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
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. […]
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 […]
New York AI Disclosure Bill Passes State Legislature
New York state Assembly Bill A3411B (“the Bill”) passed its third reading in the senate on March 9, 2026, sending it through the legislature and preparing it for delivery to Governor Kathy Hochul. If enacted, the Bill will require owners, licensees, and operators of generative AI systems to display a clear and conspicuous notice on […]
Cybercrime Trends to Watch: Takeaways from the FBI’s 2025 IC3 Annual Report
On April 6, 2026, the Federal Bureau of Investigation (FBI) released its 2025 IC3 Annual Report, which provides key trends, case data, and other statistics related to the FBI’s ongoing efforts to combat emerging cybersecurity threats. According to the report, 2025 marked the first time the total reported cybercrime losses surpassed $20 billion, with cryptocurrency […]