Sens., AGs Unite To Raise Alarm On State AI Moratorium

By Allison Grande

A sweeping proposal being considered by Congress to strip states of the ability to regulate artificial intelligence for a decade would do more harm than good, especially if there continues to be no similar protections in place at the federal level, a bipartisan quartet of U.S. senators and state attorneys general said Wednesday. 

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US Seizes $225M In Crypto Tied To 'Pig Butchering' Schemes

By Aislinn Keely

Law enforcement on Wednesday asked a Washington, D.C., federal judge to help it return more than $225.3 million worth of stolen digital assets to victims of phony crypto investment schemes, including to a small Kansas bank that failed after its CEO got entangled in a so-called pig butchering scheme, as part of what the U.S. Department of Justice called its largest ever seizure connected with such scams.

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Trump Set To Delay TikTok Sale-Or-Ban Deadline For 3rd Time

By Allison Grande

President Donald Trump is planning to extend for an additional 90 days a looming deadline for TikTok to cut ties with its Chinese parent company or face a nationwide ban, according to the White House, which said that the administration would use the extra time to finalize a deal to keep the popular social media app from going dark. 

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Opt-Out 'Oversight' May Not Excuse Burford In Price-Fix Deal

By Lauraann Wood

An Illinois federal judge considering a $32 million price-fixing settlement between turkey producer Cargill and a group of direct purchasers seemed skeptical Wednesday of two Burford Capitol subsidiaries' assertion that they should be considered excluded from the deal despite submitting their opt-out request a day late.

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Ex-Yankee Scores $222K Jury Award In Moldy Mansion Trial

By Brian Steele

A Connecticut federal jury on Wednesday awarded retired New York Yankees third baseman Joshua Donaldson more than $222,000 in a dispute with a former landlord he blamed for the presence of mold in a Greenwich mansion, and a judge is expected to double a substantial portion of that amount.

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Judge Skeptical That Assa Abloy Needn't Extend Supply Deal

By Bryan Koenig

A D.C. federal judge suggested Tuesday that Assa Abloy faces an uphill fight resisting efforts by its divestiture buyer to extend a supply agreement inked as part of an asset sale deal resolving a U.S. Department of Justice merger lawsuit.

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FTC, Amazon Trade Blows Over Attempts To End Prime Case

By Rachel Riley

The Federal Trade Commission and Amazon have slammed one another in federal court filings over their competing bids to win regulators' case targeting Prime subscription enrollment practices, continuing to spar over the applicability of a consumer protection law shielding online shoppers.

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Mississippi Social Media Law Blocked Again By Federal Judge

By Craig Clough

A Mississippi federal judge reinstated a preliminary injunction Wednesday that blocks a state law requiring digital service providers to verify users' ages and social media platforms to acquire parental consent for a minor's account, preventing it from taking effect after the Fifth Circuit lifted the court's previous injunction.

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23andMe Seeks To Ease Concerns Over Sale To Founder

By Ben Zigterman

Several states indicated Wednesday they may no longer oppose the $305 million sale of 23andMe to a nonprofit led by Anne Wojcicki, a co-founder of the company, after the debtor structured the transaction as an equity transfer.

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DC Judge Throws Out Suits Over J&J Drug Discount Audits

By Ali Sullivan

A D.C. federal judge nixed five lawsuits brought by hospitals that accused federal healthcare regulators of illegally authorizing Johnson & Johnson to audit their business records for compliance with the 340B drug discount program.

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OCC Orders Earnings, Strategy Overhaul For 'Troubled' Carver

By Jon Hill

Carver Federal Savings Bank, one of the nation's largest Black-led banks, has agreed to undertake new strategic planning and efforts to improve its earnings in response to regulatory concerns flagged by the Office of the Comptroller of the Currency.

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Bills On Both Sides Of Capitol Hill Seek Tech Deployment Help

By Christopher Cole

Rural wireless companies praised the recent filing of bills in both chambers of Congress to expand responsibility for funding phone and broadband subsidies to edge providers and tech companies, saying the programs are "no longer sustainable" without more revenue sources.

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Psychedelics And The Law In Focus At Colo. Conference

By Sam Reisman

Colorado Gov. Jared Polis announced a pardon for all state-level convictions for psilocybin and psilocin possession at a psychedelics conference this week, in recognition that these substances are now legal in the state and in another indication that their relationship with the law is in flux.

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Union Praises NY Bills On AI In Advertisements, Digital Rights

By Elliot Weld

Entertainment labor union SAG-AFTRA has applauded the passage of two bills by the New York State Legislature that would require the disclosure of advertisements' use of artificial intelligence-generated performers and for permission to be obtained to use digital renderings of deceased performers in expressive works.

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Brief

Senate Adds Full 5-Year Term For New FCC Commissioner

By Christopher Cole

The U.S. Senate on Wednesday confirmed Olivia Trusty, a newly added member of the Federal Communications Commission, to serve another five years in addition to the term ending June 30 that lawmakers had approved the day before.

