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Expert Analysis

• How States Are Regulating Health Insurers' AI Usage

  

  The absence of a federal artificial intelligence framework positions states as key regulators of health insurers’ AI use, making it important for payors and service providers to understand the range of state AI legislation being passed in California and elsewhere, and consider implementing an AI-focused compliance infrastructure, say attorneys at Ropes & Gray.

• Export Misconduct Resolutions Emphasize BIS, DOJ Priorities

  

  The U.S. Department of Justice's and Bureau of Industry and Security's recently resolved parallel enforcement actions against semiconductor technology company Cadence Design demonstrate the agencies' prioritization of penalties for export control violations involving China, as well as the importance of voluntary self-disclosure, say attorneys at Fenwick.

• Disney Art Suit Will Test Recent AI Fair Use Boundaries

  

  While the first U.S. rulings to address the issue recently held that it's fair use for generative artificial intelligence models to train on certain copyrighted books without permission, Disney v. Midjourney, filed in June, will test the limits of the fair use framework in a visual art context, says Rob Rosenberg at Moses & Singer.

• Location Data And Online Tracking Trends To Watch

  

  Regulators and class action plaintiffs are increasingly targeting companies' use of online tracking technologies and geolocation data in both privacy enforcement and litigation, so organizations should view compliance as a dynamic, cross-functional responsibility as scrutiny becomes increasingly aggressive and multifaceted, say attorneys at Arnold & Porter.

• A Simple Way Courts Can Help Attys Avoid AI Hallucinations

  

  As attorneys increasingly rely on generative artificial intelligence for legal research, courts should consider expanding online quality control programs to flag potential hallucinations — permitting counsel to correct mistakes and sparing judges the burden of imposing sanctions, say attorneys at Lankler Siffert & Wohl and Connors.

• Surveying The Changing Overdraft Fee Landscape

  

  Despite recent federal moves that undermine consumer overdraft fee protections, last year’s increase in fee charges suggests banks will face continued scrutiny via litigation and state regulation, says Amanda Kurzendoerfer at Bates White.

• The Evolving Legal Landscape For THC-Infused Beverages

  

  A recent Eighth Circuit ruling, holding that states may restrict the sale of intoxicating hemp-derived products without violating federal law, combined with ongoing regulatory uncertainty at both the federal and state levels, could alter the trajectory of the THC-infused beverage market, say attorneys at Pashman Stein.

• Cos. Must Tailor Due Diligence As Trafficking Risks Increase

  

  As legislators, prosecutors and plaintiffs attorneys increasingly focus on labor and sex trafficking throughout the U.S., companies must tailor their due diligence strategies to protect against forced labor trafficking risks in their supply chains, say attorneys at Steptoe.

• Antitrust Scrutiny Heightens In The Cannabis Industry

  

  Two ongoing antitrust cases signal intensified scrutiny of pricing practices, distribution restraints and exclusionary conduct in the cannabis sector, says Robin Crauthers at McCarter & English.

• Series

  Creating Botanical Art Makes Me A Better Lawyer

  

  Pressing and framing plants that I grow has shown me that pursuing an endeavor that brings you joy can lead to surprising benefits for a legal career, including mental clarity, perspective and even a bit of humility, says Douglas Selph at Morris Manning.

• What To Expect As Calif. Justices Weigh Arbitration Fee Law

  

  If the California Supreme Court’s upcoming ruling in Hohenshelt v. Superior Court holds that the Federal Arbitration Act does not preempt the California Arbitration Act's strict fee deadlines, employers and businesses could lose the right to arbitrate over minor procedural delays, say attorneys at Bird Marella.

• Reddit v. Anthropic Is A Defining Moment In The AI Data Race

  

  The recent lawsuit filed by Reddit against Anthropic in California state court marks a pivotal moment in the burgeoning field of artificial intelligence by sidestepping a typical copyright dispute, focusing instead on the enforceability of online terms of service and ownership of the digital commons, says William Galkin at Galkin Law.

• Opinion

  Privacy Bill Must Be Amended To Protect Small Businesses

  

  While a bill recently passed by the California Senate would exempt a company's use of legally compliant website advertising and tracking technologies from the California Invasion of Privacy Act, it must be amended to adequately protect small businesses, say attorneys at Thompson Hine.

• Opinion

  The Legal Education Status Quo Is No Longer Tenable

  

  As underscored by the fallout from California’s February bar exam, legal education and licensure are tethered to outdated systems, and the industry must implement several key reforms to remain relevant and responsive to 21st century legal needs, says Matthew Nehmer at The Colleges of Law.

• Opinion

  Calif. Must Amend Trade Secret Civil Procedure

  

  A California procedural law that effectively shields trade secret defendants from having to return company materials until the plaintiff can craft detailed requests must be amended to recognize that property recovery and trade secret analysis are distinct issues, says Matthew Miller at Hanson Bridgett.