The Metaverse Could Spawn a New World of Litigation: The Morning Minute
The news and analysis you need to start your day.
March 10, 2022 at 06:00 AM
5 minute read
Court Administration
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WHAT WE'RE WATCHING
COURTS' NEW REALITY - Courts are already overwhelmed with lawsuits stemming from conduct that occurred in this reality. But as virtual reality becomes more expansive and more widely populated, dockets could soon start filling up with claims arising from the metaverse, which, as you might imagine, is a prospect that raises some tricky questions. For one: With users in different jurisdictions interacting on one platform, which laws apply? For another: Does a plaintiff, who would have sought relief over an offense in the real world, have legal standing to sue if a similar thing occurs in virtual reality? As Law.com's Cedra Mayfield reports, some labor and employment attorneys said the answer to the first question remains unclear, but the answer to the second question is pretty clearly "yes." "I don't think there's really any difference from a legal perspective of a meeting that takes place in virtual reality versus a meeting that takes place over a conference call or a meeting that takes place over Zoom, or really a meeting that takes place in person from the company's perspective as it relates to its own employees," said F. Beau Howard, a partner at Fox Rothschild in Atlanta.
TECHNICAL DIFFICULTIES - Legal chiefs are increasingly hands-on in choosing technology tools, according to a recent study by Relativity and FTI Consulting. According to "Supporting Technology Improvements," the third and final installment of the General Counsel Report 2022, 87% of legal chiefs surveyed said they are involved in technology planning and purchasing, beyond providing budget approval alone. Though the trend isn't totally new, many GCs surveyed for the report said their involvement has deepened over the past year. But is there enough tech talent out there to support this increased involvement? Jennifer Hamilton, who runs the in-house team at e-discovery company Exterro, told Law.com's Hugo Guzman that, "not all lawyers need to be technical, but you do need to have technical talent." The report's findings underscore her point. It found that only 33% of GCs surveyed agreed that attorneys have adequate technology knowledge and capabilities. That's a serious drop from the 2021 report, where the percentage was 55%. Hamilton argued the problem partly lies in how attorneys see tech tools. She said too many expect software to do all the work at the push of a button. "When someone has technology experience, there's a flexibility to how they do their job," Hamilton said. "They aren't married to their own process. … And legal professionals can often be very married to their own process."
SNAPPED - Snap Inc., the creator of messaging app Snapchat, and certain members of its board were hit with a derivative shareholder complaint Tuesday in California Central District Court. The case, brought by Rosen Law Firm on behalf of Tim Dodds, arises from updates made to Apple's mobile privacy features in April 2021. The complaint contends that the defendants misled investors by downplaying the effect the new features would have on Snap's business. Counsel have not yet appeared for the defendants. The case is 2:22-cv-01569, Dodds v. Spiegel et al. The shareholder derivative suit against Snap follows a securities suit against the company that was also filed by the Rosen Firm in November and another similar suit against Facebook parent company Meta Platforms filed by Bottini & Bottini that same month. Stay up on the latest deals and litigation with the new Law.com Radar.
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EDITOR'S PICKS
Sneak Peek at the 2022 Go-To Law Schools: Nos. 11-20 By Christine Charnosky 'The Level of Fury Is Different Than It Used To Be': In Legalweek Keynote, Dan Abrams Discusses Political Polarization By Marianna Wharry Escrow Officer Resigns After Wiring Nearly $2M in Client Funds During 'Major Lapse in Judgment' By Allison Dunn Expect More Sexual Harassment Lawsuits After New Federal Law Bars Arbitration of Such Disputes By Charles Toutant Lawyer Who Represented Devin Nunes' Aide Fights Sanctions From Failed Defamation Lawsuit By Avalon Zoppo|
WHILE YOU WERE SLEEPING
FIRM STANCE - Several Am Law 100 firms revealed plans on Wednesday to close their Russian offices or suspend operations in the country, citing events in Ukraine as the impetus behind the development, Law.com's Bruce Love reports. Latham & Watkins, Squire Patton Boggs, Freshfields Bruckhaus Deringer, and Morgan, Lewis & Bockius on Wednesday joined a growing group of Am Law 100 firms to shutter their Russian operations, after Linklaters kicked off a flurry of Big Law departures from Russia on Friday. Eversheds Sutherland and Norton Rose Fulbright also announced plans to wind down their operations in Russia this week. Around 20 Am Law 200 firms have offices in Russia. In addition, as Law.com International's Varsha Patel reported, Freshfields' exit means Allen & Overy and Clifford Chance are the remaining Magic Circle firms in Russia.
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WHAT YOU SAID
"When I told him, I'm going to be on this reality TV show and I'll be leaving for seven weeks, I remember he said: 'That's one I've never heard before!'"
— Daniel Strunk, an associate at Keller Lenkner in Washington, D.C., recounting the moment he informed his firm that he'd been cast on "Survivor."
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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