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Cybersecurity & Privacy
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June 28, 2024
Insurer Says Kennel Expansion Complaints Not Covered
A Hanover unit told a California federal court that it has no obligation to defend a dog kennel in an underlying lawsuit alleging that the kennel's expansion, which increased capacity from about 20 dogs to 200 dogs, interfered with the community's rights of possession.
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June 28, 2024
Judge Finalizes $4M Deal In Eye Doc Ransomware Dispute
A North Carolina federal judge has signed off on a $4 million deal to resolve two class actions over an electronic patient recordkeeping and billing company allegedly failing to give truthful, timely notice to ophthalmology practices and their patients about ransomware attacks that damaged its software for months.
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June 28, 2024
EU Wraps Antitrust Probe Of Microsoft's OpenAI Stake
The European antitrust authorities have ended their probe into tech giant Microsoft's control of authority in artificial intelligence-powered chatbot ChatGPT's owner OpenAI, but are switching the angle of the investigation in the partnership that could lead to a formal competition probe.
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June 28, 2024
High Court Enters July With 3 Rulings To Go
In a rare move, the U.S. Supreme Court will issue opinions into the beginning of July as the court tries to clear its merits docket of three remaining cases dealing with presidential immunity, whether governments can control social media platforms' content moderation policies and the appropriate deadline to challenge agency action.
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June 28, 2024
Supreme Court Strikes Down Chevron Deference
The U.S. Supreme Court on Friday overturned a decades-old precedent that instructed judges about when they could defer to federal agencies' interpretations of law in rulemaking, depriving courts of a commonly used analytic tool and leaving lots of questions about what comes next.
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June 27, 2024
Telecom Co. Says It Isn't Liable For Biden AI 'Deepfake'
Telecommunications company Lingo is asking a New Hampshire federal judge to release it from the League of Women Voters' suit over voter suppression calls that used a deepfake of President Joe Biden's voice, saying this week that it was a victim of the scheme, not a participant.
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June 27, 2024
Gov't Can Take Corrective Action 'At Any Time,' Fed. Circ. Told
The federal government is urging the Federal Circuit to affirm a decision allowing a U.S. Department of Commerce corrective action on a $1.5 billion information technology deal during ongoing bid protests, saying government agencies can take such actions whenever they want.
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June 27, 2024
Roblox Likely To Face Trimmed Suit Over Gambling By Kids
A California federal judge indicated Thursday that he'll allow proposed class claims alleging Roblox Corp. negligently fails to protect children from gambling through the platform, but said a re-alleged fraud claim he previously tossed is still "pretty weak."
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June 27, 2024
Colo. GOP Atty Sent Client's $375K To Hacker, Suit Says
A Colorado attorney and conservative radio personality is facing breach of contract claims in state court after he allegedly wired a client's $375,000 divorce settlement to a purported investment account in Hong Kong despite what the plaintiff, a garden center worker making $14.77 per hour, called clear signs of fraud.
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June 27, 2024
House Panel Cans Vote On Data Privacy, Kids' Safety Bills
The House Energy and Commerce Committee unexpectedly scrapped plans to discuss nearly a dozen bills Thursday morning, including a closely watched proposal to create a federal data privacy framework that has faced backlash from House leadership, consumer advocates and other stakeholders.
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June 27, 2024
Free-Speech Orgs Tell DC Circ. TikTok Ban Is Prior Restraint
A collection of free speech and press groups has urged the D.C. Circuit to strike down Congress' TikTok sale-or-ban law, calling the statute a "direct and serious threat" to First Amendment freedoms in an amicus brief.
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June 27, 2024
Fla. Gov. Vetoes Bill Giving Immunity On Data Breach Claims
Florida Gov. Ron DeSantis on Wednesday vetoed a bill that would have provided immunity from data breach lawsuits for businesses that complied with certain cybersecurity standards, citing concerns that the legislation could result in Floridians' data being less secure.
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June 26, 2024
BofA COVID Benefit Card Suit Trimmed After Prior Order Axed
A California federal judge has trimmed a suit brought against Bank of America NA by a proposed class of unemployment and disability benefits card recipients while also agreeing with them that a federal magistrate judge erred in holding that the bank's top brass lacked "uniquely relevant information" concerning discovery in the suit.
