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April 26, 2024
Real Estate Authority: Homelessness, PFAS, Flood Zones
Law360 Real Estate Authority covers the most important real estate deals, litigation, policies and trends. Catch up on this week's key developments by state — as well as on U.S. Supreme Court arguments over local homelessness policies, real estate attorney reactions to new rules on "forever chemicals," and the U.S. Department of Housing and Urban Development's latest take on building standards in flood zones.
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April 26, 2024
CVS Customers Say Colo. Co. 'Eavesdrops' On Web Activity
Two consumers who used CVS.com to order prescription refills have filed a putative class action against a Colorado software service provider claiming it illegally eavesdrops on visitors' interactions with the website without their knowledge, even gathering information about specific drugs and dosages they purchased.
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April 26, 2024
Microsoft Narrows Virtual Assistant Patent Row Ahead Of Trial
A Delaware federal judge has tossed claims that Microsoft's virtual assistant program infringed a patent initially issued to a company that developed Apple's Siri software, but declined to scratch out allegations on another patent in the dispute, which is teed up for trial early next month.
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April 26, 2024
9th Circ. Sends Warner Bros. False Ad Suit To Arbitration
Warner Bros. can arbitrate a proposed false advertising class action over its Game of Thrones: Conquest mobile app game, the Ninth Circuit said Friday, finding the customers had "reasonably conspicuous notice" of the app's terms of service that contained an arbitration provision via a sign-in wrap agreement.
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April 26, 2024
US Says 2 Chinese Nationals Smuggled Semiconductor Tech
The U.S. has charged two Chinese nationals with conspiring to smuggle semiconductor technology to a blacklisted Chinese company, according to an announcement from the U.S. Department of Justice.
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April 26, 2024
Flight Attendants Seek Class Status In FMLA Penalty Suit
Former and current Southwest flight attendants have asked a California federal judge for class status in their suit claiming the airline punished workers who took family or medical leave by blocking them from improving their disciplinary records, arguing that their allegations are best resolved collectively.
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April 25, 2024
PI Ordered To Stay Away From Jury That Issued $10B Verdict
A California judge on Thursday kept in place an order for a private investigator to cease contacting jurors who delivered a $10 billion verdict in March against his client, telling him, "it doesn't sit well with me" that he's "going and bothering jurors" by visiting them at their homes.
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April 25, 2024
9th Circ. Upholds $1.7M Injury Verdict Against Genie
Equipment manufacturer Genie Industries Inc. can't upend a jury verdict and a $1.7 million judgment awarded to a Portland, Oregon, shipyard worker who was injured by the company's allegedly defective lift boom, the Ninth Circuit has ruled, rejecting the arguments that he failed to prove his injuries were permanent.
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April 25, 2024
Incarceration Can't Get Default Nixed In $92M Award Suit
A California federal court has refused to set aside an entry of default against a Russian businessman accused of engaging in a scheme to avoid paying a more than $92 million arbitral award, rejecting his defense that he couldn't respond because he was incarcerated in France.
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April 25, 2024
Meta Can't Get TTAB To Dismiss Software Biz's TM Challenge
An administrative tribunal has dealt a setback to the tech giant formerly known as Facebook in its legal efforts to register a trademark covering its new moniker, allowing an Italian software company called myMeta to proceed with arguments that it was first.
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April 25, 2024
Real Estate Exec Can't Escape Shareholder's Self-Dealing Suit
A California federal judge ruled that a derivative shareholder suit accusing the president of a real estate management and investment firm of misusing nearly $35 million of company revenue now passes the so-called Zuckerberg test since the plaintiff sufficiently pled that demand on the company's board members would be futile.
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April 25, 2024
Rubrik Leads Trio Of IPOs That Buoy Recovering Market
Three companies debuted trading Thursday following initial public offerings that raised nearly $1.4 billion combined under guidance from six total law firms, including two offerings that priced above range by data security firm Rubrik and aerospace company Loar, providing fresh energy for a strengthening IPO market.
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April 25, 2024
Calif. AG Charges A Top LA Prosecutor Over Cop File Access
California Attorney General Rob Bonta has unveiled criminal charges accusing a top Los Angeles County District Attorney's Office prosecutor and adviser to DA George Gascón of illegally accessing nearly a dozen confidential sheriff's deputy files in 2021.
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April 25, 2024
Zendesk Beats Shareholders' Suit Over $10B PE Takeover
Zendesk Inc. has defeated a securities class action in California federal court accusing the customer service software company of undervaluing itself to get a $10.2 billion go-private merger with private equity firms approved by Zendesk shareholders.
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April 25, 2024
Delta Illegally Shares Fliers' Info With Facebook, Suit Says
Delta Air Lines Inc. was hit with a proposed class action lodged Thursday in California state court by two customers who accused it of unlawfully sharing their personal information with Facebook, including their travel dates, airport destinations, travel class, loyalty status, language and currency used to book flights on the airline's website.
