Keep your finger on the legal world's pulse

With the November general election approaching, legal battles over ballot issues in Pennsylvania are intensifying, and large law firms are playing a major role. Both Republicans and Democrats have enlisted the help of Big Law firms to represent them in election disputes. According to Martin Black, a partner at Dechert, election law and voting rights have become significant issues over the last decade, leading larger firms to get involved in these complex public policy matters. The firm recently won a case in Pennsylvania’s Commonwealth Court, ruling that provisional ballots cast by voters whose mail-in ballots were defective can be counted. This case involved collaboration with the Pennsylvania ACLU and the Public Interest Law Center. On the other hand, firms like Jones Day are backing the Republican National Committee in challenging the counting of improperly dated mail-in ballots, while firms like Dentons, Wilmer Cutler Pickering Hale and Dorr, and DLA Piper represent the Democratic National Committee and other voting rights groups. The involvement of major law firms in election litigation has become more prominent since the 2020 election, as legal challenges related to voting procedures have become more frequent. Both sides are preparing for extensive litigation as the election nears, with familiar firms representing clients in these high-stakes cases.

 

Law

The Supreme Court has allowed the Biden administration to withhold healthcare funding from Oklahoma due to the state's refusal to provide information about abortion, a federal requirement. Oklahoma Attorney General Gentner Drummond argued that the state should not be penalized for not advising patients on terminating pregnancies, claiming the Health and Human Services Department is imposing illegal conditions on funding. The Biden administration previously diverted $4.5m from Oklahoma’s family planning programme, which serves low-income patients. Solicitor General Elizabeth B. Prelogar stated: “there is no reason to doubt that [Oklahoma] can do the same this year” regarding substitute funding. The ongoing legal battle stems from differing interpretations of Title X funding rules, which have changed with each administration.

 

ABA Journal

According to the American Lawyer’s 2024 Midlevel Associates Survey, O’Melveny & Myers has been recognised as the top law firm for midlevel associate satisfaction. The firm is praised for its understanding of associates' lives outside work, with one associate stating: “It’s also a ‘mature’ firm, in that everyone understands, expects, and respects the fact we have lives and obligations beyond the firm.” O’Melveny also ranked second in the 2024 Midlevel Associate Tech Survey, indicating a strong correlation between associate satisfaction and technology ratings. The survey evaluated 72 firms based on 12 factors, including compensation and management transparency. Other firms in the top five for satisfaction included Baker & Hostetler, which ranked ninth for tech. In contrast, Steptoe and Covington & Burling received criticism for their lack of support and poor technology, respectively.

 

ABA Journal

In a competitive legal market, Frank Lopez, chair at Paul Hastings, emphasized that "the only way to grow demand is to take market share from your competitors at the top." According to a Bloomberg Law report, Paul Hastings ranks second in lateral partner hiring among the top 50 firms, securing 44 partners, just behind Kirkland & Ellis, which hired 71 partners. Other notable firms include Greenberg Traurig with 35 partners, DLA Piper with 32, and Holland & Knight with 28. This trend highlights the ongoing battle for talent in the legal sector.

 

ABA Journal

In an unexpected move on Thursday in his federal tax trial, Hunter Biden pleaded guilty to all nine charges just before jury selection was set to begin in Los Angeles. Standing before U.S. District Judge Mark Scarsi, Mr. Biden responded "guilty" to each charge, and faces a maximum of 17 years in prison and over $1.2m in fines at his upcoming sentencing on December 16th. The plea concludes his second criminal case, following a previous conviction related to firearm purchases. Mr. Biden's attorney, Abbe Lowell, noted: “Hunter decided to enter his plea to protect those he loves from unnecessary hurt and cruel humiliation.” The indictment revealed Mr. Biden's failure to pay at least $1.4m in federal taxes, with allegations of misclassifying personal expenses as business costs. Despite speculation about a potential pardon, White House Press Secretary Karine Jean-Pierre reiterated that President Joe Biden would not pardon his son.

