Expert Analysis


Loper Bright Unlikely To Upend DEA Rescheduling Challenges

As cannabis industry stakeholders await a U.S. Drug Enforcement Administration ruling on broader cannabis rescheduling, the U.S. Supreme Court's 2024 decision in Loper Bright to eliminate judicial deference to agency decisions should not dramatically affect cannabis rescheduling litigation risk, but it could marginally strengthen proponents' hand if the DEA denies rescheduling, say attorneys at Dentons.


Money Transmission Issue Looms For Prediction Markets

The circuit split recently created by the Ninth Circuit's ruling in Kalshi v. Assad has implications reaching beyond gaming regulation as, depending on the ultimate characterization of prediction market event contracts, platforms may face differing obligations under federal and state money transmission laws, say attorneys at Manatt.


AI And AML: Governance Plays Critical Role In Innovation

Financial institutions adopting artificial intelligence for anti-money laundering compliance should implement governance specific to individual use cases, testing, documentation and human oversight to manage regulatory and enforcement risks as agentic tools expand, say attorneys at Paul Hastings.


How Cos. Can Fight Consumers' Tariff Refund Class Actions

After the U.S. Supreme Court's February decision in Learning Resources Inc. v. Trump, invalidating $165 billion of presidentially imposed tariffs, consumers have filed numerous class actions seeking tariff refunds from businesses — but companies have substantial and multifaceted defenses available against these claims, say attorneys at Patterson Belknap.


The Deep Split Over Mandatory Detention, And What's Next

The government’s mandatory detention policy for noncitizens who entered the U.S. without inspection has led to a spate of decisions this year, with nine circuits rejecting the government's reading of the Immigration and Nationality Act against two that have accepted it, making the issue ripe for U.S. Supreme Court review, says attorney Kemal Hepsen.


Intersecting Investigation Risks Loom In Next Congress

Taken together, two July D.C. Circuit decisions and a recent U.S. Department of Justice opinion on executive privilege may affect the procedural defenses and privilege protections available to targets of oversight in the upcoming Congress, and companies should begin preparing now, say attorneys at WilmerHale.


FTC Focus: A Shift In The Pricing Disclosure Terrain

Recent state and Federal Trade Commission developments spotlight materially different ways in which personalized pricing might be addressed, which could result in an increasingly fragmented regulatory landscape in which businesses face differing disclosure obligations and substantive restrictions depending upon the jurisdiction, say attorneys at Proskauer.


Vanda Ruling Offers New Guide To Generic Labeling Disputes

The D.C. Circuit's recent decision in Vanda Pharmaceuticals v. U.S. Food and Drug Administration is significant for its guidance on when generic-drug labeling remains sufficiently similar to brand labeling and when a difference requires a statutory exception, says Shashank Upadhye at Upadhye Tang.


9th Circ. Comet Ruling Spotlights Trade Secret Proof Burdens

The Ninth Circuit’s recent decision to vacate a $40 million verdict awarded to Comet Technologies in its trade secret dispute with XP Power underscores how the burden of proof differs between federal and state law, giving litigants a fresh perspective on several issues, including how a jury should be instructed, say attorneys at Cooley.


What Trial Teams Should Know About AI Jury Research Tools

Using artificial intelligence for jury research is quickly becoming part of the litigation consulting landscape, and can be a useful part of a case assessment toolkit — but litigators must understand what these systems are built to measure, and what conclusions can reasonably be drawn from their output, say Bill Kanasky and Steve Wood at Courtroom Sciences.


Lessons For Banks When A Fintech Partner Fails

Recent fintech bankruptcies highlight best practices for how banks can strengthen third-party oversight, data-access rights, wind-down planning and customer communications to limit regulatory exposure and consumer harm when a fintech partner collapses, say attorneys at Barack Ferrazzano.


Del. Ruling Emphasizes High Bar To Pleading A Control Group

The Delaware Court of Chancery's recent decision in Le Clair v. KnowBe4 illustrates the high burden to which courts hold plaintiffs trying to establish a control group, as well as the continued power of an informed stockholder vote, say attorneys at Sidley.


