DOJ Backs OpenAI, Microsoft Fair Use Defense In NYT IP Case

By Bonnie Eslinger

The federal government is weighing in on the sprawling copyright litigation against OpenAI Inc. and Microsoft Corp. in New York federal court brought by The New York Times and others, telling the judge that using copyrighted texts to train generative tools shouldn't expose developers to broad infringement liability.

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2nd Circ. Faults NLRB's Dress Code Test In Starbucks Appeal

By Braden Campbell

The Second Circuit faulted the test the National Labor Relations Board applies to neutral dress codes that restrict workers' displays of union insignia, tossing Wednesday a ruling that Starbucks illegally barred workers at a Manhattan shop from wearing pro-union shirts. 

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2nd Circ. Says PBM Opioid Crisis Suits Belong In Fed. Court

By Gianna Ferrarin

Local New York governments can't keep dozens of suits alleging two of the nation's largest pharmacy benefit managers contributed to the opioid epidemic in state court, a Second Circuit panel held Wednesday, finding the litigation alleges "indivisible" federal and non-federal conduct by the PBMs.

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Judge Tosses Feds' Sanctuary Policy Fight Against Rochester

By Ganesh Setty

A New York federal court tossed a lawsuit from the Trump administration challenging the city of Rochester's sanctuary immigration policies, finding the policies do not unlawfully regulate or discriminate against the federal government and are not preempted under federal law.

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'Astonished' Homebuyer Says Atty Email Lapse Caused Hack

By Pete Brush

A New York City law firm has been ordered to provide internet security and login information to a homebuyer who claims she was left in "shock" when an impostor with access to her lawyer's email tricked her into wiring away over $730,000.

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Linqto Founder Engineered $450M 'Pre-IPO' Fraud, Feds Say

By Pete Brush

The founder of Linqto, a bankrupt platform that allows investors to buy shares before their initial public offerings, was arrested in California Wednesday and charged in New York federal court with a $450 million price markup scheme.

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States Sue To Block Medicaid Ban On Youth Gender Care

By Dan McKay

Twenty state attorneys general on Wednesday challenged the Trump administration's plan to halt Medicaid funding for minors' gender-affirming care, alleging the move would violate federal law and usurp congressional power over government spending.

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NOAA Fisheries Lays Out Priorities For Trump Seafood Order

By Tom Lotshaw

The National Oceanic and Atmospheric Administration's fisheries division announced several dozen priorities to boost the U.S. seafood industry Wednesday, prompting one environmental group to call it a "depraved laundry list" of ways the Trump administration is willing to sacrifice ocean life.

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Insurers Needn't Cover Retailer In 'Ghost Gun' Sale Suit

By Hope Patti

Two insurers have no duty to defend or indemnify a Missouri-based firearm retailer accused of contributing to gun violence by selling "ghost gun" kits, a New York federal court ruled, saying the underlying claims did not allege harm caused by an accident.

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Baby Formula Machine Makes Infants Lose Weight, Suit Says

By Jonathan Capriel

The makers of the Baby Brezza formula mixing machine are facing a proposed class action in New York federal court from a group of parents who say the $200 device dispenses dangerously diluted formula, even when properly used, causing infant weight loss and hospitalizations.

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Unilever, Gruns Sued Over Gummies Marketed As 'Sugar-Free'

By Carla Baranauckas

Unilever United States Inc. and Gruns Nutrition Inc. have been hit with class claims in New Jersey federal court alleging that they falsely labeled a line of gummies as "sugar-free" even though the nutritional supplements are sweetened with allulose, which the four suing consumers say is a sugar under federal regulations.

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JPMorgan Seeks Stay Of $20M Javice, Amar Fee Order

By Jarek Rutz

JPMorgan Chase & Co. urged the Delaware Chancery Court on Wednesday to pause enforcement of an order requiring it to advance more than $20 million in disputed legal fees to convicted Frank founder Charlie Javice and former executive Olivier Amar, arguing the bank could permanently lose the money before it gets a chance to challenge the ruling.

