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  • Bipartisan House Bill Takes Aim at AI ‘Distillation Attacks’

    Bipartisan House Bill Takes Aim at AI ‘Distillation Attacks’

    Bipartisan House Bill Takes Aim at AI ‘Distillation Attacks’
    October 23, 2026 | By Tom Leithauser
    Bipartisan legislation that would aim to prevent foreign adversaries from stealing U.S.-developed AI (artificial intelligence) technology was introduced yesterday in the House. The AI Cyber Defense Act (H.R. __, 119th Cong. (2026)), authored by Reps. Pat Harrigan (R., N.C.) and George Whitesides (D., Calif.), would direct the National Institute of Standards and Technology to develop voluntary standards to prevent “distillation attacks” that result in the c...
DISCRIMINATION—5th Cir.: Preliminary injunction against Mississippi law targeting DEI initiatives vacated, remanded

DISCRIMINATION—5th Cir.: Preliminary injunction against Mississippi law targeting DEI initiatives vacated, remanded

October 23, 2026 | By Ronald Miller, J.D.
The fact that the district court twice referred to the Moody framework as “supposedly” required calls into question whether the judge even tried in good faith to follow the law. The Fifth Circuit vaca...
DISCRIMINATION—RACE—E.D.N.Y.: White school psychologist, referred to as a ‘Karen,’ cannot advance bias claim

DISCRIMINATION—RACE—E.D.N.Y.: White school psychologist, referred to as a ‘Karen,’ ...

October 22, 2026 | By Kathleen Kapusta, J.D
According to the school psychologist, she considered the term to be a derogatory term for white women. A school secretary’s reference to a white psychologist as a “Karen” prior to a meeting with an assistant principal, together with the assistant principal’s aggressive behavior toward the psychologist at the meeting, was not enough to constitute adverse employment action, a federal court in New York held, granting summary judgment against the psychologist’s Title VII race discrimination claim.…
SEC NEWS AND SPEECHES—Brattle Group reports on SEC enforcement slowdown

SEC NEWS AND SPEECHES—Brattle Group reports on SEC enforcement slowdown

October 23, 2026 | By R. Jason Howard, J.D.
Fiscal Year 2026 SEC enforcement actions show a 57 percent decline from the FY18–FY25 annual average. The Brattle Group, a global consulting firm specializing in economics and finance, has published a report on SEC enforcement activity for Fiscal Year 2026 which shows that the SEC filed an estimated 308 enforcement actions, down 57 percent from the FY18-FY25 annual average and, despite a rise in filings in the second half of the year, those remained below every comparable period from…
EU Lawmakers Push Back on Proposed Narrowing of ‘Personal Data’ Definition

EU Lawmakers Push Back on Proposed Narrowing of ‘Personal Data’ Definition

October 22, 2026 | By Tom Leithauser
The Council of the European Union has rejected the European Commission’s proposal to amend the EU’s General Data Protection Regulation (GDPR) by narrowing the definition of “personal data.” The commission last year unveiled “targeted amendments” to GDPR that included a proposal to redefine personal data to exclude pseudonymized data that can’t be easily used to identify an individual (CPR , Nov. 19, 2025 ). But the council recommended keeping the old definition in a proposal released yesterday…
ADVERTISING (FOOD, DRUG & MEDICAL DEVICES)—S.D.N.Y.: Joe & The Juice to defend claims based on alleged oil blend in drinks

ADVERTISING (FOOD, DRUG & MEDICAL DEVICES)—S.D.N.Y.: Joe & The Juice to defend claims ...

October 23, 2026 | By Leah S. Poniatowski, J.D.
Consumers in putative class action met pleading requirements for breach of warranty, but some state law issues were dismissed. A group of six consumers who purchased juices from Joe & The Juice at locations throughout the United States adequately pleaded that the company had breached the express warranty to overcome the company’s motion to dismiss the claim in a putative class action based on the alleged misrepresentation of the olive oil ingredient listed on the drink’s menu, a federal…
STATE BANKING LAWS—New York proposes risk-based overhaul of bank investment filings

STATE BANKING LAWS—New York proposes risk-based overhaul of bank investment filings

October 23, 2026 | By Charles A. Menke, J.D.
Additional investments worth no more than one percent of capital and surplus could avoid both prior approval and after-the-fact notice under specified conditions. The New York Department of Financial Services has proposed repealing and replacing its current banking regulation governing investments in operating subsidiaries and other entities (3 NYCRR Part 14) with a risk-based framework for bank investments in operating subsidiaries and other entities. According to a regulatory impact…
COPYRIGHT—S.D.N.Y.: AI platform sellers lose copyright suit; royalty dispute heads to arbitration

COPYRIGHT—S.D.N.Y.: AI platform sellers lose copyright suit; royalty dispute heads to ...

