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Cybersecurity & Privacy
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February 14, 2025
'Not For Sale': OpenAI Rebuffs Musk's $97.4B Takeover Bid
The board of directors for OpenAI voted unanimously on Friday to reject a $97.4 billion offer from Elon Musk and a consortium of investors to buy the artificial intelligence platform, with the board chair saying in a statement, "OpenAI is not for sale."
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February 14, 2025
HuffPost Sends User Data To Microsoft For Ads, Reader Says
Huffington Post flouts privacy laws by selling and sharing its readers' personal information without prior consent through trackers made by Microsoft, OpenX and Connatix that are installed on their web browsers for targeted advertising and real-time digital ad auctions, alleges a proposed class action filed Thursday in California federal court.
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February 14, 2025
DC Judge Declines To Block New OPM Email System
A D.C. federal judge on Monday declined to temporarily stop the Office of Personnel Management from using a new centralized messaging system that a putative class of federal employees claims is insecure.
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February 14, 2025
Texas Investigates DeepSeek For State Privacy Law Breach
Texas announced an investigation into Chinese AI startup DeepSeek, saying the company has run afoul of state privacy laws and has seemingly stolen Texas citizens' data.
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February 14, 2025
FCC Could Pull Equipment OKs For New Dahua US Owner
The Federal Communications Commission is threatening to pull authorizations for a Taiwanese network infrastructure company's U.S. subsidiary, saying the company appears to be selling video surveillance products that are restricted as part of the commission's "covered list" of equipment found to pose a national security risk.
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February 14, 2025
Convicted Email Scammer Must Return $1.5M To Victims
A Connecticut federal judge has ordered Okechuckwu Valentine Osuji to pay $1.5 million in restitution to 16 individuals and business entities in a Valentine's Day order, after a jury found him guilty of operating a $6 million email fraud scheme.
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February 14, 2025
Corporate Transparency Act Vital For Nat'l Security, Circs. Told
A nationwide registry of beneficial ownership information is critical to U.S. foreign policy and national security goals, which makes a law aimed at creating one, the Corporate Transparency Act, a valid exercise of congressional authority, groups told the Fourth and Fifth circuits.
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February 14, 2025
Womble Bond Adds BakerHostetler Business Partner In Irvine
Womble Bond Dickinson has hired a former BakerHostetler partner, who joined the firm's business litigation practice group as a partner in Irvine, California.
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February 14, 2025
Judge Leaves Curbs On DOGE Treasury Access After Hearing
A Manhattan federal judge left in place temporary curbs on sweeping powers handed by President Donald Trump to Elon Musk's government-slashing U.S. DOGE Service Temporary Organization, after 19 states challenged the organization's access to U.S. Treasury payment systems.
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February 13, 2025
DeepSeek's Rapid Rise Adds Fuel To AI Policy Push
Chinese startup DeepSeek has made waves globally with an artificial intelligence chatbot app that it claims to have made more efficiently than its competitors, but experts say its quick ascent is likely to accelerate efforts to broadly regulate data privacy and national security risks presented by the emerging technology.
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February 13, 2025
9th Circ. Won't Undo Meta's $725M Privacy Suit
The Ninth Circuit on Thursday affirmed Meta Platforms Inc.'s $725 million settlement resolving privacy claims over the Cambridge Analytica data harvesting scandal, finding that the California district court conducted a full review of the deal's terms before approving it.
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February 13, 2025
Apple Pushes DC Circ. To Intervene In Google Remedies Case
Apple has urged the D.C. Circuit to undo a district court order barring the company from intervening in the U.S. Justice Department's remedies case against Google, arguing it moved with all speed to step in when it saw a government proposal "designed to force Apple to develop its own general search engine."
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February 13, 2025
Artists, AI Image Cos. At Odds Over Scale Of Depositions
Artists in a proposed artificial intelligence copyright infringement class action against four companies that make or distribute software creating images with text prompts are at odds with the defendants over how many of their witnesses they should be allowed to depose, according to a filing in California federal court.