Attorneys Using AI May Have Ethical Duty To Redact Docs

The trajectory of legal ethics guidance in recent years strongly suggests that as redaction technology becomes more accessible, the failure to use it when uploading highly confidential materials into artificial intelligence tools will become increasingly difficult to defend as reasonable, say attorneys at Lewis Brisbois.


Minn. Ruling Expands Insureds' Right To Independent Counsel

If upheld on appeal, a recent decision by a Minnesota appellate court — Fabyanske Westra Hart & Thomson v. Western National Mutual Insurance — will give Minnesota policyholders a stronger basis to demand independent counsel when an insurer accepts a defense under a reservation of rights, say attorneys at Stoel Rives.


Retailers Must Navigate State Innocent-Seller Law Patchwork

States' innocent-seller statutes can shield nonmanufacturing retailers from product liability claims to varying degrees, and by building the evidentiary record strategically throughout discovery, companies can improve their chances of obtaining summary judgment — but it is essential to stay abreast of the rapidly evolving policy environment, say attorneys at Chamberlain Hrdlicka.


How UK Ship Sale Ruling Expands Lost-Bargain Damages

The U.K. Supreme Court’s recent ruling in Great Asia Maritime v. Orion Shipping – upholding a "loss of bargain" damages award in a disagreement over a vessel sale – sharpens parties’ ability to contractually control damages outcomes in the event of a dispute, say lawyers at Crowell & Moring.


Compliance Lessons From Agriculture Co. Mexican Bribe DPA

Agricultural company Scoular’s recently announced deferred prosecution agreement over alleged Foreign Corrupt Practices Act violations at the U.S.-Mexico border reinforces the U.S. Department of Justice’s focus on cartels, and companies must accordingly ensure they address risks associated with the use of customs brokers, says Adam Safwat at Foley Hoag.


Cannabis, Psychedelics Boom Raises IP Hurdles

Recent data regarding patent filing activity and litigation in the cannabis and psychedelics markets indicates that as commercial interest accelerates, the scope of publicly accessible prior art is also expanding, setting a higher bar for novelty and nonobviousness in patent applications, say attorneys at Sterne Kessler.


OpenAI Deal Highlights AI Hiring Risks In PERM Process

The U.S. Department of Justice's recent settlement of allegations that OpenAI discriminated against U.S. applicants for positions connected to the permanent labor certification process underscores that employers providing or using artificial intelligence must align their recruitment practices with their overlapping compliance obligations, say attorneys at Duane Morris.


5 Practice Tips After DOJ's Healthcare Fraud Declination

In light of the U.S. Department of Justice's decision to not prosecute Campus Eye Management under the agency's new corporate enforcement and voluntary self-disclosure policy, healthcare companies should keep several considerations in mind when weighing their risk and self-disclosure strategy, including the distinctions between reporting to the DOJ versus other government agencies, say attorneys at Haynes Boone.



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Judges On AI

Do artificial intelligence tools have any practical judicial applications? In this Expert Analysis series, state and federal judges explore potential use cases for AI in adjudication and beyond.




Opinion


Md. Court Got Ad Tax Similarity Analysis Wrong

Decisions striking Maryland’s digital advertising tax are fundamentally flawed because the Maryland Tax Court found similarity between digital ads and other ads without considering deep market distinctions, says Darien Shanske at UC Davis School of Law.

NC Litigation Funding Ban Sets Model For Other States

States worried about rising liability costs and the commercialization of their courts should treat North Carolina's recently enacted litigation funding ban as a model because a prohibition adequately addresses the distortion that disclosure only documents, say attorneys at McAngus Goudelock.



Access to Justice Perspectives


NJ Fingerprint Ruling Shows Forensic Reliability Isn't Static

The New Jersey Supreme Court’s recent State v. Lee decision, holding that developments in forensic science warranted a renewed assessment of fingerprint evidence, reaffirmed the trial judge's role as gatekeeper and underscored that the admissibility of expert testimony is an ongoing inquiry, not a one-time determination, say attorneys at Morgan Lewis.