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California
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April 23, 2025
California Bar Says It Used AI To Craft Some Exam Questions
The State Bar of California used artificial intelligence to develop certain multiple-choice questions that were included in the February exam, a revelation that left one law school assistant dean "shocked" and a move that the state bar said was "not clearly communicated" to its own leadership.
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April 23, 2025
Sanctuary Cities Near Block Of Trump Plan To Withhold Funds
A California federal judge said Wednesday that he's inclined to block a Trump administration plan to withhold federal funding to "sanctuary jurisdictions," saying the cities and counties who sued have demonstrated a "well-founded fear" that the president's executive order and an attorney general directive will deprive them of critical funding.
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April 23, 2025
Gaming Site Says Consumer's Suit Must Be Arbitrated
The Cypriot operator of online "social gaming platform" Stake.us is urging a California federal court to order a consumer to arbitrate his lawsuit looking to shut down the website on allegations it offers illegal gambling, saying the validity of an underlying contract should be left to an arbitrator.
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April 23, 2025
Retirement Co. Hit With $38.8M Jury Verdict In ERISA Action
A New York federal jury Wednesday awarded a 27,000-member class of retirement plan participants nearly $38.8 million after finding that Pentegra Retirement Services violated federal benefits law by saddling a $2.1 billion 401(k) plan with excessive administrative fees.
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April 23, 2025
Citron Research Founder Can't Escape SEC Fraud Suit
The founder of trading advice website Citron Research and his investment advisory firm cannot escape the U.S. Securities and Exchange Commission's suit alleging they raked in $20 million by manipulating trading prices, a California federal judge ruled Tuesday, saying the complaint adequately alleges fraud.
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April 23, 2025
Fed. Circ. Won't Immediately Pause Sanctions On IP Attys
A Federal Circuit judge on Wednesday declined to provide immediate relief to attorneys from Texas patent firm Ramey LLP fighting sanctions they've deemed "career ending," letting stand penalties coming due for practicing without licenses in California, among other conduct.
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April 23, 2025
Equipment Rental Industry Facing Algorithmic Pricing Claims
The construction equipment rental industry is the latest to face claims of algorithmic collusion, with several suits filed in the last few weeks accusing United Rentals, Herc, The Home Depot and others of using the same third-party service to set prices.
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April 23, 2025
Disney Seeks $532K Atty Sanctions In Artist's 'Moana' Suit
Disney asked a California federal judge to issue $532,815 in sanctions against attorneys for an animator who alleged "Moana" lifted his Polynesian adventure story, arguing Tuesday that the plaintiff's lawyers vexatiously prolonged litigation with "sanctionable misconduct" by pursuing "baseless" trade secret misappropriation claims that were untimely and premised on a forged document.
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April 23, 2025
Fed. Circ. Passes Game Controller Patent Case Back To PTAB
Video game developer Valve on Wednesday won yet another chance to convince patent board judges to look at its challenge to claims in a rival's video game controller patent asserted in litigation in Washington federal court.
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April 23, 2025
Meta MDL Judge Doubts Insurers' Bid To Kick Fight To Del.
A California federal judge presiding over sprawling social media personal injury multidistrict litigation doubted on Wednesday insurers' arguments their multimillion-dollar coverage fight with Meta belongs in Delaware state court, questioning how moving the case would preserve judicial resources, while observing that Hartford's pre-litigation conduct may have been in bad faith.
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April 23, 2025
GoodRx Beats Investor Suit Over Kroger-Linked Biz
GoodRx Holdings Inc. has escaped a proposed shareholder class action alleging it concealed from investors the indispensability of its relationship with Kroger, according to an order signed by a California federal judge who said the suit does not show GoodRx knew Kroger had plans to renegotiate its contracts.
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April 23, 2025
Justices Hint That Fuel Groups Can Fight Emissions Waiver
U.S. Supreme Court justices on Wednesday appeared to back a contention from fuel industry groups that they have standing to challenge the U.S. Environmental Protection Agency's Clean Air Act waiver allowing California to set its own greenhouse gas emissions standards for vehicles.
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April 23, 2025
Judge Says Calif. Tribes Can't Intervene In $700M Casino Row
A District of Columbia federal judge refused on Wednesday to allow three California tribes and a company to intervene in another California tribe's suit accusing the federal government of wrongfully rescinding gambling eligibility for the tribe's $700 million casino project.
