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Cybersecurity & Privacy
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April 02, 2024
UK Reaches Landmark AI Risk Testing Agreement With US
The U.K. government said Tuesday it had reached a landmark agreement with the U.S. to share the testing of advanced models for artificial intelligence, after highlighting in a report its increasing use by cybercriminals to attack financial institutions and business.
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April 01, 2024
Full 9th Circ. Won't Review OK Of $90M Facebook Data Deal
The Ninth Circuit on Monday declined objectors' request for the full appellate court to revisit a three-judge panel's decision to affirm a $90 million settlement that resolves allegations Facebook illegally tracked logged-out users' browsing activity, saying no judge voted to rehear the matter.
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April 01, 2024
FTC Won't Add Face Scan Tool To COPPA Consent Options
The Federal Trade Commission has declined for now to approve a new method for obtaining parental consent under the Children's Online Privacy Protection Act that would involve analyzing facial geometry to verify adults' identity, saying that it expects a forthcoming government report to provide vital additional information about the technology underlying the proposed tool.
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April 01, 2024
AmEx Sends Credit Card Applicants' Data To Meta, Suit Says
American Express was recently hit with a putative class action in New York federal court by a California resident alleging the company illegally shares with Facebook sensitive financial and personally identifiable information of people who apply online for credit cards.
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April 01, 2024
Cybersecurity Heads Back SolarWinds' Push To Nix SEC Suit
Cybersecurity experts from dozens of private companies decried the U.S. Securities and Exchange Commission's lawsuit against SolarWinds and its cybersecurity head, arguing the unprecedented effort to hold the pair accountable for a 2020 cyberattack could undermine U.S. national security.
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April 01, 2024
FCC Grants Extensions To 6 Carriers Under 'Rip And Replace'
The Federal Communications Commission is once again granting deadline extensions for the replacement of Chinese-made telecommunications equipment for service providers claiming that supply chain problems and the lack of full "rip and replace" funding is delaying the work.
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April 01, 2024
Wireless Cos. Push Back On Neutrality For Network 'Slicing'
The mobile services industry is fighting public advocates' efforts to make sure so-called network "slicing" is covered by net neutrality rules the Federal Communications Commission is planning to reimpose on internet providers.
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April 01, 2024
FDIC Dings 2 More Banks Over 3rd-Party Relationships
The Federal Deposit Insurance Corp. has ordered an Ohio community bank and a New York digital "hybrid" bank to strengthen their oversight of business partners, the latest in the agency's recent spate of enforcement actions over banks' management of their third-party relationships with financial technology firms and other outside companies.
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April 01, 2024
Cooley, Latham Guide Data Security Firm Rubrik's IPO Filing
Venture-backed data security firm Rubrik Inc. on Monday filed long-awaited plans for an initial public offering, represented by Cooley LLP and underwriters counsel Latham & Watkins LLP, marking the latest sign of a recovering IPO market.
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April 01, 2024
Google Agrees To Delete Data To End 'Incognito' Class Claims
Google LLC on Monday agreed to delete billions of data records that reflect certified class members' private browsing activities as part of a nonmonetary eve-of-trial settlement to resolve allegations that the tech giant surreptitiously tracks Chrome users running the browser's incognito mode.
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April 01, 2024
AT&T's Huge Data Breach Triggers Flood Of Consumer Suits
Telecom giant AT&T Inc. was hit with a wave of litigation accusing the company of failing to safeguard customers' sensitive data just days after it reported that detailed personal information from more than 70 million past and current users surfaced online.
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April 01, 2024
Women Must Arbitrate Suit Over Ex-Coach's Hidden Cam
Newly discovered texts and files on a former Temple University football coach's devices won't help three women revive or revise their lawsuits against the coach and the dog-sitting app he used to recruit them, a Pennsylvania federal judge ruled Friday.
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April 01, 2024
One Set Of Amazon Buyers Can't Cancel Later Antitrust Case
Antitrust lawsuits against Amazon.com in New York and Washington federal court will remain separate after a New York federal judge refused Friday to let online shoppers in the earlier-filed Washington case intervene in — and junk — the other proposed class action filed two years later.