 

CNN

Los Angeles Times

Tax Notes

Wall Street Journal

The Montana Department of Justice has issued a cease-and-desist letter to the Daily Montanan, a nonprofit news outlet, demanding the removal of a survey critical of Attorney General Austin Knudsen. The letter, dated August 21, claims the survey is confidential and was obtained "illegitimately." Upper Seven, a nonprofit law firm, responded on behalf of the Daily Montanan, stating, "The Attorney General's apparent desire to suppress unflattering commentary... does not justify legal threats that jeopardize the free press in Montana." The survey revealed that 45% of respondents were not optimistic about the agency's leadership, with many comments highlighting dissatisfaction with Knudsen's administration. Despite the cease-and-desist order, the Daily Montanan has made the survey available for download.

 

Missoulian

The Maryland Attorney General's Office has revised its proposal regarding the distribution of funds from a $1.2bn opioid settlement with Kroger. The new plan suggests a 70/30 split, favoring local subdivisions like county governments. This change aligns with previous settlements, as noted in an August 23rd letter stating “the same intrastate allocation as in prior settlements.” Maryland will receive $13m from the settlement, reflecting Kroger's limited presence in the state. The funds will be allocated for opioid-related initiatives, with 60% directed to a Targeted Abatement Fund for local governments. Michael Sanderson, executive director of the Maryland Association of Counties, emphasized the need for a statewide approach in the settlement. Local governments have until September 11th to join the agreement, as they face significant opioid-related expenses.

 

The Baltimore Sun

A student from DePaul University College of Law has reached a settlement in a lawsuit against the Chicago Bears, alleging discrimination in their hiring practices for a “legal diversity fellow” position. The lawsuit claimed that the Bears specifically sought a “person of color and/or female law student,” which the plaintiff, Bresser, argued excluded him based solely on his race. Bresser, who had over two years of experience as a litigation paralegal at the Trent Law Firm, stated he met all other qualifications for the role. The case highlights ongoing debates about diversity initiatives in hiring practices.

 

ABA Journal

Spotify has successfully defended itself in a long-standing legal battle initiated by Eminem's publisher, Eight Mile Style, which accused the streaming service of failing to properly license the rapper's music. The lawsuit, filed in 2019, sought damages for unlicensed streaming of tracks like Lose Yourself and Without Me. However, Judge Aleta A. Trauger ruled that Spotify would not be liable for any lost royalties, stating that Kobalt Music Group, which collected royalties for Eight Mile, was responsible for licensing issues. The judge noted that Eight Mile had "every opportunity to set things right" but chose not to, suggesting a strategic motive behind the lawsuit. 

 

BBC News

Billboard

The first legally binding international artificial intelligence (AI) treaty, known as the AI Convention, has been signed by countries including European Union members, the United States, and Britain. The treaty, which has been in development for years, aims to address the risks associated with AI while promoting responsible innovation. Shabana Mahmood, Britain's justice minister, said: "This Convention is a major step to ensuring that these new technologies can be harnessed without eroding our oldest values, like human rights and the rule of law." The AI Convention focuses on protecting the human rights of individuals affected by AI systems and is distinct from the EU AI Act, which regulates AI within the EU internal market. The Council of Europe, an international organization with 47 member countries, initiated the framework for this treaty in 2019.

 

Straits Times

Reuters

OpenAI Inc. is seeking to dismiss a proposed class action lawsuit that accuses the company of unlawfully scraping millions of YouTube videos to train its artificial intelligence (AI) products without the consent of creators. The motion, filed in the U.S. District Court for the Northern District of California, argues that the claims made by YouTube user David Millette regarding unfair competition and unjust enrichment are preempted by federal copyright law. OpenAI contends that these claims assert content reproduction rights that fall under the Copyright Act, stating: "YouTube videos fall within the law's subject matter." The outcome of this case could have significant implications for the intersection of AI technology and copyright law.

