Expert Analysis

• Lessons For Banks When A Fintech Partner Fails

  

  Recent fintech bankruptcies highlight best practices for how banks can strengthen third-party oversight, data-access rights, wind-down planning and customer communications to limit regulatory exposure and consumer harm when a fintech partner collapses, say attorneys at Barack Ferrazzano.

• 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.

• OpenAI Deal Highlights AI Hiring Risks In PERM Process

  

  The U.S. Department of Justice's recent settlement of allegations that OpenAI discriminated against U.S. applicants for positions connected to the permanent labor certification process underscores that employers providing or using artificial intelligence must align their recruitment practices with their overlapping compliance obligations, say attorneys at Duane Morris.

• State AI Safety Laws Raise New Liabilities For Healthcare Cos.

  

  Healthcare and life science companies using third-party artificial intelligence tools should pay particular attention to the changing state-level legal landscape, where the rollout of multiple AI safety laws is introducing both new compliance obligations and potential consumer protection liabilities, say attorneys at McDermott.

• AI And AML: Rulemakings Lean Into Responsible Innovation

  

  Recent federal rulemaking increasingly supports deployment of artificial intelligence tools for anti-money laundering compliance purposes, and institutions that build clear use and governance frameworks will be best positioned to defend programs when AI systems err, say attorneys at Paul Hastings.

• Series

  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.

• How Quantum Risk Could Reshape Legal Obligations

  

  As federal policy, National Institute of Standards and Technology standards, and major market practice converge around postquantum cryptography, companies may need to safeguard their data now to prove they took reasonable measures to protect trade secrets from quantum computers that do not exist yet, say attorneys at MoFo.

• AI Note-Taking Suits May Fill Gap In Privacy Law Structure

  

  A recent class action against Granola joins other pending lawsuits against AI note-taking providers, highlighting the legal uncertainty surrounding these tools, but there are practical steps companies using "invisible" AI services can take to mitigate risk, including conducting inventories and reviewing access permissions, say attorneys at Barnes & Thornburg.

• 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.

• FDA Closeout Letter Suggests Relaxing Stance On Wearables

  

  The U.S. Food and Drug Administration's recent decision not to pursue enforcement action against Whoop's wearable blood pressure tracker, read together with guidance released earlier this year, suggests a softer shift in the FDA's approach to regulating wearables, say attorneys at Arnold & Porter.

• How Rogue AI May Shape Corporate Liability, Responsibility

  

  Recent artificial intelligence cyber incidents offer a window into how companies deploying autonomous systems should document risk controls even when systems exceed their intended boundaries, as jurors may treat unexpected AI conduct as foreseeable evidence of inadequate safeguards, says Jorge Monroy at Verdict Insight Partners.

• EPA Guidance May Simplify On-Site Power For Data Centers

  

  At a moment when wait times to connect large loads to the electric grid can stretch into years, two recent U.S. Environmental Protection Agency guidance documents seek to make it easier for data center developers to set up on-site power generation — but much will depend on how quickly states and localities update their own rules, say attorneys at Alston & Bird.

• CISA Town Halls Signal Key Cyber Rule Changes Ahead

  

  The Cybersecurity and Infrastructure Security Agency recently held a series of town halls to gather additional stakeholder input on the Cyber Incident Reporting for Critical Infrastructure Act, offering potential insights into how the agency may address key issues in a forthcoming final rule, say attorneys at Covington.

• Meta Layoff Suit Serves As Early Test Of AI Bias Claims

  

  A lawsuit in California federal court alleging that Meta's use of artificial intelligence in recent layoffs negatively affected employees on protected leave provides insight for plaintiffs about what evidence to preserve and how to build these discrimination claims, says Manny Starr at Frontier Law Center.