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Cybersecurity & Privacy
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August 20, 2024
SEC Fines Equiniti Trust After Cyberattacks Stole $6.6M
New York-based Equiniti Trust Co. has agreed to pay a $850,000 fine over claims it did not safeguard clients' funds from two cyber intrusion incidents that resulted in over $6 million in total losses, the U.S. Securities and Exchange Commission announced Wednesday.
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August 20, 2024
9th Circ. Revives Google Chrome Users' Data Privacy Suit
The Ninth Circuit on Tuesday reversed the dismissal of a proposed class action accusing Google of surreptitiously collecting Chrome users' data, finding that the lower court had relied on the incorrect standard in determining whether a "reasonable" consumer would think they had consented to the disputed practice.
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August 20, 2024
Yale Health Liable For 840,000-Patient Data Breach, Suit Says
Yale New Haven Health, one of Connecticut's largest medical groups, is liable to 840,000 patients whose private records were hacked by the notorious online crime group Clop, a proposed class action lawsuit filed in Connecticut state court has alleged.
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August 20, 2024
Terrorized Air Passenger Case Tossed For Failure To Amend
Fifteen passengers can no longer pursue claims against American Airlines and regional carriers for negligently allowing a worker to tap into their private information so he could fuel a monthslong harassment campaign, a Connecticut federal judge ruled, saying the plaintiffs failed to meet a filing deadline.
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August 20, 2024
Anthropic Hit With Another Copyright Suit Over LLM Training
Anthropic PBC was hit with a proposed class action Monday in California federal court from a group of journalists and authors alleging the artificial intelligence giant is exploiting their copyrighted materials to train its large language model, Claude, without permission or a license, and has become enormously successful at their expense.
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August 20, 2024
Split 6th Circ. Revives FCRA Claims Against Experian
A partially divided Sixth Circuit has reversed a lower court's decision to toss a consumer's Fair Credit Reporting Act claims against Experian concerning alleged delinquent spousal support payments, ruling in part on Monday that Experian failed to properly investigate court orders acknowledging the man's compliance with the payments.
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August 20, 2024
Verizon Customer Says Stalker Got Her Info, Arrived With Knife
A Verizon Communications Inc. customer alleges in a North Carolina federal court complaint that the telecom violated federal privacy law when it gave her private information to a stalker who was threatening to kill her, allowing him to arrive at her house with a knife.
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August 20, 2024
Epic Will Pay Google $400K For Play Store Contract Breach
Epic Games has agreed to pay Google around $400,000 for implementing its own payment method in "Fortnite" and getting booted from the Play Store, as the court continues to mull what changes Google will have to make after a jury found that its policies violate antitrust law.
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August 20, 2024
A Deep Dive Into Law360 Pulse's 2024 Women In Law Report
The legal industry continues to see incremental gains for female lawyers in private practice in the U.S., according to a Law360 Pulse analysis, with women now representing 40.6% of all attorneys and 51% of all associates.
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August 20, 2024
These Firms Have The Most Women In Equity Partnerships
The legal industry still has a long way to go before it can achieve gender parity at its upper levels. But these law firms are performing better than others in breaking the proverbial glass ceiling that prevents women from attaining leadership roles.
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August 19, 2024
Hunter Biden Loses Bid To Duck Tax Case In Calif.
Hunter Biden cannot escape his criminal tax case set to go to trial next month, a Los Angeles federal judge ruled Monday, saying Biden's latest motion comes too late.
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August 19, 2024
Parents Not Bound By Schools' Arbitration Pact, FTC Argues
The Federal Trade Commission has stepped into a proposed class action accusing education technology company IXL Learning of unlawfully collecting and selling children's personal information, telling a California federal court that the company's agreement with schools to arbitrate disputes doesn't extend to the parents pressing the data privacy suit.
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August 19, 2024
Frost & Sullivan Shouldn't Beat Data Breach Suit, Judge Says
A magistrate judge on Monday recommended a Texas federal court trim but not toss a putative class action accusing consulting firm Frost & Sullivan Inc. of failing to protect its employees and clients from a data breach last year, rejecting the firm's contention that a former employee lacked standing to sue.
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August 19, 2024
MOVEit MDL Judge's Call For Order Met With Atty Squabbles
A federal judge's effort to streamline multidistrict litigation over a 2022 data breach involving Progress Software's MOVEit file transfer tool instead led to a lengthy and contentious joint filing in which the parties accused one another of gamesmanship.
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August 19, 2024
Feds Trim Sentencing Request For Atty In Email Fraud Case
Massachusetts federal prosecutors have shaved 11 months off of a nine-year sentencing request for an Illinois attorney who was convicted of collecting proceeds from an email fraud scheme, after the First Circuit vacated three of the lawyer's six counts on venue grounds.
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August 19, 2024
Net Neutrality Akin To Federal Law Rewrite, 6th Circ. Told
A pair of think tanks told the Sixth Circuit it should reject the Federal Communications Commission's net neutrality rules in part because the agency's decision to hold back its legal authority in some areas, like rate regulation, shows why the regime lacks statutory authority in the first place.
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August 19, 2024
Doctor Accused Of Taking Connecticut Practice's Patient Data
An obstetrician-gynecologist took trade secrets including confidential patient information when she left a Connecticut practice, and solicited its employees and "hundreds" of patients to come to her new competing business, according to a lawsuit in state court.
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August 16, 2024
The Biggest Texas Rulings Of 2024: A Midyear Report
Texas has seen a bevy of major decisions, including a $1.4 billion settlement with Facebook over alleged biometric data collection, a ruling banning gender-affirming care for minors, and the conclusion of a long-running securities case against Attorney General Ken Paxton. Here's some of the biggest decisions so far this year.
