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Cybersecurity & Privacy
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August 23, 2024
Allstate Can't Get Injunction To Stop 'Smear Campaign'
A Colorado federal judge said she could not issue an injunction to force a former insurance agent whom Allstate alleges is conducting a "smear campaign" against it to immediately remove web content accusing the insurer of selling its customers' personal information to child rapists and sex traffickers.
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August 23, 2024
Google Pushes To Depose A Texas Official In Biometric Suit
Google is crying foul in a state court of appeals over Texas' refusal to let it take a deposition of either a representative or an employee of the Texas Office of the Attorney General, saying in a petition that it was forced to defend itself without full discovery.
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August 23, 2024
FTC Notches Win In Amazon Prime Document Battle
A Washington federal judge said Thursday that Amazon can't force the Federal Trade Commission to hand over internal documents in a case alleging customers were duped into signing up for Prime services, saying the materials were not relevant to the company's defenses.
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August 23, 2024
Wire Verification Not Vital In Fla. Fraud Suit, Wells Fargo Says
Wells Fargo urged a Florida federal court Friday to toss a lawsuit alleging the bank allowed a hacker to steal a real estate transaction's proceeds, saying there's no obligation to match a wire beneficiary to their account, and it didn't know the transfer was fraudulent because the process is automated.
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August 23, 2024
Federal Gov't Hits Georgia Tech With Cybersecurity FCA Suit
The federal government has hit the Georgia Institute of Technology with a False Claims Act suit accusing the university of knowingly failing to comply with required cybersecurity standards while working on federal defense contracts.
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August 23, 2024
Everest Re Unit Escapes Data Breach Class Action
A New Jersey federal judge has tossed a proposed class action claiming that an Everest Re unit failed to protect customers' personal information during a data breach, ruling that the suit fails to show that the company had a duty to protect their information.
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August 23, 2024
Court Again Dumps Pa. County's Dominion Contract Suit
A Pennsylvania federal court threw out a county's lawsuit against Dominion Voting Systems for a second time, ruling that an amended complaint failed to fix the issue of standing that sank the suit the first time.
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August 23, 2024
LegalShield Used AI To Record Clients, Suit Says
Online legal service company LegalShield has been letting a call center software company use artificial intelligence to intercept, analyze and record its customer calls and chats, according to a lawsuit recently pulled into California federal court.
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August 23, 2024
Client Says Negligence Led To NJ Firm's Ransomware Attack
A client of The Wacks Law Group LLC hit the New Jersey firm with a proposed class action claiming that its negligence in properly securing its data storage led to the theft of hundreds of clients' personal information in a March cyberattack.
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August 22, 2024
9th Circ. Revives Suit Over App-Maker's Anti-Bullying Pledge
The Ninth Circuit on Thursday revived a lawsuit against anonymous messaging app-maker Yolo Technologies over claims it didn't enforce its commitment to reveal and ban users who harass and bully others, finding Yolo repeatedly promised to do so, but never did, "and may have never intended to."
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August 22, 2024
Popular Mich. Sushi Bar Sues Hacker Who Deleted Instagram
A popular Michigan sushi restaurant is hoping a federal lawsuit will help it track down and hold accountable the person who hacked into and deleted its Instagram account, the loss of which the company said cost it thousands of dollars and harmed its reputation.
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August 22, 2024
State Bank Coalition Establishes AI Advisory Group
The Conference of State Bank Supervisors has created a new advisory group to guide it on the development and use of artificial intelligence in the financial services sector, according to a Thursday statement.
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August 22, 2024
Feds Ask For $395M Forfeiture In Bitcoin Fog Case
A D.C. federal judge said he was inclined to side with prosecutors seeking a $395 million forfeiture order for convicted Bitcoin Fog operator Roman Sterlingov, at least as a preliminary step ahead of the 35-year-old's sentencing for money laundering.
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August 22, 2024
Builder Wins $524M Contract For Cybersecurity Agency HQ
The U.S. General Services Administration announced that it has awarded a construction company with a $524 million contract to build the new Washington, D.C., headquarters for a U.S. Department of Homeland Security agency.
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August 22, 2024
Gunmaker, Web Developer Eye Mediation In Data Breach Suit
A federal magistrate judge in Connecticut on Thursday agreed to slide expert witness deadlines into January 2025 and class certification deadlines into March, April and May so that a proposed class of customers can pursue mediation with gunmaker Sturm, Ruger & Co. Inc. and a web developer in a data breach lawsuit.
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August 22, 2024
Crypto Lobbyist Hit With FTX Campaign Finance Charges
Manhattan federal prosecutors announced Thursday that Michelle Bond, a crypto industry lobbyist and the girlfriend of convicted former FTX executive Ryan Salame, has been charged with getting the now-defunct digital asset exchange to illegally finance her unsuccessful 2022 congressional campaign.
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August 21, 2024
FTX's Salame Says Feds Broke Deal Not To Probe Girlfriend
Former FTX executive Ryan Salame urged a New York federal judge Wednesday to either vacate his May conviction or stop federal prosecutors from investigating his domestic partner Michelle Bond for related political campaign-finance offenses, saying prosecutors induced his guilty plea by promising not to probe Bond.
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August 21, 2024
Hunter Biden Can't Link Trauma, Drug Abuse To Tax Charges
Hunter Biden can't tell jurors in his criminal tax trial that traumatic events like his brother's death caused his addiction, which led to a diminished mental capacity and his failure to pay taxes, a California federal judge said Wednesday, noting the information was irrelevant and not backed by expert opinion.
