Read Business Law Update to stay up to date on legal issues that impact public and private companies on a local, national and global basis. Articles in this issue include:
Business Perspectives
Interesting Times
In this edition of BLU, Frank Chaiken, practice group leader of the Corporate Transactions & Securities practice, reflects on the continued uncertainty driven by technological advancements like artificial intelligence, major geopolitical conflicts around the world and a looming U.S. presidential election. Read more.
Artificial Intelligence
Compliance-Forward Approach to Developing and Deploying AI and GAI
The European Union and Colorado have passed significant legislation regarding the regulation of artificial intelligence (AI), and other U.S. states, including California, have similar laws working through the legislative process. Although many compliance deadlines are years away, these laws provide a roadmap for organizations to start preparing now, both to ensure compliance and to obtain a competitive advantage. Continue reading.
New Ventures
Side Letters Are Back on the Side of Emerging Funds
The SEC's Private Funds Rule, which was intended to protect investors and mandated near-complete disclosure of side letter terms to all investors, inadvertently posed significant challenges for smaller, emerging funds by making it harder for them to raise capital and manage compliance effectively. The Fifth Circuit Court of Appeals struck down the rule, alleviating these burdens. Read more.
Labor & Employment
Top 5 California Employment Concerns
If your company has operations in California, the fourth quarter may be a good time to review these notable employment issues in order to ensure compliance and mitigate litigation risk. Continue reading.
Privacy & Cybersecurity
Opting In to CIPA Risk Mitigation After New Precedent
Recent rulings in California, particularly in Dino Moody v. C2 Educational Systems, have broadened the interpretation of the California Invasion of Privacy Act (CIPA) to potentially include website advertising technologies like cookies and pixels as equivalent to pen registers or trap-and-trace devices. This development has sparked an increase in CIPA lawsuits. To mitigate these risks, businesses may consider adopting an opt-in approach for using such technologies, although this contradicts other California privacy laws that favor opt-out frameworks. Read more.
