Expert Analysis

• Operational AI Washing: Dismantling Claims Before Discovery

  

  Operational AI washing claims can be rebuffed before discovery extracts their true costs by turning the documentary record established in earnings calls and public disclosures into a layered defense, which can exploit the Private Securities Litigation Reform Act’s heightened pleading standards, say attorneys at Akerman.

• Calif. Ruling Lowers Bar For Health Data Breach Claims

  

  The California Supreme Court's ruling in J.M. v. Illuminate Education offers protection for non-healthcare companies that maintain health-related data but also adopts a new and more plaintiff-favorable standard for breach of confidentiality that companies maintaining any health-related data should address, say attorneys at Cooley.

• AI Practices To Protect Trade Secrets Amid Unstable Case Law

  

  Amid recent diverging district court approaches to whether inputting proprietary information into artificial intelligence tools could constitute a failure to take reasonable measures to safeguard secrets, trade secret owners must adapt their confidentiality practices to keep trade secrets secure, says Fitz Collings at MoFo.

• How Gambling Cos. Can Defend 'Addictive Design' Suits

  

  Following the recent wave of addictive design litigation against video game companies and social media platforms, it appears that the gambling industry may soon face similar claims — but operators may have stronger legal defenses available to them, say attorneys at White & Case.

• Defense Patent Holiday's Real Prize May Be Collab Potential

  

  The true value of participating in the ongoing defense patent holiday program might lie not in access to technology developed by the U.S. Department of War, but in developing a working relationship with a federally funded lab and potentially achieving a cooperative research and development agreement, says Lawrence Kass at Steptoe.

• Key Legal Considerations For Data Center Battery Storage

  

  Battery energy storage systems have become essential infrastructure for data center development — but as trade, energy and tax policies continue to shift, companies operating in this space must understand the importance of supply chain requirements and industry-tailored contracts, says RJ Colwell at Davis Graham.

• Your Next Litigation Hold Should Cover AI Chat Logs

  

  The Delaware Chancery Court’s recent decision in Fortis Advisors v. Krafton to treat a CEO’s artificial intelligence chats as substantive evidence is being read as a discovery warning to litigators, but there is a second duty-to-preserve lesson that is especially pertinent to in-house counsel, say attorneys at Faegre Drinker.

• New Connecticut Law On Employers' AI Use Is Inventive

  

  A recently passed Connecticut law regulating the use of artificial intelligence in employment decisions innovates by using third-party risk assessments to vet and certify AI models, and by recognizing a division of responsibility between developers and deployers, potentially influencing pending legislation in other states, say attorneys at Littler.

• Musk-OpenAI Verdict Shows Value Of Early-Stage Governance

  

  A California federal court's ruling last week in Musk v. Altman preserves the status quo at OpenAI, but signals to the technology industry at large that courts will not relitigate the governance decisions of early-stage organizations on a founder's competitive timetable, surfacing questions that will outlast the litigation, says attorney Alan N. Walter.

• Visa's Agentic Payment Rules Expose Compliance Tensions

  

  Visa's recently released framework clarifying how payments driven by artificial intelligence can occur without consumer-merchant interaction exposes compliance risks under disclosure and fee transparency laws that may require merchants and payment providers to rethink consumer protection as agentic commerce expands, say attorneys at Stinson.

• Opinion

  International Patent Licensing System Must Be Maintained

  

  As foreign approaches to patent enforcement threaten to distort the licensing markets that underpin modern technology, courts and policymakers must take action to ensure that the standard essential patent framework is preserved, says Brian O'Shaughnessy at Dinsmore.

• Series

  Studying Foreign Languages Makes Me A Better Lawyer

  

  Studying Italian and Japanese has shown me that learning a new language can benefit a legal career in several ways, including by demonstrating the importance of approaching problems from a fresh perspective and the value of practicing patience with colleagues and clients, says Anna King at Genworth Financial.

• Sold Inventory May Drive Tax Treatment Of Tariff Refunds

  

  Companies determining the tax treatment of refunds expected following the U.S. Supreme Court's February decision invalidating tariffs imposed under the International Emergency Economic Powers Act should consider whether the tariff costs have already reduced their income considering the cost of goods sold, say attorneys at McDermott.

• Del. Justices' Ripeness Ruling Shields Advance Notice Bylaws

  

  The Delaware Supreme Court’s recent decision dismissing two AES and Owens Corning stockholder challenges of advance notice bylaws as unripe provides corporations more room to insulate their nomination procedures from activist pressure, say attorneys at Reed Smith.

• Operational AI Washing: Fortifying The Disclosure Record

  

  The same artificial intelligence-driven workforce narratives that once appeared in earnings calls and Form 8-Ks can easily become raw material for future operational AI washing claims, so companies must be careful when drafting public disclosures because winning a federal motion to dismiss starts months before a lawsuit is ever filed, say attorneys at Akerman.