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Mealey's Artificial Intelligence

December 13, 2023
Authors Amend Copyright Claim Against Meta For Using Books To Train AI

SAN FRANCISCO — Three weeks after a California federal judge called their theory of copyright infringement “nonsensical,” 13 authors filed an amended putative class complaint against Meta Platforms Inc. dropping all claims except for a direct copyright infringement claim against Meta for using their copyrighted works to train its AI chatbots.
December 12, 2023
State Court Hears Arguments On Motion To Dismiss In ChatGPT Defamation Case

ATLANTA — A Georgia state court held a hearing on a OpenAI LLC’s motion to dismiss defamation claims against it over ChatGPT content naming a journalist as a defendant in a financial misconduct case to which he was not a party.
December 12, 2023
SEC Says AI Startup Is Wrong To Call False Statements About Legality Unactionable

ORLANDO, Fla. — An artificial intelligence startup and its founder are incorrect to say the Securities and Exchange Commission’s complaint against them are based on unactionable statements, the SEC says in a Dec. 11 memorandum filed in a federal court in Florida in opposition to the motion to dismiss, saying the complaint sufficiently alleges that the company and its founder lured investors with false promises of early access to profits from an AI “ecosystem.”
December 12, 2023
Parties To AI Rental Price Antitrust Suit Brief Recent Precedent

NASHVILLE, Tenn. — With a motion to dismiss fully briefed and the United States filing a notice of interest in a case alleging antitrust violations stemming from the use of algorithmic and artificial intelligence-based rental pricing software, the parties briefed a federal judge in Tennessee on the impact of recent Fourth Circuit U.S. Court of Appeals precedent governing the requirements for antitrust claims.
December 12, 2023
Washington High Court Seeks Comments On Attorney Training, Including AI Chatbot Use

SEATTLE — The Washington Supreme Court asked for comments about proposed amendments to the state’s continuing legal education system involving legal technology, including the handling and use of artificial intelligence chatbots.
December 12, 2023
Judge Stays Discovery In Case Alleging AI Founder Was Tricked Into Selling Stake

SAN FRANCISCO — A federal judge in California stayed discovery pending resolution of a motion to dismiss in a man’s case claiming that he was tricked into believing that his stake in an artificial intelligence company was worthless.
December 07, 2023
COMMENTARY: Fire & Rain: 2023 Key Decisions & Developments Impacting The Wide World Of Insurance

By Scott M. Seaman, Pedro E. Hernandez and Lisa M. Roccanova
December 01, 2023
Shareholders: Lending Platform Misconstrues Judge’s Order In Motion To Reconsider

CINCINNATI — A lending platform and certain related defendants, accused by shareholders of making inaccurate claims about the platform’s use of artificial intelligence to approve loans, indicated in a notice in an Ohio federal court no opposition to several investment funds’ motion to intervene in the suit, a day after the shareholders filed a memorandum in opposition to the lending platform’s motion to reconsider an order partially dismissing the suit.
December 01, 2023
AI Music Copyright Defendant Says Tennessee Jurisdiction Strikes Wrong Beat

NASHVILLE, Tenn. — In a motion to dismiss, artificial intelligence company Anthropic PBC told a federal court in Tennessee that a copyright suit was a “negotiating tactic disguised as a federal court complaint” with no connection to the jurisdiction and that at the very least, the action should be transferred to California, where almost all of the parties reside.
November 30, 2023
In GitHub AI Copyright Suit, Parties Told To Meet, Confer Not Move To Compel

SAN FRANCISCO — While a California federal court mulls a second round of motions from OpenAI Inc., GitHub Inc. and Microsoft Corp. seeking dismissal of claims under the Digital Millennium Copyright Act (DMCA) and California’s unfair competition law (UCL) related to allegations of improper attribution in the development of an artificial intelligence tool, a magistrate judge denied the plaintiffs’ motion to compel discovery responses in favor of a directive for the parties to meet and confer about discovery disputes.
November 28, 2023
Court Must Amend Ruling Dismissing AI Legal Services Case, Law Firm Argues

EAST ST. LOUIS, Ill. — A ruling dismissing a case against an artificial intelligence legal services company for lack of Article III standing without prejudice only if a law firm files an amended complaint would impermissibly allow a case to be dismissed with prejudice, when dismissal for lack of Article III standing can never be with prejudice, a law firm told a federal court in Illinois in asking it to amend its ruling.
November 28, 2023
Colorado Lawyer Who Failed To Disclose False ChatGPT Cites Suspended

DENVER — A lawyer’s undisclosed use of ChatGPT, which produced incorrect or fictitious cites in crafting a motion, violated various rules of professional conduct, the Colorado Supreme Court said in suspending the attorney for the 90 days served and suspending the remainder of his one-year and one-day sentence pending completion of a two-year probation.
November 15, 2023
COMMENTARY: Developments In The Use Of AI In Financial Investigations

