NY Flags AI Models As Cyber Risk Review Factor For Banks

By Jon Hill

A top New York regulator is urging the state's banks and insurers to stay on top of evolving cybersecurity threats, flagging the launch of powerful new artificial intelligence models as the kind of major market development that can necessitate updating their risk assessments.

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Crypto Bill Faces Wide Criticism Ahead Of Initial Vote

By Aislinn Keely

Senate Republicans on Monday faced obstacles to securing support for their final draft of the Clarity Act ahead of a Tuesday procedural vote to move the crypto bill forward, as Democrats, banking organizations, state law enforcers and even some crypto interests criticized the new version of the legislation as coming up short in key areas.

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UBS Can't Nix Trust's Fee Claim Over Alleged Concealment

By Katryna Perera

A New York federal judge has trimmed a charitable trust's mismanaged funds suit against UBS, finding that the suit adequately pleads that the defendants concealed their alleged fraud but that no private right of action exists for breach of fiduciary duty claims under the Investment Advisers Act.

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City Of London Urges Tax Restraint To Protect Growth

By Josh White

The Labour government shouldn't risk growth by raising taxes on financial and professional services at a time when the economy is fragile, the City of London Corp. said Monday.

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S. Korea Wins ICSID Annulment Decision In $196M Dispute

By Joyce Hanson

An ad hoc committee of the International Centre for Settlement of Investment Disputes has confirmed that the South Korean government is the victor in a 260 billion won ($196 million) arbitration award against a Chinese investor in a dispute over a forced real-estate share sale.

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Debt Buyer Settles Mass. AG Complaint Over Collection Tactics

By Julie Manganis

The owner of a Massachusetts debt buyer and collection agency has agreed to walk away from approximately $52 million he sought to collect through aggressive and allegedly illegal tactics, including seizing vehicles as a way to coerce payments on unrelated loans, the state attorney general's office said Monday.

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Intuit Escapes MLA 'Refund Advance' Loans Suit, For Now

By Sydney Price

A California federal judge has dismissed TurboTax distributor Intuit Inc. and several of its partners from a proposed class action alleging their process for distributing tax refund advance loans comes with high costs and arbitration clauses that are prohibited by the Military Lending Act, ruling that the plaintiff must clearly separate his claims against each defendant.

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AI And AML: Governance Plays Critical Role In Innovation

Financial institutions adopting artificial intelligence for anti-money laundering compliance should implement governance specific to individual use cases, testing, documentation and human oversight to manage regulatory and enforcement risks as agentic tools expand, say attorneys at Paul Hastings.

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Money Transmission Issue Looms For Prediction Markets

The circuit split recently created by the Ninth Circuit's ruling in Kalshi v. Assad has implications reaching beyond gaming regulation as, depending on the ultimate characterization of prediction market event contracts, platforms may face differing obligations under federal and state money transmission laws, say attorneys at Manatt.

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Big Biz Coalition Backs Litigation Funding Disclosure Rule

By Ryan Boysen

Big U.S. businesses and insurers like Amazon, Anthropic, Chubb and Walmart asked the federal judiciary on Monday to tighten disclosure requirements for litigation finance, claiming the lack of guardrails allows funders to operate "in the shadows."

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Indiana Atty Hit With $10K Sanction Over False Citations

By Andrea Keckley

An Indiana federal judge on Friday adopted a magistrate judge's recommendation to sanction a local attorney $10,000 after finding that five briefs in a consumer credit case included citations to nonexistent cases.

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Jackson Lewis Removes Ex-Atty's Bias Suit To Federal Court

By Patrick Hoff

Jackson Lewis PC has moved a former associate's suit accusing the firm of refusing to accommodate her temporary work restrictions following her medical leave to California federal court, saying state court wasn't the right venue for dispute.

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Bove Rejects Recusal Bid Tied To DOJ Whistleblower Claims

By Courtney Bublé

U.S. Circuit Judge Emil Bove declined Monday to recuse himself in a Third Circuit immigration case, saying the attorneys for the petitioner are "recycling a failed pre-confirmation political smear" on him.

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State Farm Attorney Sanctioned $999.99 For AI Hallucinations

By Jonathan Capriel

An attorney for State Farm who filed several motions citing nonexistent cases and fabricated quotes generated by AI software must pay a $999.99 sanction, a Los Angeles judge ruled, an amount one cent below the threshold that would have triggered a mandatory notice to the State Bar of California under state law.

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Brief

Ex-Moses & Singer Partner Gets 10 Months For Tax Crimes

By Craig Clough

A Connecticut federal judge Monday sentenced a former Moses & Singer LLP partner to 10 months of imprisonment and ordered him to pay more than $3.1 million for failing to file personal income tax returns, the U.S. attorney's office announced.

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Catching Up With Delaware's Chancery Court

By Jarek Rutz

The Delaware Chancery Court this past week saw disputes over allegedly fabricated board approvals at a telecom infrastructure startup, insider trading and child safety at Roblox Corp. and ownership of artificial intelligence technology used in legal proceedings.

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