Keep your finger on the legal world's pulse

Companies are embracing artificial intelligence's predictive powers but are cautious about using it for generating content, according to a new report by employment law firm Littler Mendelson. The survey of 399 in-house counsel, HR leaders, and other professionals found that 56% do not use generative AI at all for HR work. Of those that do, 34% use the technology for writing job descriptions and other content, while smaller numbers use it for answering workplace questions and employee development. The report also highlighted that companies are still working on guidelines for AI usage and assessing potential risks. California's efforts to regulate AI may bring significant changes, as vendors and companies that use AI tools could be held liable for discrimination.

 

Law

A jury will decide the outcome of a lawsuit between Thomson Reuters and Ross Intelligence over the alleged unlawful copying of content. The case could be one of the first trials related to the unauthorized use of data to train AI systems. Other tech companies, including Meta Platforms and Microsoft-backed OpenAI, are also facing lawsuits over the use of copyrighted work to train their AI software. Thomson Reuters accused Ross Intelligence of copying its legal-research platform Westlaw's "headnotes" to train its own AI-based legal search engine. Ross argued fair use, while Thomson Reuters claimed Ross copied the materials to build a direct competitor. The judge ruled that a jury should decide fair use and other questions, including the extent of Thomson Reuters' copyright protection. No trial date has been set.

 

Reuters

The American Bar Association's Standing Committee on Ethics and Professional Responsibility has issued Formal Opinion 508 on the ethics of witness preparation. The opinion emphasizes the importance of preparing clients and witnesses while also highlighting the ethical boundaries that lawyers must adhere to. It provides guidance on permissible activities during witness preparation, such as reminding witnesses of the importance of telling the truth and reviewing documents. However, it also warns against unethical conduct, including counseling witnesses to give false testimony or offering unlawful inducements. The opinion also addresses misconduct during witness testimony and in remote settings. It serves as a reminder that lawyers must understand and respect the ethical rules that govern their profession. The opinion includes references to relevant cases and writings in this area, and recommends further reading on the subject.

 

Law

Foreign-based companies with U.S. subsidiaries face challenges in qualifying for Chapter 15 recognition under the Bankruptcy Code. Chapter 15 allows U.S. bankruptcy courts to grant recognition to a foreign proceeding, providing certain protections for the administration of the foreign proceeding. However, U.S. debtors may struggle to satisfy the criteria necessary for recognition under Chapter 15. Recent cases have shown that U.S. subsidiaries must be parties to the foreign proceeding and independently meet the requirements to become Chapter 15 debtors. If they can qualify, it may be more efficient and cost-effective to restructure or liquidate the debtors through the foreign proceeding. These challenges highlight the complexities of running parallel proceedings with multiple courts applying different laws. The Model Law on Cross-Border Insolvency and Chapter 15 aim to encourage cooperation between the U.S. and foreign countries in transnational insolvency cases.

 

Law

Randal Quran Reid, has filed a lawsuit against law enforcement after being falsely arrested due to the misuse of facial recognition technology. Reid, who is Black, was pulled over in Georgia and arrested for crimes in Louisiana, despite never having visited the state. This is one of several lawsuits filed by Black plaintiffs who claim they were misidentified by facial recognition technology. Critics argue that the technology disproportionately misidentifies people of color. While supporters argue its importance in solving crimes, some states and cities have limited its use due to civil liberty and privacy concerns. Reid's lawsuit names the sheriff and detective involved in his arrest and seeks damages for false arrest, malicious prosecution, and negligence. The lawsuit highlights the need for better policies and reliability in the use of facial recognition technology. The incident has had a lasting impact on Reid, who says he still fears encounters with the police.

 

Los Angeles Times

Law

A North Carolina federal judge has rejected a bid by Florida's Division of Emergency Management to dismiss a lawsuit brought by Global Innovative Concepts. The lawsuit claims that the agency failed to pay $4.4m for 400,000 COVID-19 tests in a deal struck in March 2020. The judge also denied Florida's request to move the lawsuit to federal court in Florida. The lawsuit alleges that the agency agreed to buy the tests but did not pay the remaining balance and refused to accept the test kits. Florida argued that the case should not be tried in North Carolina, but the judge ruled that the agreements directed that disputes be handled in the state. The case will proceed in the Eastern District of North Carolina.