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February 13, 2025
Mass. Auto Telematics Data Law Not Preempted, Judge Says
A Boston federal judge's dismissal of an auto industry group's challenge to a Massachusetts vehicle telematics data law centered on a limited interpretation of the statute's reach and the lack of a clear conflict with federal laws, according to an order unsealed Thursday explaining the decision.
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February 13, 2025
Musk Must Pay Up For Illegal Access To Data, Class Suit Says
Elon Musk should be forced to compensate taxpayers and recipients of government benefits after gaining access to federal databases housing their data, a proposed class told a D.C. federal court, saying the billionaire violated the Computer Fraud and Abuse Act.
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February 13, 2025
Sandy Hook Families Seek To Enforce Alex Jones Judgment
Infowars founder Alex Jones should be forced to pay the judgment that Sandy Hook families won in their long-running defamation case, even though he lodged a "baseless" appeal with the Connecticut Supreme Court in an effort to create further delays, the plaintiffs said.
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February 13, 2025
Musk Says He'll Drop OpenAI Bid If It Scraps 'For Profit' Plans
Elon Musk has hit back at OpenAI's claim that his $97.375 billion takeover bid is improper, noting if the ChatGPT maker agrees to nix plans to become a for-profit business, his offer will be dropped.
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February 13, 2025
Kirkland, Davis Polk Steer SailPoint's Upsized $1.38B IPO
Private equity-backed cybersecurity firm SailPoint began trading Thursday following an upsized $1.38 billion initial public offering that priced at the top of its range, represented by Kirkland & Ellis LLP and underwriters' counsel Davis Polk & Wardwell LLP, marking its return to public markets three years after being taken private.
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February 12, 2025
House Republicans Launch Effort To Craft Data Privacy Law
The Republican leaders of an influential House committee on Wednesday established a working group to draft privacy legislation that would be able to overcome hurdles that have long stymied efforts to set a national standard for how companies collect, use and share consumers' personal information.
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February 12, 2025
Crypto CEO Made $425K Disappear, Investor Tearfully Testifies
A former business partner of a Texas man accused of running a $5 million fraud centered on a new "anti-money laundering" cryptocurrency testified tearfully before a California federal jury on Wednesday that her family invested about $425,000 in the defendant's previous cryptocurrency venture and lost every penny.
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February 12, 2025
OpenAI Says Musk Takeover Bid 'Exposes' Intent Behind Suit
OpenAI on Thursday told a California federal judge overseeing Elon Musk's lawsuit seeking to block OpenAI from becoming a for-profit enterprise that the Tesla founder has proposed acquiring OpenAI's business, saying the takeover effort reveals Musk's lawsuit to be "an improper bid to undermine a competitor."
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February 12, 2025
DOJ Removes For-Cause Protection For FTC, Other Agencies
The U.S. Department of Justice has determined that for-cause removals for members of the Federal Trade Commission, National Labor Relations Board and Consumer Product Safety Commission are unconstitutional, acting Solicitor General Sarah Harris informed Sen. Dick Durbin, D-Ill., ranking Democrat of the Senate Judiciary Committee, in a letter Wednesday.
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February 12, 2025
Colo. Judge Tosses Online Fax Co.'s Junk Ad Suit
A Colorado federal judge dismissed an online fax service provider's Telephone Consumer Protection Act suit alleging a group of companies overwhelmed its system with "junk" faxes, finding in a Wednesday order that the law's prohibition specifically applies to a "machine" that receives and prints faxes.
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February 12, 2025
Dementia Society, CEO Must Face Workplace Spying Suit
Three former Dementia Society of America employees who claim they found listening devices hidden in their workspaces can move forward with their lawsuit against the nonprofit, a Pennsylvania federal judge has ruled, holding that that they put forth plausible claims that the organization violated the federal and Pennsylvania wiretap acts.
