Keep your finger on the legal world's pulse

Legal briefs created with the help of artificial intelligence and submitted with errors including citations to cases that don’t exist are a growing problem, attorneys say. French data scientist and lawyer Damien Charlotin has identified at least 490 court filings over the past six months that contain so-called “hallucinations” - AI responses that contain false or misleading information. “Even the more sophisticated player can have an issue with this,” Charlotin observed. “AI can be a boon. It’s wonderful, but also there are these pitfalls.” Most rulings are from U.S. cases in which plaintiffs represented themselves without an attorney, he said.

 

AP News

Kirkland & Ellis has significantly expanded its litigation department, adding nearly 300 lawyers since last year, marking a 33% increase. The growth has outpaced all other top 50 law firms. The litigation practice has generated $3bn in revenue over the past year, with rates for litigators ranging from $1,000 to over $2,400 per hour. The firm is focusing on high-leverage matters, including mass tort claims for major clients including Johnson & Johnson and Uber. Kirkland's strategy is said to emphasize “collaboration without self-interest,” moving away from its previous “eat-what-you-kill” culture.

 

Bloomberg Law

Law firms including Honigman and Stradley Ronon Stevens & Young are stepping up to meet the growing demand for guidance on generative artificial intelligence (gen AI) from their clients. As in-house legal departments increasingly seek advice on adopting the technology, Stradley Ronon plans to continue its AI training course in the spring due to high interest.

 

Law

Two prominent Republicans, Reps. Chris Smith and John Moolenaar, are urging the Supreme Court to allow a lawsuit against Cisco, alleging the company's technology facilitated the persecution of members of the Falun Gong religious sect in China. In their letter to D. John Sauer, the Trump administration's top Supreme Court litigator, the pair wrote: “The allegation that an American tech company custom-designed a tool to facilitate the violent persecution of a religious minority by the Chinese Communist Party (CCP) is a serious one . . . We believe the Plaintiffs deserve the chance to prove their claims.”

 

U.S. News

Palantir Technologies is suing two former senior engineers, Radha Jain and Joanna Cohen, for allegedly using confidential information to establish a competing firm called Percepta AI. The lawsuit, filed in Manhattan federal court, claims that Jain and Cohen breached agreements that barred them from competing or soliciting Palantir's customers for a specified period after their departure. Palantir asserts that the duo “were entrusted with Palantir’s crown jewels,” and seeks to enforce compliance with their non-compete agreements.

 

Reuters

The Trump administration is advancing plans to remove certain nonprofits from the Public Service Loan Forgiveness program if their activities are deemed to have a “substantial illegal purpose.” The policy, set to take effect in July, primarily targets organizations involved with immigrants and transgender youth. Organizations could be expelled based on legal rulings or settlements, and even without a legal finding the education secretary will have the power to independently decide on exclusions. “Illegal activity by its very nature runs contrary to the public good,” the Education Department wrote in a fact sheet. “Congress focuses on public service, and the Trump Administration will not direct taxpayer dollars from hardworking Americans to organizations that are breaking the law.” The American Bar Association said the proposal could decrease the ranks of public defenders and those in public interest law.

 

U.S. News

A Reuters tally illustrates how companies worldwide, including Amazon, Target and Nestle, have ramped up job cuts, as they rein in spending amid dimming consumer sentiment and as AI-focused tech companies start to replace roles with automation. Cuts like those at Amazon "tell me the economy is slowing down, not getting stronger. You don't have mass layoffs when the economy is strong," said Adam Sarhan, chief executive of 50 Park Investments in New York.

 

Reuters

BlackRock’s private credit investing division and other lenders are seeking to recover more than $500m after falling victim to what has been described as a “breathtaking” fraud. Bankim Brahmbhatt, the owner of telecom services companies Broadband Telecom and Bridgevoice, is accused of fabricating accounts receivable that were supposed to be used as loan collateral. BNP Paribas helped BlackRock’s HPS Investment Partners finance the Brahmbhatt loans, according to people familiar with the matter. Brahmbhatt disputes the allegations of fraud.

 

Wall Street Journal

The Daily Telegraph

Duncan Speller has been appointed as co-chair of the international disputes group at Duane Morris in London, effective October 28. With extensive experience in international arbitration and English High Court litigation, Speller has represented clients in over 200 arbitrations across various jurisdictions, including England, New York, and Singapore. His expertise spans multiple sectors, such as aviation, oil and gas, and technology. Previously, he was with Willkie Farr & Gallagher.

 

Bloomberg Law

Miwah Van, Woolworths' chief growth officer, has filed a discrimination lawsuit against the Australian supermarket giant and several executives, including former CEO Brad Banducci. The claim was submitted in the Federal Court, and the company is currently reviewing the details. Van is represented by Harmers Workplace Lawyers, which is known for its previous high-profile cases. This year, the firm represented two senior legal officers in a case against Super Retail Group, which resulted in the departure of the company's chief executive. Woolworths confirmed that Van is on leave.

 

Financial Review

Real income growth has slowed to near-decade lows, with young people being hit the hardest, according to a report from JPMorgan Chase Institute. George Eckerd, research director at the institute and a co-author of the report, told the Financial Times: “We’re looking at a level of year-on-year growth that’s actually similar to [the 2010s] when the labor market was a lot weaker and the unemployment rate was higher.”

 

Axios

Financial Times