Keep your finger on the legal world's pulse

The High Court in London has found that Hewlett Packard Enterprise is owed £730m ($944m) over its ill-fated acquisition of Autonomy, less than a year after the U.K. software company’s founder Mike Lynch died in a yacht accident. The U.S. tech giant sued Lynch and chief financial officer Sushovan Hussain, accusing them of an elaborate fraud to inflate the value of Autonomy, which HP bought for $11.1bn in 2011. HP wrote down Autonomy’s value by $8.8bn within a year. Judge Robert Hildyard ruled HP sustained losses of over £646m ($871.8m) in respect of the difference between what HP paid for Autonomy and what HP would have paid "had Autonomy's true financial position been correctly presented," and also said HP was owed another £51.7m in relation to "personal claims for deceit and/or misrepresentation against Dr Lynch and Mr Hussain," plus another $47.5m in relation to losses suffered by group companies, Reuters reports.

 

Financial Times

Reuters

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A federal judge in Boston is weighing arguments from both sides in Harvard's lawsuit against the Trump administration. Harvard claims the government's freezing of research funds is illegal. Lawyers sparred in a Boston courtroom yesterday as they fought over President Donald Trump's decision to strip billions of dollars in government funding for Harvard's education programs. Harvard has asked the judge to reach a decision by September3 - the deadline the Trump administration has given the university to wind up its financial obligations with regards to federal grants. Harvard lawyer Steven Lehotsky said that the administration was trying to control the "inner workings" of the institution. "The administration has given no consideration to patients, the public at large and the harm of all this research being cut off," said Lehotsky, who observed that Harvard has a research relationship with the U.S. that stretches back over eight decades. A lawyer for the government, Michael Velchik, said that the university had violated an executive order signed by Trump directed at combating antisemitism.

 

BBC News

NPR

Washington Post

A group of 21 Democratic state attorneys general has filed a lawsuit challenging White House restrictions on social services for immigrants who are in the U.S. illegally, including the federal preschool program Head Start, health clinics and adult education. Individual public benefits, including food stamps and college financial aid, have been largely unavailable to people in the country without legal status, but the new rules and guidance from the Trump administration restricted their access to community-level programs that receive federal money. The lawsuit, led by New York Attorney General Letitia James, argues the government failed to follow the rulemaking process and did not provide required notice on conditions placed on federal funds, and says the changes will create significant harm.

 

OregonLive.com

U.S. News

Los Angeles has filed a lawsuit against Airbnb, alleging that the company facilitated price gouging on over 2,000 properties during the wildfires in January, with rental prices reportedly increasing by more than 10% despite a state of emergency. The city claims that Airbnb violated California's anti-gouging laws and is seeking an injunction to prevent illegal pricing, alongside civil fines for each violation.

 

Reuters

A federal court has allowed a Mississippi law mandating age verification for social media users to take effect, overruling a previous block by a federal district judge. The law, supported by Mississippi Attorney General Lynn Fitch, aims to address concerns over social media's impact on youth, including issues including depression and anxiety. Fitch said that age verification could help mitigate risks associated with “sex trafficking, sexual abuse, child pornography, targeted harassment, sextortion, incitement to suicide and self-harm.” However, the tech industry group NetChoice, which is challenging the law, argues it infringes on privacy rights and free expression. NetChoice co-director Paul Taske expressed disappointment in the ruling, observing: “Parents - not the government - should determine what is right for their families.”

 

U.S. News

A U.S. judge has scheduled a hearing for August 28 to consider a proposal that would allow Boeing to avoid prosecution related to two fatal 737 MAX crashes, despite objections from victims' families who argue that the deal undermines public interest. Under the proposed non-prosecution agreement, Boeing would pay a total of $1.1bn, including fines and compensation to victims' families, while also escaping oversight from an independent monitor for three years.

 

Reuters

The Office of Personnel Management (OPM) is set to lose approximately one-third of its workforce by year-end, primarily through voluntary departures. Scott Kupor, the newly appointed OPM director, said that the agency is providing options for employees to leave voluntarily rather than resorting to mass firings. While 129 jobs were cut through reductions in force, 940 employees opted for deferred resignations, early retirements, or buyouts. Kupor emphasized the importance of treating departing employees with "respect and humility," acknowledging the impact on families. OPM anticipates a staff reduction from 3,110 to about 2,000 by the end of the year. Meanwhile, Kupor has said he wants to “institutionalize” the pursuit of “operational efficiency” by the so-called Department of Government Efficiency (Doge), while distancing himself from Elon Musk’s controversial approach to cutting spending. "I have zero personal relationship with Elon Musk. I have talked to Elon Musk once on the phone in my life," Kupor told reporters, adding “What [Doge] did was catalyse the start of a process . . . Now, we have to actually institutionalize those things” and pursue “operational efficiency.”

 

Financial Times

U.S. News

Washington Post

New studies by nonprofits SaferAI and the Future of Life Institute (FLI) say that leading AI companies exhibit “unacceptable” risk management and a “striking lack of commitment to many areas of safety.” The assessments indicate that no company scored above “weak” in risk management maturity. Each report was the second of its kind. The two groups hope they will be a running series that incentivizes top AI companies to improve their practices. “We want to make it really easy for people to see who is not just talking the talk, but who is also walking the walk,” said Max Tegmark, president of the FLI.

 

Time.com

David Pratt has joined McDermott Will & Emery as a partner in its private client practice in Boca Raton, Florida. He provides expert advice to ultra- and high-net-worth individuals, including entrepreneurs and medical professionals, focusing on estate and wealth transfer planning, tax efficiency, and charitable work. Previously, Pratt was chair of Proskauer Rose's private client practice.

 

Bloomberg Law

The Wells Fargo banker who has been blocked from leaving China was involved in a criminal case and obliged to cooperate with the investigation, according to China's foreign ministry. Guo Jiakun, a spokesperson for the ministry, said Chinese law enforcement authorities have restricted Chenyue Mao's exit in accordance with the law. "Everyone in China, whether they are Chinese or foreigners, must abide by Chinese laws," Guo said.

 

Reuters