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April 25, 2024
Knicks Owner Wants Out Of Therapist's Sex Assault Suit
New York Knicks owner James Dolan asked a California federal judge to nix a massage therapist's claims alleging he helped disgraced media mogul Harvey Weinstein sexually assault her at a hotel in 2014, arguing the therapist doesn't plausibly allege Dolan knew she would be assaulted or that he encouraged it.
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April 25, 2024
3 Accused Of $36M COVID Test Fraud Scheme In Fla. Case
Three owners of laboratories spanning the U.S. were indicted by a grand jury in Florida on federal charges that they conspired to defraud the U.S. government by more than $36 million in a scheme that involved submitting false COVID-19 testing claims to healthcare benefit programs.
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April 25, 2024
Autodesk Faces Investor Suit Over Internal Controls
Software company Autodesk has been hit with a proposed class action alleging the company's stock price dropped after investors learned it lacked proper internal controls due to issues with its free cash flow and operating margin practices.
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April 25, 2024
DOJ Still Owes Victims After $139M Nassar Settlement
The federal government's $139 million settlement for victims of convicted sexual abuser Larry Nassar goes a long way toward holding the FBI responsible for its egregious mishandling of the victims' allegations, but gives no assurance that such complaints in the future will be handled properly, legal experts say.
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April 25, 2024
Dems Press DEA To Move Quickly On Rescheduling Marijuana
A coalition of Democratic U.S. senators and House members are urging the U.S. Department of Justice to complete swiftly its review of marijuana's legal status and remove the drug from Schedule I of the Controlled Substances Act.
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April 25, 2024
Feds' Pacific Sardine Management Plan Lacking, Judge Says
The government's plan to protect Pacific sardines, an important food source for many marine species, fell short in a number of ways, including by failing to prevent overfishing, a California federal judge has ruled.
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April 25, 2024
TikTok Wins Partial Toss Of Chinese Co.'s IP Suit
A California federal judge has granted TikTok's motion to dismiss many intellectual property claims against it by Chinese software company Beijing Meishe Network Technology but gave the plaintiff a chance to amend some of the claims.
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April 25, 2024
Attys, Insurance Agent Found Guilty Of Tax-Avoidance Scheme
Two St. Louis tax attorneys and a North Carolina insurance agent on Thursday were found guilty on all counts of conspiring to defraud the federal government and aiding in the filing of false tax returns for their role in a tax avoidance scheme that prosecutors claim cost the Internal Revenue Service more than $4 million.
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April 25, 2024
Workday Blasts 'Partisan' EEOC Input On AI Bias Suit
Workday Inc. urged a California federal judge to reject the U.S. Equal Employment Opportunity Commission's bid to file an "inappropriately partisan" amicus brief in support of a Black job hopeful's suit claiming the business uses biased algorithms to disqualify applicants.
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April 24, 2024
High Court's Gender Divide Palpable At Latest Abortion Args
As the U.S. Supreme Court pondered permissible limits on abortion in medical emergencies, justices Wednesday split discernibly along ideological lines yet unmistakably along gender lines, with liberal and conservative women questioning restrictions far more forcefully than their male colleagues.
Expert Analysis
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How Poor Governance, Weak Contracts Harm Cannabis Cos.
Decades into cannabis decriminalization and legalization, many companies in the industry still operate on a handshake basis or fail to keep even minimally required records, which can have devastating effects and lead to costly, business-killing litigation, says Griffen Thorne at Harris Bricken.
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EEO-1 Ruling May Affect Other Gov't Agency Disclosures
By tightly construing a rarely litigated but frequently asserted term, a California federal court’s ruling that the Freedom of Information Act does not exempt reports to the U.S. Department of Labor on workplace demographics could expand the range of government contractor information susceptible to public disclosure, says John Zabriskie at Foley & Lardner.
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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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As Promised, IRS Is Coming For Crypto Tax Evaders
The IRS is fulfilling its promise to crack down on those who have neglected to pay taxes on cryptocurrency earnings, as demonstrated by recently imposed prison sentences, enforcement initiatives and meetings with international counterparts — suggesting a few key takeaways for taxpayer compliance, say attorneys at BakerHostetler.
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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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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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1869 Case May Pave Off-Ramp For Justices In Trump DQ Fight
In deciding whether former President Donald Trump is disqualified from Colorado's Republican primary ballots, the U.S. Supreme Court could rely on due process principles articulated in a Reconstruction-era case to avert a chaotic or undemocratic outcome, says Gordon Renneisen at Cornerstone Law Group.
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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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9 Tools To Manage PAGA Claims After Calif. High Court Ruling
In Estrada v. Royalty Carpet Mills, the California Supreme Court recently dealt a blow to employers by ruling that courts cannot dismiss Private Attorneys General Act claims on manageability grounds, but defendants and courts can still use arbitration agreements, due process challenges and other methods when dealing with unmanageable claims, says Ryan Krueger at Sheppard Mullin.
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Workplace Speech Policies Limit Legal And PR Risks
As workers increasingly speak out on controversies like the 2024 elections and the Israel-Hamas war, companies should implement practical workplace expression policies and plans to protect their brands and mitigate the risk of violating federal and state anti-discrimination and free speech laws, say attorneys at McDermott.