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Cybersecurity & Privacy
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February 08, 2023
Sens. Call Out Health Cos. For Sharing Data With Advertisers
A bipartisan group of U.S. senators is demanding answers from a trio of telehealth providers that are accused of sharing users' sensitive health information with third parties such as Google and Facebook for advertising purposes, amid growing scrutiny of the practice by the Federal Trade Commission.
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February 08, 2023
DOJ's New Cooperation Carrots May Not Whet Cos.' Appetites
The U.S. Department of Justice's latest updates to its corporate criminal enforcement policies may motivate companies to self-disclose misconduct in specific circumstances, but their impact will likely be limited without further guidance or examples of how they play out in practice, experts said.
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February 08, 2023
Feds Seek At Least 18 Months For Motley Fool Hacker
Manhattan federal prosecutors asked a judge Wednesday to hand down a sentence of at least 18 months in prison for a man who admitted to hacking the investment advice site Motley Fool as part of an insider trading scheme.
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February 08, 2023
Ex-Twitter Execs Take Blame For Blocking Hunter Biden Story
Former Twitter executives said Wednesday that they erred in temporarily blocking a story about the laptop of President Joe Biden's son Hunter during the 2020 election, but said there had been no coordinated government or campaign effort to pressure them into the decision and broadly defended their work on the platform's content moderation.
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February 08, 2023
Ex-SEC Enforcer: WhatsApp Fines Test Limits Of Cooperation
The U.S. Securities and Exchange Commission's calls for cooperation fall on deaf ears when it issues massive fines like the ones levied against big banks that came forward with evidence of employees' off-book communications, former SEC Enforcement Director Stephanie Avakian said Wednesday.
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February 08, 2023
NotPetya Triggers War Exclusion, Insurers Tell NJ Panel
Property policies' war exclusions were designed to apply to any type of nation-state attack, including cyber events, insurers told a New Jersey appellate panel Wednesday in a battle over whether Merck has coverage for $1.4 billion in losses stemming from the 2017 NotPetya cyberattack.
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February 08, 2023
Court Urged To Keep Suit Over IRS Crypto Doc Seizure Alive
A New Hampshire federal court shouldn't toss a man's suit disputing the Internal Revenue Service's procurement of his records relating to his cryptocurrency transactions, he said, arguing that he's made viable constitutional challenges to the agency's acquisition of the documents.
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February 08, 2023
9th Circ. Judges Doubt Meta's 'Boilerplate' Risk Disclosures
A Ninth Circuit judge appeared skeptical Wednesday of Meta Platforms' argument that it sufficiently disclosed the potential scope of the Cambridge Analytica data abuse scandal months before investors claim corrective disclosures caused the Facebook parent's stock to plummet, saying Meta's "boilerplate" risk disclosures were "so general" they're "just not very helpful."
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February 08, 2023
Russian's Stock Success One In A Trillion, Jury Told
The odds that a Russian national on trial for an alleged hack-and-trade scheme could bet the right way on companies' earnings reports up to 86% of the time are so infinitesimal that they equal less than one in a trillion, a government expert witness told a Massachusetts federal jury Wednesday.
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February 08, 2023
Bitcoin Miner Alters Legal Team As 'SIM Swap' Trial Looms
A bitcoin miner and cryptocurrency investor suing AT&T over a series of cellphone hacks will head to the impending trial in North Carolina federal court with a new legal team after a trio of lawyers from Shumaker Loop & Kendrick LLP withdrew from the case.
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February 08, 2023
Trump Sanctions In Hillary Clinton Lawsuit Paused For Appeal
A Florida federal judge put on hold nearly $1 million in sanctions against former President Donald Trump and one of his lead attorneys until the Eleventh Circuit decides their appeal on the failed racketeering lawsuit against Hillary Clinton that triggered the monetary penalty.
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February 07, 2023
Biden Pushes For Targeted Ad Ban, Tighter Data Privacy Rules
President Joe Biden in his State of the Union address on Tuesday night stepped up pressure on Congress to ban targeted advertising to children and to put "stricter" guardrails on major tech companies' ability to collect, use and share personal data from all consumers.
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February 07, 2023
DOJ Reveals One Of FCA's Smallest Hauls In Many Years
The most recent year of False Claims Act litigation produced $2.2 billion in settlements and judgments, among the smallest tallies for the FCA during the past two decades, according to statistics the U.S. Department of Justice released late Tuesday.
