
New corporate reporting requirements under an anti-money laundering law likely do not apply to condominium associations, a Massachusetts federal judge ruled.
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November 25, 2024
CNN Calls NC Lt. Gov.'s Defamation Suit 'Political Theater'
The defamation suit against CNN brought by Mark Robinson, North Carolina's lieutenant governor and an unsuccessful gubernatorial candidate, must be thrown out for being simply "political theater," the news outlet said.
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November 25, 2024
Justices Turn Away Suit Over Data Extraction Award
The U.S. Supreme Court declined on Monday to take up a petition asking it to resolve whether a court or an arbitrator should decide the preclusive effect of a prior judgment, in a case stemming from a soured data extraction services contract involving a mortgage industry data analytics firm.
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November 22, 2024
Ill. Judge Bucks Colleague In Limiting BIPA Change's Reach
An Illinois federal judge held Friday that a legislative amendment limiting damages under the state's Biometric Information Privacy Act doesn't apply to lawsuits filed before the change took effect, refusing to side with a recent ruling from another judge in the same court that reached the opposite conclusion.
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November 22, 2024
Target Can't Shake Shoppers' Biometric Privacy Suit
An Illinois federal judge has refused to toss a putative class action accusing Target Corp. of deploying surveillance systems that unlawfully gathered shoppers' biometric data, finding that news reports and other sources cited by the plaintiffs were enough to create a "plausible inference" that the retailer engaged in the alleged conduct.
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November 22, 2024
Insurer Says Property Co. On Hook For $250K Cyber Theft
An insurer for a Washington condominium association told a federal court that a property management services company must reimburse the carrier for nearly $250,000 its insured lost after cybercriminals allegedly hacked into the management company's computer system and made payment requests from the condo association's bank account.
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November 22, 2024
FTC Can't Block Amazon's Misconduct Defense In Prime Suit
The Federal Trade Commission can't bar some of Amazon's defenses in an enforcement suit alleging consumers were duped into signing up for Prime delivery service, a Washington federal judge has ruled, allowing the e-commerce giant to argue the regulatory agency engaged in misconduct related to the litigation.
Expert Analysis
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What BIPA Reform Law Means For Biometrics Litigation
A recently signed Illinois law amending the Biometric Information Privacy Act limits defendants' liability exposure on a per-scan basis and clarifies that electronic signatures constitute a valid written release, establishing additional issues that courts will need to address in future BIPA litigation, say attorneys at Faegre Drinker.
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6 Considerations To Determine If A Cyber Incident Is Material
The U.S. Securities and Exchange Commission's recent guidance on material cybersecurity incidents covers a range of ransomware scenarios, from a company paying a sum and regaining operations to recovering payment via cyberinsurance, but makes it clear that no single factor determines whether a cybersecurity incident is material, say attorneys at Troutman Pepper.
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Opinion
Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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Series
After Chevron: What To Expect In Consumer Protection At FTC
Although the Federal Trade Commission's bread-and-butter consumer protection law enforcement actions are unlikely to be affected, the Loper Bright decision may curb the FTC's bolder interpretations of the statutes it enforces, says Mary Engle at BBB National Programs.
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The Ethics of Using Generative AI In Environmental Law
The rapid emergence of generative artificial intelligence tools is challenging environmental lawyers, consultants and government agencies to determine when and how these tools can be responsibly, ethically and productively integrated into their practices to streamline research, predictive analytics and regulatory compliance, say Ahlia Bethea and Pamela Esterman at Sive Paget.
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RealPage Suit Shows Growing Algorithm, AI Pricing Scrutiny
The U.S. Department of Justice's suit against RealPage for helping fix rental rates, filed last week, demonstrates how the use of algorithmic and artificial intelligence tools to assist with pricing decisions is drawing increasing scrutiny and action across government agencies, and specifically at the Federal Trade Commission and the DOJ, say Andre Geverola and Leah Harrell at Arnold & Porter.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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CrowdStrike Incident Highlights Third-Party Risk For Banks
The global business disruptions caused by CrowdStrike's faulty software update last month serves as a reminder that banks should assess operational and compliance risks associated with third-party service providers and create resiliency plans extending down to fourth- and fifth-level providers, says Craig Landrum at Jones Walker.
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Foreign Threat Actors Pose Novel Risks To US Tech Cos.
A recent bulletin jointly issued by several U.S. intelligence agencies warns technology startups and the venture capital community about national security risks posed by foreign threat actors, so companies interested in raising foreign capital should watch for several red flags, say Robert Friedman and Jacob Marco at Holland & Knight.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Class Actions At The Circuit Courts: August Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers certification cases touching on classwide evidence of injury from debt collection practices, defining coupon settlements under the Class Action Fairness Act, proper approaches for evaluating attorney fee awards in class action settlements, and more.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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4 Steps To Address New Sanctions Time Bar Extension
Recent guidance from the Office of Foreign Assets Control clarifies details of the newly extended statute of limitations for civil and criminal enforcement of U.S. sanctions law, so compliance teams should implement key updates, including to lookback periods and recordkeeping policies, say attorneys at Freshfields.
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Incident Response Lessons From The CrowdStrike Failure
CrowdStrike's incident highlights a growing problem within modern digital infrastructures — single points of failure that cause widespread disruption when things go wrong — so organizations should carefully review their digital infrastructure to identify unique areas of exposure or vulnerability, say Erik Dullea at Husch Blackwell and Kip Boyle at Cyber Risk Opportunities.
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Series
Playing Golf Makes Me A Better Lawyer
Golf can positively affect your personal and professional life well beyond the final putt, and it’s helped enrich my legal practice by improving my ability to build lasting relationships, study and apply the rules, face adversity with grace, and maintain my mental and physical well-being, says Adam Kelly at Venable.