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STMicro Investors Seek Cert. In Suit Over COVID Market Drop

By Gina Kim

Investors in semiconductor manufacturing company STMicroelectronics have asked a New York federal judge to certify their securities class action alleging company executives failed to acknowledge pandemic-related semiconductor chip demand declines, arguing they all relied upon the executives' public misrepresentations to purchase company shares. 

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Avaya Execs Beat Investor Suit Over Failed Tech Transition

By Katryna Perera

A New York federal court has dismissed a shareholder lawsuit against two former Avaya Holdings Corp. executives, who were accused of misleading investors about the success of the North Carolina-based company's transition from a telecom to a technology firm prior to its bankruptcy filing, finding all challenged statements were forward-looking or inactionable.

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YouTube Ducks Music Co.'s Song Monetization Monopoly Suit

By Rae Ann Varona

A New York federal judge has tossed a content-creation music label's lawsuit accusing YouTube LLC of cornering an automated monetization services market for sound recordings, saying the label filed suit too late and otherwise failed to state a legally sufficient monopolization claim.

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Tribal Students Achieve A Win In Financial Aid Policy Suit

By Joyce Hanson

A New York federal judge has ruled in favor of two Saint Regis Mohawk Tribe students in their suit against the U.S. Department of Education over its policy requiring documentation from Indigenous students of permanent residency in the United States to be eligible for financial aid.

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Ashurst Perkins Adds Dentons IP Atty In NY

By Tracey Read

A former Dentons partner has joined Ashurst Perkins Coie's trademark, copyright, internet and advertising practice within the intellectual property division in New York.

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NY Ethics Opinion Warns Attys On Qui Tam Deception

A recent New York State Bar Association ethics opinion cautions that counsel representing whistleblowers may not induce, supervise or facilitate a client's deceptive prefiling investigations, creating a potential vulnerability for qui tam complaints built on questionable evidence-gathering methods, say attorneys at Sidley.

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Thomson Reuters Cyberattack Hits North American Courts

By Bonnie Eslinger

A recent cyberattack on Thomson Reuters' court management software affected files associated with court systems in 11 states, the U.S. Virgin Islands and Canada, and may have exposed sealed documents and individuals' personal information, according to a Wednesday announcement from the technology and information services company.

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Calif. Bill Regulating Atty AI Use Heads To Newsom's Desk

By Emily Sawicki

A bill regulating attorneys' and arbitrators' use of generative artificial intelligence has unanimously passed the California State Legislature and is headed to Gov. Gavin Newsom's desk.

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House Rejects Amendment To Fix Court At 9 Justices

By Courtney Bublé

The House failed to pass a proposed constitutional amendment on Wednesday that would keep the number of U.S. Supreme Court justices at nine.

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Dems Call Subpoenas' Secrecy Request 'Abuse Of Authority'

By Aneeta Mathur-Ashton

Democratic lawmakers Sen. Ron Wyden, Ore., and Rep. Pramila Jayapal, Wash., have called for an investigation into subpoenas issued from federal law enforcement to private companies that contain nondisclosure provisions and carry threats of legal consequences for noncompliance.

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Tyson's Price-Fixing Deal Merits $27.5M Atty Fees, Buyers Say

By Dorothy Atkins

Beef direct purchasers asked a Minnesota federal judge Tuesday to award class counsel $27.5 million in fees, or one-third of Tyson's $82.5 million price-fixing settlement, arguing that the deal was reached after six years of hard-fought antitrust litigation and adds to another settlement, bringing the total recovery to $135 million.

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ABA Outlines Attys' Duties To Clients With Intellectual Limits

By Jack Karp

Attorneys have the same obligations to clients with decision-making limitations, should abide by those clients' decisions regarding their representation and must work to maintain an ordinary client-lawyer relationship as much as possible, the American Bar Association said in an opinion released Wednesday.

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