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April 23, 2025
9th Circ. Asked To Modify Ruling In LA Port Co. Coverage Row
A Los Angeles port operator's insurer asked a three-judge panel in the Ninth Circuit to rethink part of its decision ordering a jury trial on the amount of defense costs the operator incurred while litigating pollution claims brought by the city, arguing they improperly relied on a depublished decision.
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April 23, 2025
Software Co. Can't Escape 401(k) Investment Suit
A California federal judge refused to toss a federal benefits lawsuit from former ServiceNow employees alleging the cloud computing company kept an underperforming suite of target-date funds in its 401(k) plan for over a decade, finding allegations of a deficient process should proceed to discovery.
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April 23, 2025
TurboTax Maker Fends Off H&R Block's False Ad Claims
A California federal judge tossed H&R Block's claims that competing tax-preparation company Intuit duped its customers into buying its TurboTax product by falsely claiming an expert would review returns, saying H&R Block failed to show the expert review feature influenced customers' purchasing decisions.
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April 23, 2025
DOJ Settles With Tow Co. Over Navy Officer's Car Auction
The U.S. Department of Justice reached a settlement Tuesday with a California towing company it alleges illegally auctioned a deployed Navy lieutenant's car in violation of the Servicemembers Civil Relief Act, with the officer receiving $7,500 in damages and the government collecting a $2,000 civil penalty.
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April 23, 2025
Ex-Rabobank Exec Seeks $5M To Cover OCC Fight Legal Bill
A former Rabobank chief compliance officer has asked the Ninth Circuit to award her more than $5 million in attorney fees and expenses to cover both her defense of a now-discontinued Office of the Comptroller of the Currency enforcement action and her unsuccessful lawsuit to get the matter expunged.
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April 23, 2025
Silvergate Settles Securities Class Action For $37.5M In Ch. 11
The parent company of Silvergate Bank has asked a Delaware bankruptcy judge to approve a new deal to settle a securities class action for $37.5 million and resolve a slew of indemnification issues in its Chapter 11, a resolution that the debtor said would save it potentially millions of dollars in legal fees.
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April 23, 2025
Musk's X Settles Age Bias Suit Over Layoffs
A California federal judge dismissed a certified collective action filed against Elon Musk's social media company X on Wednesday that alleges workers aged 50 and older were disproportionately targeted for layoffs, issuing the order after the parties reported they reached a settlement.
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April 23, 2025
Apple Tricked People Into Buying AI-Less iPhone 16, Suit Says
Apple has been slapped with a lawsuit accusing it of baiting-and-switching iPhone 16 buyers with promises that the model would include the tech giant's new artificial intelligence model, but then quietly deleting those advertisements when it hit delays.
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April 23, 2025
Eli Lilly Sues 4 Telehealth Cos. For Weight Loss Drug Copies
Eli Lilly filed a new round of lawsuits Wednesday over the compounding of its popular weight loss drugs Mounjaro and Zepbound, accusing four telehealth companies of making copies of the medications while alleging that two companies violated laws requiring doctors to make medical decisions, not corporations.
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April 23, 2025
Weinstein Challenges Accusers' Credibility As Retrial Begins
Harvey Weinstein's attorney told a majority-women jury in his sexual assault retrial Wednesday that the "casting couch is not a crime scene" and that he merely had "mutually beneficial" relationships with aspiring actresses who later accused him of rape and sexual violence.
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April 23, 2025
Yelp's Antitrust Case Against Google Didn't Come Too Late
A California federal court has refused to toss Yelp's case accusing Google of monopolizing the local search market, despite arguments that it came too late, but trimmed several claims Yelp will have a chance to fix before moving ahead with the long-simmering dispute.
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April 22, 2025
Girardi's Son-In-Law Wants Chicago Client Theft Case Tossed
Disbarred attorney Tom Girardi's son-in-law Tuesday urged an Illinois federal court to toss a superseding indictment accusing him of helping steal millions from clients of the now-defunct Girardi Keese, saying prosecutors created confusion around the charged offenses by highlighting California legal ethics rules without explaining their relevance, "if any."
