Expert Analysis

• AI And AML: Governance Plays Critical Role In Innovation

  

  Financial institutions adopting artificial intelligence for anti-money laundering compliance should implement governance specific to individual use cases, testing, documentation and human oversight to manage regulatory and enforcement risks as agentic tools expand, say attorneys at Paul Hastings.

• Del. Ruling Emphasizes High Bar To Pleading A Control Group

  

  The Delaware Court of Chancery's recent decision in Le Clair v. KnowBe4 illustrates the high burden to which courts hold plaintiffs trying to establish a control group, as well as the continued power of an informed stockholder vote, say attorneys at Sidley.

• Attorneys Using AI May Have Ethical Duty To Redact Docs

  

  The trajectory of legal ethics guidance in recent years strongly suggests that as redaction technology becomes more accessible, the failure to use it when uploading highly confidential materials into artificial intelligence tools will become increasingly difficult to defend as reasonable, say attorneys at Lewis Brisbois.

• Compliance Lessons From Agriculture Co. Mexican Bribe DPA

  

  Agricultural company Scoular’s recently announced deferred prosecution agreement over alleged Foreign Corrupt Practices Act violations at the U.S.-Mexico border reinforces the U.S. Department of Justice’s focus on cartels, and companies must accordingly ensure they address risks associated with the use of customs brokers, says Adam Safwat at Foley Hoag.

• Assessing The Early Days Of Woodcock's SEC Tenure

  

  Since David Woodcock took over the U.S. Securities and Exchange Commission's Division of Enforcement four months ago, the division has pursued a scaled-back caseload centered on fraud and manipulative conduct, largely following the enforcement outlook that emerged under SEC Chairman Paul Atkins, say attorneys at Akerman.

• Voyager Ruling Maps Out Ch. 11 Exculpation Lessons

  

  Chapter 11 plan proponents drafting exculpation provisions may benefit from contrasting the exculpatory language recently invalidated by a New York federal court in the Voyager Digital Holdings case with successful recent use of these provisions in confirmed bankruptcy plans, say attorneys at Debevoise.

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  Juggling And Unicycling Make Me A Better Lawyer

  

  Because I juggle (sometimes with fire) and ride the unicycle, friends and family used to joke that I should join the circus, but I pursued the practice of law instead and learned that my hobbies benefit my profession in several important ways, says Morgan Eddy at Smith Currie.

• 2nd Circ. Ruling Lays Out Administrative Right-Of-Access Blueprint

  

  In Civil Rights Corps v. LaSalle, the Second Circuit recently held that the First Amendment dictates a presumptive right of access to sealed attorney grievance proceedings, providing a framework for challenging other administrative regimes that operate behind closed doors, says Jonathan Ginsberg at Carlton Fields.

• How 'Swap' Fight Underpins Prediction Market Enforcement

  

  As courts around the country grapple with whether, and under what circumstances, event contracts qualify as swaps, federal enforcement authority hangs in the balance, with implications for companies that need to manage compliance risks during this period of legal uncertainty, say attorneys at Debevoise.

• SEC's Adit Case Maps 5 Fault Lines In Pre-IPO Funds

  

  The U.S. Securities and Exchange Commission's recent case brought against Adit Ventures Management offers fund counsel, limited partners and private market intermediaries a useful example of where a pre-initial public offering vehicle can fail, and how familiar fiduciary and anti-fraud principles apply, says Ben Dubin at VC Expert Services.

• The State Of Prediction Market Litigation After 9th Circ. Ruling

  

  The Ninth Circuit's recent decision in Kalshi v. Assad gives state regulators significant appellate backing to enforce state gaming laws over prediction markets, creating a direct split with the Third Circuit that will likely lead to Supreme Court review of the question, say attorneys at Arnold & Porter.

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  Ballet Makes Me A Better Lawyer

  

  A lifetime of learning and performing ballet taught me that success — whether in dance or practicing law — comes only through hours of thorough preparation, boundless energy and relentless effort, says Sharon Katz-Pearlman at Greenberg Traurig.

• Del. Dispatch: More Earnout Guidance From Chancery

  

  The Delaware Court of Chancery's recent decision in Georgia Security Solutions v. NewCBN reaffirms that a procedure resembling a traditional accountant true-up will generally be interpreted as calling for an expert determination, not an arbitration, and highlights the need for clarity in drafting earnout provisions, say attorneys at Fried Frank.

• 3 Lessons From Crypto For Attys Entering The AI Space

  

  Lawyers transitioning into roles at artificial intelligence companies can take several lessons from the evolution of the cryptocurrency space on how to manage regulatory ambiguity, weigh open-versus-closed technology models and build compliance safeguards as AI rules take shape, says Rebecca Rettig at Jito Labs.

• SEC's Long-Awaited Crypto Rule Is 1st Piece Of Larger Puzzle

  

  The U.S. Securities and Exchange Commission's recently proposed crypto rule provides issuers with a workable exempt offering framework but leaves holder-side questions for forthcoming rules, meaning compliance officers and counsel will have to work from an incomplete picture for now, says Josh Burton at Silver Regulatory Associates.