Expert Analysis

• PowerSchool Data Breach Ruling Underscores PE Liability

  

  The recent California federal court decision in PowerSchool, where Bain Capital was unable to dismiss claims relating to a data breach based in part on Bain's preinvestment activities, is an important addition to the line of cases addressing investor liability for acts of a portfolio company, says Mark Kelley at MoloLamken.

• 3 Disgorgement Questions Linger After Justices' SEC Ruling

  

  While the U.S. Supreme Court’s recent decision in Sripetch v. U.S. Securities and Exchange Commission avoided placing new limits on the SEC’s disgorgement powers, it passed over several questions, including whether the commission can seek disgorgement when returning the money to investors isn't possible, says David Slovick at Kopecky Schumacher.

• Checking For AI Errors Is Now A Two-Way Street

  

  A handful of recent federal and state cases demonstrate the importance of checking for errors generated by artificial intelligence not only in your own court submissions, but also your opponent's, as well as when catching opposing counsel's AI mistakes could result in an award for attorney fees, says Tamara Barago at Hollingsworth.

• Opinion

  SEC Enforcement Reforms Must Address Post-Wells Limbo

  

  The U.S. Securities and Exchange Commission's recent changes to how it notifies companies of a potential enforcement action fail to address what happens after the Wells process is over, highlighting the need for meaningful process reform that includes a formal closure determination, says Kimble Cannon at Mahdavi Bacon.

• Series

  The Biz Court Digest: Shoring Up Corporate Law In Maryland

  

  Launched more than 20 years ago to improve complex corporate adjudication, Maryland's Business and Technology Case Management Program has been a solid success in some areas, but there always is room for improvement, says Bill Krulak at Miles & Stockbridge.

• How End Of SEC 'Gag Rule' Affects Free Speech Certiorari Bid

  

  The Securities and Exchange Commission's recent rescission of the so-called gag rule, which forbade defendants in settlements from denying the SEC’s allegations, may sway the outcome of a petition to the Supreme Court in a case challenging the rule on First Amendment grounds, say attorneys at Troutman.

• Banks Should Reassess Warehouse Lines Amid Credit Stress

  

  Growing stress in private credit markets means banks with warehouse lines to nonbank lenders should inventory exposures, revisit covenants and prepare for tougher regulator scrutiny, as repayment strains and weakening fund liquidity could turn seemingly indirect risks into material compliance concerns, say attorneys at Barack Ferrazzano.

• Citron Founder Verdict Tests Reach Of 'Half-Truth' Fraud

  

  A California federal jury's conviction this week of Citron founder Andrew Left may be remembered less as a conventional manipulation prosecution than as a case about how far the "half-truth" doctrine can reach when applied to modern market speech, says Elisha Kobre at Sheppard.

• Series

  Competing At Poker Makes Me A Better Lawyer

  

  Playing poker in male-dominated rooms taught me to treat skepticism as background noise when my opponents seem to underestimate me, to apply pressure when it matters and to adapt without losing strategic discipline — skills that are all indispensable in restructuring and insolvency matters, says Alexis Gambale at Pashman Stein.

• Private Lender Verification Lessons From Recent Fraud Cases

  

  Recent fraud allegations involving private credit borrowers raise compliance red flags for lenders, who must recognize that financial and collateral verification is an essential safeguard as failures in underwriting and monitoring infect the broader market, say Michael Bresnick at Venable and Brian Mich at Control Risks Group.

• 5 Things Associates Must Ask About Their Firm's Merger Plan

  

  The associates who navigate law firm mergers best ask the right questions early, such as inquiring about partners' plans, to assess how the merger could affect their workflow and career path, says Jackie Bokser-LeFebvre at Major Lindsey.

• 2 'Rocket Dockets' And The Rules That Propel Them

  

  The fastest civil trial courts in the country are currently in the Eastern District of Virginia and the Southern District of Florida, and their chief judges provide insights into the court rules that keep them ahead, says Robert Tata at Hunton.

• Opinion

  Attys Should Aid Clients' AI Use While Safeguarding Privilege

  

  Until legislatures enact laws expressly extending privilege to artificial intelligence queries, lawyers should try to shield their clients' case-related use of AI tools by offering them dedicated access on firms' enterprise accounts and utilizing a long-standing privilege precedent, says Joseph Rillotta at Meadows Collier.

• What End Of SEC Settlement Gag Rule Means For Defendants

  

  The U.S. Securities and Exchange Commission's recent rescinding of its gag rule prohibiting defendants from publicly denying allegations in settled SEC enforcement actions actually heightens the need to think strategically when negotiating resolutions and pursuing public denials of wrongdoing, say attorneys at Cleary.

• SEC's Co-Investment Relief Broadens Private Market Access

  

  The U.S. Securities and Exchange Commission's recent no-action letter to J.P. Morgan Investment Management permits open-end funds to co-invest with affiliates, removing a long-standing barrier open-end fund sponsors have faced in sourcing private market investments at scale, say attorneys at Debevoise.