Keep your finger on the legal world's pulse

U.S. District Judge Yvonne Gonzalez Rogers has said that Elon Musk’s use of ketamine will be off limits to attorneys for OpenAI and its CEO Sam Altman during an upcoming jury trial over claims that the generative AI company defrauded Musk by ditching the nonprofit structure that it had when he initially donated to the startup. OpenAI and Microsoft - a subsequent $13bn investor in the startup - have denied Musk's claims. Musk is seeking as much as $134bn in damages from OpenAI and Microsoft. The judge told a pre-trial hearing in California’s northern district: “A jury is going to understand that [Musk’s expert] is pulling these numbers out of the air.” Musk has said he has used ketamine under a prescription years ago and has not used it since.

 

Bloomberg

Financial Times

PYMNTS.com

A federal judge has blocked subpoenas issued by President Trump’s Department of Justice to the Federal Reserve and its chair, Jerome Powell. U.S. District Judge James Boasberg quashed two subpoenas served on the Fed’s board of governors that sought records about a $2.5bn renovation project about which Powell testified before Congress. The judge identified “abundant evidence” that the subpoenas were part of a pressure campaign against Powell.  “The case thus asks: Did prosecutors issue those subpoenas for a proper purpose?” Boasberg wrote. “The Court finds that they did not.” He added: “There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will.” The White House did not respond to a request for comment on Friday. 

 

The Hill

Axios

Financial Times

Immigrant rights advocates have launched a lawsuit to prevent the Trump administration from terminating Temporary Protected Status (TPS) for nearly 1,100 Somalis. The lawsuit, filed in Boston federal court by four Somalis and two advocacy groups, challenges the Department of Homeland Security's (DHS) decision, which Secretary Kristi Noem announced would take effect on March 17. The plaintiffs argue that the termination is based on a discriminatory agenda rather than objective assessments of conditions in Somalia. Omar Farah, executive director of Muslim Advocates, said: "The termination of TPS for Somalia is racism masking as immigration policy." TPS provides humanitarian protection from deportation and work authorization for eligible migrants.

 

U.S. News

The California Department of Education has filed a lawsuit against the Oakland USD for allegedly failing to address "pervasive antisemitism" on its campuses. The lawsuit follows a state order from January that mandated specific actions to combat a "discriminatory environment" in Oakland schools. The state claims OUSD "took no action whatsoever," despite requests for more time to implement changes. The lawsuit highlights a national debate on how schools handle antisemitism amid the Israel-Palestine conflict, with critics arguing that efforts to combat antisemitism may suppress pro-Palestinian viewpoints. The state required OUSD to take several actions, including sending letters condemning antisemitism and holding assemblies about the Holocaust. 

 

Mercury News

San Luis Obispo Tribune

Starbucks is facing warnings from proxy advisory firms regarding potential financial and reputational risks linked to ongoing labor disputes with its U.S. union. Contract talks have stalled for over a year, but recent discussions are set to resume following a new proposal from the union. Analysts from Institutional Shareholder Services (ISS) raised concerns about the lack of board oversight on labor relations amid controversies such as strikes and a significant settlement over schedule stability violations in New York City. The dissolution of a labor relations oversight committee has drawn criticism, prompting calls from shareholder groups for increased accountability. Starbucks asserts that overseeing labor issues will now fall under the general board, and it believes this restructuring will enhance long-term shareholder value. Additionally, while union representation remains limited to about 6% of Starbucks locations, the company acknowledges ongoing challenges with labor relations, including historical strikes and their impacts on business.

 

Reuters

Legora, an AI platform for lawyers, has reached a valuation of $5.55bn following a $550m Series D funding round aimed at expanding its presence in the U.S. market. Despite facing competition from rivals like Harvey and Microsoft Copilot, CEO Max Junestrand expressed confidence in Legora's positioning, saying: “It's amazing that everybody can have their own pocket lawyer in Claude, but we're not solving for the same use case.” The platform is currently utilized by 800 law firms and legal teams, and its rapid growth has attracted significant investor interest. Following a $150m Series C round in October 2025, Legora is now set to open new offices in Houston and Chicago, with plans to expand its U.S. workforce to over 300 employees by the end of 2026.

 

Techcrunch

A panel of New York appellate judges appears inclined to support DLA Piper in a legal malpractice lawsuit filed by Link Motion. The technology firm claims that DLA Piper inadequately prepared its defense in a federal shareholder derivative lawsuit. However, Associate Justice Martin Shulman noted that DLA Piper “kept the ball in the air” for Link until the company could resolve its representation issues, observing: “You can't say they did nothing.”

 

Bloomberg Law

A&O Shearman's Brad Weyland is set to fill the gap left by the departure of two partners from Paul Hastings to Sullivan & Cromwell in February. Weyland specializes in advising investment banks, private credit providers, and corporations on capital markets transactions, including high-yield bonds and bridge loans. He also provides guidance on restructurings, liability management, and compliance with Securities and Exchange Commission reporting requirements.

 

The Global Legal Post

Mexican President Claudia Sheinbaum has said she will not take legal action against Elon Musk after he suggested she had ties to drug cartels. "We will see ⁠if he ⁠continues, then ⁠we'll ​reevaluate," she told a press ​conference, ⁠after saying she had decided not to pursue a civil ⁠lawsuit. In February, Sheinbaum had said she was ⁠considering legal action over a post in which Musk responded to a 2025 video of Sheinbaum discussing cartel violence and alleged ⁠that she was "saying what her cartel bosses tell her to say."

 

U.S. News

The Pentagon is building a new team of investment bankers with private equity expertise to ​invest $200bn over three years in defense deals. The Department of Defense is specifically going after Goldman Sachs, Morgan Stanley, JPMorgan and Bank of ​America as prime recruiting targets for the 30-person team. A document reviewed by Semafor prepared by search firm Heidrick & Struggles pitches a chance to “serve your country” and deploy “more capital than most investors deploy in their entire careers.”

 

Semafor