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February 07, 2023
SEC To Test Adviser Compliance With New Marketing Rule
A trio of new rules governing how investment advisers advertise and run their businesses will be one of the focuses of examinations conducted by the U.S. Securities and Exchange Commission this year, the agency announced Tuesday.
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February 07, 2023
Microsoft Accuses Iran Of Orchestrating Charlie Hebdo Hack
A hacking group backed by the Iranian government was behind a January cyberattack on the French satirical magazine Charlie Hebdo that may have exposed the personal data of 200,000 of the publication's customers, Microsoft said.
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February 07, 2023
PTAB Criticizes Centripetal For 'Frivolous' Ethics Complaint
The Patent Trial and Appeal Board has warned Virginia cybersecurity startup Centripetal against trying to use any more "baseless arguments," like the stock ownership of the patent judges, as the company defends a patent before the board that is also being asserted against Cisco in court.
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February 07, 2023
FTC Shows Privacy Heft With Groundbreaking GoodRx Action
The Federal Trade Commission signaled it won't hesitate to wield its full range of enforcement powers when it dinged GoodRx for allegedly sharing sensitive health data with advertisers, teeing up a big year for the agency and boosting efforts to regulate data privacy on a larger scale.
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February 07, 2023
Pittsburgh Rental Registry Too Invasive, Pa. Panel Told
Attorneys for landlord groups told the Commonwealth Court of Pennsylvania on Tuesday that the city of Pittsburgh's rental registration and inspection ordinance is unconstitutional because it invades their privacy and imposes duties on their businesses not allowed by state law.
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February 07, 2023
Visa Again Sued For Docs In Shareholder Child-Porn Probe
Another shareholder of Visa Inc. is suing the digital-payment company in Delaware's Chancery Court to review corporate records for evidence that it profits off child pornography, particularly in connection with various porn websites run by MindGeek SARL, including Pornhub.
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February 07, 2023
'2000 Mules' Creators Want Out Of Defamation Suit
The creators of "2000 Mules" want a Georgia federal judge to dismiss defamation, invasion of privacy and conspiracy claims filed against them by a man who says they used footage of him lawfully voting as proof that hired "mules" trafficked and cast fraudulent ballots in the 2020 election.
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February 07, 2023
FCC Republican Backs Bill To Disclose Chinese Gov't Ties
The Federal Communications Commission's senior Republican has announced support for bipartisan legislation that would require the agency to publish a list of every entity that holds an FCC license or authorization that has substantial ties to authoritarian regimes, including the Chinese Communist Party.
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February 07, 2023
England Grabs Reins Of Bitcoin Battles With Crypto Decision
A recent court ruling that software developers may owe bitcoin owners a legal duty will thrust the English courts into the raging debate about decentralized finance and could push the jurisdiction to the forefront of digital asset disputes, attorneys say.
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February 06, 2023
Dechert Says Ex-WSJ Reporter's Hacking Suit Missed Deadline
A former Wall Street Journal reporter waited too long to file a lawsuit in which he accuses Dechert LLP and its partners of hacking into his email account and leaking his inappropriate communications with a source, the law firm has argued in D.C. federal court.
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February 06, 2023
MSG Entertainment Nixes Adverse Atty Ban For Tao Litigation
Madison Square Garden Entertainment Corp. on Monday said it has partially pulled back its policy of prohibiting attorneys whose firms are engaged in litigation against the company from entering its venues, noting the updated guidelines only affect litigation involving its majority interest in Tao Group Hospitality.
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February 06, 2023
Cedars-Sinai Sells Patient Info To Meta, Google, Suit Says
Cedars-Sinai improperly gathers and shares patients' personal medical information from its website with tech giants like Facebook, Google and Microsoft through the use of tracking pixel codes and analytics to target the patients with advertisements from third parties, according to a proposed class action that was removed to California federal court.
Expert Analysis
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Preparing For Enforcement Of IT Supply Chain Security Rule
With indications that the U.S. Department of Commerce may imminently begin enforcement of a rule addressing national security risks in the information technology supply chain, companies can prepare by implementing techniques similar to those employed during reviews by the Committee on Foreign Investment in the United States, say Tyler Grove and John Hannon at Hughes Hubbard.
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Medicare Developments Ahead For Remote Health Monitoring
Stakeholders interested in remote monitoring services should keep an eye on an upcoming multijurisdictional contractor advisory committee meeting that may lead to a new local coverage determination affecting Medicare coverage for remote monitoring devices, say attorneys at McDermott.