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June 26, 2024
Justices Leave Blurry Line In Place On Misinformation Fight
The U.S. Supreme Court's decision Wednesday to reverse a Fifth Circuit order prohibiting the Biden administration from joining with social media platforms to fight misinformation leaves an important First Amendment question unanswered and left Missouri's attorney general promising a continuing fight against what he called a "censorship regime."
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June 26, 2024
FCC Urged To Prevent Abuse Through High-Tech Cars
Privacy and abuse survivor advocates have outlined ways the Federal Communications Commission could safeguard connected car technology to mitigate domestic and sexual abuse, urging the agency to expand and adapt existing rules to limit abusers from using joint cellphone plans to stalk or harass people to apply to data in vehicles with advanced wireless connectivity.
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June 26, 2024
Justices Chide 5th Circ. In Biden Social Media Case
The Fifth Circuit relied on "clearly erroneous" facts and an overgeneralized view of standing when it ordered the Biden administration to stop working with social media platforms to combat COVID-19 and election misinformation, the U.S. Supreme Court ruled Wednesday as it threw out a challenge to the government's actions.
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June 26, 2024
State Data Privacy Law Patchwork: Midyear Report
States jumped on the consumer data privacy law bandwagon at a brisk clip in the first half of 2024, although it remains unclear if this push will be enough to encourage Congress to finally enact a nationwide framework this year.
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June 26, 2024
New Hampshire Claims TikTok Exploits Kids For Profit
Social media titan TikTok is exploiting children by intentionally designing its platform to be addictive, so children will keep scrolling on the app for as long as possible, the state of New Hampshire argues in a heavily redacted lawsuit in state court.
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June 26, 2024
Julian Assange Freed After Judge Accepts US Plea Deal
Julian Assange returned to his native Australia on Wednesday hours after a federal judge in the Northern Mariana Islands accepted his plea deal with the U.S. Department of Justice and sentenced him to time served for conspiring to disclose national security information.
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June 26, 2024
Ex-Ticketmaster Exec Pleads Guilty In Hacking Case
A former director of client relations at Ticketmaster pled guilty Wednesday to taking part in a scheme to hack into a rival company's computer system in an attempt to gain a competitive advantage.
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June 26, 2024
Russian Charged With Ukrainian Cyberattack Before Invasion
A Russian citizen was charged Wednesday in Maryland federal court with conducting cyberattacks against computer systems used by the government of Ukraine just before the nation was invaded by Russia's military, then targeting Ukrainian allies such as the United States.
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June 26, 2024
House GOP Gears Up For The End Of Chevron Deference
A new memo outlines how House Republicans are gearing up for the U.S. Supreme Court to potentially overturn the decades-old precedent that courts defer to agencies' interpretations of ambiguous statutes, as an opportunity to roll back the Biden administration's policies and reclaim Congress' power.
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June 26, 2024
CSAA Seeks Exit From Conn. Atty's $1.4M Transfer Scam Case
The insurance company covering a Connecticut attorney accused of helping steal $1.4 million from a development company via a fraudulent bank transfer is seeking to drop its coverage on the grounds that the attorney's alleged actions were intentional and criminal, and therefore not insured.
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June 26, 2024
Macy's Email Demand Violates Privacy Law, Shopper Says
A requirement that Massachusetts consumers making online purchases from Macy's provide an email address to complete a transaction violates the state's consumer privacy law, a proposed class action filed Tuesday alleges.
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June 26, 2024
High Court Axes Challenge To Biden Admin's Social Media Work
The U.S. Supreme Court wiped out a Fifth Circuit order prohibiting the Biden administration and several federal agencies from working with social media platforms to combat the spread of misinformation Wednesday, finding the states and individuals challenging the collaboration don't have standing to sue.
Expert Analysis
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How 2 CFPB Advisory Opinions Affect Reporting Agencies
The Consumer Financial Protection Bureau issued two advisory opinions last month that demonstrate a continued commitment to address inaccuracies in background check reports and consumer file disclosures through broad interpretation of the Fair Credit Reporting Act, expanding on a coordinated federal agency effort, say attorneys at Cooley.
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A Close Look At The FCC's Revised SIM Card Fraud Rules
Carolyn Mahoney and John Seiver at Davis Wright break down recently proposed revisions to the Federal Communications Commission's customer proprietary network information and local number portability rules for wireless providers, discuss the revisions' implications on artificial intelligence regulation, and provide tips to prevent SIM swap and port-out fraud.