 

Bloomberg Law

A Virginia federal judge has significantly increased the patent infringement damages against NortonLifeLock Inc. to £481m, following the company's former law firm, Quinn Emanuel Urquhart & Sullivan, failing to disclose privileged communications. The judge's ruling came after it was determined that the withheld testimony could have negatively impacted NortonLifeLock's defence. Quinn Emanuel contends that the penalty imposed is “critically flawed” as it penalizes both the firm and its former client for the refusal to disclose. This ongoing legal dispute highlights the complexities surrounding patent infringement cases and the responsibilities of legal representation.

 

Bloomberg Law

Sedric is an artificial intelligence (AI)-powered platform designed to help financial institutions implement compliance rules and flag possible issues. “We realized there was disproportionate pressure on mid-size organizations, combined with a new set of challenges for banks,” co-founder Nir Laznik explains. “We knew the rapid advancements in AI could address these problems in an entirely new way. This convergence of factors led us to create Sedric.” Sedric monitors a workforce’s outbound and inbound calls, chats, emails, social media DMs and instant messages, and aims to flag compliance problems, such as omitted disclosures, missed steps and misconduct, in real time. Sedric can automatically “mitigate” issues and provide coaching to the offending employees in many instances, Laznik says.

 

TechCrunch

The Securities and Exchange Commission (SEC) has recently moved to dismiss all active misconduct proceedings against accountants before its in-house judges, signalling a potential shift in its enforcement strategy. Legal experts suggest this decision is linked to a Supreme Court ruling that limits the SEC's use of in-house judges for fraud cases, raising concerns about the agency's authority. Robert Glicksman, a law professor at George Washington University, said: "This seems like an example of an agency that has decided to voluntarily limit its enforcement activity." The SEC's actions included dismissing eight enforcement actions, some dating back to 2021, which is considered unprecedented. 

 

Reuters

Hicks Thomas LLP has significantly expanded its litigation capabilities by welcoming 14 trial lawyers from Hunton Andrews Kurth, increasing its attorney count by 50% from 28 to 42. This strategic move positions Hicks Thomas among the leading legal boutiques in Texas. John B. Thomas, a partner at Hicks Thomas, expressed enthusiasm about the new team, stating, “We could not be more pleased to welcome this team of incredibly talented lawyers to our firm.” The new partners bring extensive experience in managed care litigation, ERISA cases, and complex commercial matters, enhancing the firm's service offerings both in Texas and nationally. The expansion also includes a new office space in Downtown Houston, reflecting the firm's growth ambitions.

 

LawFuel

Ashurst has expanded its disputes and investigations practice in Dubai by hiring Shane Jury as a partner, alongside senior associate Emma Tormey. Jury brings over 11 years of experience in the Dubai region, specializing in complex commercial disputes, including financial services and civil fraud. He has worked extensively with the Dubai International Financial Centre and Abu Dhabi Global Market Courts. Tom Connor, head of disputes at Ashurst, stated: "The Middle East is a key region for our disputes team," highlighting the importance of the new hires in strengthening their offering. David Charlier, Middle East managing partner, noted that these additions reflect Ashurst's ambition to enhance its Middle East platform.

 

CDR

Brian Dunphy has joined Arnold & Porter as a partner in its complex litigation practice in Boston. He specializes in complex commercial litigation, particularly in the healthcare, life sciences, and biotech sectors. Dunphy defends product liability cases for pharmaceutical and biotech companies and provides counsel to healthcare providers, health plans, and clinical laboratories throughout various stages of investigations and litigation.

 

Bloomberg Law

The U.K.'s Competition and Markets Authority (CMA) has cleared Microsoft's hiring of some former employees of Inflection AI and its partnership with the start-up, stating that the deal does not require further investigation. The competition regulator launched a probe in July to look at whether the deal might lead to competition concerns in the U.K. because both companies develop and supply consumer chatbots. The Wall Street Journal says the decision allows Microsoft some breathing space as the company faces more scrutiny in the U.K. and the U.S. British officials are still considering whether Microsoft’s partnership with ChatGPT maker OpenAI should be considered a de facto merger.

 

Reuters

Wall Street Journal