In-House Legal Operations' Stubborn 'Shadow AI' Problem

By Anna Scott Farrell

As in-house legal departments adopt artificial intelligence tools, legal operations pros say that unauthorized use of AI by employees, known as “shadow AI,” raises security and governance concerns.

Read full article » | Save to favorites »

Like Milli Vanilli, Goldman FCPA Case Is A Ruse, Jury Told

By Stewart Bishop

The government's foreign bribery case accusing a former Goldman Sachs banker of paying off Ghanaian officials to secure a lucrative energy deal is a lot like Milli Vanilli, his lawyer told a New York jury Tuesday, arguing that much like lipsynced songs of the fake late-1980s-era pop duo, prosecutors' version of events is not what it appears to be.

Read full article » | Save to favorites »

EBay, Former Execs To Pay $55.7M Over Couple's Harassment

By Julie Manganis

A Massachusetts couple who were stalked and harassed by a group of eBay employees over their blog's coverage of the e-commerce giant reached a $55.7 million settlement with the company and several former executives.

Motion attached | Read full article » | Save to favorites »

Teva Can't 'Literally Whine' Of Being Held To DOJ Admissions

By Bryan Koenig

A Pennsylvania federal judge has taken Teva to task for trying to avoid being held to its admissions of price-fixing in a $225 million settlement with the U.S. Department of Justice, ruling that Humana can use those admissions in one of the first bellwether trials in sprawling multidistrict litigation.

Opinion attached | Read full article » | Save to favorites »

1st Circ. Skeptical That JPMorgan AI Tool Broke Mass. Law

By Anne Cullen

A First Circuit panel appeared doubtful Tuesday that an artificial intelligence-powered applicant screening tool used by JPMorgan Chase & Co. constituted the kind of lie detector test that Massachusetts law bars employers from using in interviews. 

Read full article » | Save to favorites »

Analysis

Activists Shift Focus To M&A, AI In Quieter Proxy Season

By Al Barbarino

A surge in mergers and acquisitions-focused activist campaigns in the first half of 2026 came as companies adjusted to the universal proxy regime and activists increasingly turned to artificial intelligence to identify targets, according to a Diligent Market Intelligence report released on Tuesday.

Read full article » | Save to favorites »

Fed's 'Skinny' Accounts Need Failure Safeguards, Critics Say

By Jon Hill

As the Federal Reserve moves closer to giving fintech and crypto firms a direct on-ramp to its payment rails, critics inside and outside the banking industry say it needs a more robust off-ramp for those that get into trouble or fail.

6 documents attached | Read full article » | Save to favorites »

Calif. Warns SEC Against Preempting State REIT Registration

By Jessica Corso

California is urging the U.S. Securities and Exchange Commission not to adopt a proposal that could free certain real estate investment trusts and business development companies from registering with the states, saying it could leave retirees and the elderly vulnerable to fraud.

4 documents attached | Read full article » | Save to favorites »

Senators Urge CFTC Rule Slowdown Over Tribal Concerns

By Crystal Owens

Leaders of the U.S. Senate Indian Affairs Committee are urging the U.S. Commodity Futures Trading Commission to extend the public comment deadline for its proposed rule that could govern the way the agency oversees prediction markets, saying it's critical that Indigenous nations have time to evaluate its effects.

Letter attached | Read full article » | Save to favorites »

DC Circ. Backs EPA's Pollution Review Regulation Process

By Jared Foretek

A D.C. Circuit panel sided with the U.S. Environmental Protection Agency in its fight with environmental groups challenging rules for determining whether modifications to major pollution sources trigger new review, holding Tuesday the rule is neither inconsistent with the Clean Air Act nor arbitrary and capricious.

Opinion attached | Read full article » | Save to favorites »

Wash. Panel Upholds DoorDash's $14.5M Insurance Penalty

By Gina Kim

DoorDash must pay $14.5 million in taxes and penalties for failing to pay its Dashers' industrial insurance premiums each quarter from 2017 to 2019, Washington appellate judges ruled Tuesday, finding the Dashers were covered workers under state law since their personal labor was the essence of their contracts.