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August 16, 2024
49ers Can't Beat Data Breach Suit, But Damages In Question
A California federal judge has rejected the San Francisco 49ers bid to toss a proposed class action claiming that the NFL team didn't protect 20,000 current and former employees' personal information from hackers, but he said a filing issue could put California Consumer Privacy Act statutory damages out of reach.
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August 16, 2024
TikTok Nonusers Fight Uphill For 100M-Member Privacy Class
A California federal judge on Friday tentatively declined to certify a class of over 100 million nonusers of TikTok over allegations it illegally scraped their personal data from third-party websites, noting the "extraordinary" class size and questioning whether the plaintiffs have shown their injuries are typical of the proposed class.
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August 16, 2024
Customer Says AAA Must Improve Oversight Of Arbitrators
The American Arbitration Association allows its arbitrators' decisions to go unchecked because the AAA operates without any formal audit mechanism, a disgruntled T-Mobile USA Inc. customer told a Florida federal judge as he fights an arbitral award favoring the company.
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August 16, 2024
Feds To Appeal Platinum Win Over Zero Loss, Count Toss
Federal prosecutors have notified the Second Circuit that they'll appeal a judge's findings that the loss amount in the case of Platinum Partners co-founder Mark Nordlicht was zero and the wire fraud conspiracy counts against Nordlicht and another would be dismissed, despite Nordlicht's conviction.
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August 16, 2024
Calif. State Court Tosses Antitrust Case Against MultiPlan
A California state court has tossed a suit accusing MultiPlan Inc. of violating antitrust law through pricing tools used by health insurance providers, similar to claims being made in multidistrict litigation that were recently centralized in Illinois federal court.
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August 16, 2024
Chinese Router Maker Must Be Looked Into, Reps. Say
A House committee that weighs potential dangers posed by the Chinese Communist Party is raising the alarm about the routers sold by a Chinese-owned company, saying the panel believes the devices could pose a risk to national security.
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August 16, 2024
Cisco Gets Another Shot At Sinking Network Security Patent
The Federal Circuit on Friday told the Patent Trial and Appeal Board to take another look at a ruling upholding language in a network security technology patent at the heart of Cisco Systems Inc.'s fight with a litigation outfit.
Expert Analysis
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A Look At The Regulatory Scrutiny Facing Liquid Restaking
Recent U.S. Securities and Exchange Commission enforcement actions highlight the regulatory challenges facing emerging financial instruments like liquid restaking tokens and services, say Daniel Davis and Alexander Kim at Katten.
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Considerations When Using Publicly Available Data To Train AI
To maximize the benefits and mitigate the risks of using publicly available data to train artificial intelligence models, companies should maintain a balance between openness and protection, and consider certain best practices, says Michael Cole at Mercedes-Benz Research & Development North America.
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Illinois BIPA Reform Offers Welcome Relief To Businesses
Illinois' recent amendment to its Biometric Information Privacy Act limits the number of violations and damages a plaintiff can claim — a crucial step in shielding businesses from unintended legal consequences, including litigation risk and compliance costs, say attorneys at Taft.
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Jarkesy Ruling May Redefine Jury Role In Patent Fraud
Regardless of whether the U.S. Supreme Court’s Jarkesy ruling implicates the direction of inequitable conduct, which requires showing that the patentee made material statements or omissions to the U.S. Patent and Trademark Office, the decision has created opportunities for defendants to argue more substantively for jury trials than ever before, say attorneys at Cadwalader.
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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How To Deploy AI In A Dangerous Threat Landscape
Businesses are feeling immense pressure to deploy generative artificial intelligence tools to accelerate profits and demonstrate their technological superiority to investors and consumers, and there are a few steps they can take when using AI tools to mitigate liability risks, say B. Stephanie Siegmann and Julianna Malogolowkin at Hinckley Allen.
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What Cos. Should Note In DOJ's New Whistleblower Pilot
After the U.S. Department of Justice unveiled a new whistleblower pilot program last week — continuing its efforts to incentivize individual reporting of misconduct — companies should review the eligibility criteria, update their compliance programs and consider the risks and benefits of making their own self-disclosures, say attorneys at Skadden.
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Addressing The Growing Hazards Of Mass Arbitration
Though retail companies typically include arbitration provisions in their terms of service, the recent trend of costly mass arbitrations filed by plaintiffs may cause businesses to rethink this conventional wisdom, say attorneys at BCLP.
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Series
Teaching Scuba Diving Makes Me A Better Lawyer
As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.
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SolarWinds Ruling Offers Cyber Incident Response Takeaways
The New York federal court's dismissal of all charges related to the 2019 Sunburst cyberattack is a devastating blow to the U.S. Securities and Exchange Commission's cybersecurity case against SolarWinds, but the well-reasoned opinion provides valuable lessons that may improve companies' defensive posture in the wake of a major cybersecurity incident, say attorneys at Troutman Pepper.
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The Road Ahead For Regulation Of Digital Twins In Healthcare
Digital replicas of cells, organs and people — known as digital twins — can facilitate clinical trials for new drugs by reducing the number of patients required, but data limitations can create logistical hurdles and regulatory efforts addressing digital twins are still in early stages, say consultants at Keystone Strategy.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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Decoding CFPB Priorities Amid Ramp-Up In Nonbank Actions
Based on recent Consumer Financial Protection Bureau enforcement actions and press releases about its supervisory activities, the agency appears poised to continue increasing its scrutiny over nonbank entities — particularly with respect to emerging financial products and services — into next year, say attorneys at Wiley.