October 23, 2026 | By Patricia K. Ruiz, J.D.
The court found ownership of the software was transferred in the acquisition agreement. Software developers who sold an artificial intelligence market-research platform could not pursue copyright and Digital Millennium Copyright Act claims against the purchaser because the acquisition agreement transferred ownership of the software at signing, a federal court in New York held. The court also found that an unjust-enrichment claim was preempted by federal copyright law. However, the court…
ANTITRUST—M.D.N.C.: FTC, states, survive Syngenta motion for summary judgment in crop chemical rebates antitrust dispute

ANTITRUST—M.D.N.C.: FTC, states, survive Syngenta motion for summary judgment in crop ...

October 23, 2026 | By Justin Marcus Smith, J.D.
The court rejected the price-cost test in favor of the rule of reason because the evidence suggested price was not the predominant exclusion mechanism. The FTC and state attorneys general survived a motion for summary judgment in their ongoing antitrust dispute with multiple Syngenta entities in connection with the Syngenta Crop Protection, LLC crop pesticides rebate loyalty program, known as the Key Active Ingredients or “Key AI” program. The federal district court in Winston-Salem, North…
SETTLEMENT AGREEMENTS—CLOTHING AND ACCESSORIES—Lululemon agrees to chemical safety measures following Texas investigation

SETTLEMENT AGREEMENTS—CLOTHING AND ACCESSORIES—Lululemon agrees to chemical safety ...

October 23, 2026 | By WK Editorial Staff
The probe examined potential PFAS presence in the company’s activewear. Lululemon USA Inc. has agreed to maintain chemical safety standards and oversight of materials used in its products under a settlement with Texas Attorney General Ken Paxton following an investigation into potentially harmful chemicals in clothing (Texas Attorney General News Release (Oct. 22, 2026)). Investigation. Paxton launched the investigation in April 2026 to determine whether Lululemon had misled consumers about…
DISCRIMINATION—DISABILITY—D. Colo.: Hearing-impaired deputy who resigned over safety concerns advances ADA claims

DISCRIMINATION—DISABILITY—D. Colo.: Hearing-impaired deputy who resigned over safety ...

October 21, 2026 | By Kathleen Kapusta, J.D.
“At least a few courts throughout the country have concluded that a jury could find that a plaintiff was constructively discharged when they were subject to an unsafe or dangerous working environment.” A sheriff’s deputy with a hearing impairment—who had been assigned to train in the jail setting and who resigned after having been denied her requested accommodations—sufficiently established that her working conditions were so intolerable that a reasonable person in her position would have had…

EXPERT INSIGHTS—California’s New Workplace Surveillance Law
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October 23, 2026 | By Joseph Lazzarotti & Andres Antuna
Governor Newsom signed Assembly Bill (AB) 1883 , establishing new restrictions on how employers may use surveillance tools in the workplace, particularly those powered by artificial intelligence. A trend may be emerging as other s...

EXPERT INSIGHTS—NLRB Confirms Wright Line Test Applies to Discipline for Offensive Conduct During Protected Activity
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October 23, 2026 | By Tiffany Do
Those of us who have been following the Lion Elastomers saga know it has been a long road. We previously covered the Board’s 2023 decision in Lion Elastomers II , and when the Fifth Circuit vacated that decision in 2024, we wrote ...

ACCOUNTING AND AUDITING—PCAOB staff estimates broad drop in U.S. audit deficiency rates
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October 23, 2026 | By Jay Fishman, J.D.
Estimated deficiency rates fell in every listed U.S. firm category in 2025, while results for non-U.S. firms were mixed, PCAOB staff reported. PCAOB staff estimated that the aggregate Part I.A deficiency rate for all inspected fir...

BLOCKCHAIN—Crypto group flags concerns with proposed SEC Regulation Crypto Assets
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October 23, 2026 | By Lene Powell, J.D.
The group pushed for a more objective and verifiable framework to distinguish assets from transactions and determine termination of investment contract status. In comment letters on the proposed SEC Regulation Crypto Assets, the D...

