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Cybersecurity & Privacy
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April 15, 2024
Catching Up With Delaware's Chancery Court
Last week, Delaware justices mulled whether one Chancery Court vice chancellor properly voided four company bylaws — just as another vice chancellor voided one more. Fights among Truth Social investors continued, and shareholders launched new cases involving Macy's, United Airlines, and Clayton Dubilier & Rice LLC and Stone Point Capital LLC.
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April 15, 2024
DC Judge Blocks Texas AG's Media Matters Investigation
A D.C. federal judge issued a preliminary injunction blocking Texas Attorney General Ken Paxton from investigating Media Matters over its reporting on the X social media platform, ruling that the probe deterred the progressive media watchdog's "core First Amendment activities."
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April 15, 2024
Conn. Atty Aided $1.4M Transfer Scam, Developer Says
Connecticut attorney Carole W. Briggs "intentionally orchestrated and participated in" a business email compromise scam that stole more than $1.4 million from a New Jersey-based real estate development company last year, according to a civil lawsuit in federal court.
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April 15, 2024
Conn. Attorney Says She'll End Defamation Lawsuit For $750K
A Connecticut attorney who accused an acquaintance of commissioning and disseminating a background check that falsely called her a convicted drug dealer has told a Constitution State court that she would be willing to resolve her defamation claims if that acquaintance agrees to pay her $750,000.
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April 15, 2024
State Farm, HOA Settle Wire Fraud D&O Coverage Dispute
A State Farm unit and a property owners association reached a conditional settlement agreement in the association's suit seeking directors and officers coverage for underlying litigation stemming from a wire fraud incident, they told a California federal court.
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April 15, 2024
Justices Won't Review Elanco's Win In Free-Dinner Fax Suit
The U.S. Supreme Court on Monday declined an Illinois animal hospital's invitation to review the Seventh Circuit's latest interpretation of "unsolicited advertisement" in a ruling that closed the door on the hospital's lawsuit targeting free seminar invitations from Elanco Animal Health Inc.
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April 12, 2024
Feds Rest In $110M Mango Markets Trial Of Crypto Trader
Manhattan federal prosecutors on Friday rested their case against a crypto trader accused of stealing $110 million from Mango Markets investors by pumping the price of the exchange's native token, while the defense argued that the government had failed to show that the crypto derivatives at issue were swaps as alleged in the indictment.
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April 12, 2024
Patreon Takes Aim At Constitutionality Of Video Privacy Law
Content monetization platform Patreon pressed a California federal judge Friday to toss a proposed class action claiming it violated the Video Privacy Protection Act by sharing members' video-watching data with Meta, arguing that the "poorly drafted" federal law unconstitutionally restricts its speech and imposes damages unrelated to any actual harm.
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April 12, 2024
Sports Co.'s Logistics Shutdown Suit Survives Dismissal Bid
A Washington federal judge has partially rejected a logistics company's dismissal bid in a manufacturer's lawsuit over a cyberattack that allegedly stunted operations, criticizing the "obtuse" argument that their deal didn't explicitly require the contractor to shield the client from such breaches.
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April 12, 2024
'Much More Is Coming': Experts See Wave Of AI-Related Suits
Legal experts speaking Friday at the University of California, Berkeley School of Law's symposium on artificial intelligence and evidence in civil litigation warned that broadening usage and increased regulation will lead to a wave of litigation over the technology, leaving courts to analyze the "black box" of corporate AI algorithms to determine liability.
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April 12, 2024
Ill. Court Affirms $300K Revenge Porn Award
A man who repeatedly uploaded an intimate video of his ex-girlfriend to pornography sites, identifying her by name and location, cannot shirk the $300,000 in damages that an Illinois judge slapped him with, a state appeals court has ruled.
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April 12, 2024
Epic Wants Google Play Store Reforms After Antitrust Verdict
Following Epic Games' jury win on antitrust claims related to the Google Play Store and Android apps, the "Fortnite" maker has asked a California federal judge to force Google to allow consumers to download apps from wherever they want and bar the tech giant from restricting in-app purchase options.
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April 12, 2024
Software Co. Hit With Patent Suit Over Data Tracker
A software developer has accused a rival of infringing patents that allow businesses to track a website user's browsing data without using third-party cookies, costing the developer profits.
