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Law

These days, some of tech’s most important decisions are being made inside courtrooms. Google and Facebook are fending off antitrust accusations, while patent suits determine how much control of their own products they can have. The slow fight over Section 230 of the Communications Decency Act threatens platforms like Twitter and YouTube with untold liability suits for the content they host. Gig economy companies like Uber and Airbnb are fighting for their very existence as their workers push for the protections of full-time employees. In each case, judges and juries are setting the rules about exactly how far tech companies can push the envelope and exactly how much protection everyday people have. This is where we keep track of those legal fights and the broader principles behind them. When you move fast and break things, it shouldn’t be too much of a surprise when you end up in court.

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Richard Lawler
Meta, Elon Musk, and Delaware’s rush to rework corporate law.

Elon Musk has publicly railed against Delaware’s corporate law as its judges ruled against his wishes, moving the incorporation of Tesla and other companies out of state. Now, CNBC says a January WSJ report that Meta was considering moving its incorporation spurred immediate action from the governor on a new bill, SB 21, that might make its laws friendlier to folks like Musk and Mark Zuckerberg.

After skipping a typical review by the state’s bar association, it’s passed the state Senate and could be voted on by the state House as soon as Thursday.

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Sarah Jeong
“That’s a sham.”

After a heated hearing in a California district court this morning, Judge William Alsup ruled that the Trump administration must offer to reinstate thousands of federal workers who were fired as part of the DOGE cuts. There were a lot of things that irked the judge, though most predictably, he did not like that an Office of Personnel Management official ghosted the court after being ordered to testify. (“I’m getting mad,” the judge said.)

Longtime Verge readers will recognize Alsup as the unforgivingly exact judge in cases like Oracle v. Google and Waymo v. Uber, a hobbyist coder who studied engineering at Mississippi State.

Why Trump can’t be trusted with Congress’ new anti-deepfake bill

The Take It Down Act could give Trump an unprecedented tool to target his enemies.

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Richard Lawler
Judge dismisses copyright infringement lawsuit over Apple’s Tetris movie.

Former Gizmodo EIC Dan Ackerman’s lawsuit alleging that Apple, the Tetris company, screenwriter Noah Pink and others ripped off his 2016 book, The Tetris Effect: The Game That Hypnotized the World, for their 2023 Apple TV Plus movie has been dismissed. Reuters reports Ackerman’s lawyer said he will appeal the decision.

In her ruling, Judge Katherine Failla writes:

Ultimately, the Court finds that Defendants’ Film is not substantially similar to Plaintiff’s Book and that Plaintiff has failed to allege that Defendants misappropriated the way he selected, coordinated, and arranged the facts in his Book.

Where the Book’s tone is informative, the Film’s is suspenseful and dramatic, at times deviating from the true facts underlying the story and going so far as to invent an entire KGB subplot, which takes up significant screen time, to create that theatrical effect.

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Richard Lawler
California’s first try at a remote bar exam was such a disaster that it might go back to in-person testing.

Test administrator ProctorU / Meazure is already facing a lawsuit after California’s February 2025 Bar Exam “was an unmitigated disaster,” full of crashes, bugs, and delays. It was the state’s first try at a “hybrid, two-day remote and in-person exam without any components of the national bar exam,” according to Reuters.

Now the State Bar staff and the deans of 17 state law schools are recommending returning to an in-person test. Meanwhile, a retake opportunity has already been delayed until March 18th.

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Jess Weatherbed
Tron founder gets reprieve in crypto fraud case.

A 60-day stay request made by Justin Sun and the SEC on Wednesday to “allow the Parties to explore a potential resolution” has been approved by a federal judge. The SEC lawsuit filed in 2023 accused Sun and three of his companies of illegally distributing crypto assets, market manipulation, and concealing payments to celebrity spokespersons.

Sun has since pumped $75 million into World Liberty Financial, a crypto project backed by the Trump family.

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Jess Weatherbed
Andrew Tate is headed back to the US.

Romanian prosecutors have cleared the self-described “misogynist” influencer and his brother Tristan to leave the country after the Trump administration pressed to lift travel restrictions. The pair had been under a travel ban pending a criminal rape and trafficking investigation.

The brothers are now reportedly en route to the US — where Trump embraces controversial manosphere influencers popular with young male audiences.

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Wes Davis
A new lawsuit alleges Automattic must keep WordPress free.

Filed over the weekend by a WP Engine customer, the proposed class action lawsuit seeks an injunction to stop Automattic’s “meddling” with WordPress, writes ArsTechnica. From the outlet:

[WP Engine customer Ryan Keller] is hoping a jury will agree that Automattic and Mullenweg had a duty to keep WordPress “free for everyone” but instead intentionally interfered with WPE’s contracts and prospective business, as well as violated California’s unfair competition law, to extort money out of WPE.

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Wes Davis
The US is considering whether UK’s Apple data encryption demand broke a treaty.

US director of national intelligence Tulsi Gabbard wrote in a letter that her lawyers are “working to provide a legal opinion on the implications” of the UK’s reported demand for a backdoor to all Apple users’ encrypted data breaks the Cloud Act agreement, reports Reuters.

