Expert Analysis

• Hugging Face Attack Is A Warning To The Securities Markets

  

  The recent Hugging Face cyberattack, in which OpenAI's artificial intelligence agents hacked a third party without human instruction, raises questions about how regulators could respond to a similar incident in the securities markets and whether there's a substitute for scienter if no person is behind a financial crime, says Joseph A. Hall at Davis Polk.

• FTC Push May Create Dual Origin-Claim Risks For Contractors

  

  Recent Federal Trade Commission actions involving Made in USA advertising requirements offer a preview of enforcement themes that may impose dual compliance burdens on government contractors that are also subject to Federal Acquisition Regulation Buy American restrictions, says Amy Hoang at Seyfarth.

• 4 Tips On Expert Gatekeeping From J&J Talc Deal

  

  Johnson & Johnson's successful campaign to exclude plaintiff-side oncologist testimony about whether its talcum powder caused ovarian cancer, which prompted the recent resolution of 70,000 claims, offers lessons on how product liability defendants can reshape risk calculation by rigorously applying expert admissibility rules, say attorneys at Hollingsworth.

• Series

  Playing Bid Whist Makes Me A Better Lawyer

  

  As a child, I viewed bid whist as a family tradition and a source of friendly card game competition, but as a lawyer, I see it as a tool that has helped me cultivate skills like communication, teamwork, risk assessment and composure, says Keyonn Pope at Riley Safer.

• FCC Robotics Restrictions Raise AI Compliance Risks

  

  A recent "covered list" update from the Federal Communications Commission places restrictions on foreign-produced advanced robotic devices’ ability to obtain new authorizations, creating a framework that is poorly suited to continuous artificial intelligence updates, and raising several transactional and contractual challenges, says Kim Larsen at Stinson.

• What Greek Tragedy Teaches About Mediating AI Disputes

  

  While ancient Greek writers could not have anticipated modern arbitration, their tragic plays illustrate new and familiar questions for mediators dealing with artificial intelligence disputes, including the functional differences between adjudication and resolution, says Giuseppe De Palo at JAMS.

• AML Takes Center Stage In Financial Crime Enforcement

  

  Financial Crimes Enforcement Network actions, including its recent anti-money-laundering penalty against UBS, signal that companies should align sanctions and anti-corruption controls with documented risk assessments, quickly escalate and investigate red flags, and test remediation as enforcement intensifies, say attorneys at Bass Berry.

• Tracking Trends In State-Level Regulatory Enforcement

  

  State-level enforcement now increasingly involves antitrust, artificial intelligence and data privacy issues, and the key for organizations to reducing risk is having the ability to respond across governance, public affairs, discovery and remediation in multiple states simultaneously, say consultants at FTI Consulting.

• Opinion

  Calif. Bill Goes Too Far In Trying To Regulate Attorney AI Use

  

  California’s first-in-the-nation act regulating how attorneys and arbitrators use generative artificial intelligence will likely soon become law, but read broadly, the provisions may dissuade lawyers from employing AI at all, thereby depriving them of key work tools, says Joshua Wurtzel at Schlam Stone.

• The Preemption Gap In Prediction Market High Court Petitions

  

  The Supreme Court is considering three certiorari petitions following a split in prediction market litigation between the Third and Ninth circuits, but one of the petitions would not allow the court to reach the express preemption question, which would leave the dispute half-resolved, says Jordan Garman at Withers.

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  Fintech Regulator Outlook: 5 Lessons From Minnesota

  

  Minnesota's recent cryptocurrency kiosk ban and virtual currency custody rules hold several broad compliance lessons: Digital asset companies must map regulated activities, strengthen third-party oversight and engage regulators early to innovate responsibly, says Deputy Commissioner of Financial Institutions Mike Crow at the Minnesota Department of Commerce.

• Hims & Hers Suit Spotlights Health Data-Sharing Privacy Risks

  

  Regulators' complaint against telehealth company Hims & Hers alleging deceptive practices serves as a reminder that the privacy principles developed under consumer protection laws and predating omnibus statutes remain in force, and sensitive data governance continues to be a crucial component of compliance, say attorneys at Venable.

• 4 Paths To AI Safety Coordination Amid Antitrust Debate

  

  Frontier artificial intelligence companies have more room for collective safety work than the debate over an antitrust waiver suggests, with several existing avenues providing different degrees of protection and oversight, says Evan Miller at V&E.

• Reel Justice: 'The Furious' And Journalistic Evidence

  

  Viewing "The Furious” from a litigator’s perspective highlights nuances that arise when gathering evidence from journalistic investigations, serving as a reminder to not only ask whether evidence is relevant, but also what legal framework governs the person or entity holding it, says Veronica Finkelstein at Widener-Delaware Law.

• How Calif. Privacy Bill Could Change CIPA Tracking Cases

  

  If California Gov. Gavin Newsom signs S.B. 690, the bill could materially reduce the leverage behind a pen-register-only claim or demand, so California Invasion of Privacy Act website tracking claims should not be evaluated the same way they were six months ago, says Alexandra Samofalova at Spencer Fane.