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New York’s mayor is vowing to “iron out the kinks” of the city’s new artificial intelligence chatbot that has been caught in recent days giving business owners wrong answers or advice that, if followed, would entail breaking the law, Jonathan Allen reports.
“It’s wrong in some areas, and we’ve got to fix it,” New York City Mayor Eric Adams told reporters, emphasizing that it was a pilot program. The city has updated disclaimers on the MyCity chatbot website, noting that “its responses may sometimes be inaccurate or incomplete” and telling businesses to “not use its responses as legal or professional advice.”
Andrew Rigie, who advocates for thousands of restaurant-owners as the director of the NYC Hospitality Alliance, said he had heard from business owners perplexed by the chatbot’s responses.
The chatbot wrongly advised that employers could take a cut of their workers’ tips, and that there were no regulations requiring bosses to give notice of employees’ schedule changes. Also, the chatbot said store owners were free to go cashless, despite a 2020 law banning stores from refusing to accept cash. And contrary to the chatbot, the city’s minimum wage is no longer $15 an hour — it was raised to $16 this year.
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- UnitedHealth’s Change Healthcare asked a U.S. court panel to designate Nashville, Tennessee, as the place to consolidate at least 24 class actions accusing the payment processor of failing to protect personal data from February’s cyber hack. Change, represented by Hogan Lovells, is based in Nashville and the company said that the federal court there was well prepared to oversee a large, consolidated legal proceeding.
- A former State Bar of California deputy executive violated the “spirit” of conflict of interest rules by ghostwriting reports on complaints lodged against the bar’s top disciplinary lawyer, a state bar investigation found. Robert Hawley “more likely than not” improperly authored seven such reports dealing with complaints against the state bar’s chief trial counsel between 2010 and 2015, which were then presented as the work of outside examiners with no connections to the bar, according to the report by Adams, Duerk & Kamenstein. Hawley did not immediately respond to requests for comment.
- U.S. District Judge David Hurd of the Northern District of New York will take senior status, opening a vacancy on the court for the Biden administration. Hurd’s prior decision in 2022 to rescind his plans to step down from active service scuttled the ability of one of Biden’s judicial nominees to be confirmed. Hurd said he wanted the White House to ensure his successor served in the district’s smaller Utica courthouse.
- John Eastman, a former lawyer for Donald Trump, asked a California judge to pause her order temporarily prohibiting him from practicing law, arguing it could affect his ability to fund his criminal defense in Georgia. Eastman said in a filing he “would lose his ability to make a living as an attorney” as he faces criminal charges in Georgia, over his efforts to overturn Joe Biden’s 2020 election win in the state. He has pleaded not guilty to the criminal charges.
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That is the number of fake apps that Google said it has disabled from two Chinese nationals over the past four years that have been downloaded by nearly 100,000 users worldwide. Google, represented by Freshfields, accused the alleged fraudsters in a lawsuit of misusing its Google Play app store to scam thousands of users out of their money through dozens of fake cryptocurrency investment applications. The lawsuit said they were involved in a scheme to lure users into giving them money via the fake platforms, leading to up to tens of thousands of dollars in losses per victim since 2019.
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A squabble playing out in consolidated litigation against diet and diabetes drugmakers Novo Nordisk and Eli Lilly highlights important questions about how courts should decide who will lead these sweeping cases. Should judges allow lawyers to pick their own leadership structure? Or must courts throw open the process to all candidates and independently decide who is best? Alison Frankel explains why that’s the question Judge Gene Pratter will now have to answer.
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“This looks to me like a sectarian document from beginning to end.“
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—5th Circuit Judge Andrew Oldham during oral arguments where the court seemed divided over whether a major Baptist organization is shielded from a lawsuit by a minister who says the group made false claims about him that led him to lose his job. Oldham was responding to Boies Schiller’s Scott Gant, a lawyer for the minister who argued that religious abstention does not apply to the case because it does not raise any religious issues. Oldham sounded skeptical, saying the basis of the lawsuit was a partnership agreement loaded with religious language that would have to be interpreted by the court if the case were to proceed, Daniel Wiessner reports.
