Keep your finger on the legal world's pulse

A federal judge in San Francisco has ruled that Anthropic's use of books to train its AI system was legal under the fair use doctrine. The decision follows a lawsuit brought last year against the AI firm by three authors, including best-selling mystery thriller writer Andrea Bartz, who accused it of stealing work to train its Claude AI model and build a multi-billion dollar business. In his ruling, Judge William Alsup said Anthropic's use of the authors' books was "exceedingly transformative" and therefore allowed under U.S. law. But he rejected Anthropic's request to dismiss the case, ruling the firm would have to stand trial over its use of pirated copies to build its library of material. In a statement, Anthropic said it was pleased by the judge's recognition that its use of the works was transformative, but disagreed with the decision to hold a trial about how some of the books were obtained and used.

 

BBC News

Reuters

The Register

The Verge

Holders of Argentina's 1.5 billion-euro-denominated GDP warrants want U.S. courts to recognize English court judgments that hold Argentina liable for the debt. Hedge funds holding around half of the output-linked securities issued between 2005 and 2010 sued the South American country in 2019. English courts ruled in their favor in October 2024 and in April 2023. The U.S. court would have to recognize the outcome of the process in the English courts in order to be able to enforce the judgments against Argentine assets in the United States. Law firm Quinn Emanuel Urquhart & Sullivan represents certain holders.

 

Reuters

President Donald Trump's proposed tax and spending cuts package aims to ease regulations on gun silencers and certain firearms, a move that aligns with the gun industry's long-standing goals. Georgia Rep. Andrew Clyde, a Republican and gun store owner, said: “Burdensome regulations and unconstitutional taxes shouldn't stand in the way of protecting American gun owners' hearing.” The Senate's version of the bill expands these provisions to include short-barreled rifles and shotguns. While Republicans argue that these changes uphold Second Amendment rights, Democrats express concerns that loosening regulations could facilitate criminal activity. Senate Democratic leader Chuck Schumer said: “Parents don't want silencers on their streets.” The bill's passage could significantly alter gun regulations, reflecting a shift from previous bipartisan efforts to enhance gun control.

 

AP News

The Supreme Court has revived the oil and gas industry's lawsuit against California's emissions standards, ruling that fuel makers have standing to sue. In a 7-2 decision, Justice Brett M. Kavanaugh said: “The fuel producers make money by selling fuel. Therefore, the decrease in purchases of gasoline and other liquid fuels resulting from the California regulations hurts their bottom line.” The ruling allows the industry to challenge California's regulations, which they argue misuse a 1970s rule to combat modern climate issues. California Attorney General Rob Bonta expressed disappointment but said “the fight for clean air is far from over.” Environmentalists warn that the decision could set a dangerous precedent, enabling further lawsuits from the oil industry against state regulations aimed at protecting the environment.

 

Los Angeles Times

A Missouri judge has mandated that St. Paul Fire and Marine Insurance Co. pay nearly $44m in a lawsuit involving Ryan Ferguson, whose wrongful conviction for the murder of Columbia Daily Tribune sports editor Kent Heitholt was overturned. Ferguson, who maintained his innocence, initially won $11m against police after his conviction was overturned in 2013. The insurance company delayed payment for almost three years, arguing it was not liable due to the timing of coverage. However, a jury found that St. Paul acted in bad faith. Kathleen Zellner, Ferguson's attorney, said: “It's a way to send a message to insurance companies that if there's coverage, they need to pay.” The total award includes punitive damages and compensation for Ferguson and the officers involved.

 

U.S. News

Snap Inc. has initiated a federal lawsuit to prevent Utah's Attorney General, Derek E. Brown, from enforcing age-verification requirements on social media platforms, which the company argues violate a federal court order. The complaint, filed in the U.S. District Court for the District of Utah, claims that Brown is attempting to impose these requirements under two state statutes that are not covered by the existing court order. Snap asserts that this move represents an "impermissible content-based restriction" on its free speech rights.

 

Bloomberg Law

A federal judge has blocked President Donald Trump's executive order aimed at eliminating union bargaining rights for hundreds of thousands of federal workers. The ruling, which affects about 75% of federal employees represented by unions, was made in response to a lawsuit filed by the American Federation of Government Employees and other unions. James Donato said that the executive order was "likely illegal" and he has prevented around 20 agencies from implementing it while the case is ongoing. Eliminating collective bargaining would allow agencies to alter working conditions and fire or discipline workers more easily, and it could prevent unions from challenging Trump administration initiatives in court. The ruling follows a similar decision in Washington, D.C., where another judge halted the order's implementation at several key agencies.

 

U.S. News

Passaic County has agreed to pay $110,000 to Marc-Elie Georges, a former employee of Preakness Healthcare Center, to settle a lawsuit regarding his 2020 termination. Georges alleged racial discrimination and invasion of privacy, leading to his dismissal. The New Jersey Office of Administrative Law and Civil Service Commission found that Georges was wrongfully terminated and ordered his reinstatement, along with back pay and benefits. Administrative law judge Gail Cookson said that the assumptions behind his suspension were “faulty.” Georges, who attempted to send medical documents via personal email due to technical difficulties, faced accusations of violating HIPAA and inappropriate conduct, which were later disproven. Cookson noted that Georges was merely trying to communicate vital information during a challenging time in healthcare.

 

NJ.com

Crosby, a start-up hybrid AI law firm, has raised $5.8m in a Seed round led by Sequoia Capital and backed by Bain Capital Ventures, Ramp, and Instacart founders. The firm combines the speed and intelligence of AI with the safety of lawyers-in-the-loop to review contracts in under an hour. The company aims to operate as one entity, focusing on complex but routine matters such as reviewing MSAs and NDAs. Crosby has reviewed over 1,000 MSAs, DPAs, and NDAs for some of the fastest-growing companies in history, including Cursor, Clay, and UnifyGTM. The company uses human talent, including lawyers from Harvard, Stanford, Columbia Law, Ramp, Vanta, Meta, and Google, as well as legal tech, recognising that people are still better than technology at capturing the subtleties of certain clauses and connecting the dots between business context and legal documents.

 

Artificial Lawyer

Mingda Zhao and Emery Choi have joined Skadden, Arps, Slate, Meagher & Flom in Houston, enhancing the firm's M&A team as energy deals are expected to surge. Jeremy London, Skadden's executive partner, said: “As we continue to make key strategic investments in Houston, their experience will further our ability to respond to the evolving needs of clients in today's dynamic energy sector.” The anticipated resurgence in energy transactions is partly due to a reduction in second requests during the Federal Trade Commission's review process.

 

Bloomberg Law

Law

Perkins Coie has announced the hiring of Sarah Bowman, the global tax co-head and family office industry group leader from K&L Gates, to enhance its private client services practice in Seattle. 

 

Law

In 2024, U.S. charities received $592.5bn in donations, marking a 3.3% increase from 2023, according to a new report from Giving USA. Despite this growth, nonprofits face challenges, including significant federal funding cuts and increased demand for services. Una Osili, an associate dean at the Indiana University Lilly Family School of Philanthropy, noted: “There's a lot of uncertainty, a lot of volatility, especially in financial markets. When you're not sure exactly what's happening and the news is changing, that sometimes leads to donors just being uncertain and not acting. Uncertainty can dampen giving.” While corporate giving rose by 6% and individual donations increased by 5%, bequests fell by 4.4%. The report highlighted that giving to public society benefits surged by 16.1%, while donations to religion declined by 1%.

 

US News and World Report