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What Retailers Should Note In Calif. Web Tracking Suits
As retailers face a deluge of class actions alleging the use of conventional web analytic tools violate wiretapping and eavesdropping provisions of the California Invasion of Privacy Act, uncovering the path toward a narrow interpretation of the law will largely depend on how these cases proceed, say Matthew Pearson and Kareem Salem at BakerHostetler.
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Copyright Lessons Following Ruling In Artist AI Suit
The recent California district court ruling in Andersen v. Stability AI — that artists needed to specify how the training of artificial intelligence tools violated their copyrights — shows that lawyers on either side of generative AI matters must carefully navigate copyright issues including temporary copying and data sourcing, says Carlos Araya at Magnolia Abogados.
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The Legal Industry Needs A Cybersecurity Paradigm Shift
As law firms face ever-increasing risks of cyberattacks and ransomware incidents, the legal industry must implement robust cybersecurity measures and privacy-centric practices to preserve attorney-client privilege, safeguard client trust and uphold the profession’s integrity, says Ryan Paterson at Unplugged.
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5 Reasons Associates Shouldn't Take A Job Just For Money
As a number of BigLaw firms increase salary scales for early-career attorneys, law students and lateral associates considering new job offers should weigh several key factors that may matter more than financial compensation, say Albert Tawil at Lateral Hub and Ruvin Levavi at Power Forward.
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SEC Registrants Likely Won't Get Cyber Disclosure Delays
The U.S. Securities and Exchange Commission's sweeping cybersecurity disclosure final rules, its SolarWinds enforcement action and recent U.S. Department of Justice guidance show the pressure is on registrants to disclose incidents timely and accurately, but the circumstances in which an extension will be granted are extremely rare, say attorneys at Pillsbury.
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Following Banking Regulators' Breadcrumbs To 2024 Priorities
Through blog posts, speeches, and formal guidance and regulations, prudential and other federal and state financial regulators laid out a road map last year pointing to compliance priorities that should be reflected in financial institutions' planning this year, say Laurel Loomis Rimon and Gina Shabana at Jenner & Block.
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Directors And Officers Face Unique AI-Related Risks
As privacy, intellectual property and discrimination lawsuits focusing on artificial intelligence increase, corporate directors and officers must stay aware of associated risks, including those related to compliance, litigation and cybersecurity, says Jonathan Meer at Wilson Elser.
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Series
Playing Competitive Tennis Makes Me A Better Lawyer
My experience playing competitive tennis has highlighted why prioritizing exercise and stress relief, maintaining perspective under pressure, and supporting colleagues in pursuit of a common goal are all key aspects of championing a successful legal career, says Madhumita Datta at Lowenstein Sandler.
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New Strain Of Web Tracking Suits Pose Risks For Retailers
Amid an ongoing surge of California state and federal lawsuits that are using novel theories to allege companies used certain recording technologies to illegally track website users, retailers should take steps to develop a potential argument that customers consented to any alleged uses of these devices, say attorneys at Benesch.
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Series
The Pop Culture Docket: Judge Djerassi On Super Bowl 52
Philadelphia Court of Common Pleas Judge Ramy Djerassi discusses how Super Bowl 52, in which the Philadelphia Eagles prevailed over the New England Patriots, provides an apt metaphor for alternative dispute resolution processes in commercial business cases.
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Unraveling The Bundled Benefits Of Retail Memberships
The recent prevalence of paid retail memberships and the associated findings of a consumer survey suggest that assessing consumer preferences and welfare may be important when considering resolution mechanisms in antitrust contexts, say Rosa M. Abrantes-Metz at Berkeley Research Group, Mame Maloney at The Brattle Group and Jeff Brazell at the University of Utah.
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NC TikTok Order Holds Lessons On Handling State AG Probes
Earlier this month, a North Carolina appeals court compelled TikTok to give the state attorney general information relating to 98,000 recorded Zoom meetings, reminding companies that successful civil litigation strategies may have the opposite effect in the state or regulatory investigation context, say attorneys at Troutman Pepper.
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Takeaways From SEC's Aggressive Cybersecurity Moves
The U.S. Securities and Exchange Commission's intensifying policy on cybersecurity and securities violations in the wake of a data breach — like its enforcement action against SolarWinds and its security officer — has emboldened shareholders to file related suits, creating a heightened threat to public companies, say attorneys at Baker McKenzie.