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April 01, 2024
Allstate Liable For Contractors' Illegal Marketing Calls
An Illinois federal judge found that Allstate violated the Telephone Consumer Protection Act when its telemarketing subcontractor made phone calls to a man whose number was on Allstate's internal do-not-call list.
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April 01, 2024
Indicted Crypto Whiz Says Software Development Not A Crime
The founder of the Tornado Cash cryptocurrency exchange told a Manhattan federal judge that the government had wrongly charged him with scheming to launder money and dodge sanctions, saying that the only agreement he'd made with others was to build legal, open-source software.
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March 29, 2024
DC Circ. Rejects Meta's Bid To Delay FTC Privacy Tweaks
A D.C. Circuit panel on Friday refused Meta Platforms Inc.'s bid to delay the Federal Trade Commission from pursuing changes to a $5 billion privacy settlement, saying the social media giant failed to show why it's entitled to an emergency injunction while it's challenging the FTC's structure.
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March 29, 2024
SentinelOne Execs Face Derivative Suit Over Accounting Error
Cybersecurity company SentinelOne was hit with a shareholder derivative suit in California federal court Friday over a 35% stock price drop that the plaintiff claimed was the result of the company's disclosure about its internal controls and subsequent inflation of its annualized recurring revenue.
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March 29, 2024
X Corp. Still Must Face Breach Suit Over 200M Users
A California federal judge on Friday trimmed a proposed class action alleging X Corp., the former Twitter Inc., failed to protect the data of 200 million users whose information was exposed in a data breach, allowing the users to amend some allegations while permanently tossing a California Consumers Legal Remedies Act claim.
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March 29, 2024
BofA Sued After FTC Imposter Steals $2M From Accounts
A 67-year-old Florida woman has sued Bank of America over alleged negligence and violations of several federal laws, claiming in the case that was removed to federal court this week that the financial services company failed to protect her accounts as she fell victim to a sophisticated social engineering scam by a person posing as a Federal Trade Commission investigator who stole $2 million.
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March 29, 2024
4th Circ. Revives Data Breach Suit Against Medical Center
The Fourth Circuit on Friday revived a proposed class action alleging that Sandhills Medical Foundation Inc. failed to protect the personal information of patients whose data was leaked following a cyberattack, saying the health care provider is not shielded under federal immunity and that the government cannot be substituted as a defendant.
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March 29, 2024
GEO Group Brass Agree To Reforms To End Derivative Suit
Shareholders who claimed executives of private prison contractor GEO Group Inc. lied about financing deals with major banks told a Florida federal judge that the company has agreed to a host of corporate reforms to end the derivative suit, which will include the appointment of a chief compliance officer.
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March 29, 2024
Blackbaud Defeats 7 Insurers' Claims For Data Breach Costs
Complaints by seven insurers seeking reimbursement for $2.1 million in expenses paid to insureds following a ransomware attack on software company Blackbaud Inc. were torn apart by a Delaware state judge, who called the insurers' allegations "conclusory," tossing the two cases.
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March 29, 2024
FCC Looks To Stamp Out Call Routing Security Breaches
The protocols that mobile telecom operators use to talk to each other leave their customers particularly vulnerable to location tracking, according to the Federal Communications Commission, which says it's time to take a closer look at the matter.
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March 29, 2024
Up Next After Bankman-Fried Sentencing: FTX Cooperators
Now that FTX founder Sam Bankman-Fried has been sentenced to 25 years in prison for an $11 billion fraud on the collapsed crypto exchange, it's time for the three top lieutenants who testified against him at trial to face their own judgments — and experts say the cooperators are well positioned to avoid jail time.
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March 29, 2024
Dominion Wants County Sanctioned In Voting Machine Row
Dominion Voting Systems Inc. wants a Pennsylvania county to pay its legal bills over allegedly rehashed claims that its voting machines had security issues in violation of the county's contract, since a federal court had already tossed those claims.
Expert Analysis
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Industry Must Elevate Native American Women Attys' Stories
The American Bar Association's recent research study into Native American women attorneys' experiences in the legal industry reveals the glacial pace of progress, and should inform efforts to amplify Native voices in the field, says Mary Smith, president of the ABA.