Gabbard added that the CLOUD Act says the UK “may not issue demands for data of U.S. citizens, nationals, or lawful permanent residents,” nor that of “persons located inside the United States.”

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Richard Lawler
Baltimore City prosecutor drops motion to vacate Adnan Syed’s murder conviction.

Serial podcast subject Adnan Syed was freed in 2022 after prosecutors questioned evidence presented during the trial over the 1999 murder of his ex-girlfriend, Hae Min Lee, but then in 2023, it was reinstated.

On Tuesday night, current Baltimore City State’s Attorney Ivan J. Bates withdrew the motion that freed Syed, saying it contained “false and misleading statements,” disputing assertions about DNA evidence, cell phone evidence, and other aspects. Fox45 News in Baltimore reports that now there’s a hearing scheduled for Wednesday morning on a motion asking to reduce Syed’s sentence to time served.

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Richard Lawler
Elizabeth Holmes and Sunny Balwani’s Theranos fraud appeal has been denied.

A panel of judges in the Court of Appeals for the Ninth Circuit has upheld the convictions of Elizabeth Holmes and Ranesh “Sunny” Balwani on “numerous” fraud charges over their Theranos scheme.

Apparently, a recent profile by People magazine wasn’t enough to outweigh all of those lies.

The panel affirmed Elizabeth Holmes’s and Ranesh “Sunny” Balwani’s convictions on numerous fraud charges, their sentences, and the district court’s $452 million restitution order, in a case in which Defendants defrauded investors about the achievements of their company Theranos’s blood-testing technology.
Image: United States v. Elizabeth Holmes (22-10312)
The long wait for a glimpse of Luigi

Illustrated scenes from inside the frenzied courthouse.

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Wes Davis
New legal filings claim Elon Musk has yet another secret child.

Filed in Manhattan by conservative influencer Ashley St. Clair, who claims that Musk is her months-old son’s father, the petitions seek to establish his paternity and request sole legal custody of the child, according to Taylor Lorenz’s User Mag.

Musk, who has a history of secret children, hasn’t acknowledged St. Clair’s claims, as Vanity Fair notes in a story on the petitions.

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Sarah Jeong
Judge temporarily blocks mass firings at CFPB.

A federal judge in the District of Columbia has granted a temporary restraining order that enjoins the Trump administration from laying off or terminating without cause any more employees of the Consumer Financial Protection Bureau, as well as from deleting agency data or transferring agency funds “other than to satisfy the ordinary operating obligations of the CFPB.”

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Richard Lawler
Trump administration ordered to temporarily unfreeze foreign aid funds.

U.S. District Judge Amir Ali is the third judge to press pause on Donald Trump’s sweeping freezes of government funding and the second to interrupt attempts to dismantle USAID, report Politico and the Associated Press.

While declining a request by two aid organizations to challenge the Reevaluating and Realigning United States Foreign Aid executive order directly, Ali blocked State Department leaders and aides from canceling contracts and implementing stop work orders, writing:

Here, the stated purpose in implementing the suspension of all foreign aid is to provide the opportunity to review programs for their efficiency and consistency with priorities. However, at least to date, Defendants have not offered any explanation for why a blanket suspension of all congressionally appropriated foreign aid, which set off a shockwave and upended reliance interests for thousands of agreements with businesses, nonprofits, and organizations around the country, was a rational precursor to reviewing programs.

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Elizabeth Lopatto
SBF prosecutor resigns rather than drop case against NYC mayor.

“I attended a meeting on January 31, 2025, with Mr. Bove, Adams’s counsel, and members of my office. Adams’s attorneys repeatedly urged what amounted to a quid pro quo, indicating that Adams would be in a position to assist with the Department’s enforcement priorities only if the indictment were dismissed,” Danielle Sassoon writes.

Danielle Sassoon's resignation letter

[legacy.documentcloud.org]

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Richard Lawler
Vox Media and other publishers sue Cohere for copyright and trademark infringement.

The Wall Street Journal reports that The Verge’s parent company, Vox Media, and other publishers like Conde Nast, Forbes Media, and Politico filed a copyright and trademark infringement lawsuit (pdf) against the enterprise AI company Cohere. They say evidence shows Cohere uses unlicensed copies of content to directly compete with publishers, and they list 4,000 specific examples of “verbatim regurgitations and substitutional summaries of news content.”

On the Decoder podcast, we recently discussed similar media lawsuits against AI firms and spoke to Cohere CEO Aidan Gomez last summer.

wsj.com

[wsj.com]

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Wes Davis
DoNotPay must pay $193,000 for “AI Lawyer” claims.

The Federal Trade Commission has finalized an order imposing the fine, which DoNotPay agreed to last year. In addition, the company is forbidden from deceptively advertising, without proof, that its “so-called robot lawyer” is as good as a human lawyer.

The agency approved the order by 5–0 on January 16th, prior to former FTC Chair Lina Khan’s exit and replacement with Andrew Ferguson.