Keep your finger on the legal world's pulse

More than half of whistleblowers have felt pressured not to use internal hotlines to raise red flags at large global businesses and public bodies, according to a global EY survey. The number of organizations without a whistleblowing hotline has halved since a similar survey in 2022. However, 54% of those who have used such channels said they faced pressure not to do so. The survey, which involved 5,464 board members, senior managers, managers, and staff in 53 countries and territories, revealed that employees fear they would be ignored and their careers hampered if they speak up. Almost a third of respondents also feared for their personal safety. Four in 10 board members said they had faced retaliation themselves or witnessed adverse consequences towards someone who reported misconduct. "Individuals must be made to feel safe, and they should also know that their concerns will be acted on, without any consequence," said Andrew Gordon, EY's global forensic & integrity services leader. The survey also showed that more employees would consider dishonest behavior than two years ago, with nearly 40% of all respondents and two-thirds of board members willing to behave unethically to improve their career or financial position. 

 

Reuters

Paul Longhurst, a director at 3Kites and Richard Kemp, a partner at Kemp IT Law, advocate for law firms to rethink their IT budgets in response to artificial intelligence (AI) advancements. They note that AI could streamline tasks like contract generation, potentially reducing the need for traditional legal roles. This shift, coupled with the costly transition to cloud-based systems driven by major tech companies, suggests that law firms’ current IT budget allocations are inadequate. Compared to other sectors that invest up to 15% of turnover in technology, law firms might need to significantly increase their budgets. Kemp highlights the division of tech spending into IT systems, legal technologies, and cybersecurity, emphasizing the importance of investment in each area to enhance service offerings and manage cybersecurity risks. The complexity of cloud services contracts and the necessity to update them frequently also demand attention. Firms must understand these agreements thoroughly to ensure they meet their needs, which may involve reassessing and cleaning up old contracts to stay competitive and effective in the rapidly evolving tech landscape. Longhurst and Kemp urge firms to also consider investing in hybrid legal technologists to bridge the gap between traditional legal services and emerging technologies, ensuring that law firms are not only keeping pace but are also poised for future growth.

 

The Global Legal Post

Google has successfully convinced a federal judge in San Francisco to dismiss a proposed class action lawsuit that accused the company of misusing personal and copyrighted data to train its artificial intelligence (AI) systems, including its chatbot Bard. The judge cited concerns raised by another California judge in a related lawsuit against OpenAI and Microsoft, stating that the complaint contained unnecessary and distracting allegations. However, the plaintiffs have the opportunity to amend their complaint. The lawsuit claimed that Google misused content from social media and its own platforms to train AI systems, using publicly available data. Google argued that such data is necessary for AI training and that the lawsuit would undermine the concept of generative AI. The case is J.L. v. Alphabet Inc, and the plaintiffs are represented by Ryan Clarkson of the Clarkson Law Firm. Google's legal team includes David Kramer, Maura Rees, and Eric Tuttle of Wilson Sonsini Goodrich & Rosati.

 

Reuters

NewsBreak, the most downloaded news app in the U.S., has come under fire for publishing false stories generated by artificial intelligence (AI) technology. The app, which aims to fill the void left by shuttered local news outlets, has been accused of creating erroneous stories, lifting content from competitors, and even publishing stories about non-existent events. Local community programs have been impacted by the app's inaccuracies, with food banks having to turn people away due to incorrect information. The app generates revenue through ads and is predominantly used by middle-aged, female users in suburban or rural areas. NewsBreak's use of AI tools to re-publish stories from local news sites under fictitious bylines has also raised concerns. The company, backed by private equity firms Francisco Partners and IDG Capital, has faced copyright infringement lawsuits and allegations of Chinese influence. NewsBreak maintains that it is a U.S.-based company and complies with U.S. data and privacy laws.

 

U.S. News

Top U.S. antitrust enforcer Jonathan Kanter has told the FT he will look “with urgency” at the artificial intelligence sector amid concerns that power is being concentrated among deep-pocketed players.

 

Financial Times

DoNotPay, an artificial intelligence (AI) startup, has settled a proposed class action lawsuit alleging that it supplied "substandard" services and engaged in the unauthorised practice of law. Plaintiff Jonathan Faridian and DoNotPay have "reached a settlement in principle" and are currently finalising the deal. DoNotPay employs AI to assist consumers "fight big corporations, protect your privacy, find hidden money, and beat bureaucracy." The lawsuit claimed that Faridian would not have paid for the services "had he known that DoNotPay was not actually a lawyer." DoNotPay previously faced a similar lawsuit in Illinois. The terms of the settlement were not disclosed.