Opinion attached | Read full article » | Save to favorites »

Houston's Race-Conscious Contracting Program Struck Down

By Spencer Brewer

A Texas federal judge on Tuesday ruled that Houston's program awarding public contracts on a race-conscious basis violated the Fourteenth Amendment in the first federal challenge to such a program following the U.S. Supreme Court's 2023 decision striking down affirmative action admissions policies.

Opinion attached | Read full article » | Save to favorites »

Judge Mulls Pausing Medicaid Work Rule For 'Frail' Recipients

By Julie Manganis

A Massachusetts federal judge said Tuesday he anticipates deciding by the end of the week whether the Trump administration will have to pause part of a new rule states must follow in determining whether medically frail Medicaid recipients are exempt from new work or school requirements.

Read full article » | Save to favorites »

Analysis

340B Appellate Cases To Watch In The 2nd Half Of 2026

By Mark Payne

Drugmakers are pressing appellate judges in the back half of 2026 to strike down state laws blocking them from restricting 340B contract pharmacy arrangements. Law360 Healthcare Authority has the cases to watch.

Read full article » | Save to favorites »

Nursing Facility Pays $15M In Calif. AG's Understaffing Suit

By Gina Kim

Sweetwater Care and its affiliates agreed to resolve the California attorney general's consumer protection suit alleging they understaffed their skilled nursing facilities in more than 14,000 instances, exposing patients to neglect, abuse and injury with delayed care, while the defendants accepted nearly $200 million from Medicare and Medi-Cal.

2 documents attached | Read full article » | Save to favorites »

FCC Pulls Major Provider From Lifeline, Citing Violations

By Nadia Dreid

The Federal Communications Commission says it has banned one of the nation's biggest Lifeline providers from participating in the subsidy program after uncovering widespread violations of the program's rules, including a practice of transferring people back after they switched their service to another provider.

Read full article » | Save to favorites »

FCC Says Starlink Routers Exempt From Nat'l Security Ban

By Nadia Dreid

The Federal Communications Commission has banned virtually all foreign-made routers from the United States, citing national security concerns, but it isn't worried about ones made by billionaire Elon Musk's satellite internet company Starlink.

Notice attached | Read full article » | Save to favorites »

Brief

Humanoids, Other Robotics Added To FCC's Nat'l Security List

By Christopher Cole

The Federal Communications Commission said Tuesday that humanoids and other advanced robotics newly produced in foreign countries will be included on the "covered list" of products restricted from U.S. importation and marketing.

Read full article » | Save to favorites »

1st Circ. Asked To Save Mayer Brown $21M Fee Bid In RI Suit

By Linda Chiem

The American Trucking Associations told the First Circuit that its attorneys at Mayer Brown LLP reasonably justified their request for $21 million in fees and costs after securing "substantial" wins in long-running litigation over Rhode Island's truck tolling program, disputing a district court's determination that the trucking trade group wasn't actually a "prevailing party."

Brief attached | Read full article » | Save to favorites »

Watchdog Org. Asks Court For Trump-IRS Deal Docs

By Zak Kostro

A watchdog organization asked a D.C. federal court to order the government to disclose communications relating to the settlement between President Donald Trump and the Internal Revenue Service over leaks of his tax information.

Complaint attached | Read full article » | Save to favorites »

Texas Workers Seek To Void IRS Wage Withholding Regs

By Kat Lucero

The Internal Revenue Service's income tax withholding regulations resulted in employers overdeducting taxes from their employees' paychecks, two workers told a Texas federal court, arguing the agency's rulemaking violated the Administrative Procedure Act.

Complaint attached | Read full article » | Save to favorites »

High Court, SEC Proposals Set Stage For Further Fund Reform

The U.S. Supreme Court's recent decision in FS Credit Opportunities v. Saba Capital Master Fund and the U.S. Securities and Exchange Commission's proposed rulemaking packages aimed at public market reforms provide a constructive backdrop for considering additional innovations to the listed fund structure, say attorneys at Debevoise.

