Keep your finger on the legal world's pulse

Recent ethics disclosures from President Trump's legal nominees have unveiled significant partner draws at major law firms, including WilmerHale, Skadden, and Jones Day. These disclosures are crucial for identifying potential conflicts of interest as nominees prepare for key government roles. Notably, Brett Shumate, nominated to lead the Justice civil division, earned approximately $2.4m, representing clients like the U.S. Chamber of Commerce. Joseph Barloon from Skadden, set to be deputy U.S. Trade Representative, earned around $3.6m, with clients including Exxon and PayPal. Jay Clayton, nominated as U.S. attorney for the Southern District of New York, received over $6.7m since early 2024. These figures highlight the intertwining of high-stakes corporate interests and legal compensation, raising questions about potential biases in government roles.

 

LawFuel

Google's recent outage has highlighted the risks of law firms' increasing reliance on AI tools. As noted by Case, "the firms that survive the coming AI blackouts will be the ones that planned for them." She outlines six critical failure scenarios, including regional cloud blackouts and policy changes that could disrupt essential AI functions. To mitigate these risks, Case recommends building redundancy into AI workflows, incorporating human checkpoints, and conducting quarterly “blackout drills” to enhance resilience. The message is clear: preparation is key to navigating potential AI disruptions.

 

Legal Tech Monitor

Lawyers representing Mike Lindell, founder of My Pillow Inc., have been sanctioned by Judge Nina Y. Wang for their improper use of AI in legal documents. The sanctions were imposed due to violations of Rule 11 of the Federal Rules of Civil Procedure, as the attorneys did not adequately certify the AI-generated claims and defenses in their response to a motion in limine.

 

Bloomberg Law

Michael Berkovits, special counsel at Cooley, highglights the importance of collaboration between lawyers and forensic analysts in IP disputes. He states: "The lawyer who understands forensic analysis and treats it as an investigative tool rather than a black box is ahead of the game." Berkovits outlines three key strategies for maximising the value of forensic analysis: engaging in thorough discussions with analysts, actively participating in the analysis process, and effectively deploying findings to guide legal strategies. By understanding the context and details of the case, lawyers can ask targeted questions and interpret forensic data more effectively. This approach not only enhances the investigation but also informs decisions regarding potential litigation and client communication. Ultimately, a proactive stance on forensic analysis can significantly impact the outcome of IP disputes.

 

Bloomberg Law

Several medical organisations, including the American Academy of Pediatrics and the American College of Physicians, have filed a lawsuit against the U.S. Department of Health and Human Services (HHS) and Secretary Robert F. Kennedy Jr. The suit challenges a recent directive that removed the COVID-19 vaccine from the recommended list for healthy children and pregnant women. The plaintiffs argue that the directive is “arbitrary” and “capricious,” violating the Administrative Procedure Act (APA) by lacking scientific justification. They contend that it undermines the statutory framework established by Congress regarding vaccines and adversely affects the physician-patient relationship, leading to misinformation and confusion. The organisations warn that this could result in “decreased rates of vaccination, increased rates of transmission, long-lasting illness, and ultimately deaths.” They seek to have the directive declared unlawful and restore vaccine recommendations for the affected groups.

 

Jurist

The Trump administration has filed a lawsuit against California, claiming that the state's anti-animal cruelty laws impose "unnecessary red tape" that has driven up egg prices nationwide. The lawsuit, lodged in Los Angeles federal court, argues that the federal Egg Products Inspection Act of 1970 supersedes state regulations concerning eggs. This federal law mandates "national uniformity" in egg safety standards, allowing only the federal government to regulate egg safety. California's laws, which include voter initiatives aimed at reducing animal cruelty, have previously survived legal challenges. The lawsuit highlights the ongoing tension between state and federal regulations, particularly regarding agricultural practices.

 

U.S. News

Railware Inc. has initiated a federal lawsuit against Caltrain, alleging that the San Francisco Bay Area commuter rail system has infringed on its patented technology. This technology is designed to prevent trains from entering active work zones without the consent of on-site track workers. The complaint, filed in the U.S. District Court for the Northern District of California, claims that Caltrain is using products that incorporate Railware's Dispatch X system without authorisation, violating U.S. Patent Nos. RE47,835 and RE49,115. The lawsuit follows previous settlements Railware reached with Amtrak in June 2024.

 

Bloomberg Law

The SEC has maintained a consistent volume of enforcement actions during the Trump administration, filing 44 cases from Inauguration Day to the end of June, compared to 48 in the same period last year. Mark Bini, a partner at Reed Smith, remarked: “Everyone expected there to be a lot less SEC activity, because there's been downsizing of government and a change in priorities.” This stability comes despite a reduction in Biden-era actions targeting crypto and securities dealers, alongside potential cuts in personnel and funding.

 

Bloomberg Law

David Farhat and Eman Cuyler from Skadden highlight the need for jurisdictions to enhance their competent authority frameworks to deter forum shopping in international tax disputes. They emphasise that consistency is crucial, commenting: "Taxpayers' ability to forum shop...betrays this consistency." The OECD is working on mechanisms to curb this practice, encouraging early use of the mutual agreement procedure (MAP) to avoid double taxation. However, the effectiveness of these reforms depends on jurisdictions adopting clear rules regarding MAP's interaction with domestic remedies, enforcing transparency, and providing mandatory arbitration. They conclude that as global tax controversies grow more complex, ensuring timely resolutions will be vital for maintaining taxpayer confidence.

 

Bloomberg Law

Bloomberg Tax

Eckert Seamans Cherin & Mellott is facing a negligence lawsuit due to a data breach that affected over 9,400 individuals linked to Wheeling Jesuit University. This incident is part of a troubling trend, as two Am Law 200 firms reported data breaches in April, according to the Maine Attorney General's Office. 

 

Law

James Huie has joined Paul Hastings as a partner in its emerging companies and venture capital practice in San Francisco. He provides counsel to life sciences and technology firms on various corporate matters, including M&As, IPOs, and strategic partnerships.

 

Bloomberg Law

Freshfields has announced a partnership with The Dickson Poon School of Law at King's College London to offer a fully funded LL.M in Law & Technology for select future trainees. This pioneering program aims to equip trainees with essential skills at the intersection of law and technology, enhancing their ability to navigate the evolving legal landscape.

 

LawFuel

LawFuel

CoreWeave is set to acquire Core Scientific in a $9bn all-stock deal, aimed at bolstering its energy capacity to meet the rising demand for AI infrastructure. The acquisition will provide CoreWeave with 1.3 gigawatts of power from Core Scientific's data centres. Davis Polk & Wardwell and Kirkland & Ellis are representing CoreWeave, while Wachtell Lipton Rosen & Katz is advising Core Scientific. This deal comes as Core Scientific, which previously filed for bankruptcy in 2022, pivots towards AI to diversify its operations beyond cryptocurrency.

 

The Global Legal Post