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April 12, 2024
House To Retry Spy Bill After Warrant Measure Fails By 1 Vote
The U.S. House of Representatives on Friday voted to reauthorize government surveillance of foreigners without warrants, only to have a Florida Republican call for a reconsideration vote for Monday to require warrants for spying on Americans' communications caught up in the surveillance.
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April 12, 2024
Mogul Aims To Trace Part Of Alleged $35M Hack Payout To Atty
An airline mogul has doubled down on a bid to access the bank records of a North Carolina attorney and ex-FBI agent, saying those records will help "follow the money" to prove a large-scale hacking conspiracy against him that he claims involves a $35 million payout.
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April 12, 2024
Ex-Amazon Engineer Gets 3 Years For $12M Crypto Hacks
The former technical lead of Amazon's "bug bounty" program was sentenced in Manhattan federal court Friday to three years in prison for using his specialized computer engineering skills to steal more than $12 million from two decentralized cryptocurrency exchanges.
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April 12, 2024
Zoll Says 'Cookie-Cutter' Hack Claims Don't Show Harm
Zoll Medical Corp. is asking a Boston federal judge to toss a proposed class action brought by medical device customers whose personal information was released during a ransomware attack last year and an earlier data breach in 2019, arguing the consumers weren't actually injured.
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April 11, 2024
Proposed BIPA Penalty Reforms Advance In Ill. Legislature
The Illinois Senate on Thursday passed legislation that would update the Biometric Information Privacy Act as well as tweak its liability guidelines, a clarification that proponents say is needed to protect businesses from costly, frivolous litigation.
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April 11, 2024
FTC Curtails Treatment Provider's Sharing Of Health Data
The Federal Trade Commission took its latest step Thursday to crack down on the mishandling of sensitive health information, announcing a settlement that requires a New York-based alcohol addiction treatment service to obtain affirmative consent before sharing this data with third parties and bars the company from disclosing this information for advertising purposes.
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April 11, 2024
Auto Tech Group Floats Bill To End Abusers' Car Access
An auto technology group is pressing Congress to pass legislation that would make it easier for domestic violence survivors to cut off abusers' access to vehicles that use advanced wireless connectivity and could be used to track abused partners.
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April 11, 2024
Orrick To Pay $8M To Settle Data Breach Litigation
A proposed class of data-breach victims asked a California federal judge Thursday to greenlight an $8 million settlement with Orrick Herrington & Sutcliffe LLP in litigation over a March 2023 data breach that purportedly exposed Social Security numbers and other personal information of more than 638,000 individuals.
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April 11, 2024
Visa Beats Some Merchant Claims In Antitrust MDL
A New York federal judge has trimmed claims lodged by Home Depot and other merchants against Visa and several banks in sprawling multidistrict antitrust litigation dating back to 2005 over network rules forcing merchants to accept the companies' cards.
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April 11, 2024
Ernest Health Hit With Suit After Cybercriminal Data Breach
A group of former Ernest Health Inc. patients has hit the Texas-based hospital system with a proposed class action after a notorious group of cybercriminals breached the company's systems, saying that the company should've done more to protect patient data in a Thursday complaint.
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April 11, 2024
CFPB, EU Say Teamwork 'Critical' As Fintech Bridges Atlantic
The consumer protection watchdogs in Europe and the U.S. said Thursday that their ongoing dialogue has yielded three shared focuses — the expansion of technology firms' payment services, the use of artificial intelligence in consumer markets and buy now, pay later products.
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April 11, 2024
Judge Sends Tax Data Suit Against H&R Block To Arbitration
A man who used H&R Block to prepare his taxes online and then sued the company, along with Google and Meta Platforms Inc., for sharing his private data must pursue his claims against the tax preparation software giant in arbitration, a California federal judge ruled Thursday.
Expert Analysis
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How Firms Can Ensure Associate Gender Parity Lasts
Among associates, women now outnumber men for the first time, but progress toward gender equality at the top of the legal profession remains glacially slow, and firms must implement time-tested solutions to ensure associates’ gender parity lasts throughout their careers, say Kelly Culhane and Nicole Joseph at Culhane Meadows.
