Keep your finger on the legal world's pulse

The 2nd U.S. Circuit Court of Appeals has revived Sarah Palin's libel case against The New York Times, citing significant errors by Judge Jed S. Rakoff. The court found that Rakoff's decision to dismiss the lawsuit while the jury was deliberating improperly interfered with their process. The ruling highlighted that the jury's verdict was tainted by the exclusion of evidence and incorrect jury instructions. Palin's lawyer, Shane Vogt, expressed satisfaction with the decision, stating it is a "significant step forward in the process of holding publishers accountable." The libel lawsuit by the onetime Republican vice presidential candidate and former governor of Alaska centered on the newspaper's 2017 editorial falsely linking her campaign rhetoric to a mass shooting. Palin said the editorial damaged her reputation and career. The Times acknowledged the editorial in question was inaccurate but described it as an "honest mistake." The appeals court emphasised the importance of protecting the jury's constitutional role, stating: "The jury is sacrosanct in our legal system." A new trial has been granted due to these trial errors.

 

Bloomberg Law

The Baltimore Sun

Big Law firms have earned over $750m in legal fees from cryptocurrency-related bankruptcies, with 22 major firms involved in seven Chapter 11 cases since 2022. As of mid-August, fees totalled $751m, with the FTX case generating the most at over $312m for five firms. Sullivan & Cromwell leads with $215m billed, while Kirkland & Ellis and White & Case follow with $120m and $75m, respectively. Despite the winding down of these cases, bankruptcy practices remain busy, with 346 corporate bankruptcies filed in the first half of 2023, the highest since 2010.

 

Bloomberg Tax

Armstrong Teasdale, one of America's oldest law firms, is set to close its London office just three years after its launch in 2021. The firm, which acquired Kerman & Co to establish a presence in the City, has informed staff of the imminent closure. Colin Passmore, chairman of the City of London Law Society, is actively seeking placements for at least six trainee solicitors affected by the closure, saying that the situation "came to light only recently and is now urgent."

 

Law Gazette

The Times

Kaufman Dolowich has announced the addition of Francisco Cabada as a partner in its Los Angeles office, enhancing the firm's Labor and Employment group. With over two decades of experience, Cabada has served a diverse clientele and previously co-founded Cabada & Hameed LLP. Vincent Green, co-managing partner, praised Cabada as “a seasoned attorney with a solid reputation.” Cabada expressed his desire for a larger platform to better serve clients, stating, “Kaufman Dolowich has a reputation for being effective advocates for their clients.” He brings expertise in employment practices, litigation defence, and human resources guidance, particularly in the healthcare and retail sectors. Cabada holds a J.D. from Loyola Law School and a B.A. from the University of California, Santa Barbara.

 

LawFuel

Cooley has appointed Bryony Hurst as a partner in its London commercial litigation practice, enhancing its expertise in media and technology disputes. Hurst, previously with Bird & Bird, brings over 15 years of experience in complex litigation involving data privacy and content liability. James Maton, head of Cooley's London litigation practice, praised her as "one of London's most talented and connected commercial disputes lawyers." Hurst expressed her admiration for Cooley, stating, "It is an elite adviser to the world's leading tech companies." Her recruitment marks Cooley's third significant litigation hire in London within a year, reflecting the firm's commitment to expanding its disputes practice.

 

LawFuel

Kamala Harris has appointed Brenda Abdelall, an Egyptian American lawyer and former Department of Homeland Security official, to enhance outreach to Arab American voters ahead of the November 5 election. The move comes as many in this community express frustration over U.S. support for Israel amid the ongoing Gaza conflict. Harris aims to secure votes from Muslim and Arab Americans, particularly in battleground states like Michigan.

 

Arab News

TuSimple, a self-driving truck technology company, has reached a $189m settlement in a lawsuit alleging it defrauded shareholders by exaggerating its safety record and hiding insider control of a Chinese competitor, Hydron. The preliminary settlement, filed in federal court in San Diego, awaits judicial approval. All parties, including TuSimple's founders and bank underwriters, denied any wrongdoing. The company has already deposited $174m into an escrow account, with insurers contributing $15m. Shareholders claim TuSimple misrepresented its technology's safety before its April 2021 IPO, which raised $1.35bn. The truth surfaced in August 2022 following a crash that raised safety concerns. Lawyers may seek up to 25% of the settlement for legal fees. The case is Dicker et al v. TuSimple Holdings Inc et al, U.S. District Court, Southern District of California, No. 22-01300.

