Expert Analysis


Unpacking Texas' New Grid Reliability Rules For Data Centers

The Electric Reliability Council of Texas’ recently effective technical and compliance obligations, designed to prevent data centers and other large energy customers from causing cascading outages when they go offline, will challenge facilities to develop equipment and protocols to help protect the grid, says Casey Bell at Balch & Bingham.


How Quantum Risk Could Reshape Legal Obligations

As federal policy, National Institute of Standards and Technology standards, and major market practice converge around postquantum cryptography, companies may need to safeguard their data now to prove they took reasonable measures to protect trade secrets from quantum computers that do not exist yet, say attorneys at MoFo.


Expert Witness's ChatGPT Use Highlights New AI Risks

An expert witness's recent use of ChatGPT in multidistrict litigation involving 3M to formulate most of his opinion illustrates the lack of clear rules for how an expert may use generative AI in an opinion, expanding both offensive and defensive discovery considerations, says David Shargel at Bracewell.


AI Note-Taking Suits May Fill Gap In Privacy Law Structure

A recent class action against Granola joins other pending lawsuits against AI note-taking providers, highlighting the legal uncertainty surrounding these tools, but there are practical steps companies using "invisible" AI services can take to mitigate risk, including conducting inventories and reviewing access permissions, say attorneys at Barnes & Thornburg.


The Future Of DOL Judge Removal Challenges After Slaughter

The U.S. Supreme Court's recent ruling in Trump v. Slaughter calls into question whether U.S. Department of Labor administrative law judges exercising significant governmental authority remain insulated from presidential removal, but the answer depends on the governing statute, its severability provisions and other factors, says Mark Ishu at Conn Maciel.


DOJ Executive Privilege Opinion Portends 3rd-Party Dilemmas

The recent opinion from the U.S. Department of Justice’s Office of Legal Counsel concluding that executive privilege can shield the president's communications with private advisers may lead to interbranch disputes, and companies must come up with a response plan now before they’re caught in the middle, say attorneys at Gibson Dunn.


Planning For The Impact Of FinCEN's CTA Rollback

The Financial Crimes Enforcement Network's recent rollback of Corporate Transparency Act reporting obligations should reduce compliance costs, but its plans to revisit customer due diligence rules should prompt companies and financial institutions to reassess state beneficial ownership programs, say attorneys at Sidley.


2nd Circ. Ruling Lays Out Administrative Right-Of-Access Blueprint

In Civil Rights Corps v. LaSalle, the Second Circuit recently held that the First Amendment dictates a presumptive right of access to sealed attorney grievance proceedings, providing a framework for challenging other administrative regimes that operate behind closed doors, says Jonathan Ginsberg at Carlton Fields.


How 'Swap' Fight Underpins Prediction Market Enforcement

As courts around the country grapple with whether, and under what circumstances, event contracts qualify as swaps, federal enforcement authority hangs in the balance, with implications for companies that need to manage compliance risks during this period of legal uncertainty, say attorneys at Debevoise.


FDA Closeout Letter Suggests Relaxing Stance On Wearables

The U.S. Food and Drug Administration's recent decision not to pursue enforcement action against Whoop's wearable blood pressure tracker, read together with guidance released earlier this year, suggests a softer shift in the FDA's approach to regulating wearables, say attorneys at Arnold & Porter.


Fed. Circ. Dental IP Ruling Reinforces Prior Art Framework

The Federal Circuit's recent decision in Dental Monitoring v. Align Technology reaffirms the necessity of substantive written description support for establishing an earlier effective prior art date under the America Invents Act, and aligns Patent Trial and Appeal Board practice with district court litigation, say attorneys at Morgan Lewis.


How Rogue AI May Shape Corporate Liability, Responsibility

Recent artificial intelligence cyber incidents offer a window into how companies deploying autonomous systems should document risk controls even when systems exceed their intended boundaries, as jurors may treat unexpected AI conduct as foreseeable evidence of inadequate safeguards, says Jorge Monroy at Verdict Insight Partners.


