Emergent Legal Issues in the Tech Industry

The technology industry is the fastest growing component of the American and global economy. Technology products have transformed the way we live and work. The evolution of these products at breakneck speed has led to an explosion of investment activity and sky-high stock market valuations for technology companies. But this dynamism and exponential growth is not without its challenges. Each new development or evolution in technology raises a host of unanswered questions on the business and legal fronts. Current legal disputes and emerging gray areas span a wide spectrum of matters from novel and pressing issues related to data privacy and security, rapid changes in the nature and treatment of intellectual property, the application of competition laws, jurisdictional complications over taxation and regulation, and labor standards in the new economy, among many others.

Authored and curated by Bilzin Sumberg’s market-leading practitioners, Emergent Legal Issues in the Tech Industry analyzes the most important and timely business and legal issues directly relevant to the firm’s diverse client roster. The firm’s attorneys have represented tech industry clients on corporate matters, tax matters, class actions, antitrust actions, products liability, business disputes and internal investigations. They possess the experience and acumen to shed light on the seismic shifts occurring in the tech sector.

Financial Services Watch Blog | October 2022

Kim Kardashian Fined by SEC for Unlawful Touting of EthereumMax

Kim Kardashian found herself on the wrong side of the law when the SEC entered a cease-and-desist order against her (the “Kardashian Order”), finding her in violation of Section 17(b) of the Securities Act of 1933. This blog explains how this and other celebrity violations reflect the trend towards increased regulation of cryptocurrency in the U.S.

"Justice Jackson owes her great achievement to an unfliching dedication to hard work combined with natural brilliance and charm. I have no doubt that she will amke her unique voice heard on the court and in American law," said Stephan F. Rosenthal of Podhurst Orseck, Pictured left next to Bilzin Sumberg managing partner Albert E. Dotson, Jr."

Financial Services Watch Blog
September 9, 2022

Fintechs Face DOJ, House Scrutiny Over PPP Lending

Financial Services Blog

In a June 3, 2022 court filing, Kabbage, Inc., a fintech lender, disclosed that it is under investigation by the U.S. Department of Justice (“DOJ”) under the False Claims Act. These and other recent developments are part of what appears to be a significant new DOJ initiative: enforcement activity targeting fintech firms and other financial institutions that processed loans under the Paycheck Protection Program.

Privacy Portal Blog | May 2022

Cyber Insurance Policies May Not Cover Phishing Attack Funds Diversion

A case making its way through the Eleventh Circuit Court of Appeals has important implications for companies’ cyber insurance policies. The case centers on whether wired funds mistakenly diverted by company employees as a result of a phishing attack should be covered by the company’s cyber insurance policy. The final ruling could prove critical and costly for unwary purchasers of cyber insurance.

Financial Services Watch Blog
May 2022

Cryptocurrency Issues Come to the Fore with Rising Litigation and Regulatory Scrutiny

Developments over the last few months, both in the courts and among policymakers, have demonstrated some of the key legal and regulatory issues facing issuers, exchanges, and investors operating in the cryptocurrency space. Recent statements by regulators, coming on the heels of new class action lawsuits involving crypto exchanges, have brought to light an array of issues for all parties to mull, not least of which is the largely unanswered question of whether cryptocurrencies constitute securities or commodities for regulatory purposes. Read about these developments to understand their significance for investors and industry players.

Publication | April 2022

The Crackdown on Digital Redlining

The Robert Wood Johnson Foundation, a non-profit focused on fostering healthy communities, defines digital redlining as “major network providers systematically excluding low-income neighborhoods from broadband service – deploying only sub-standard, low-speed home internet.” Last month, the Federal Communications Commission published a Notice of Inquiry to commence the process of ending this type of redlining, and other forms of digital discrimination.

Privacy Portal Blog
March 2022

SEC Probes Recordkeeping Lapses Arising from Use of Personal Emails and Messaging

A number of large banks have recently disclosed probes by the Securities and Exchange Commission (SEC) of the information sharing practices of their respective employees, namely the use of personal e-mail and messaging to discuss official business. The probes and their respective enforcement actions reveal the serious consequences for companies that do not aggressively enforce their own internal communications standards. Read to learn about the SEC’s recent investigations and their importance for company policies and practices on communicating official business.

Publication | January 2022

Cryptocurrency Primer

Cryptocurrency is frequently in the headlines, and is the subject of a lot of interest and attention. Bilzin Sumberg offers this brief primer on cryptocurrencies and the blockchain technology that makes them possible. Read more to learn the fundamental features of cryptocurrency and the nascent legal issues surrounding them that will likely grow in importance.

Financial Services Watch Blog
January 2022

New Lawsuits Target Cryptocurrency Companies and Their Celebrity Endorsers

Two new high profile lawsuits demonstrate that private litigants are not waiting on regulators to rein in alleged bad actors in the crypto marketplace. Alleging fraudulent activity, the recent legal actions may portend what is coming for cryptocurrency companies in terms of courtroom challenges in the months and years ahead. Learn more about the two cases at hand and what they mean for the wider crypto industry.

Financial Services Watch Blog | December 2021

Regulators Gallop To Cryptocurrency's "Wild West"

With an increasing number of financial institutions getting involved in crypto-related financial services (and widespread activity by smaller, independent players), U.S. regulators and lawmakers have become increasingly attuned to risks posed by the crypto sector to consumers and the wider financial system. Recent statements point to increased regulation on two fronts: banking activity related to crypto-assets, and stablecoin issuers that peg their digital tokens to the U.S. Dollar.

Publication
October 2021

How Epic V. Apple Ruling Might Play Out For Big Tech

Law360

The U.S. antitrust laws are slow to keep up with technical innovation and changing marketplaces. Nowhere is that more evident than in the tech sector, where companies and other players in the market do not fit neatly into traditional principles of market definitions and market actors.

Privacy Portal Blog | October 2021

Twitter Wins Dismissal of Defamation Suit in Florida Federal Court

A Florida federal court recently dismissed a defamation lawsuit brought against social media giant Twitter in a case related to documents allegedly obtained from President Biden’s son Hunter’s laptop.1 The plaintiff, John Paul Mac Isaac, garnered national media attention as the former owner of a Delaware computer repair shop who allegedly obtained Hunter Biden’s laptop.

After months of litigation, Zoom Video Communications has agreed to pay $85 million to settle a proposed class action pending in the United States District Court for the Northern District of California.

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