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.

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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. 

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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.

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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.

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How They Won It

How A Casino Analogy Helped Win A Short-Swing Profits Trial

By Katryna Perera

To win a first-of-its-kind securities trial over short-swing profits, attorneys at Freshfields LLP knew they needed to find the right analogy to showcase their argument, even if it meant comparing the case to a craps table at a casino.

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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.

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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.

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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.

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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.

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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.

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Texas Judge Calls Late Bid To Disqualify Atty 'Dilatory Tactic'

By Spencer Brewer

A Texas federal judge on Tuesday denied a request to disqualify an attorney representing the former chief executive of a real estate company related to the late mogul Gene Phillips, saying the attempt to knock out the attorney came way too late in the game.

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Cava Board, Execs Sued In Del. Over $2.2B Stock Sales

By Jarek Rutz

A Cava Group Inc. stockholder has filed a derivative lawsuit in the Delaware Chancery Court accusing the Mediterranean restaurant chain's top executives and directors of using confidential internal forecasts to sell more than $2.2 billion worth of company stock before the company's growth outlook weakened and its share price fell.

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Penske Accused Of Scheming To Buy Golden Globes

By Matthew Perlman

The Hollywood Foreign Press Association sued Penske Media Corp. in California federal court Tuesday, accusing the company and owner Jay Penske of orchestrating a scheme to fraudulently acquire the Golden Globe Awards as part of a bid to dominate the market.

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Tesla Told To Disclose Reported Events In Fla. Fatal Crash Suit

By David Minsky

A Florida judge ruled on Tuesday that a Tesla engineer must disclose all publicly reported incidents in an internal database, affirming a special magistrate's order in a lawsuit accusing the carmaker of negligence stemming from a crash that killed the driver and his 19-year-old passenger. 

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LG Can't Arbitrate Stockholder Suit, Chancery Says

By Jarek Rutz

The Delaware Chancery Court has refused to send fiduciary duty claims against LG, its U.S. subsidiary and several executives to arbitration, ruling that an investor's derivative lawsuit over the governance of advertising technology company Alphonso must remain in the Delaware court.

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Wachtell Lipton Co-Chair Joins Gibson Dunn In 6-Atty Move

By Ryan Boysen

Gibson Dunn & Crutcher LLP has brought on former Wachtell Lipton Rosen & Katz co-chair William Savitt and his powerhouse five-person corporate litigation team, a seismic move even by the standards of the current white-hot lateral market.

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Sullivan & Cromwell Rehires DOJ Lawyer For Antitrust Work

By Jack Rodgers

A former U.S. Department of Justice trial attorney who worked on the government's successful challenge of the Northeast Alliance partnership between American Airlines and JetBlue has rejoined Sullivan & Cromwell LLP as a partner in the firm's antitrust practice.

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What New USDA 'Beneficial Owner' Definition Means For Cos.

The U.S. Department of Agriculture's recent pitch to add a new "beneficial owner" definition to its foreign-owned land reporting framework would overhaul how fund managers and joint venture participants report U.S. agricultural land interests, creating diligence risks as companies reassess governance rights and management structure, say attorneys at Arnold & Porter.

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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.

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Assessing DOJ Antitrust's New, Faster Merger Review Option

The U.S. Justice Department Antitrust Division's recently announced targeted second request option and new model timing signal a commercially friendly stance and a departure from the prior administration's position, say attorneys at Paul Weiss.

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How High Court Pepsi Case Could Brew TM Strategy Shift

The U.S. Supreme Court's forthcoming decision in RiseandShine v. PepsiCo will determine whether a judge or jury decides trademark strength in infringement disputes, which could meaningfully change early-stage motion practice, discovery and what evidence is needed to prove a mark is strong, says Rachel Scobie at Merchant & Gould.

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How Does In-House Pay Compare? Take The Law360 Survey

How do in-house salaries vary across industries, roles, and organizational revenue? What compensation tools are companies using to lure top talent? Help Law360 Pulse answer these questions and more in this year's In-House Compensation Survey.