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Regulatory Trends Offer 4 Lessons For Debt Relief Providers
A string of enforcement actions, including a New York lawsuit filed last month by seven states and the Consumer Financial Protection Bureau, underscore the regulatory scrutiny that debt relief and credit repair companies face and offer important lessons on telemarketing and deceptive practices compliance, say attorneys at Sheppard Mullin.
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Bracing Cos. For Calif. Privacy Agency's Restored Authority
A recent California state appeals court decision greenlights the California Privacy Protection Agency's enforcement of certain consumer privacy regulations, which may speed up compliance requirements, so businesses considering use of artificial intelligence, for instance, may want to reassess their handling of privacy notices and opt-out requests, say Kevin Angle and Matthew Cin at Ropes & Gray.
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7 Common Myths About Lateral Partner Moves
As lateral recruiting remains a key factor for law firm growth, partners considering a lateral move should be aware of a few commonly held myths — some of which contain a kernel of truth, and some of which are flat out wrong, says Dave Maurer at Major Lindsey.
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2 Emerging Defenses For Website Tracking Class Actions
Putative class actions premised on state wiretapping statutes that bar website activity tracking continue to be on the rise, but they are increasingly being dismissed on two procedural grounds, says Sheri Pan at ZwillGen.
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No AI FRAUD Act Is A Significant Step For Right Of Publicity
The No Artificial Intelligence Fake Replicas and Unauthorized Duplications Act's proposed federal right of publicity protection, including post-mortem rights, represents a significant step toward harmonizing the landscape of right of publicity law, Rachel Hofstatter and Aaron Rosenthal at Honigman.
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Series
Cheering In The NFL Makes Me A Better Lawyer
Balancing my time between a BigLaw career and my role as an NFL cheerleader has taught me that pursuing your passions outside of work is not a distraction, but rather an opportunity to harness important skills that can positively affect how you approach work and view success in your career, says Rachel Schuster at Sheppard Mullin.
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Keeping Up With Class Actions: Data Breach Litigation In Flux
In this monthly look at notable class action decisions, Gerald Maatman at Duane Morris examines a recent mixed-bag data breach ruling from an Illinois federal court — in the context of case law developments over the last year — which illustrates the range of issues confronting litigants going forward.
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Considerations For Disclosing AI Use In SEC Filings
Recent remarks from U.S. Securities and Exchange Commission Chair Gary Gensler should be heard as a clarion call for public companies to disclose artificial intelligence use, with four takeaways on what companies should disclose, says Richard Hong at Morrison Cohen.
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Using Arbitration And Class Waivers As Privacy Suit Tools
Amid a surge in data breach class actions over the last few years, several federal court decisions indicate that arbitration clauses and class action waiver provisions can be possible alternatives to public court battles and potentially reduce the costs of privacy litigation, say Mark Olthoff and Courtney Klaus at Polsinelli.
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6 Pointers For Attys To Build Trust, Credibility On Social Media
In an era of information overload, attorneys can use social media strategically — from making infographics to leveraging targeted advertising — to cut through the noise and establish a reputation among current and potential clients, says Marly Broudie at SocialEyes Communications.
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5 Lessons For SaaS Companies After Blackbaud Data Breach
Looking at the enforcement actions that software-as-a-service provider Blackbaud resolved with state attorneys general, the U.S. Securities and Exchange Commission and the Federal Trade Commission in the past year can help SaaS companies manage these increasingly common forms of data breaches, say attorneys at Orrick.
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SEC Regs Give Banks Chance To Step Up Cyber Safety Game
Just as the Sarbanes-Oxley Act forced financial institutions to undertake best practices in recordkeeping, the U.S. Securities and Exchange Commission’s recently effective cybersecurity regulations stand to similarly drive those same enterprises to seek out and implement best practices in cybersecurity, to everyone's benefit, says James Gerber at SimSpace.
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A Post-Mortem Analysis Of Stroock's Demise
After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.
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How DOD Can Improve Flexibility Under Proposed Cyber Rule
The U.S. Department of Defense should carefully address some of the more nuanced aspects of the Cybersecurity Maturity Model Certification program to avoid unintended consequences, specifically the proposal to severely limit contractor use of plans of actions and milestones, say Joshua Duvall at Maynard Nexsen and Sandeep Kathuria at L3Harris Technologies.