The renewed push to block states from enacting laws to regulate emerging artificial intelligence technologies is unlikely to make it into a defense funding bill expected to pass by the end of the year, the House's second highest-ranking Republican has confirmed, although he stressed that the proposal was still active and could resurface elsewhere. 
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THURSDAY, DECEMBER 4, 2025 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

State AI Law Ban Cut From Defense Bill As Fight Continues

By Allison Grande

The renewed push to block states from enacting laws to regulate emerging artificial intelligence technologies is unlikely to make it into a defense funding bill expected to pass by the end of the year, the House's second highest-ranking Republican has confirmed, although he stressed that the proposal was still active and could resurface elsewhere. 

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Chats Show Ex-NY Gov Aide Was Tight With Chinese Officials

By Stewart Bishop

Jurors weighing the fate of a former aide to two New York governors have seen a raft of chats and other documents over several days that the feds say support their case alleging she violated the Foreign Agents Registration Act, including communications that seem to suggest she had a close working relationship with several Chinese government officials.

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Judge Rejects X's Early Attempt To Block Minn. Deepfake Law

By Elliot Weld

A Minnesota federal judge has denied X Corp.'s request for a favorable ruling in its challenge to a Minnesota state law curtailing the dissemination of "deepfakes" aimed at influencing elections, saying X had not shown that it could be harmed by the law in a manner that would give it standing to block it.

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Citibank Says Developer Can't Blame It For $45M Wire Scam

By Joyce Hanson

Citibank NA has urged a California federal judge to toss a suit by a real estate developer who accidentally wired $45 million in home-purchase funds to a fraudster after receiving spoofed escrow emails.

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ENFORCEMENT

Calif. Privacy Agency Hits Marketer For Broker Registry Lapse

By Allison Grande

A Nevada-based marketing firm that builds custom audience lists for fitness and wellness brands has become the latest target of the California Privacy Protection Agency's efforts to police data brokers, with state officials announcing Wednesday the company had agreed to pay a $56,600 penalty for failing to register as a data broker.

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LITIGATION

Judge To OK $16.5M 23andMe Insurer Buyback Deal In Ch. 11

By Emily Lever

A Missouri bankruptcy judge Wednesday agreed to approve a $16.5 million settlement between genetic testing company 23andMe and its insurers, in which the carriers proposed to buy back the unused portion of their cyber coverage.

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Binance User Gets New Shot At Suit Over 1,400 Bitcoin Theft

By Katryna Perera

A Florida state appeals court Wednesday reversed the dismissal of a suit brought against Binance by a Dubai resident claiming the cryptocurrency exchange failed to take adequate steps to stop the theft of 1,400 bitcoin in a phishing scam.

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EXPERT ANALYSIS

SEC Penalties Trended Down In FY 2025, Offering 2026 Clues

The U.S. Securities and Exchange Commission's settled corporate penalties in fiscal year 2025 show a clear dividing line, as the largest penalties all came before Inauguration Day, a trend that may continue as the types of cases that lead to the biggest penalties seem to be no longer favored by the commissioners, say attorneys at Dentons.

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Minn. Financial Abuse Law Should Prompt Operational Review

A new Minnesota law targeting the financial exploitation of vulnerable adults with an order-for-protection mechanism will affect multiple functions across banking organizations, and in the time remaining in 2025, banks should take action to update any needed workflow and documentation protocols, say attorneys at Winthrop & Weinstine.

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And Now A Word From The Panel: A New Rule For MDLs

With a new federal rule of civil procedure dedicated to multidistrict litigation practice taking effect this month, MDL watchers will be keeping on eye on whether the rule effectively serves its purpose of ensuring that only supportable claims proceed in MDLs, says Alan Rothman at Sidley.

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Series

Law School's Missed Lessons: Practicing Client-Led Litigation

New litigators can better help their corporate clients achieve their overall objectives when they move beyond simply fighting for legal victory to a client-led approach that resolves the legal dispute while balancing the company's competing out-of-court priorities, says Chelsea Ireland at Cohen Ziffer.

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LEGAL INDUSTRY

Bonus Spotlight

High Billers At McKool Smith To Pocket Extra Bonus Money

By Tracey Read

McKool Smith is the latest BigLaw firm to announce extra cash for attorneys who went above and beyond with billable hours in 2025, according to an internal memo obtained by Law360 Pulse.

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Wilson Sonsini To Switch Leaders For 1st Time Since 2012

By Andrea Keckley

Wilson Sonsini Goodrich & Rosati PC announced plans for its first top leadership transition in more than a decade on Wednesday, tapping a Palo Alto, California-based litigator and a New York-based corporate lawyer to begin co-leading the firm at the start of next August.

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Ex-Bernstein Litowitz Atty Starts Firm After Contentious Exit

By Adrian Cruz

A former Bernstein Litowitz Berger & Grossmann LLP partner known for handling high-profile stockholder cases has led the launch of a boutique focused on corporate disputes and securities litigation after the firm says he was fired for misconduct.

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LA Atty Accused Of Using AI 'Hallucinations' Sanctioned

By Rae Ann Varona

A California state appeals court has ordered an attorney accused of including artificial intelligence "hallucinations" in a client's opening brief to pay $7,500 to the court, saying in a published opinion that the attorney is subject to sanctions for inaccuracies, regardless of whether they were the result of AI.