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- Closing arguments are expected in the trial of cryptocurrency developer Terraform Labs and its founder Do Kwon on civil fraud charges brought by the SEC, Jody Godoy reports. At the start of the trial, SEC attorney Devon Staren said the company “was a fraud, a house of cards, and when it collapsed, investors lost nearly everything.” Dentons partner Louis Pellegrino, representing Terraform, said the regulator’s case relies on cherry-picked evidence and the testimony of witnesses hoping for whistleblower payouts if the SEC wins. Kwon’s attorney David Patton of Kaplan Hecker said the crypto entrepreneur never represented Terra’s cryptocurrency as risk-free.
- A 2nd Circuit panel in New York will hear arguments from social media influencer and far-right activist Douglass Mackey in his challenge to his conviction for an alleged voter suppression scheme. Mackey, a Trump supporter, was charged in 2021 by federal prosecutors in Brooklyn who said he participated in a conspiracy to dupe people to cast their ballots through invalid means such as text messages. Mackey, who fought the charges, was sentenced to seven months in prison. That punishment has been on hold pending his appeal.
- In D.C. federal court, U.S. District Judge Ana Reyes will hold a status conference in the U.S. House judiciary committee’s lawsuit seeking to enforce subpoenas against current or former DOJ tax division lawyers. The committee said it is seeking the testimony as part of its consideration of drafting impeachment articles against President Joe Biden. The legislative panel said the testimony will focus on matters involving the prosecution of Biden’s son Hunter Biden on tax charges.
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Court calendars are subject to last-minute docket changes.
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- A Tennessee state court weighed a bid by a group of doctors and women to block officials from enforcing the state’s near-total ban on abortion in instances where dangerous pregnancy complications arise. Lawyers for seven women who were denied abortions following pregnancy complications and two doctors told the three-judge panel in Tennessee’s Twelfth Judicial District Court in Nashville that a medical exception in the state’s abortion ban was so vague that physicians were turning away patients seeking emergency care.
- The NLRB is defending its lawyers’ actions after a federal appeals court suggested they had urged a California federal judge to “ignore” its order to have SpaceX’s lawsuit challenging the labor board’s structure transferred back to the Texas court it was filed in. The agency told the 5th Circuit that it disagreed with its conclusion that it retained jurisdiction over the case once it was sent to Los Angeles and that “zealous advocacy” required the agency to encourage a judge there to decline to send it back.
- Bank of America must face a lawsuit claiming it reneged on a promise to refund overdraft fees to customers facing financial hardship because of the COVID-19 pandemic. U.S. District Judge Yvonne Gonzalez Rogers ruled that customers plausibly alleged that the bank misled them on its website and mobile app by continuing to promise relief from overdraft and insufficient fund fees, after it had quietly ended its “Client Assistance Program” on Aug. 31, 2020.
- A New York state judge scaled back his order this week that had invalidated most of the state’s cannabis regulations in a case challenging rules for advertising marijuana. New York Supreme Court Justice Kevin Bryant issued an amended order that voided only regulations pertaining to cannabis marketing.
- A U.S. judge ordered British billionaire Joe Lewis to pay a $5 million fine and serve three years of probation for sharing illegal stock tips, allowing an investment firm’s 87-year-old founder to avoid prison after prosecutors and his attorneys urged leniency. U.S. District Judge Jessica Clarke in Manhattan sentenced Lewis, who pleaded guilty to charges including securities fraud.
- The DOJ’s long-running criminal case accusing China’s Huawei of misleading banks about the tech company’s business in Iran, among other charges, is heading toward a January 2026 trial.
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- Squire Patton Boggs hired Ghislaine Torres Bruner in Denver as a partner in its environmental, safety and health practice. She arrives from Polsinelli. (Squire Patton Boggs)
- K&L Gates added Milan-based finance partner Chiara Anceschi from DLA Piper. (K&L Gates)
- White & Case hired Chicago-based partner Nadav Klugman in the firm’s global project development and finance practice. Klugman was previously at Mayer Brown. (White & Case)
- Nixon Peabody brought on Joseph Maher, who most recently was principal deputy general counsel at the U.S. Department of Homeland Security, as a D.C.-based partner in its national security and resilience practice. (Nixon Peabody)
- King & Spalding brought on finance partner John Ryan in New York. He arrives from Capital One. (King & Spalding)
- Littler added John Nordlund, an employment litigation partner, in San Diego. He most recently was at Jackson Lewis. (Littler)
- Ashurst hired corporate partner Nicolas Bombrun in Paris from Shearman & Sterling. (Ashurst)
- Alston & Bird added antitrust partner Jens-Olrik Murach in Brussels from Willkie. (Alston)
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