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August 21, 2024
9th Circ. Upholds Toss Of Suit Over Car Insurer's Data Breach
The Ninth Circuit on Wednesday refused to revive a proposed class action accusing auto insurance provider Noblr Reciprocal Exchange of failing to safeguard driver's license numbers exposed in a 2021 data breach, finding that the plaintiffs had failed to credibly allege that their data had actually been stolen.
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August 21, 2024
Telecom Will Pay $1M For Carrying Biden Deepfake Robocalls
Lingo Telecom will pay the FCC $1 million for not properly validating the caller ID information of a Democratic consultant who used a deepfake of President Joe Biden's voice to make robocalls urging voters not to participate in the New Hampshire primary, the commission announced Wednesday.
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August 21, 2024
Pornhub Says Data Privacy Suit Must Be Arbitrated
Adult entertainment website Pornhub and its Cyprus-based operator are looking to force a proposed data privacy class action into arbitration, telling a California court on Tuesday that a "strict" state law deadline that they missed to pay certain filing fees is preempted by federal arbitration law.
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August 21, 2024
NC Biz Court Bulletin: Wrinkle In Textile Family's $17M Fight
The fate of a $17 million trust battled over by its trustees and Atrium Health, as well as attorney fees in a $1.1 million data breach settlement were cemented by the North Carolina Business Court in the first half of August. In case you missed those and others, here are the highlights.
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August 21, 2024
TransUnion Bid For CFPB Docs In Settlement Case Tossed
A magistrate judge has ruled that TransUnion will not be able to access documents relating to a Consumer Financial Protection Bureau enforcement action against the credit bureau, reasoning that TransUnion was not able to prove that the documents should not be protected by privilege.
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August 21, 2024
Staffing Co. Can't Duck Class Claims In Biometric Privacy Row
An Illinois federal judge ruled Monday that a staffing company must face most claims brought by employees alleging it violated Illinois' biometric privacy law by collecting their fingerprints for timekeeping without first securing their written, informed consent, and said it would be premature to grant the company's bid to strike the class allegations.
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August 21, 2024
How AI Could Shake Up Federal Evidence Rules
Judges, lawyers and academics say it's only a matter of time before the breakneck development of artificial intelligence collides with a cautious, slow-moving judicial system and gives rise to a thorny array of evidentiary issues. They're just not sure what to do about it.
Expert Analysis
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When Banks Unknowingly Become HIPAA Biz Associates
There appears to be significant confusion regarding the application of the Health Insurance Portability and Accountability Act to financial institutions when serving healthcare-related clients, so these institutions should consider undertaking several steps as a starting point in the effort to achieve compliance, say attorneys at Vorys.
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The Regulatory Headwinds Facing Lab-Developed Tests
Though the U.S. Food and Drug Administration's final rule regarding regulation of laboratory-developed tests outlines a four-year plan for ending enforcement discretion, and though this rule is currently being challenged in courts, manufacturers should heed compliance opportunities immediately as enforcement actions are already on the horizon, say attorneys at Kirkland & Ellis.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opting In To CIPA Risk Mitigation After New Precedent
A recent California federal court decision, adopting a new, broad interpretation of the California Invasion of Privacy Act, will likely increase the volume of CIPA claims and should prompt businesses to undertake certain preventative measures, including adopting an opt-in approach to using third-party website advertising technologies, say attorneys at Thompson Hine.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Why DOJ's Whistleblower Program May Have Limited Impact
The U.S. Department of Justice’s new whistleblower pilot program aims to incentivize individuals to report corporate misconduct, but the program's effectiveness may be undercut by its differences from other federal agencies’ whistleblower programs and its interplay with other DOJ policies, say attorneys at Milbank.
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What 7th Circ. Samsung Decision Means For Mass Arbitration
The Seventh Circuit's recent decision in Wallrich v. Samsung highlights the dilemma faced by mass arbitration filers in the face of nonpayment of arbitration fees by the defending party — but also suggests that there are risks for defendants in pursuing such a strategy, says Daniel Campbell at McDermott.
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Takeaways From Virginia's $2B Trade Secrets Verdict Reversal
The Virginia Court of Appeals' recent reversal of the $2 billion damages award in Pegasystems v. Appian underscores the claimant's burden to show damages causation and highlights how an evidentiary ruling could lead to reversible error, say John Lanham and Kamran Jamil at Morrison Foerster.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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FTC Drives Crackdown On Connected Cars' Data Privacy Risk
After the Federal Trade Commission's warning to automakers about data privacy, which continues to emerge as a national concern, automakers must carefully examine their data collection, use and retention practices, say Catherine Castaldo and Michael Rubayo at Reed Smith.
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Considerations As State AGs Step Up Privacy Enforcement
As new state privacy laws take effect, businesses are facing an increasingly complex patchwork of compliance obligations and risk of scrutiny by attorneys general, but companies can gain a competitive edge by building consumer trust and staying ahead of regulatory trends, say Ann-Marie Luciano and Meghan Stoppel at Cozen O’Connor.
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Lessons From Recent SEC Cyber Enforcement Actions
The recent guidance by the SEC's Division of Corporation Finance is helpful to any company facing a cybersecurity threat, but just as instructive are the warnings raised by the SEC's recent enforcement actions against SolarWinds, R.R. Donnelley and Intercontinental Exchange, say attorneys at O'Melveny.
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How Cos. With Chinese Suppliers Should Prep For Biotech Bill
A proposed bill to prohibit government-affiliated life sciences companies from contracting with Chinese biotech companies of concern may necessitate switching to other sources for research and supplies, meaning they should begin evaluating supply chains now due to the long lead times of drug development, say John O'Loughlin and Christina Carone at Weil Gotshal.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.