How Groq-Nvidia Suit Tests Venture Capital Exit Math

A recent Delaware Court of Chancery suit concerning Nvidia's acquihire of certain Groq employees highlights that when such deals are challenged, the economic dispute turns on reconciling technology, people, cash and continuing ownership rather than on the headline number, says Ben Dubin at VC Expert Services.

Opinion

The Invisible AI Danger That May Undermine Legal Profession

A public database tracking cases involving hallucinations generated by artificial intelligence recently surpassed 2,200 entries, but the bigger risk underlying attorneys’ use of such tools is that they will slowly surrender their judgment to AI and lose analytical skills, says Massachusetts District Court Associate Justice Brian Palmucci.

FTC Highlights Path To Preserve Board Rights In A Rival Co.

The Federal Trade Commission's move to add key guardrails permitting firearms manufacturer Beretta to retain two directors as it takes a 25% stake in competitor Ruger illustrates how parties may maintain board rights in certain circumstances without running afoul of Section 8 of the Clayton Act, say attorneys at Davis Polk.

How AI Could Help Judges Spot Their Own Biases

In close cases where there’s room for discretion, artificial intelligence could challenge judges’ implicit biases by running counterfactual tests at scale — but any judicial use of such tools would need guardrails, say Arnold Peter at Peter Law and Nancy Rapoport at University of Nevada.

Compete Act Reinforces Calif.'s Antitrust Leadership Role

California's recent passage of the Compete Act, which expands the state's principal antitrust statute's focus on concerted multifirm conduct to business dealings between two or more firms, underscores California's leadership in state antitrust enforcement as attorneys general move to fill perceived gaps left by reduced federal oversight, say attorneys at Skadden.

3 Strategies To Reduce AI Sycophancy In Legal Work

The tendency of generative artificial intelligence models to tell users what they want to hear can reinforce attorneys’ confirmation bias when testing the strength of arguments, and it can’t simply be prompted away — but a few practices can help mitigate it, says Michael Ott at Ice Miller.

FTC's Changing Model Raises Questions About Its Mission

Federal Trade Commission leaders have recently sketched a vision of an agency that continues an enforcement role distinct from the U.S. Department of Justice's, even as a shift toward greater presidential control makes enforcement more responsive to changes in administrations, say attorneys at Wiley.

2nd Circ. EFAA Ruling Shifts Employer Litigation Strategy

In Diaz-Roa v. Hermes Law, the Second Circuit recently held that, under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, employers can't carve out nonharassment claims and send them to arbitration, which has implications for discovery, litigation costs and resolution strategy in EFAA-covered disputes, say attorneys at Krevolin Horst.

Series

Being In The Peace Corps Made Me A Better Lawyer

When I served in the Peace Corps, the people of the West African village where I was stationed helped me acclimate to my new surroundings and enabled me to develop problem-solving, teamwork and empathy skills that have bolstered my legal practice far beyond the ability to offer technical advice, says Brian Bewley at McGuireWoods.

Unpacking FDIC's Modernized Bank Merger Review Rules

The Federal Deposit Insurance Corp.'s proposed revisions to its Bank Merger Act review process are a shift from its more skeptical prior posture toward a more structured and transaction-facilitative approach, though some broader uncertainty remains concerning antitrust alignment with the U.S. Department of Justice, say attorneys at Simpson Thacher.

AGs' Paramount Settlement Reflects States' Growing Influence

The recent California federal court approval of the California v. Paramount Skydance settlement illustrates how state attorneys general are gaining new independence and influence, and companies must account for state enforcement when assessing merger risks ahead of a deal's closing, say attorneys at Norton Rose.

OCC Plan May Bring Data Sharing Flexibility, Diligence Issues

The Office of the Comptroller of the Currency's recent proposal to overhaul its supervisory information sharing regime for the first time in decades would provide important flexibility to banks, but it could create new issues around confidentiality agreements, disclosure controls and diligence processes, say attorneys at Simpson Thacher.

When Indemnity, Purchase Price Adjustment Claims Overlap

The Delaware Court of Chancery's recent decision in WSP v. Versar highlights that courts are willing to enable a buyer to select either indemnity or purchase price adjustment mechanisms, even if the parties did not envision that when negotiating the purchase agreement, says Claire Frost at Arnold & Porter.

CFIUS Annual Report Reveals Enforcement Trends

The Committee on Foreign Investment in the United States' recently published annual report to Congress shows that it is increasingly focused on nonnotified transactions, mandatory filing compliance, critical technologies and postclosing mitigation enforcement across the full life cycle transactions, say attorneys at Bass Berry.

FTC Hospital Review Shows Hurdles To Failing-Firm Defense

The Federal Trade Commission's recent announcement about Fairfield Medical Center's abandoned sale to OhioHealth shows why financially distressed sellers must conduct an adequate buyer search before using the failing-firm defense to argue that enforcers should overlook competition concerns, say attorneys at Alston & Bird.