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Good morning. The FCC is voting today on a rule that could dial up lawsuits against law firms, lenders and others over unwanted text messages. Plus, the Texas Supreme Court’s emergency abortion ruling offers clues about another case; authors say Meta was warned over using copyrighted books for AI training; and a U.S. judge today will take up a bid from Ohio and other states to block an NCAA college-athlete rule. The ball’s in a West Virginia court. Happy Wednesday, and thanks for reading!
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The FCC is set to vote today on a rule that attorneys say could dramatically increase the potential for lawsuits against lenders, insurers and law firms over unwanted texts and calls, Diana Novak Jones reports.
The proposed rule, which is expected to pass, would put stringent new requirements on so-called lead generators, which collect contact information from customers as they search for things like mortgage rates, insurance and home improvement services and then sell it to businesses. It could also open up a broad new pathway for lawsuits brought under the federal anti-robocall law, the Telephone Consumer Protection Act.
Failure to comply with the rule could put the large number of businesses that rely on leads at risk of these lawsuits, which come with hefty penalties – up to $1,500 per unwanted call or text.
“It wouldn’t surprise me if filings spike and we have double or triple,” said defense attorney Eric Troutman, who represents companies targeted by TCPA litigation.
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- A Kentucky woman who filed a class action last week challenging the state’s near-total ban on abortion is no longer pregnant, her lawyers at Planned Parenthood and the ACLU said, calling for more plaintiffs to carry the case forward.
- Uber’s lawyers at Paul Weiss could not convince a U.S. court panel to change the name of “sexual assault” multidistrict litigation to “rideshare litigation.” The panel said the naming of the multidistrict litigation “is consistent with the Panel’s naming conventions.”
- More than half a dozen law firms that specialize in intellectual property matters have been scooped up or merged with larger firms this year. In the latest move, Husch Blackwell said it is bringing on all 11 attorneys in Minneapolis from Patterson Thuente, as well as nearly 20 law clerks and professional staff.
- Britain is facing the prospect of an irreversible collapse in publicly funded criminal defense without immediate, increased government funding, the professional body for solicitors — lawyers who deal directly with clients and appear in lower courts — told London’s High Court.
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Over the course of two days in March 2021, investors drove the share price for the mortgage company Rocket skyrocketing by an eye-popping 72% — then immediately plunging 30%. Analysts attributed the wild ride to meme-stock traders seeking to squeeze short sellers. Rocket is now arguing that the lingering effect of the meme-stock rollercoaster warped the market for its shares so profoundly that investors can’t sue as a class. Alison Frankel explains the company’s theory.
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“I can’t control what he says outside the courtroom.”
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— Attorney Joseph Sibley, remarking at trial about statements that his client Rudy Giuliani has made in and out of court concerning two Georgia elections workers who have sued the former personal lawyer to Donald Trump and ex-New York mayor for alleged defamation. U.S. District Judge Beryl Howell, who is overseeing the case in D.C., scolded Giuliani for repeating accusations as he left the courthouse following the first day of the trial. Sibley told the judge that he would be able to manage Giuliani’s statements in court.
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- Lawyers for the NCAA will go up against a group of state attorneys general at a hearing in Wheeling, West Virginia, federal court over a rule that bars some players from being eligible to play college sports after they transfer to a new school. Ohio and other states, including New York, last week sued the college athletic governing body, and U.S. District John Bailey will weigh a request for a temporary restraining order.
- In the 9th Circuit, California’s legal team will file their opening brief challenging a U.S. judge’s order that blocked a new state law meant to protect children when they use the internet. In granting a preliminary injunction, U.S. District Judge Beth Labson Freeman in San Jose said she was “keenly aware of the myriad harms that may befall children on the internet,” but California’s law swept too broadly and likely violated the U.S. Constitution’s First Amendment.
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Court calendars are subject to last-minute docket changes.
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- Google faces some hurdles ahead as it plans to appeal a jury verdict in the case brought by “Fortnite” maker Epic Games that claims Google’s tight controls over its app store Play violate federal antitrust law. The U.S. judge in San Francisco has set the next hearing for Jan. 11.
- Online retailer Zulily in a lawsuit filed in Seattle federal court accused Amazon of “bullying” it in an effort to destroy the platform. Amazon is facing an array of private consumer and government antitrust cases. The company declined to comment on Zulily’s complaint.
- Three hedge fund associations sued the SEC in a bid to vacate two new rules aimed at boosting transparency of short-selling. The groups say the SEC took conflicting stances with the rules, in one case allowing for transaction reports to be aggregated in order to protect investors’ positions, yet requiring other transaction reports to be disclosed individually.
- Nikola founder Trevor Milton should receive about 11 years in prison for defrauding investors in the electric- and hydrogen-powered truck maker, prosecutors said. Milton was convicted at trial in October 2022 on two counts of wire fraud and one count of securities fraud.
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