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  • COMPLAINTS—ELECTRONIC PRODUCTS—Eight states sue OpenAI over claims ChatGPT endangered children, teenagers

    COMPLAINTS—ELECTRONIC PRODUCTS—Eight states sue OpenAI over claims ChatGPT endangered children, teenagers

    COMPLAINTS—ELECTRONIC PRODUCTS—Eight states sue OpenAI over claims ChatGPT endangered children, teenagers
    October 16, 2026 | By WK Editorial Staff
    The complaints allege the company deceived consumers about the chatbot’s safety. Attorneys general in eight states have filed separate lawsuits against OpenAI alleging the company misled consumers about the safety of ChatGPT, particularly for children and teenagers, and violated state consumer protection and other laws. Arkansas, Arizona, Idaho, Iowa, Kansas, Montana, Nebraska, and West Virginia brought the actions in their respective state courts. The sta...
FRAUD AND MANIPULATION—Assignment of Boeing fraud claims cannot clear Blue Chip standing hurdle

FRAUD AND MANIPULATION—Assignment of Boeing fraud claims cannot clear Blue Chip standing hurdle

October 16, 2026 | By Rodney F. Tonkovic, J.D.
More details about an assignation did not change the result. A district court dismissed with prejudice an action brought against The Boeing Company and its former CEO, holding that an assignee lacked ...
FEDERAL REGULATIONS—Final rule expands administrative leave uses in workforce restructuring efforts

FEDERAL REGULATIONS—Final rule expands administrative leave uses in workforce ...

October 16, 2026 | By Brandi O. Brown, J.D.
AFGE opposed the changes, arguing that the rule violates the ALA and the APA. The Office of Personnel Management has finalized regulations that formally authorize federal agencies to use administrative leave as a workforce restructuring tool, including in deferred resignation programs and certain reduction-in-force situations, while also establishing new restrictions on how such leave may be used. The rule takes effect 30 days after publication in the Federal Register. The final rule amends…
NASAA NEWS AND SPEECHES—NASAA renews warning over state preemption in SEC offering reform plan

NASAA NEWS AND SPEECHES—NASAA renews warning over state preemption in SEC offering ...

October 15, 2026 | By Rodney F. Tonkovic, J.D.
Preempting state review of unlisted registered offerings could remove key safeguards and create incentives for exploitation and fraud. The North American Securities Administrators Association has reaffirmed its opposition to an SEC proposal that would preempt state review of unlisted SEC-registered offerings. Responding to a recommendation from the SEC's Small Business Capital Formation Advisory Committee, NASAA argues that state-level review provides guardrails and that removing them could…
House Bill Would Ban Federal Funds for License Plate Readers, ‘Mass Surveillance’

House Bill Would Ban Federal Funds for License Plate Readers, ‘Mass Surveillance’

October 15, 2026 | By Tom Leithauser
Federal agencies would be barred from using automatic license plate readers (ALPRs) or other “automated mass surveillance systems” under legislation introduced by Rep. Rashida Tlaib (D., Mich.) and six Democratic co-sponsors. The Get the Flock Out of Our Communities Act (H.R. 10807 , 119th Cong. (2026)), which is named after Flock Safety, a leading ALPR vendor, “is the only bill in Congress designed to completely prohibit the use of automated mass surveillance technology, including biometric…
LABELING AND PACKAGING (FOOD, DRUGS & MEDICAL DEVICES)—N.D. Cal.: Baby food MDL is dismissed for lack of federal jurisdiction

LABELING AND PACKAGING (FOOD, DRUGS & MEDICAL DEVICES)—N.D. Cal.: Baby food MDL is ...

October 15, 2026 | By Donielle Tigay Stutland, J.D.
A negligence-per-se claim premised on alleged federal Food, Drug, and Cosmetic Act adulteration and misbranding violations does not present a substantial federal question. In a multidistrict litigation involving alleged adulteration and misbranding of baby food, the federal district court in California dismissed the suit for lack of federal question subject matter jurisdiction. Despite the parties’ written submissions in which all agreed the complaint presents a sufficient federal question,…
BANKING OPERATIONS—OCC’s Gould signals further action on reputation-risk debanking

BANKING OPERATIONS—OCC’s Gould signals further action on reputation-risk debanking

October 15, 2026 | By George M. Gullo, J.D.
Gould said the OCC may pursue additional regulatory changes after finding that large banks used reputation-risk policies to influence access to financial services. Comptroller of the Currency Jonathan V. Gould, in remarks on the debanking of coal, firearms, and other industries, said an Office of the Comptroller of the Currency (OCC) review found that all nine large national banks examined had reputation-risk policies that allowed political considerations, public opinion, and social pressures…
COPYRIGHT—S.D. Ohio: Google’s Shopping Ads program did not infringe T-shirt design copyrights

COPYRIGHT—S.D. Ohio: Google’s Shopping Ads program did not infringe T-shirt design ...