By Keith Williamson and Robert Cruse
November 27, 2023
Unsecured Creditors Propose Liquidation Plan For Vesttoo And Its Affiliates

WILMINGTON, Del. — The Official Committee of Unsecured Creditors has proposed a Chapter 11 plan of liquidation for the jointly administered cases of Vesttoo Ltd. and 48 affiliates in Delaware federal bankruptcy court, with a Dec. 13 objection deadline.
November 21, 2023
Music Publishers Seek To Enjoin ‘Blatant’ AI Copyright Violations

NASHVILLE, Tenn. — Anthropic PBC built its artificial intelligence model and billion-dollar business on “blatant and widespread copyright infringement,” leading music publishers claim in a motion filed in a federal court in Tennessee seeking a preliminary injunction hoping to prevent “incalculable harm.”
November 21, 2023
Judge Dismisses ‘Nonsensical’ Copyright Claims For Meta’s Use Of Books To Train AI

SAN FRANCISCO — A California federal judge on Nov. 20 granted a motion to dismiss the bulk of claims brought by authors in two related putative class actions against Meta Platforms Inc. for copyright infringement based on its use of their written works to train its artificial intelligence software, calling the plaintiffs’ “derivative works” argument “nonsensical.”
November 17, 2023
AI Court Reporting Service Would Violate Texas Law, Lacks Standing, Judge Says

AUSTIN, Texas — An artificial intelligence-based speech-to-text transcription service violates Texas law requiring court reporters to be certified and lacks standing to bring antitrust claims surrounding the alleged blackballing of it and a related company, a federal judge in Texas said Nov. 16 in largely granting motions to dismiss but denying a motion for summary judgment as premature.
November 17, 2023
Man Allegedly Defamed By ChatGPT Appeals Attorney Fee Ruling

ATLANTA — A man said in a Nov. 16 notice that he is appealing to the 11th Circuit U.S. Court of Appeals a decision by a federal judge in Georgia not to award him attorney fees after OpenAI LLC conceded that it could not defend removal of a defamation case alleging that ChatGPT incorrectly named him as a defendant in a financial misconduct suit.
November 16, 2023
2 Estates’ Class Suit Accuses UnitedHealth Of Care Denial By AI

MINNEAPOLIS — An insurer illegally employs artificial intelligence (AI) to deny elderly insureds medically necessary care based on a model that the insurer knows “has a 90% error rate,” two estates allege in a class complaint filed in a federal court in Minnesota.
November 15, 2023
Expelled Student Claims AI Anti-Cheating Program, School Discriminated

MIAMI — A university and a testing company misrepresented the efficacy of artificial intelligence-based software and discriminated against an African American student who suffers from attention deficient hyperactivity disorder (ADHD) when the software improperly identified her as a cheater and she was expelled, the student says in a lawsuit filed in Florida federal court.
November 14, 2023
Activists: Oregon Silencing Election Speech With Artificial Intelligence

PORTLAND, Ore. — The state of Oregon uses an artificial intelligence surveillance company to “detect, trace and target” criticisms of its election system in a “dystopian censorship” scheme, Republican politicians, an election integrity advocate and others allege in a complaint.
November 14, 2023
Class Suit: CVS Job Applicant AI Screening Tool Is Illegal Lie Detector Test

BOSTON — CVS Health Corp. and CVS Pharmacy Inc. use an artificial intelligence-based facial and vocal scanning program during the hiring process, drawing conclusions about applicants’ enthusiasm and potential culture fit in what amounts to a lie detector test given in violation of Massachusetts law, plaintiffs allege in a federal class action.
November 14, 2023
Conversion Bid Denied, Exclusivity Terminated In Vesttoo Bankruptcy Cases

WILMINGTON, Del. — A Delaware federal bankruptcy judge has denied without prejudice a U.S. trustee’s motion to convert the jointly administered Chapter 11 cases of Vesttoo Ltd. and 48 affiliates to Chapter 7 cases.
November 10, 2023
Lending Platform Says Judge Misapplied Scienter Factor, Should Fully Dismiss Suit

CINCINNATI — A day after a lending platform filed a motion asking a federal judge in Ohio to reconsider a ruling that claims made by shareholders about the platform’s use of artificial intelligence to approve loans are actionable, several investment funds filed a motion to intervene in the suit, seeking to ensure that their claims are preserved.
November 09, 2023
Federal Judge Moots Motion To Dismiss From AI Startup In SEC ‘Pyramid Scheme’ Suit

ORLANDO, Fla. — A federal judge in Florida dismissed as moot a motion to dismiss filed by a man who the Securities and Exchange Commission alleges lured investors with promises of early access to profits from an artificial intelligence “ecosystem” in what was nothing more than a multilevel marketing scheme after the SEC filed an amended version of its complaint.