Read full article » | Save to favorites »

NRC Proposal May Reshape Radiation Protection Framework

The U.S. Nuclear Regulatory Commission’s proposal to drop the long-standing requirement to keep radiation exposure "as low as reasonably achievable," alongside the U.S. Department of Energy's removal of ALARA from its own rules, suggests a broader federal reassessment of radiation protection policy, say attorneys at Womble Bond.

Read full article » | Save to favorites »

Ala. Bank Case Tells A Cautionary Tale On Collateral Risks

The Alabama Supreme Court's recent decision in U.S. Bank Trust National v. Bonilla, concerning a residential foreclosure gone awry, teaches that, beyond the common refrain of knowing your customer, banks should also take steps — such as obtaining a survey or purchasing title insurance — to know their collateral, says Danielle Douglas at Adams & Reese.

Read full article » | Save to favorites »

State Of Insurance: Q2 Notes From Pennsylvania

Todd Leon at Marshall Dennehey highlights notable second-quarter insurance developments in Pennsylvania, including federal court opinions providing guidance on first-party and third-party insurance coverage principles, and a pending bill seeking to regulate health insurers' use of artificial intelligence.

Read full article » | Save to favorites »

Rare DOJ Military Bias Suit Shows Peril Of Co. Admissions

Although the government rarely litigates Uniformed Services Employment and Reemployment Rights Act claims against private employers, Opara v. UV Memory Care demonstrates that it will do so when an employer's own admissions build the case, potentially resulting in significant compliance obligations and long-term consequences, says Bradford Kelley at Littler.

2 documents attached | Read full article » | Save to favorites »

Trader In BigLaw Deal-Tipping Scheme To Plead Guilty

By Chris Villani

A Florida resident is set to plead guilty to his alleged role in a sweeping scheme to trade on insider information about impending acquisitions that was stolen from major law firms, according to a court filing Tuesday.

Motion attached | Read full article » | Save to favorites »

Simpson Thacher Stock Work Hurt 2 Companies, Jury Told

By Madison Arnold

The chief financial officer for an insurance company told a Florida jury Tuesday that a stock drop for Patriot National Inc. — which is suing Simpson Thacher & Bartlett LLP for malpractice for allegedly putting together a shoddy securities offering — dramatically affected his own business as well.

Read full article » | Save to favorites »

AT&T Whistleblower Told To Cut Facts From Ethics Case Filing

By Sue Reisinger

Former AT&T in-house counsel and whistleblower Theodore Marcus has been asked to delete part of his response to professional misconduct charges pending against him in Washington, D.C., because the filing allegedly contains privileged information.

Read full article » | Save to favorites »

Winston Taylor Seeks Sanction Against Ex-Client Hunter Biden

By Rae Ann Varona

Winston Taylor urged a D.C. state court on Monday to sanction its former client Hunter Biden in its legal bills collection suit, saying the former president's son destroyed Signal communications that would have proved he understood that he owes the law firm more than $50,000.

2 documents attached | Read full article » | Save to favorites »

Court Is In Session Whenever A Judge Says It Is, 6th Circ. Told

By Susan Smiley

Court is wherever and whenever a judge says it is, counsel for a Detroit judge told a Sixth Circuit panel Tuesday, arguing that subjecting a student to a mock arrest and trial because she fell asleep during a field trip was within his jurisdiction.

Memorandum attached | Read full article » | Save to favorites »

Senate Confirms Jay Clayton As National Intelligence Chief

By Madeline Lyskawa

The U.S. Senate voted Tuesday to confirm Jay Clayton as director of national intelligence, two weeks after Clayton, the former U.S. attorney for the Southern District of New York, refused to answer who he thought won the 2020 election during his confirmation hearing.

Read full article » | Save to favorites »

Queens Defenders Head Gets 3.5 Years For Looting The Nonprofit

By Pete Brush

A Brooklyn federal judge on Tuesday sentenced the former director of the Queens Defenders to more than 3.5 years in prison after the longtime attorney admitted to a course of embezzlement that destroyed the group dedicated to legal services for the poor.

5 documents attached | Read full article » | Save to favorites »