October 15, 2026 | By Sherri M. Schroeder, J.D.
The court found that Weekend Warrior failed to state a claim for either direct or contributory copyright infringement due to lack of volitional conduct on Google’s part, among other things. An Ohio federal district court has dismissed a complaint made by Weekend Warrior Clothing, LLC (WW), an online clothing company that sells T-shirts. WW alleged that merchants selling products that infringe on WW’s copyrighted designs take advantage of Google, LLC’s Shopping Ads program to sell their…
ANTITRUST NEWS: iPad consumers bring putative class action against Apple, Amazon, for allegedly restraining third-party sellers

ANTITRUST NEWS: iPad consumers bring putative class action against Apple, Amazon, for ...

October 15, 2026 | By Justin Marcus Smith, J.D.
The consumers distinguished the relevant online marketplace as a “two-sided” online platform mediating sales transactions between willing sellers and buyers. Two consumers, one a resident of Texas, the other a resident of the State of Washington, have brought a putative class action against Apple Inc. and Amazon.com, Inc. under Section 1 of the Sherman Act. The consumers allege that Apple and Amazon unlawfully agreed to eliminate or at least substantially reduce the competitive threat posed by…
DEFENSES TO LIABILITY—ASBESTOS—W.D. La.: Nuclear weapons contractors win summary judgment in serviceman’s mesothelioma suit

DEFENSES TO LIABILITY—ASBESTOS—W.D. La.: Nuclear weapons contractors win summary ...

October 15, 2026 | By Pankhuri Bhatnagar, B.A. LL.B.
The serviceman failed to establish that either contractor designed, manufactured, or supplied asbestos-containing materials to which he was exposed during military service. In an action brought by a former Air Force nuclear weapons specialist diagnosed with mesothelioma, a federal district court in Louisiana granted summary judgment to two contractors involved in the United States’ nuclear weapons program. The court found insufficient evidence that the insulation used in tritium shipping…
REMEDIES, DAMAGES—D. Md.: Court declines to preliminarily enjoin Trump contractor DEI order

REMEDIES, DAMAGES—D. Md.: Court declines to preliminarily enjoin Trump contractor DEI ...

October 15, 2026 | By Kathleen Kapusta, J.D.
“Plaintiffs lack a protectable First Amendment interest in speech that is prohibited by the Contractors Order because they lack an interest in speech that is prohibited by federal antidiscrimination law.” Denying a request by five organizations whose members include government contractors to preliminarily enjoin an executive order issued by President Trump in March 2026—which directs executive departments and agencies to ensure that agreements with contractors and subcontractors include…

VITAL BRIEFING—U.S. trade court certifies tariff refund class
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October 16, 2026 | By Brad Rosen, J.D.
The certified class consists of all importers of record who paid duties imposed by challenged tariff orders between February 1, 2025 and February 19, 2026, except for those entities that have filed separate recovery actions under ...

EXPERT INSIGHTS—CFTC final rule establishes 30% presumption for some whistleblower awards
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October 16, 2026 | By Jeffry Henderson & Douglas Arend, Ryan Hayden & Kyle Flynn
On Sept. 16, 2026, the Commodity Futures Trading Commission published a final rule revising its whistleblower regulations. The final rule will create a presumption that a whistleblower claimant will receive the statutory maximum o...

FRAUD AND MANIPULATION—Wells Fargo and Merrill Lynch reach settlement over excessive commissions for small-dollar trades
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October 16, 2026 | By R. Jason Howard, J.D.
Wells Fargo and Merrill Lynch charged unreasonable commissions on more than 256,000 equity transactions and trades nationwide over the past five years. NASAA has announced that Wells Fargo Clearing Services, LLC, Wells Fargo Advis...

WORTH NOTING—Other litigation, regulatory activity and industry news
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October 16, 2026 | By WK Editorial Staff
A weekly roundup of items of interest to the securities, derivatives and corporate governance communities. BROKER-DEALERS — FINRA obtained SEC approval for a rule change that combines the old rules governing outside business activ...