 

The Globe and Mail

Salesforce has agreed to a settlement of $1.35m to resolve two lawsuits regarding its employee retirement plan, which serves 50,000 individuals. The amount constitutes approximately 13.5% of the plaintiffs' estimated damages of $10m, as stated in a motion filed on August 23 in the U.S. District Court for the Northern District of California. The lawsuits include a class action initiated in 2020 concerning the investment options in the Salesforce 401(k) plan, alongside a second lawsuit filed in February that specifically targets the plan's target date funds. The settlement was first announced in May.

 

Bloomberg Law

Hayden Richardson, a cheerleader, has withdrawn her federal sexual harassment lawsuit against Northwestern University, which she filed in January 2021. The lawsuit alleged that drunken fans and alumni groped her during school-sanctioned events in 2018 and 2019, and claimed that university administrators attempted to cover up her complaints. Online court records confirm that Richardson agreed to withdraw the lawsuit, marking the end of her legal battle.

 

Chicago Sun Times

Chicago Tribune

The Wall Street Journal reports that the state of artificial intelligence regulation in the U.S. - or the lack of it - is a pressing matter for Fortune 500 companies as they launch AI projects and find themselves in “a regulatory landscape bracketed by the European Union’s AI Act on one end and a hodgepodge of U.S. state initiatives in development on the other.” A recent analysis of filings with the Securities and Exchange Commission showed 137 of Fortune 500 companies cited AI regulation as a risk factor in their annual reports. George Kurian, chief executive of data storage and services company NetApp, says: “We need a combination of industry and consumer self-regulation, as well as formal regulation," adding "If regulation is focused on enabling the confident use of AI, it can be a boon.” It is noted that some companies hope to get ahead of regulation by setting their own AI guidelines. Bhavesh Dayalji, S&P Global’s Chief AI Officer, said that because the financial information and analytics company has launched its own AI policies and practices, “we don’t anticipate any balanced industry regulation significantly impacting our approach.”

 

Wall Street Journal

A Supreme Court judge in Brazil has threatened to suspend X, the social media platform that was formerly known as Twitter, if CEO Elon Musk doesn't appoint a new legal representative for the company's operations in South America's largest country. Earlier this month, Musk shut down X's local business operations while preserving access to the social media site for users in Brazil after accusing the judge of threatening the company's previous legal representative. Judge Alexandre de Moraes, who has spearheaded the battle against disinformation in Brazil, on Wednesday ordered Musk “to appoint the company's new legal representative in Brazil within 24 hours,” adding “In the event of non-compliance with the order, the decision provides for the suspension of the social network's activities in Brazil. ”

 

AP News

Barry Rodger, a competition law professor at the University of Strathclyde in the U.K., has launched a class action lawsuit against Google on behalf of small businesses he says have been negatively hit by excessive commissions on the Play Store. The lawsuit is seeking up to £1.04bn (€1.37bn) for lost revenue. Damien Geradin, founding partner of law firm Geradin Partners, said Google “continues to use its monopoly position to force out competition and to exploit app developers,” adding that it is “imperative” that developers “have the opportunity to seek redress for Google’s wrongful conduct.” Google is facing eight other ongoing cases related to competition, according to the U.K.'s Competition Appeal Tribunal. The U.K.'s Competition and Markets Authority last week dropped its double probe into Google’s Play Store and Apple’s App Store, noting that the decision to close the investigation did not mean its concerns were “unfounded or have ceased to exist.”

 

Forbes

Climate Action Network Europe and the Global Legal Action Network have filed a lawsuit against the European Union, claiming that its climate targets for agriculture, waste, transport, and small industry are “grossly inadequate.” The case, fast-tracked in the court of justice of the EU, argues that the targets do not align with the Paris Agreement's goal of limiting global warming to 1.5C. The NGOs are pushing for a 65% emissions reduction by 2030, citing a recent ruling by the European Court of Human Rights that highlighted the human rights implications of insufficient climate action.

 

Daily Mail

The Guardian

Crayola has trademarked the smell of its crayons. The Hallmark-owned firm first applied for the trademark in 2018 and was initially turned down. However, the firm was successful with an appeal that saw it share examples of its crayons to prove the scent is distinctive. Trademark documents logged with the U.S. Patent and Trademark Office say Crayola crayons smell like “slightly earthy soap with pungent, leather-like clay undertones.”

 

Bloomberg