Our Health Care Group investigates a lawsuit against Character.AI that raises legal risks for AI platforms presenting themselves as licensed professionals and signals tightening regulatory scrutiny. AI chatbot developers could face regulatory action, private lawsuits, and reputational harm if bots imply professional credentials or offer regulated advice Federal and state authorities are increasing scrutiny of chatbot […]
Artificial Intelligence (AI)
The Era of AI-Driven Data Breaches Has Arrived
A recent lawsuit signals the rapid convergence of issues relating to artificial intelligence, vendor‑managed platforms, and individual arbitration in the data breach ecosystem. In Woodard v. OpenAI, Inc. & Mixpanel, Inc., Case No. 3:25-cv-10301 in the Northern District of California, Plaintiffs alleged that Mixpanel uses artificial intelligence technologies developed by OpenAI to collect user data. […]
One Federal Privacy Bill to Rule Them All?
On April 21, 2026, Republican lawmakers on the House Energy & Commerce Committee, including Congressman Brett Guthrie and Congressman John Joyce, M.D., Leader of the Energy and Commerce Data Privacy Working Group, introduced the “Securing and Establishing Consumer Uniform Rights and Enforcement over Data Act”, the SECURE Data Act (the “Act”). The Act is designed […]
Your AI Chats May Be Used Against You – CEO’s ChatGPT Records Appear in Judicial Opinion Concerning $250 Million Earnout
On March 16, 2026, the Delaware Court of Chancery issued an opinion finding that the CEO of a major gaming company followed guidance from ChatGPT (referred to here as the “AI Tool“”) to breach a $500 million acquisition agreement. This dispute joins a growing list of cases in which chatbot records have entered the […]
Your AI Scribe May Be Taking Notes (and Plaintiffs Are Too)
On April 7, 2026, several plaintiffs (“Plaintiffs”) filed a putative class action complaint in the Northern District of California against Sutter Health, Memorial Health Services Inc. and Memorial Care Medical Foundation (the “Providers”). The complaint alleges the Providers illegally recorded Plaintiffs’ confidential medical information by using an AI-powered “ambient clinical documentation” tool to record clinician-patient […]