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A Look At Mass. Sports Betting Data Privacy Regulations
The Massachusetts Gaming Commission recently approved data privacy regulations under the state's sports wagering act to promote responsible gaming, showing a trend of regulators directing companies on how to protect personal information used by artificial intelligence systems, say Liisa Thomas and Kathryn Smith at Sheppard Mullin.
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White House Activity Is A Band-Aid For Regulating AI In Health
In the medium term, recent White House actions will have a greater impact on AI in the health care industry than Congress' sluggish efforts to regulate it, but ultimately legislation of AI's development and use in the health space will fall to Congress, say Wendell Bartnick and Vanessa Perumal at Reed Smith.
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Crypto, Audit Cases Dominate SEC's Enforcement Focus In '23
Attorneys at Covington examine the U.S. Securities and Exchange Commission's fiscal year 2023 enforcement results, which marked the SEC's third consecutive year of increasing enforcement activity since Chair Gary Gensler took over in 2021 — this time driven by a focus on combating cryptocurrency-related scams and enforcing recordkeeping compliance.
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New York Cybersecurity Amendments Raise Regulatory Bar
Financial service providers both in and outside New York should study recent changes to the state financial regulator's cybersecurity requirements, which add governance controls, technical safeguards and incident response protocols to improve what is already becoming the national benchmark for robust cybersecurity compliance programs, say attorneys at Baker McKenzie.
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Understanding Discovery Obligations In Era Of Generative AI
Excerpt from Practical Guidance
Attorneys and businesses must adapt to the unique discovery challenges presented by generative artificial intelligence, such as chatbot content and prompts, while upholding the principles of fairness, transparency and compliance with legal obligations in federal civil litigation, say attorneys at King & Spalding.
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Kochava Ruling May Hint At Next Privacy Class Action Wave
The Southern District of California's recent ruling in Greenley v. Kochava and increasing complaints alleging that a consumer website is an illegal “pen register” due to the use of third-party marketing software tools foreshadow a new theory of liability for plaintiffs in privacy litigation, say attorneys at Crowell & Moring.
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The Case For Post-Bar Clerk Training Programs At Law Firms
In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.
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FTC Warning Letters Note 5 Mistakes For Influencers To Avoid
The Federal Trade Commission recently sent warning letters to two trade associations and 12 health influencers over their social media posts, offering insight into how the agency plans to enforce its updated endorsement guides and highlighting five concerns to keep in mind for marketing campaigns, says Gonzalo Mon at Kelley Drye.
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Attorneys Have An Ethical Duty To Protect The Judiciary
The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.
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AI Can Help Lawyers Overcome The Programming Barrier
Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.
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Cos. Must Adapt To Calif. Immigration Data Privacy Law
California’s recently signed A.B. 947 expands the California Consumer Privacy Act and brings the state in line with other comprehensive privacy laws that address immigration status, meaning companies should make any necessary updates to their processes and disclosures, say Kate Lucente and Matt Dhaiti at DLA Piper.
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How Legal Teams Can Prep For Life Sciences' Tech Revolution
The life sciences and health care industries are uniquely positioned to take advantage of new efficiencies created by cloud computing and generative artificial intelligence, but the sensitivity of their data also demands careful navigation of an expanding legislative and regulatory landscape, say Kristi Gedid, Zack Laplante and Lisa LaMotta at Ernst & Young.
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Key Takeaways From CFPB's Proposed Data-Sharing Rules
The Consumer Financial Protection Bureau's recently announced proposed rule for regulating personal financial data rights sheds light on the bureau's stance regarding practices like screen-scraping and may presage further activity that could involve more concrete enforcement actions, say attorneys at Wilson Sonsini.
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Transparency And Explainability Are Critical To AI Compliance
Although there is not yet a comprehensive law governing artificial intelligence, regulators have tools to hold businesses accountable, and companies need to focus on ensuring that consumers and key stakeholders understand how their AI systems operate and make decisions, say Chanley Howell and Lauren Hudon at Foley & Lardner.