Fourth Circuit: Shareholders Face High Bar In Demonstrating Scienter

A recent decision from the U.S. District Court for the Southern District of New York (SDNY), United States v. Heppner, has generated outsized commentary suggesting that the use of generative AI tools may jeopardize attorney-client privilege. A closer reading shows something far less dramatic.

The 2025 legislative cycle marked a pivotal year in U.S. privacy law, defined not only by continued nationwide expansion into AI) governance, children’s and teen privacy and online safety, as well as emerging data categories. In this article, we detail what enterprises need to be prepared for in 2026 and explain why we believe next year will be a watershed period for consumer privacy in the U.S.

Every decision to onboard a client, partner, lateral hire, contractor, consultant or expert witness carries risk. Yet despite the increasing complexity of that risk, many firms continue to rely on onboarding practices that have not kept pace with the digital world in which their clients and people operate. The result is a widening gap between how risk actually manifests today and how it is assessed at the point of onboarding.

Understanding the “not written by people” feature of AI software is the best lens for viewing AI transactions. The fact that an AI is not a legal entity, prompts the proper legal analysis of AI transactions.