Keep your finger on the legal world's pulse

AI developers are concerned about overregulation that could hinder innovation. They fear that complex regulatory requirements may be difficult to navigate, especially for organizations with limited resources. Shannon Yavorsky, a partner at Orrick, Herrington & Sutcliffe, warns that regulations might become too complex if AI is defined too broadly. Inconsistent enforcement is another worry, as it causes confusion and a chilling effect in the market. Stephen Wu of Silicon Valley Legal Group believes that outright bans on certain AI uses, such as predictive policing and facial recognition, could be examples of overregulation. While the EU AI Act has faced objections for its ban on these uses, AI regulation in the United States is expected to be less restrictive. AI developers hope for a regulatory environment that allows innovation to thrive while addressing concerns about the dark side of AI.

 

Law

Law firms are facing scrutiny and lawsuits over their DEI programs. Recent lawsuits against Perkins Coie and Morrison & Foerster have prompted Big Law firms to reevaluate their DEI efforts. Some firms are removing preferences towards specific underrepresented groups in hiring practices and stress-testing mentorship and staffing policies. However, diversity experts warn that holding off on implementing DEI programming could cause more harm than good. Conservative legal activist Edward Blum's lawsuits alleging reverse racism in diversity fellowship applications have led firms to update their language and make their programs defensible in court. While some firms have already made changes, experts believe that anti-DEI activists will continue to target staffing and mentorship programs.

 

The American Lawyer

Product liability cases that aren't coordinated in multidistrict litigation reached their highest level since 2013, with 5,826 filed in 2022, according to a Lex Machina report. The number of product liability cases steadily rose for seven years, driven by medical and pharmaceutical litigation. Many cases are consolidated in specific venues, such as the Southern District of Illinois and the Northern District of Texas. The report also highlights the substantial increase in lawsuits over 3M's combat earplugs in 2020 and 2021. The Southern District of Illinois was the top district for product liability cases. The report reveals that damages awarded from product liability verdicts during the pandemic years were surprisingly high. Kirkland & Ellis took the lead in defending product liability cases, while Meyers & Flowers and Walkup, Melodia, Kelly & Schoenberger were the top plaintiffs firms.

 

Law

Gibson Dunn & Crutcher has changed the eligibility criteria for its diversity scholarships, moving away from targeting underrepresented groups. The $50,000 scholarship will now be awarded to students who have demonstrated resilience and excellence in their pursuit of a legal career. The change comes as the law firm faces lawsuits similar to those targeting other firms with diversity programs. Gibson Dunn's chief diversity officer, Zakiyyah Salim-Williams, stated that the program remains open to all law students committed to diversity. The firm's decision follows Morrison & Foerster's move to distance itself from historical underrepresentation in eligibility criteria. The changes reflect firms' risk aversion and their efforts to mitigate potential litigation. DEI programs have faced pressure from conservative lawmakers following a Supreme Court ruling that limited the use of race in admissions. Five Republican state attorneys general have urged law firms to treat all individuals equally in their employment and contracting practices. Sen. Tom Cotton has also criticized law firms' DEI programs. Gibson Dunn, with over 1,600 attorneys, created the DEI scholarship to support rising second-year law students from underrepresented groups.

 

Bloomberg Law

Bloomberg Tax

Vintage Capital alleges that Sacks Weston founders Andrew Sacks and John Weston have been misusing collateral pledged to a 2017 loan, which is now in arrears. The bankrupt Philadelphia law firm owes the litigation funder, Virage Capital, $14m. Virage also claims that Sacks fraudulently transferred collateral funds and attempted to sell the firm's interest in its ongoing opioid litigation cases. The firm's economic struggles, including former partner Scott Diamond's theft from the firm, contributed to its bankruptcy. Virage predicts the imminent demise of the firm due to its inability to generate positive cash flow. The legal battle between Virage and Sacks Weston began in March when Virage sued the firm for breach of loan terms and non-payment. Sacks Weston filed for bankruptcy in August, defying court orders to disclose collateral and deposit proceeds. Attorneys from Bochetto & Lentz and Ahmad Zavitsanos & Mensing represent Virage Capital, while David Smith and Nicholas Engel of Smith Kane Holman represent Sacks Weston.

