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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 Codify White House Plan to Enlist Private-Sector Hackers

House Bill Would Codify White House Plan to Enlist Private-Sector Hackers

October 16, 2026 | By Tom Leithauser
A presidential directive that seeks to recruit private-sector entities to conduct offensive cyber operations against overseas cyber criminals would be codified under legislation introduced by Rep. Pat Fallon (R., Texas). The National Coordination Center and Commercial Cyber Capabilities Coordination Act (H.R. 10777 , 119th Cong. (2026)) would codify two recent directives issued by the White House, including a national security presidential memorandum (NSPM) that sought the private sector’s…
CONTROLLED SUBSTANCES—SETTLEMENT AGREEMENTS: CVS to pay $315M to settle FCA, CSA allegations

CONTROLLED SUBSTANCES—SETTLEMENT AGREEMENTS: CVS to pay $315M to settle FCA, CSA ...

October 16, 2026 | By Sherri M. Schroeder, J.D.
The government alleged that the pharmacy chain illegally filled prescriptions for opioids and other controlled substances and then billed Medicare and other federal health care programs. U.S. pharmacy giant CVS Pharmacy, Inc. and its related corporate entities have agreed to pay a total of $315 million to resolve allegations that for more than 12 years it illegally filled prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then…
BANK SECRECY ACT—FinCEN identifies Iranian charity red flags, requests filing key term

BANK SECRECY ACT—FinCEN identifies Iranian charity red flags, requests filing key term

October 16, 2026 | By Charles A. Menke, J.D.
FinCEN asked institutions to place “FIN-2026-IRANCHARITYABUSE” in Suspicious Activity Report field 2 and the narrative when referencing its alert on potential charity abuse. The Financial Crimes Enforcement Network (FinCEN) issued an alert identifying four red flags to help financial institutions detect, prevent, and report suspicious activity potentially involving Iranian abuse of religious charity networks (FIN-2026-Alert008 , Oct. 15, 2026). The indicators cover activity even when Iran’s…
PATENT NEWS—Patent holder seeks Supreme Court review in infringement case involving design tools for semiconductor chips

PATENT NEWS—Patent holder seeks Supreme Court review in infringement case involving ...

October 16, 2026 | By Nadine E. Roddy, J.D.
The petition urges the Court to resolve an intra-circuit split of authority on an issue that can be outcome-determinative in patent eligibility cases. A patent holder is seeking Supreme Court review of an adverse Federal Circuit decision in its patent infringement case involving tools for designing semiconductor chips for computers. The petition for certiorari identifies an intra-circuit split of authority on the issue of patent eligibility under § 101 of the Patent Act that the Court should…
ANTITRUST NEWS: Antitrust Division emphasizes engagement, transparency, and timeliness at 2026 Antitrust Tech Summit

ANTITRUST NEWS: Antitrust Division emphasizes engagement, transparency, and timeliness ...

October 16, 2026 | By Justin Marcus Smith, J.D.
Deputy Attorney General Greco emphasized how the Trump Administration views the practical certainty of an expeditious settlement at case outset as “the ideal result,” but she warned the DOJ will follow the law and facts to block deals when necessary. Department of Justice Deputy Assistant Attorney General Stephanie A. Greco delivered remarks presenting her view of Trump Administration antitrust enforcement at the 2026 Antitrust Tech Summit. Cooley LLP hosted the half-day event at the…
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...

Court Urged to End DHS’s ‘Secretive’ Stockpiling of Voters’ Personal Data
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October 16, 2026 | By Tom Leithauser
A “secretive” effort to obtain sensitive personal data about U.S. voters violates the Privacy Act of 1974 and should be blocked by a federal court, according to a lawsuit filed yesterday in U.S. District Court for the District of ...

DoD’s Communications Remain Exposed to Hackers, IG Says
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October 16, 2026 | By Tom Leithauser
The wireless telecommunications services used by the Department of Defense have security gaps that could enable adversaries to intercept communications or pinpoint the location of DoD personnel, according to a DoD inspector genera...

EXPERT INSIGHTS—Seals and sale bans: California's new non-UPF certification and age limits on dietary supplements & OTC diet products
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October 16, 2026 | By Amaru Sanchez & Oluwaremilekun O. Mehner, Marshall L. Baker & Nathan A. Brown
California continues to lead the way in regulating foods and dietary supplements sold within its borders. Two recent developments are worth highlighting: the nation's first statewide "Non-Ultraprocessed" food certification program...

ELECTRONIC HEALTH RECORDS—E.D. Mo.: Case against pharmaceutical company after data breach moves forwardE.D. Mo.: Case against pharmaceutical ...
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October 16, 2026 | By Brian Craig, J.D.
The proposed class action lawsuit alleging claims for negligence, negligence per se, and breach of contract following a data breach will proceed. The federal district court in St. Louis, Missouri has held that a pharmaceutical com...

COMMUNITY DEVELOPMENT—Markey, Warren ask regulators to pull back on rule amending CRA
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October 16, 2026 | By Nora Macaluso
The lawmakers said the proposed changes risk harm to small businesses and communities. Senator Elizabeth Warren (D-Mass.) and Rep. Edward J. Markey (D-Mass.) have sent a letter asking banking regulators not to go forward with a pr...

OVERSIGHT AND INVESTIGATION—Lawmakers push Wall Street banks to disclose Epstein financial records
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October 16, 2026 | By A. Bryan Gerepka
The legislators say the bill will force federal regulators to release their records, investigate the banks and executives who may have enabled Epstein’s crimes, and hold lawbreakers accountable. U.S. House of Representatives and S...

VITAL BRIEFING: Supreme Court seems ready to greenlight newsletter subscriber’s video privacy suit against Paramount
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October 16, 2026 | By Thomas Long, J.D.
Article examines Justices questions and statements on key issues raised in argument over scope of VPPA, and looks at possible implications for businesses if the petitioner prevails. In a case that could have effects on a wide rang...

COPYRIGHT—N.D. Ohio: Fabric companies escape statutory damages, attorney fees over allegedly copied artwork in fashion collection
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October 16, 2026 | By Saurabh Kashyap, B.A., M.A., LL.B., LL.M.
The artist’s own allegations established that an allegedly infringing social media advertisement appeared before the copyright registrations became effective, barring statutory remedies. An Ohio federal district court granted four...

ADVERTISING—D.N.J.: Genetic test seller granted dismissal of allegedly false increased fertility advertising suit
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October 16, 2026 | By Jody Coultas, J.D.
The consumers lacked standing under the benefit of the bargain theory of economic harm. Consumers who purchased Genomic Prediction, Inc.’s LifeView™ genetic screening test lacked standing to assert claims under the false advertisi...

ADVERTISING—S.D. Cal.: Natural-labeling claims advance over manufactured citric acid
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October 16, 2026 | By George Basharis, J.D.
California consumer protection and warranty claims challenging the natural labeling of ginger ale containing industrially manufactured citric acid may proceed, despite federal regulatory guidance classifying fermentation-derived c...

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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