Expert Analysis
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Opinion
Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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How Cos. Can Use Data Clean Rooms To Address Privacy
Implementing comprehensive administrative controls, security processes and vendor management systems are vital steps for businesses leveraging data clean rooms for privacy compliance, especially given the Federal Trade Commission's warnings of complicated user privacy implications, say attorneys at Troutman.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.
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SEC Motion Response Could Reveal New Crypto Approach
Cumberland DRW recently filed to dismiss the U.S. Securities and Exchange Commission’s enforcement action against it for the unlawful purchase and sale of digital asset securities, and the agency's response should unveil whether, and to what extent, the Trump administration will relax the federal government’s stance on digital asset regulation, say attorneys at O'Melveny.
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What Calif. Bill Could Mean For Battery Energy Storage
A newly proposed bill in the California Legislature would place major restrictions on the development of battery energy storage system projects in the state — but with Gov. Gavin Newsom's strong support for clean energy technology, the legislation will likely face significant obstacles, say attorneys at Sheppard Mullin.
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3 Ways Trump Can Nix SEC's Climate Disclosure Rules
Given President Donald Trump's campaign statements and agency appointments, it's likely that his administration will try to annul the U.S. Securities and Exchange Commission's climate disclosure rules, but his options for doing so present unique opportunities and challenges, with varying levels of permanence and impact, say attorneys at DLA Piper.
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Perspectives
Accountant-Owned Law Firms Could Blur Ethical Lines
KPMG’s recent application to open a legal practice in Arizona represents the first overture by an accounting firm to take advantage of the state’s relaxed law firm ownership rules, but enforcing and supervising the practice of law by nonattorneys could prove particularly challenging, says Seth Laver at Goldberg Segalla.
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Zuckerberg's Remarks Pose Legal Risk For Meta Amid Layoffs
Within days of announcing that Meta Platforms will cut 5% of its lowest-performing employees, Mark Zuckerberg remarked that corporations are becoming "culturally neutered" and need to bring back "masculine energy," exposing the company to potential claims under California employment law, says Andi Mazingo at Lumen Law Center.
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Perspectives
DC Circ. Cellphone Ruling Upends Law Enforcement Protocol
The D.C. Circuit’s recent U.S. v. Brown decision, holding that forcibly requiring a defendant to unlock his cellphone with his fingerprint violated the Fifth Amendment, has significant implications for law enforcement, and may provide an opportunity for defense lawyers to suppress electronic evidence, says Sarah Sulkowski at Gelber & Santillo.
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Reg Waiver Eases Calif. Rebuilding, But Proceed With Care
California Gov. Gavin Newsom's executive order suspending some environmental review and permitting requirements for the reconstruction of homes and businesses damaged by recent wildfires may streamline rebuilding efforts, but will require careful navigation of the evolving regulatory landscape, says Gregory Berlin at Alston & Bird.
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The Post-Macquarie Securities Fraud-By-Omission Landscape
While the U.S. Supreme Court's 2024 opinion in Macquarie v. Moab distinguished inactionable "pure omissions" from actionable "half-truths," the line between the two concepts in practice is still unclear, presenting challenges for lower courts parsing statements that often fall within the gray area of "misleading by omission," say attorneys at Katten.
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AI Will Soon Transform The E-Discovery Industrial Complex
Todd Itami at Covington discusses how generative artificial intelligence will reshape the current e-discovery paradigm, replacing the blunt instrument of data handling with a laser scalpel of fully integrated enterprise solutions — after first making e-discovery processes technically and legally harder.
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A View Of The Shifting Insurance Regulatory Landscape
Attorneys at Eversheds Sutherland explore how the Federal Insurance Office's climate report, the new presidential administration and the California wildfires might affect the insurance regulatory landscape.
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When Innovation Overwhelms The Rule Of Law
In an era where technology is rapidly evolving and artificial intelligence is seemingly everywhere, it’s worth asking if the law — both substantive precedent and procedural rules — can keep up with the light speed of innovation, says Reuben Guttman at Guttman Buschner.
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Engaging With Feds On Threats To Executives, Employees
In an increasingly polarized environment, where companies face serious concerns about how to protect executives and employees, counsel should consider working with federal law enforcement soon after the discovery of threats or harassment, says Jordan Estes at Gibson Dunn.