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Ex-Drug Exec Must Testify, But Keeps 5th Amendment Rights

By Bryan Koenig

Sandoz, Teva, Actavis and Taro can again subpoena the deposition testimony of a former Actavis and Teva executive, but a Pennsylvania federal judge is still allowing the witness to invoke his Fifth Amendment rights against self-incrimination, even though the Justice Department dropped the criminal charges against him.

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AGs Tell 3rd Circ. To Close 'Loophole' In Kalshi Betting Case

By Abigail Harrison

A bipartisan group of attorneys general co-led by Ohio Attorney General Dave Yost, a Republican, pressed the Third Circuit to prevent trading platform Kalshi's "broad preemptive coup," urging the appellate court to allow New Jersey to regulate the company.

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GM Hit With New Class Action Over V8 Engine Defect

By Linda Chiem

General Motors LLC misled consumers by knowingly selling hundreds of thousands of SUVs and trucks with potentially deadly defective engines that could suddenly fail, according to a proposed class action filed Wednesday in Michigan federal court.

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9th Circ. Backs Papa John's Win Against Wiretapping Suit

By Gina Kim

The Ninth Circuit refused to reinstate a customer's proposed class action accusing Papa John's of recording website visitors' activities in violation of the California Invasion of Privacy Act, ruling Wednesday the pizza chain, as a party to the communications, can't be liable for spying on its own conversation. 

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Reddit Execs Downplayed Google AI's Impact, Investors Say

By Lauren Berg

Reddit and its top brass downplayed the impact Google's artificial intelligence-generated search results had on the forum website's traffic and ad revenues, causing stocks to drop when the truth emerged about weakening revenues, according to an investor's proposed class action filed Wednesday in California federal court.

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FDA Says Vape Co.'s Suit Doesn't Merit Jury Trial

By Spencer Brewer

The U.S. Food and Drug Administration told a Texas federal court a company that allegedly sold illegal vapes does not have the right to a jury trial, saying that Congress expressly created administrative proceedings for infractions such as the one the company allegedly committed.

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Pollution Insurer Says Cos. Not Covered In Groundwater Row

By Ganesh Setty

A pollution liability insurer for an oilfield services company told a Texas federal court it owes no coverage for two lawsuits accusing the company and a former subsidiary of groundwater contamination, arguing the company breached its claim reporting requirements and knew of the alleged contamination before purchasing coverage.

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Cleo AI Wants Service Member's Predatory-Lending Suit Nixed

By Emilie Ruscoe

Online lender Cleo AI Inc. is seeking the dismissal of claims that it targeted military members with predatory lending practices, arguing that under relevant law, its "non-recourse advances" don't count as credit — and that, anyway, its users all agreed to arbitrate any disputes when they signed up to use its services.

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Union Urges Del. Justices To Refloat BofA Benefit Card Suit

By Jeff Montgomery

Delaware's chief justice pressed an attorney for Bank of America stockholders Wednesday to "drill down to the bad faith" during an appeal for revival of a Chancery Court suit accusing the company of intentionally prioritizing profits over compliance in managing unemployment benefit cards during the COVID-19 pandemic.

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NY Exterminator Says Its 'Black Widow' TM Is 'Incontestable'

By Aaron Keller

A downstate New York pest exterminator on Wednesday urged a Connecticut federal judge to rule that a Constitution State competitor infringed its logo and confused customers, arguing it owns "valid, incontestable" trademarks that have been in use since 2003.

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Sotera Investors Urge 6th Circ. To Reopen Toxic Gas Suit

By Jessica Corso

Sotera Health investors are seeking to revive a lawsuit accusing the company of concealing the carcinogenic nature of a gas used at its sterilization plants, telling the Sixth Circuit that the company knew that its "outrageous and cynical" behavior would cost it hundreds of millions of dollars.

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DOJ Defends Using Written Depos In HPE-Juniper Merger Trial

By Jared Foretek

The U.S. Department of Justice is defending its proposal to include written deposition testimony into the record for its upcoming antitrust trial against Hewlett Packard Enterprise's $14 billion purchase of Juniper Networks, saying that playing depositions live would waste crucial time in what is scheduled to be an eight-day trial.

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Brief

Tesla Says Justices Shouldn't Wait On La. Auto Sales Law

By Nadia Dreid

Tesla is asking the U.S. Supreme Court not to push off considering Louisiana regulators' petition seeking to appeal the revival of a lawsuit brought by the electric-car maker targeting the state's ban on direct sales by automakers, even though the state has asked the justices to wait.

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Brief

Belk Didn't Protect Private Info From Data Breach, Suits Say

By Hayley Fowler

Belk Inc. allegedly failed to safeguard the personal information of its employees and customers from hackers, resulting in a cyberattack that the department store chain has reportedly concealed, according to a pair of class action lawsuits filed in North Carolina.