EPA Guidance May Simplify On-Site Power For Data Centers

At a moment when wait times to connect large loads to the electric grid can stretch into years, two recent U.S. Environmental Protection Agency guidance documents seek to make it easier for data center developers to set up on-site power generation — but much will depend on how quickly states and localities update their own rules, say attorneys at Alston & Bird.


Fed's Capital Rule Proposal Could Help Banks Stay Mutual

The Federal Reserve Board's recent proposal to comprehensively rewrite its capital rule and reduce procedural requirements for mutual holding companies would support community banking by allowing mutual institutions new ways to fund growth without converting to stock form, say attorneys at Nutter.


SEC's Adit Case Maps 5 Fault Lines In Pre-IPO Funds

The U.S. Securities and Exchange Commission's recent case brought against Adit Ventures Management offers fund counsel, limited partners and private market intermediaries a useful example of where a pre-initial public offering vehicle can fail, and how familiar fiduciary and anti-fraud principles apply, says Ben Dubin at VC Expert Services.


8(a) Firms Face New Risks From Pass-Through Arrangements

​Prime contractors and subcontractors with pass-through arrangements involving the Small Business Administration's 8(a) business development program should ensure they are prepared for heightened litigation risks created by the administration’s use of False Claims Act whistleblowers to target fraud in diversity, equity and inclusion programs, say attorneys at RJO.


Justices' Hikma Reasoning May Extend Well Beyond Pharma

The active steps framework announced by the U.S. Supreme Court in its Hikma v. Amarin decision, finding that Amarin failed to plausibly allege inducement of infringement, has the potential to reshape how courts evaluate inducement claims across patent, copyright and other doctrines, say attorneys at BCLP.


10th Circ. Ruling Propels Emerging 'Occurrence' Consensus

The Tenth Circuit recently revived the Church of Jesus Christ of Latter-day Saints' bid for insurance coverage in a sexual abuse case, continuing a trend as the second circuit court to find that, where ambiguous, the definition of "occurrence" must be interpreted in favor of coverage, say attorneys at Anderson Kill.


SVB Parent's Claim Loss To FDIC Bears Bond Wording Lesson

A North Carolina federal court’s recent ruling that the Federal Deposit Insurance Corp., as receiver for the collapsed Silicon Valley Bank, solely owns a $73 million fraud claim illustrates why parent financial institutions should scrutinize joint assured provisions in fidelity bonds to prevent a failed subsidiary's covered losses going to a receiver, say attorneys at McGuireWoods.


The State Of Prediction Market Litigation After 9th Circ. Ruling

The Ninth Circuit's recent decision in Kalshi v. Assad gives state regulators significant appellate backing to enforce state gaming laws over prediction markets, creating a direct split with the Third Circuit that will likely lead to Supreme Court review of the question, say attorneys at Arnold & Porter.



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Do artificial intelligence tools have any practical judicial applications? In this Expert Analysis series, state and federal judges explore potential use cases for AI in adjudication and beyond.




Opinion


Md. Court Got Ad Tax Similarity Analysis Wrong

Decisions striking Maryland’s digital advertising tax are fundamentally flawed because the Maryland Tax Court found similarity between digital ads and other ads without considering deep market distinctions, says Darien Shanske at UC Davis School of Law.

NC Litigation Funding Ban Sets Model For Other States

States worried about rising liability costs and the commercialization of their courts should treat North Carolina's recently enacted litigation funding ban as a model because a prohibition adequately addresses the distortion that disclosure only documents, say attorneys at McAngus Goudelock.



Access to Justice Perspectives


NJ Fingerprint Ruling Shows Forensic Reliability Isn't Static

The New Jersey Supreme Court’s recent State v. Lee decision, holding that developments in forensic science warranted a renewed assessment of fingerprint evidence, reaffirmed the trial judge's role as gatekeeper and underscored that the admissibility of expert testimony is an ongoing inquiry, not a one-time determination, say attorneys at Morgan Lewis.