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FTC Backs Nixing ABA Role As 'Gatekeeper' For Texas Bar

By Lynn LaRowe

The Federal Trade Commission has endorsed a proposal from the Texas Supreme Court to abandon a rule requiring graduation from a law school approved by the American Bar Association for admittance to the state bar, saying the organization's "accreditation monopoly" hurts competition and consumers.

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Virginia Bar Declines To Investigate Interim US Atty Halligan

By Ryan Boysen

The Virginia State Bar has declined to investigate whether Lindsey Halligan should face discipline over her scandal-plagued tenure as the interim U.S. attorney for the Eastern District of Virginia, just days after a federal judge ruled she was not properly appointed to that post.

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Trump Would Prefer Jack Smith Testify In Public

By Courtney Bublé

Rep. Jim Jordan, R-Ohio, chair of the House Judiciary Committee, subpoenaed former counsel Jack Smith on Tuesday for a closed-door deposition, to which President Donald Trump said he would rather see a public testimony.

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1st Circ. Doubts Ex-BigLaw Atty's Campaign Finance Appeal

By Chris Villani

The First Circuit on Wednesday expressed misgivings about a former BigLaw attorney's argument that a jury that convicted him of a campaign finance scheme during a failed run for Congress should have been required to unanimously find that each specific transaction was illegal.

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Archegos Founder Says Davis Polk Job Offer Taints Restitution

By Lauren Berg

Archegos founder Bill Hwang, who is serving an 18-year sentence for defrauding banks out of billions of dollars in loans used to manipulate the market, asked to vacate his restitution order because the presiding judge's clerk accepted a job with Davis Polk & Wardwell LLP, which represents victim-bank Morgan Stanley.

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Troutman Atty Is 3rd NC Federal Judge Confirmed This Week

By Courtney Bublé

The Senate voted 57-41 on Wednesday to confirm Matthew Orso, a partner at Troutman Pepper Locke LLP, to the Western District of North Carolina as a federal district judge.

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Fed. Circ. Pushes DC Circ. Not To Rethink Newman Decision

By Adam Lidgett

The Federal Circuit has urged the D.C. Circuit to ignore Federal Circuit Judge Pauline Newman's request to rehear a decision upholding the dismissal of her suit against the colleagues who suspended her, saying the judiciary has the right to police its own internal matters.

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LAW FIRMS IN TODAY'S NEWS

Abell Eskew

Alto Litigation

Bernstein Litowitz

Bracewell LLP

Brown Rudnick

Cahill Gordon

Carlton Fields

Carmody MacDonald

Cohen Ziffer

Covington & Burling

Davis Polk

Dentons

Desai Law Firm

Farivar Law

Friedman Kaplan

Gibson Dunn

Goulston & Storrs

Irell & Manella

Kelley Drye

Latham & Watkins

McGuireWoods

McKool Smith

Meister Seelig & Fein

Morgan Lewis

Morvillo Abramowitz

Murphy Rosen

Novian & Novian

Paul Weiss

Robbins LLP

Ropes & Gray

Sheppard Mullin

Shutts & Bowen

Sidley Austin

Stinson LLP

Troutman

Wilson Sonsini

Winthrop & Weinstine

ZwillGen

COMPANIES IN TODAY'S NEWS

23andMe Inc.

AT&T Inc.

American Bar Association

Arcellx Inc.

Association of Corporate Counsel

Bank of America Corp.

Binance Holdings Ltd.

Bloomberg LP

Center for Democracy & Technology

Citigroup Inc.

Digital Currency Group Inc.

Ferrari SpA

Hilton Worldwide Holdings Inc.

JPMorgan Chase & Co.

LinkedIn Corp.

Lloyd's America Inc.

Major League Baseball Inc.

Mitsubishi UFJ Financial Group Inc.

Morgan Stanley

Nasdaq Inc.

Netflix Inc.

New Civil Liberties Alliance

Permira

Public Citizen Inc.

RTX Corp.

Samsung Electronics Co. Ltd.

State Bar of California

Tesla Inc.

Transamerica Corp.

Two Sigma Investments LP

United Parcel Service Inc.

Virginia State Bar

Warner Bros. Discovery Inc.

Wells Fargo & Co.

X Corp.

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Privacy Protection Agency

Commodity Futures Trading Commission

Federal Bureau of Investigation

Federal Trade Commission

Judicial Conference of the United States

Minnesota Attorney General's Office

New York Attorney General's Office

Texas Supreme Court

U.S. Attorney's Office for the Eastern District of New York

U.S. Attorney's Office for the Southern District of New York

U.S. Bankruptcy Court for the Eastern District of Missouri

U.S. Court of Appeals for the District of Columbia Circuit

U.S. Court of Appeals for the First Circuit

U.S. Department of Justice

U.S. District Court for the District of Minnesota

U.S. District Court for the Eastern District of New York

U.S. District Court for the Eastern District of Tennessee

U.S. District Court for the Eastern District of Virginia

U.S. District Court for the Northern District of California

U.S. District Court for the Southern District of Florida

U.S. District Court for the Southern District of New York

U.S. House of Representatives

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court