Bureau Highlights Cybersecurity Best Practices for Telecom Sector
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October 23, 2026 | By Lynn Stanton
Telecommunications infrastructure is of “particular interest” to cybersecurity threat actors, “as it is both a target and an attack path: the Internet is the ‘highway’ through which cyberattacks are conveyed, and the telecommunica...

NetChoice Challenges California Social Media Warning Label Law
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October 23, 2026 | By Carrie DeLeon
NetChoice LLC has filed a lawsuit challenging the constitutionality of a California state law that requires social media platforms to include warning labels informing young users of the “risks” they might encounter and the potenti...

EXPERT INSIGHTS—DOJ Fraud Division And HHS-OIG Announce Policy To Coordinate On Voluntary Self-Disclosures In Healthcare Fraud Matters
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October 23, 2026 | By James D. Gatta & Allan Medina, Dina Ljekperic & Josie Morales-Thomason
On October 15, 2026, the Department of Justice's (DOJ) National Fraud Enforcement Division ("Fraud Division" or "Division") and the Department of Health and Human Services Office of Inspector General (HHS-OIG) announced a coordina...

MEDICAID—N.C. App.: Where state agency complied with statute in issuing notices, trial court had jurisdiction
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October 23, 2026 | By Jeffrey H. Brochin, J.D.
The twenty-day clock started running once the medical practice received notice of its obligation to compile documentation of a certain number of auditable claims to be randomly selected later. The Court of Appeals of North Carolin...

FINANCIAL TECHNOLOGY—ICBA, AFC seek Treasury stablecoin issuer boundaries
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October 23, 2026 | By Lauren Bikoff, MLS
ICBA estimated that a $1.2 trillion no-yield stablecoin market would reduce community bank lending by $141 billion, or 3.5 percent. In separate comment letters, the Independent Community Bankers of America (ICBA) and American Fint...

OVERSIGHT AND INVESTIGATION—Blumenthal seeks Tether, Nxum records
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October 23, 2026 | By Charles A. Menke, J.D.
The request is part of an ongoing inquiry by Senate subcommittee minority members “into the illicit use of cryptocurrencies and the Trump Administration’s self-enrichment and self-dealings with cryptocurrency firms.” Senator Richa...

COPYRIGHT—9th Cir.: Jury verdict in copyright suit over AppleTV Servant series upheld
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October 23, 2026 | By Linda O’Brien, J.D., LL.M.
Adoption of model jury instructions that correctly covered the applicable law and decision not to respond to a pending jury question was within the discretion of a district court in AppleTV series copyright infringement suit. A di...

TECHNOLOGY/INTERNET—N.D. Tex.: Ashley St. Clair’s motion to dismiss breach of contract countersuit by xAI denied
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October 23, 2026 | By Carolin Dennis, B.Sc., LL.B., LL.M.
Motion to dismiss the breach of contract lawsuit by social media platform X and artificial intelligence company xAI denied as the forum selection clause requires disputes to be litigated in Texas. The federal court in Wichita Fall...

ADVERTISING—S.D.N.Y.: Joe & The Juice to defend claims based on alleged oil blend in drinks
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October 23, 2026 | By Leah S. Poniatowski, J.D.
Consumers in putative class action met pleading requirements for breach of warranty, but some state law issues were dismissed. A group of six consumers who purchased juices from Joe & The Juice at locations throughout the United S...

ANTITRUST—S.D.N.Y.: Keurig must face trial on core exclusionary-conduct claims in coffee-pod antitrust MDL
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October 23, 2026 | By Patricia K. Ruiz, J.D.
Keurig’s network of exclusive agreements may have unlawfully protected its market dominance. The federal district court in New York City denied much of Keurig Green Mountain, Inc.’s summary-judgment motion in multidistrict antitru...

DESIGN AND MANUFACTURING DEFECTS—FOOD AND BEVERAGES—S.D. Tex.: Chocolate consumer’s claims against Hershey dismissed without prejudice
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October 23, 2026 | By Pankhuri Bhatnagar, B.A. LL.B.
The consumer did not sufficiently allege a product defect, breached duty, or facts connecting her physical symptoms to the chocolate’s consumption and was granted leave to amend her claims. In an action brought against a chocolate...

EXPERT EVIDENCE—MEDICAL DEVICES—D. Ariz.: Nurse’s testimony stands in defective chemotherapy implant case
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October 23, 2026 | By Molly Platnick
The court denied a motion to exclude, finding the nurse was qualified and relied on sound methodology. The federal district court for the District of Arizona denied a chemotherapy patient’s motion to exclude in a case brought agai...
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