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A San Francisco federal judge appeared inclined to rule that Workday must face a novel proposed class action claiming that artificial intelligence software the company uses to screen out job applicants for other employers is discriminatory, our colleague Daniel Wiessner writes. U.S. District Judge Rita Lin is weighing Workday’s effort to dismiss the 2023 lawsuit from an individual who claimed he was passed over for more than 100 jobs at companies that contract with Workday to recommend candidates for job interviews. The plaintiff has alleged race, age and disability discrimination.
The case is the first of its kind and could set important precedent on the legal implications of using AI to automate hiring and other employment functions, which most large companies are now doing, Wiessner reports. The lawsuit claims Workday uses data on a company’s existing workforce to “train” its AI software to screen for the best applicants without accounting for the existing discrimination that it may reflect.
Workday said it was not an “employment agency” that can be held liable for discrimination since it does not make hiring decisions for its customers. Lin said she was concerned that shielding software vendors from Title VII civil rights protections would leave victims of discrimination with no legal recourse. She noted that courts have long favored a broad application of Title VII.
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- U.S. Bankruptcy Judge Sean Lane rejected Rudy Giuliani’s attempt to appeal a $148 million defamation judgment won by former Georgia election workers, saying Giuliani should focus on his own stalled bankruptcy case. Lane agreed with creditors who complained that Donald Trump’s former personal attorney had made no progress on selling his assets or resolving his debts.
- U.S. defamation law firm Clare Locke scored a win in a fight with an ex-client and its own former lawyers, persuading a Virginia federal judge to uphold an arbitrator’s decision to freeze any money obtained by ice cream tech startup Kytch in lawsuits against McDonald’s and others.
- The California state bar is looking to develop its own bar exam, parting ways with the National Conference of Bar Examiners and rejecting its overhauled licensing test set to debut in July 2026.
- Amazon.com urged a U.S. judge to bar the FTC from probing the company’s data preservation efforts, arguing in a court filing that the agency had not shown any relevant evidence in its antitrust lawsuit has been lost. Amazon’s filing in Seattle came after the FTC claimed the company had failed to stop the “widespread deletion” of senior executives’ messages on Signal.
- Seattle-founded Perkins Coie opened its first European office, launching in London with a six-lawyer, technology-focused dealmaking team. The firm said it is looking to represent tech companies and their founders, mid-market private equity funds and family offices in London.
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Sullivan & Cromwell asked a Florida federal judge on Monday to dismiss a lawsuit by FTX customers who accuse the firm of helping the crypto exchange cheat them out of billions of dollars. S&C argued that the customers’ claims are unsupported by specific allegations that Sullivan & Cromwell lawyers knew FTX CEO Sam Bankman-Fried and other FTX executives were illegally diverting customer money. The firm also suggested that FTX customers should be grateful for S&C’s hard work in the FTX bankruptcy, which means almost all of them will be repaid in full, with interest. Alison Frankel has the story.
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“Any such opinion from this court
would be mere fortune-telling.“
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—U.S. District Judge Myong Joun in Boston, rejecting a call to disregard a key new NLRB labor ruling that a company said could be overturned on appeal. Joun ordered a cannabis dispensary operator to bargain with a union even though its workers voted against unionizing, in the first court ruling to apply a NLRB decision creating a new path for unions to organize workers. The NLRB’s general counsel lauded Joun’s ruling.
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- The full 5th Circuit will reconsider a decision requiring Texas to remove a 1,000-foot-long floating barrier it had placed in the Rio Grande river to deter migrants from illegally crossing the border with Mexico. A divided three-judge panel’s December ruling had sided with the Biden administration and said that the state could not install the string of buoys without permission from the federal government. The floating barrier is part of Abbott’s broader effort to deter and punish illegal border crossings.
- The Delaware Supreme Court will hear arguments challenging a lower court’s approval of a $267 million legal fee in a shareholder lawsuit that Dell Technologies settled over its 2018 stock conversion deal involving its stake in VMware. The court is asked to reconsider how legal fees should be paid in large settlements of shareholder lawsuits and it could impact the $6 billion legal fee sought in the Elon Musk Tesla pay case.
- The U.S. Senate Select Committee on Intelligence will hold a hearing examining foreign threats to 2024 elections. Expected speakers include Director of National Intelligence Avril Haines; Jen Easterly, director of the Cybersecurity and Infrastructure Security Agency at Homeland Security; and Larissa Knapp, executive assistant director of the FBI’s National Security Branch.
- A Massachusetts federal judge will consider whether to block a state law banning the sale of pork from pigs kept in tightly confined spaces. U.S. District Judge William Young in Boston previously blocked a small part of the law in response to a lawsuit by Missouri-based pork producer Triumph Foods and out-of-state pig farmers. Young’s ruling left a single claim that an exemption in the law discriminated against out-of-state pork processors.
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Court calendars are subject to last-minute docket changes.
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- A group of Republican-led U.S. states filed a lawsuit seeking to block the EEOC from enforcing broad legal protections for transgender workers. The 18 states filed the complaint in federal court in Knoxville, Tennessee. The commission last month updated its guidance on workplace harassment for the first time in 25 years.
- The FTC can pursue its claims that U.S. Anesthesia Partners’ serial acquisitions of practices in Texas violated antitrust law, a federal judge has ruled, but private equity firm Welsh Carson won dismissal from the case. U.S. District Judge Kenneth Hoyt in Houston ruled that the FTC had not shown how Welsh Carson as a minority investor in the acquisitions was actively violating competition law.
- A London-based comic-book artist asked the U.S. Patent and Trademark Office to cancel several trademarks covering the term “Super Hero” that are jointly owned by Disney’s Marvel and its main rival, Warner Bros’ DC Comics. Scott Richold’s Superbabies Ltd told a USPTO tribunal that “Super Hero” is a generic term that is not entitled to trademark protection.
- Varsity Spirit, its private equity owner Bain and others have agreed to pay $82.5 million to resolve a class action accusing the cheerleading events promoter of overcharging athletes. Attorneys for the plaintiffs disclosed the terms of the proposed accord in a filing in Memphis federal court, where athletes and their parents filed the lawsuit more than three years ago. The defendants denied any wrongdoing.
- Canadian e-commerce provider Shopify sued a subsidiary of Chinese technology company JOYY in New York federal court, accusing it of illegally copying Shopify’s software to build its own e-commerce platform. Shopify said in the lawsuit that JOYY’s Shopline created a “thinly disguised knockoff” of its Dawn storefront-template technology to power competing e-commerce services.
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- Katten added Dallas-based partner James Bookhout as chair of the firm’s mergers and acquisitions litigation practice. Bookhout previously was at DLA Piper. (Katten)
- Polsinelli brought on real estate finance partner Jennifer O’Connor in Miami and financial services litigation partner Jim Pulliam in Raleigh. O’Connor and Pulliam were previously at Kilpatrick Townsend. (Polsinelli)
- Venable hired commercial litigation partner Damon Pitt in the firm’s Los Angeles office. Pitt was previously at K&L Gates. (Venable)
- Kaufman Dolowich brought on professional liability partners Ryan Turner and Jason Myers in New York. They were previously at London Fischer. (Kaufman Dolowich)
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