 

Reuters

A new survey of legal professionals has reveals that the majority are satisfied with their law firms' attendance policies, according to the 2024 Law Firm Office Attendance Policies Report. The report reveals that 57% of legal professionals rated their satisfaction with attendance policies between eight and 10 on a 10-point scale. This marks a surprising turnaround from initial discussions about the issue during the COVID-19 pandemic. The report, based on a survey of 350 legal professionals, also highlights that 56% of respondents' offices required three days per week in the office. However, many professionals showed up more often than required, with 46% coming to the office four or more days per week. The report also notes that 64% of respondents had flexible work policies, allowing them to choose their office days. The not-satisfied respondents worked for less flexible firms and were in the office more days than average. Overall, legal professionals have embraced the new attendance policies with enthusiasm, despite initial skepticism.

 

ABA Journal

Transitioning to in-house counsel, Meyling “Mey” Ly Ortiz of Toyota North America emphasizes understanding that meetings, integral for providing legal advice, are part of your core responsibilities. She advises blocking out time for reviewing documents and drafting emails to manage workload efficiently. Ortiz highlights the importance of understanding your company's business and staying updated on legal developments through continuous education like CLEs and LinkedIn. She also stresses the need to advise with limited information, prioritize clear communication, and set explicit expectations with outside counsel. Leveraging internal resources and building both internal and external networks are crucial for navigating in-house roles effectively. By integrating these practices, in-house counsel can align with their organization's strategic needs, ensuring a successful career in the corporate legal sector.

 

Above the Law

Two conservative groups, America First Legal and American Alliance for Equal Rights, are using legal strategies to challenge diversity programs in universities, law firms, and corporations. America First Legal, led by former Trump adviser Stephen Miller, argues that corporate diversity programs are illegal under the 1964 Civil Rights Act. The group has filed lawsuits and sent letters to companies including Morgan Stanley and IBM. American Alliance for Equal Rights, led by conservative activist Edward Blum, relies on the 1866 Civil Rights Act to challenge diversity programs at law firms. Both groups aim to limit the use of race in DEI programs. While court victories have been limited, their efforts have prompted changes to DEI programs. The groups receive tips and solicit potential plaintiffs through social media. The funding sources for the groups are undisclosed. The legal counsel for the groups includes attorneys from conservative firms and pro bono representation.

 

Bloomberg

Rep. Virginia Foxx (R-NC) has urged the U.S. Equal Employment Opportunity Commission (EEOC) not to backtrack on its position that workers can be disciplined for making abusive or offensive statements during job-related disputes. Foxx expressed concerns that the EEOC could align with the National Labor Relations Board (NLRB) in protecting workers who harass coworkers while advocating for better working conditions. Business groups argue that the decision will force employers to choose between violating labor rights enforced by the NLRB or discrimination and harassment laws enforced by the EEOC. Foxx emphasized the need for swift corrective action against workplace harassment. The EEOC and NLRB, both with Democratic majorities, are working on joint legal guidance on the issue.

 

Reuters

A former Meta engineer has filed a lawsuit against the company, accusing it of bias in its handling of content related to the war in Gaza. Ferras Hamad, a Palestinian-American engineer, claims that Meta fired him for trying to fix bugs causing the suppression of Palestinian Instagram posts. Hamad alleges that Meta has a pattern of bias against Palestinians, deleting internal employee communications and conducting investigations into the use of the Palestinian flag emoji. Meta has faced criticism from human rights groups over its moderation of content about Israel and the Palestinian territories. Hamad's firing appears to be related to his involvement in troubleshooting problems with content restrictions on Palestinian Instagram personalities. He filed an internal discrimination complaint and was subsequently fired. Meta has not yet responded to the allegations.

 

Reuters

A Pennsylvania judge has cut a $2.25bn verdict against Bayer-owned Monsanto to $400m in respect of a Pennsylvania man who said he developed cancer from exposure to the company's Roundup weedkiller. Monsanto will now be required to pay $350m in punitive damages and just over $50m in compensatory damages, according to court documents released on Tuesday. Bayer, which plans to appeal the decision, has maintained that Roundup and its main ingredient, glyphosate, are safe to use, pointing to opinions from regulators that determine the compound isn’t a cancer risk. Plaintiff John McKivison's attorneys  said they were pleased that Schulman upheld the jury's finding that Roundup causes cancer, but said they also intend to appeal, seeking a reinstatement of the $2.25bn jury verdict.

 

Reuters

Wall Street Journal

A Scottish woman named Fiona Harvey has filed a $170m lawsuit against Netflix for defamation in the hit mini-series Baby Reindeer. Harvey claims that she was portrayed as a stalker in the show, which she says is based on her. She denies stalking the show's creator, Richard Gadd, and being convicted or imprisoned. However, she alleges that the show suggested she was a twice-convicted stalker sentenced to five years in prison. Harvey argues that the portrayal has caused her harm and that Netflix and Gadd went too far in their depiction. The lawsuit seeks $50m each for actual damages, compensatory damages, and profits, as well as $20m of punitive damages. This lawsuit comes shortly after Netflix faced another defamation lawsuit by former prosecutor Linda Fairstein over her portrayal in the series When They See Us. Netflix has not yet responded to the lawsuit.

 

Los Angeles Times

LawFuel

Reuters