 

Reuters

Yelp and a coalition of news organizations have asked a U.S. judge to disqualify a prominent law firm from defending Google in the Justice Department's ad tech lawsuit. Yelp and News/Media Alliance argue that Paul, Weiss, Rifkind, Wharton & Garrison should be disqualified due to a conflict of interest. Google has subpoenaed Yelp and the alliance for information related to claims of market dominance abuse. The attorneys for Yelp and the media group stated: "This case involves a major law firm switching sides against former clients" to represent an alleged monopolist. Google and Yelp have not yet responded to the request. The trial in the ad tech case is expected to begin next year.

 

Reuters

Walgreens is facing a proposed class action lawsuit in Florida federal court over allegations of mislabeling eyedrops for pink eye treatment. The lawsuit follows warning letters from the FDA to Walgreens and other companies regarding the sale and marketing of eye care products that pose risks to users. The FDA flagged Walgreens' Pink Eye Drops, Allergy Eye Drops, and Stye Eye Drops as unapproved new drugs, citing health risks associated with the products' preservative, silver sulfate. The lawsuit, filed by Mandy Wells, claims that she would not have purchased the product if she had known it was ineffective and unsafe. Walgreens has halted the sale of the unapproved eye drops and offered refunds to customers. The FDA has requested the companies to respond with plans to correct the violations. Wells is represented by attorney Spencer Sheehan, known for handling product mislabeling class actions. The case is ongoing in the U.S. District Court for the Middle District of Florida.

 

Reuters

Microsoft Corp. has asked a Texas federal court to order Ramey LLP to pay attorneys' fees for defending itself in a patent infringement lawsuit. Ramey LLP, a Houston-based law firm, has filed numerous "frivolous" claims against big companies, including Microsoft, it is claimed. The tech giant alleges that Ramey LLP has a history of targeting large companies with such claims. Microsoft has requested compensation from Ramey LLP, citing the firm's involvement in several suits against them.

 

Bloomberg Law

Three international law firms, Latham & Watkins, Ropes & Gray, and Dentons, are scaling back their operations in China. Latham & Watkins is closing its Shanghai office and consolidating its China offering in Beijing. Ropes & Gray is downsizing its Shanghai presence by relocating some lawyers to Hong Kong. Dentons has broken up with its Chinese arm, citing new Chinese rules around cyber and data security. The moves reflect the challenges faced by the firms in the Chinese marketplace, including economic difficulties and strained relations between China and the U.S. Other U.S. firms are expected to follow suit.

 

Law

Squire Patton Boggs has added Naveen Pogula as a partner in its Atlanta office, aiming to grow its global corporate practice. Pogula, who previously worked at Thompson Hine, brings expertise in mergers and acquisitions, corporate governance, and securities matters. The firm's Atlanta office has grown from three lawyers to 33 since its opening in 2018. Meanwhile, Nelson Mullins has hired government contracts specialist David Yang in Washington, and Hall Booth Smith has added attorneys Mathis L. Gales and Dylan Magruder in Atlanta.

 

Law

The creators of "Better Call Saul" have won the dismissal of a defamation and trademark infringement lawsuit filed by Liberty Tax Service. The lawsuit claimed that the depiction of "Sweet Liberty Tax Services" in an episode of the show resembled the real tax firm. However, U.S. District Judge Paul Gardephe ruled in favor of AMC Networks and Sony Pictures Television, stating that there were no compelling allegations that viewers would be confused. The judge noted that the use of Liberty Tax's trademarks in the show was for advancing the plot, not for marketing purposes. The case was distinguished from a previous trademark claim involving the use of Rosa Parks' name in a song. Liberty Tax may explore legal options, including an appeal or refiling the lawsuit in a state court. "Better Call Saul" is a prequel to "Breaking Bad" and ran for six seasons.

 

Reuters