 

The Legal Intelligencer

A last-minute legal challenge by Donald Trump's lawyers could disrupt a trial scheduled for next month in the business fraud lawsuit against the former president and his company by New York Attorney General Letitia James. A state appeals court judge has ordered a potential postponement of the trial after Trump's lawyers accused the trial judge of abusing his authority. The trial could still start on schedule depending on the court's decision. Trump's lawyers have raised issues regarding the trial's scope and the judge's refusal to grant a trial delay. Other proceedings in James' lawsuit will proceed as scheduled. James' lawsuit alleges that Trump defrauded banks and seeks $250m in penalties and a ban on Trump doing business in New York. Trump has denied wrongdoing. The lawsuit against the trial judge is Trump's latest attack on judges presiding over his legal cases. Trump's lawyers have asked for summary judgment dismissing the case entirely before the trial starts. James' office has asked for summary judgment on the fraud claim.

 

U.S. News

Lawyers for impeached Texas Attorney General Ken Paxton have begun calling witnesses as the trial that will determine whether the Republican is removed from office winds down. The trial has focused on accusations that Paxton misused his power to help a real estate developer who was under FBI investigation. Paxton's defense attorneys have called their first witness, the head of the open records division at the attorney general's office. Paxton's trial requires a two-thirds majority for conviction, meaning that at least nine Republicans would have to join the 12 Democrats in voting against him.

 

Missoulian

The Southern Illinoisan

A group of major textbook publishers, including Cengage, Macmillan Learning, McGraw Hill, and Pearson Education, have filed a lawsuit against file-sharing service Library Genesis for copyright infringement. The publishers claim that Library Genesis illegally distributed over 20,000 of their textbooks and are seeking an unspecified amount of money damages and an order to cancel or transfer the domain names of Library Genesis. The publishers argue that Library Genesis competes directly with them and that students are encouraged to use the service instead of buying legitimate textbooks. The lawsuit states that Library Genesis relies on the anonymity of the internet and their overseas locations to hide their identities. This is not the first time publishers have taken legal action against shadow libraries, with publisher Elsevier winning a case against LibGen in 2017. The case is ongoing in the U.S. District Court for the Southern District of New York.

 

Reuters

The Justice Department and some BlockFi Inc. account holders have raised objections to the crypto company's bankruptcy plan. The plan includes provisions that would protect company insiders from future lawsuits. Certain BlockFi customers argue that these provisions are unnecessary and improper, as they would release former directors and officers from legal liabilities related to the company's collapse. The objections were filed with the U.S. Bankruptcy Court for the District of New Jersey. The liquidation plan will be considered for court approval later this month.

 

Bloomberg Law

Plant-based meat maker Impossible Foods has successfully revived its trademark lawsuit against wellness entrepreneur Joel Runyon's company Impossible X. The 9th U.S. Circuit Court of Appeals overturned a previous decision that dismissed the case for lack of jurisdiction. The court ruled that Impossible X's previous ties to California justified hearing the case in the state. Impossible Foods had sued Impossible X in 2021, seeking a declaration that it had superior rights to the "Impossible" name and did not infringe Runyon's trademarks. The appeals court's decision allows the case to proceed in California.

 

Reuters

Nobel Peace Prize winner Maria Ressa has been acquitted of a final tax evasion charge, although she still faces two remaining legal cases she believes  former Philippine President Rodrigo Duterte used to silence her critical reporting. Ms. Ressa and her online news organization Rappler had faced five tax evasion charges but a court acquitted her of four of the charges in January. A different court heard the fifth charge and acquitted her Tuesday. “Facts wins, truth wins, justice wins,” she told reporters outside the courthouse. She had said the charges against her were politically motivated as Rappler was critical of Mr. Duterte's brutal crackdown on illegal drugs that left thousands of mostly petty drug suspects dead. The International Criminal Court is investigating the crackdown as a possible crime against humanity.

 

NPR

U.S. News