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5 Key Areas Of Privacy Compliance Following State Laws
As comprehensive data privacy laws take effect in California, Colorado, Connecticut, Utah and Virginia this year, organizations should ensure compliance with changing obligations related to vendor agreements, sensitive personal information, cookies and more, say Catherine Kozlowski and Aaron Ogunro at Polsinelli.
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The Discipline George Santos Would Face If He Were A Lawyer
Rep. George Santos, who has become a national punchline for his alleged lies, hasn't faced many consequences yet, but if he were a lawyer, even his nonwork behavior would be regulated by the American Bar Association's Model Rules of Professional Conduct, and violations in the past have led to sanctions and even disbarment, says Mark Hinderks at Stinson.
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Financial Services, Fintech Are Top CFPB Areas To Watch
Amid a flurry of recent developments related to the consumer financial services and fintech sectors, the Consumer Financial Protection Bureau's enforcement trends show it is focusing on large corporate repeat offenders, fair lending, junk fees, consumer data and more, says Eamonn Moran at Norton Rose.
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Aggressive Insider Trading Enforcement Will Persist This Year
Enforcement agencies’ aggressive crackdown on insider trading last year — focusing on the rapidly developing digital asset industry, new theories of liability, rule amendments and congressional stock activity — is expected to continue apace in what promises to be an active and innovative period to come, say attorneys at Kasowitz.
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Why Strong Cybersecurity Is Key To Protecting Trade Secrets
Recent cyberattacks show that cybercriminals are becoming more targeted, seeking out proprietary data rather than encrypting the network wholesale, and making cybersecurity crucial to protecting businesses' trade secrets, say attorneys at Baker McKenzie.
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10 Areas To Watch In Aerospace And Defense Law
Joseph Berger and Francis Purcell at Thompson Hine discuss what's ahead for federal contractors, given the government's continued focus on aiding Ukraine and sanctioning Russia, pending cybersecurity and climate disclosure regulations, U.S. leadership in new and emerging technologies, and more.
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SEC Case Is A Warning Governance Tokens May Be Securities
The U.S. Securities and Exchange Commission's complaint against crypto trader Avraham Eisenberg reinforces its position that most governance tokens are securities, meaning decentralized autonomous organizations should proceed with caution when designing their digital assets, say Arina Shulga and Jeffrey Kelly at Nelson Mullins.
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A Litigation Move That Could Conserve Discovery Resources
Bennett Rawicki at Hilgers Graben proposes the preliminary legal opinion procedure — seeking a court's opinion on a disputed legal standard at the outset, rather than the close, of discovery — as a useful resource-preservation tool for legally complex, discovery-intensive litigation.
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Issues To Watch In Fla.'s Telehealth Genetic Counseling Bills
Two recently introduced Florida bills would expand the state’s telehealth statute to include genetic counseling services, and though they currently don’t have opposition, they may have to overcome data privacy and out-of-state licensing concerns, say Erika Alba and Jacqueline Acosta at Foley & Lardner.
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Litigators Should Approach AI Tools With Caution
Artificial intelligence tools like ChatGPT hold potential to streamline various aspects of the litigation process, resulting in improved efficiency and outcomes, but should be carefully double-checked for confidentiality, plagiarism and accuracy concerns, say Zachary Foster and Melanie Kalmanson at Quarles & Brady.
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Calif. Privacy Law Holds Implications For Mental Health Apps
California is leading the way in privacy regulation with its amended Confidentiality of Medical Information Act, which has important compliance repercussions for mental health app developers and could serve as a model for similar laws in other states, say Christine Moundas and Elana Bengualid at Ropes & Gray.
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Agency Actions Show Shared Focus On Digital Ad Tactics
Recent coordinated actions taken by the Consumer Financial Protection Bureau, U.S. Department of Justice and Federal Trade Commission demonstrate a new focus on assailing two distinct digital advertising practices — dark patterns and the use of algorithms for targeting consumers, say Kyle Tayman and Tierney Smith at Goodwin.
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Mapping The Transport Sector's Road To Zero Emissions
Transportation companies that hope to lead the multiagency U.S. National Blueprint for Transportation Decarbonization's recently announced transition to zero-emission vehicles and fuels should anticipate a host of commercial and legal issues, say Levi McAllister and Pamela Wu at Morgan Lewis.