Cyber Incident Reporting Rules Set for Final Review
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October 15, 2026 | By Tom Leithauser
Long-delayed rules to implement a cyber incident reporting law are now set to be issued by early next year, according to the White House Office of Information and Regulatory Affairs (OIRA). OIRA indicated on its regulatory dashboa...

Eight State AGs Sue OpenAI Over ChatGPT Privacy, Safety Concerns
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October 15, 2026 | By Tom Leithauser
Attorneys general from eight states yesterday filed lawsuits in state courts alleging that OpenAI’s ChatGPT chatbot endangers children and other users by collecting sensitive personal information and providing questionable advice....

EXPERT INSIGHTS—FDA opens applications for new pilot to shorten drug approval times: What sponsors need to know
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October 15, 2026 | By Justine Lei & Jami Fogelhut
Earlier this month, FDA opened applications for a new Expedited Investigational New Drug (IND) Pilot Program (the "Program"), an initiative launched under HHS Operation TrialBlazer[1] that aims to shorten the path from IND-enablin...

ELECTRONIC HEALTH RECORDS—W.D. Ky.: Humana privacy lawsuit advances over alleged tracking of health information
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October 15, 2026 | By George Basharis, J.D.
The insurer allegedly transmitted sensitive health information to third parties even after users restricted tracking through privacy controls on its website and patient portals. Humana must defend a proposed class action alleging ...

FINANCIAL STABILITY—Fed’s Bowman says SVB review has lessons for international supervisory standards
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October 15, 2026 | By Nora Macaluso
The Fed vice chair for supervision urged international bodies to redouble their supervisory focus on material risks. The Federal Reserve’s recent review of the 2023 Silicon Valley Bank failure holds lessons about the importance of...

FINANCIAL TECHNOLOGY—Metrika reports award of OCC contract for GENIUS Act stablecoin work
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October 15, 2026 | By George M. Gullo, J.D.
The contract has a six-month base period beginning August 17, 2026, plus a six-month option that the OCC may exercise at its discretion. Metrika, Inc. said in an October 14, 2026, press release that it was awarded the Office of th...

PATENT—D. Del.: Generic drug maker infringed pharma company’s sodium thiosulfate patents for cyanide poisoning treatment
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October 15, 2026 | By Saurabh Kashyap, B.A., M.A., LL.B., LL.M.
The proposed generic sodium thiosulfate injection infringed the asserted patents, while the generic manufacturer failed to establish obviousness, inadequate written description, or prosecution laches. A federal district court in D...

PATENT—D. Del.: Patent suit against Warner Bros. dismissed, but BitHarmony can amend
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October 15, 2026 | By Jonathan Anderson
The case involves four patents related to media data handling, streaming, and storage. The U.S. District Court for the District of Delaware granted a motion by Warner Bros. Home Discovery and related entities to dismiss a patent i...

ADVERTISING—N.D. Cal.: ‘Made in the USA’ labeling case tossed over lack of allegations about foreign part value
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October 15, 2026 | By Steven Melendez
The consumer failed to show a mattress maker was not protected by a California safe harbor law for mostly made-in-America products. The federal district court in San Fransico, California has dismissed a putative class action broug...

ANTITRUST—S.D. Tex.: Monopolization counterclaims survive in chemical recycling dispute
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October 15, 2026 | By Martin A. Steinberg, J.D.
Competing chemical recycling providers accuse each other of stealing proprietary technology, with defendants alleging Nexpera used the lawsuit to suppress competition. The federal district court in Corpus Christi, Texas, allowed S...

DEFENSES TO LIABILITY—INDUSTRIAL AND COMMERCIAL EQUIPMENT—M.D. Pa.: Injured truck operator’s employer immune from contribution but obligated ...
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October 16, 2026 | By Pankhuri Bhatnagar, B.A. LL.B.
The employer was statutorily protected from liability but an express waiver of immunity in a subcontract agreement allowed his general contractor’s defense and indemnity claim to proceed. In an action brought by an injured truck o...

DESIGN AND MANUFACTURING DEFECTS—HOUSEHOLD PRODUCTS—C.D. Ill.: Material facts keep lawsuit against Toro active, but appellate ruling narrows ...
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October 16, 2026 | By Leah S. Poniatowski, J.D.
A homeowner injured by a mower successfully argued that appellate ruling on Toro’s alternative grounds for dismissal was not dicta, but the manufacturer presented a novel argument to gain another attempt at summary judgment. A law...
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