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February 12, 2025
Western Digital Told To Pay $553M Sooner Rather Than Later
Hard drive manufacturer Western Digital now has less than seven days to put up over half a billion dollars to satisfy a patent judgment after a California federal judge said he "has concerns about potential corporate restructuring."
Expert Analysis
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Navigating Complex Regulatory Terrain Amid State AG Races
This year's 10 attorney general elections could usher in a wave of new enforcement priorities and regulatory uncertainty, but companies can stay ahead of the shifts by building strong relationships with AG offices, participating in industry coalitions and more, say Ketan Bhirud and Dustin McDaniel at Cozen O’Connor.
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Recent Securities Cases Highlight Risks In AI Disclosures
Increasing public disclosure about the use and risks of artificial intelligence, and related litigation asserting that such disclosures are false or misleading, suggest that issuers need to exercise great care with respect to how they describe the benefits of AI, say Richard Zelichov and Danny Tobey at DLA Piper.
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Opinion
This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.
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Navigating HHS' New Reproductive Healthcare Privacy Rule
The U.S. Department of Health and Human Services' new final rule regarding protections for the privacy of reproductive health information will require regulated entities to grapple with difficult questions about whether to comply with state law requirements or federal privacy prohibitions, says Christine Chasse at Spencer Fane.
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Series
Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.
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Open Questions In Unsettled Geofence Warrant Landscape
The Fourth and Fifth Circuits recently reached radically divergent conclusions about the constitutionality of geofence warrants, creating an uncertain landscape in which defendants should assert and preserve the full range of conventional Fourth Amendment challenges, says Charles Fowler at McKool Smith.
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A Look At 5 States' New Data Privacy Laws
With new data privacy laws in Utah, Florida, Texas, Oregon and Montana recently in effect or coming into force this year, state-level enforcement of data privacy creates significant challenges and risks for how businesses interact with employees and consumers, and for companies that provide and use technologies in multiple jurisdictions, say attorneys at Jenner & Block.
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Antitrust In Retail: Why FTC Is Studying 'Surveillance Pricing'
The Federal Trade Commission's decision to study targeted "surveillance pricing" should provide greater clarity into the nature of the data aggregation industry, but also raises several issues, including whether these practices are in fact illegal under any established interpretations of U.S. antitrust law, say attorneys at Holland & Knight.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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Licensing And Protections For Voice Actors In The Age Of AI
While two recently enacted California laws and other recent state and federal legislation largely focus on protecting actors and musicians from the unauthorized use of their digital likenesses by generative artificial intelligence systems, the lesser-known community of professional voice actors also stands to benefit, says attorney Scott Mortman.
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2 High Court Securities Cases Could Clarify Pleading Rules
In granting certiorari in a pair of securities fraud cases against Facebook and Nvidia, respectively, the U.S. Supreme Court has signaled its intention to align interpretations of the heightened pleading standard under the Private Securities Litigation Reform Act amid its uneven application among the circuit courts, say attorneys at V&E.
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What 2 Key Rulings Mean For Solicitation Under TCPA
Two recent rulings from federal district courts in New York and California — each of which came to a different conclusion — bring to light courts' continued focus on and analysis of when an alleged communication constitutes a solicitation under the Telephone Consumer Protection Act, say Felix Shipkevich and Jessica Livingston at Shipkevich.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.
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Navigating The Complexities Of Cyber Incident Reporting
When it comes to cybersecurity incident response plans, the uptick in the number and targets of legal and regulatory actions emphasizes the necessity for businesses to document the facts underlying the assumptions, complexities and obstacles of their decisions during the incident response, say attorneys at Troutman Pepper.
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Managing Sanctions Defense Across Multiple Jurisdictions
Companies called before multiple regulators to account for the same conduct in this era of increased global sanctions and import-control enforcement should consider national differences in law and policy, and proactively coordinate their responses in certain key areas, say attorneys at Baker McKenzie.