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Simpson Thacher Hung Client Out To Dry, Jury Hears

By Madison Arnold

A legal ethics expert told a Florida jury Wednesday that he believes Simpson Thacher & Bartlett LLP's actions when representing Patriot National Inc. constitute legal malpractice leading up to the insurance services company declaring bankruptcy.

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Senate Postpones Key Vote For AG Nominee Blanche

By Courtney Bublé

The committee vote on acting Attorney General Todd Blanche's bid to take the permanent role, slated for Thursday, was postponed after Sens. John Cornyn, R-Texas, and Thom Tillis, R-N.C., were not fully on board.

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GOP Bill To Curb Judge Shopping May Have Limited Effect

By Courtney Bublé

A Senate Republican has introduced legislation that he says will fix the judge shopping issue, but court observers don't think it will make much of a difference.

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King & Spalding Told To End 'Shenanigans' In Bid To Exit Case

By Brian Steele

The individual defendants in a $300 million fraud lawsuit have accused King & Spalding LLP of appellate "shenanigans" while it seeks to exit the case due to an alleged ethics conflict, claiming the firm has falsely denied representing corporate clients despite an attorney's appearance suggesting otherwise.

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9th Circ. Vacates Orrick Win In Stock Transfer Deal Dispute

By Hailey Konnath

The Ninth Circuit on Wednesday reversed a lower court's finding that Orrick Herrington & Sutcliffe LLP can't be held liable in a battle over a stock transfer agreement gone awry, ruling that California law does allow a party to the transfer to pursue equitable indemnity in the case.

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DOJ Wants To Let Immigration Judges Fine For Contempt

By Britain Eakin

The Executive Office for Immigration Review proposed a rule Wednesday that would allow immigration judges to impose civil monetary penalties for contempt on attorneys, their noncitizen clients and witnesses, operationalizing a power that has lain dormant since 1996.

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Legal Aid Union Alleges Unlawful Incentives To Break Strike

By Andrea Keckley

The Neighborhood Defender Services of Harlem union announced on the third workday of its strike Tuesday that it has filed unfair labor practice charges with the National Labor Relations Board, accusing its management of offering unlawful incentives to cross the picket line.

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Former Trump Lawyer Officially Takes The Helm At SDNY

By Hailey Konnath

James McDonald, a former Sullivan & Cromwell LLP partner who represented President Donald Trump in his appeal of his criminal conviction, was sworn in as U.S. attorney for the Southern District of New York on Wednesday after McDonald's predecessor Jay Clayton departed to serve as director of national intelligence.

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2nd Circ. Backs Ex-Shkreli Atty's 401(k) Restitution Deal

By Lauren Berg

A New York trial judge erred in rejecting a retirement-fund garnishment deal that would have protected Martin Shkreli's convicted former lawyer from tax penalties, the Second Circuit ruled Wednesday.

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DOJ Wants New Judge In Fired Court-Appointed US Atty's Suit

By Jack Karp

A lawsuit from the Seattle U.S. attorney who was swiftly fired from his post by President Donald Trump shortly after being appointed to it by a federal court should be reassigned to a different judge, the administration has told a Washington federal court.

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Segal McCambridge Settles Fired Secretary's Age Bias Suit

By Grace Elletson

Law firm Segal McCambridge Singer & Mahoney Ltd. has struck a deal to end a New York federal court suit from a former secretary who said her colleagues mistreated her because of her age, according to a Wednesday court filing.

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Comey Rips '86 47' Case, Says Warrants 'Misstated Facts'

By Lauren Berg

James Comey is taking another angle in his effort to dismiss an indictment stemming from a picture of seashells he posted on Instagram, telling a North Carolina federal judge that the government is pursuing the "vindictive" case because of President Donald Trump's "deep-seated animosity" toward the former FBI director.

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