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Brief

Consumers Drop Gore-Tex 'Greenwashing' Class Suit

By Jonathan Capriel

Consumers suing the maker of the waterproof fabric Gore-Tex are looking to end, for now, their proposed class action against the company alleging W.L. Gore & Associates used toxic forever chemicals to manufacture its material while also "greenwashing" its image.

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Series

Law School's Missed Lessons: Teaching Yourself Legal Tech

New graduates often enter practice unfamiliar with even basic professional software, but budding lawyers can use on-the-job opportunities to both catch up on technological skills and explore the advanced legal and artificial intelligence tools that will open doors, says Alyssa Sones at Sheppard Mullin.

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DOJ Memo Lays Groundwork For Healthy Bank Sponsorships

The U.S. Department of Justice's recent digital asset policy shift offers potential clarity in the murky waters of sponsor bank relationships, presenting nontraditional financial companies with both a moment of opportunity and a test of maturity, say attorneys at Arnall Golden.

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Atkins' Crypto Remarks Show SEC Is Headed For A 'New Day'

A look at U.S. Securities and Exchange Commission Chairman Paul Atkins' recent speeches provides significant clues as to where the SEC is going next and how its regulatory approach to crypto will differ from that of the previous administration, say attorneys at Eversheds Sutherland.

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When Rule 12 Motions Against Class Allegations Succeed

Companies facing class actions often attempt early motions to strike class allegations, and while some district courts have been reluctant to decide certification issues at the pleading stage, several recent decisions have shown that Rule 12 motions to dismiss or strike class allegations can be effective, say attorneys at Womble Bond.

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'Absolutely Disgusting': Litigant's Stashed Gum Irks Judge

By Hailey Konnath

A Florida federal judge admonished a plaintiff for sticking her chewed gum to a courtroom table, leading to a federal prosecutor getting the gum stuck to her skirt later, calling it "absolutely disgusting" and saying he "never dreamed" he would have to "write an order like this."

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9th Circ. Backs 'Legitimate' Bar Membership Admission Rules

By Lauren Berg

The Ninth Circuit on Friday tossed a challenge to local rules in district courts in the circuit requiring lawyers to be bar members in the state where the court is located in order to seek general admission, saying admission rules aren't unconstitutional and there are several "legitimate reasons" for the rule.

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In Case You Missed It: Hottest Firms And Stories On Law360

For those who missed out, here's a look back at the law firms, stories and expert analyses that generated the most buzz on Law360 last week.

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Law360's Legal Lions Of The Week

By Kevin Penton and Andrea Keckley

WilmerHale leads this week's edition of Law360 Legal Lions, after the Federal Circuit vacated a $300 million patent infringement jury verdict against Apple, based on instructions by a Texas federal judge that the appellate court panel determined to be erroneous.

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Feature

Current And Former GCs Urge Law Grads To 'Rise Up'

By Michele Gorman

From sharing details about being part of the first class of female graduates at Washington and Lee University School of Law to explaining how a middle-school teaching job led to obtaining a law degree, five commencement speakers — all current or former general counsel — recently shared their wisdom for the next generation of attorneys.

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Trump Taps Atty Dropped By Biden For Eastern Ky. Fed. Court

By Ali Sullivan

President Donald Trump has announced plans to nominate former Kentucky Solicitor General Chad Meredith to serve as a judge for the U.S. District Court for the Eastern District of Kentucky.

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NJ Court Greenlights Beasley Allen Attys In Talc Litigation

By George Woolston

A New Jersey state judge will allow two Beasley Allen Law Firm attorneys to represent a California couple in their suit accusing Johnson & Johnson of selling carcinogenic talc-based baby powder and appear pro hac vice despite the company's vehement opposition.

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GC Cheat Sheet: The Hottest Corporate News Of The Week

By Sue Reisinger

A new report showed a dip in the average size of corporate legal teams over the last year, and an attorney focused on special purpose acquisition companies is predicting the Trump administration's friendly stance on cryptocurrency will spawn a wave of new cryptocurrency-related ventures going public in the coming months. These are some of the stories in corporate legal news you may have missed in the past week.

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Attys Face Sanctions For 'Sweeping' Copying Of Firm's Motion

By Dorothy Atkins

A California federal judge has ordered The Neil Jones Food Co.'s defense counsel to explain why she shouldn't sanction them for filing a dismissal motion that appears to plagiarize a losing motion filed by another firm in another case in the district, slamming the "sweeping copy and paste" conduct as "patently unacceptable."

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Roundup

UK Litigation Roundup: Here's What You Missed In London

By Laura Stewart Liberty

This past week in London has seen Pogust Goodhead face legal action from mining giant BHP Group, Trainline bring a procurement claim against the Department for Transport, Sworders auction house sue Conservative peer Patricia Rawlings, and Nokia hit with a patents claim by Hisense. Here, Law360 looks at these and other new claims in the U.K.

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