AI Will Raise Novel Issues in Insurance Litigation: The Morning Minute
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August 28, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
ALGORITHM IS GONNA GET YOU - Insurance litigators told Law.com's Max Mitchell and Aleeza Furman that it seems only a matter of time before AI-related insurance disputes begin to arise, raising novel civil procedure and discovery issues that will require new kinds of experts to help parse. Much the way plaintiffs attorneys sought the flow charts and computer programs that underpinned an insurance adjuster's decision-making process when that work was done by hand, lawyers will likely now begin seeking access to the underlying algorithms and training materials that were used to develop the AI, lawyers said. But they're going to need help. "You're going to get this crazy algorithm and then you're going to have to figure out, 'What does it mean?'" First Law Strategy Group's David Senoff said. "Now in addition to medical experts, you're going to need computer experts to decipher the algorithm."
CLIENTS INCLUDED - As it focuses on growth in its existing offices, Am Law 200 firm Clark Hill has acquired five smaller firms this year—the most recent in Dublin—instead of concentrating on hiring solo laterals or even small practice groups. Clark Hill isn't alone, as a number of Am Law 200 firms have expanded through acquisitions this year. As Law.com's Brenda Sapino Jeffreys reports, executing that strategy may entail more time and effort for the acquiring firm, but one huge benefit to scooping up a whole firm in one fell swoop is the large influx of client matters. "There's a much higher likelihood that the clients are going to come if they are acquiring a firm, because there's not going to be the partners who stay behind," said Dan Binstock, a partner with Garrison & Sisson in Washington, D.C., who spoke generally about the strategy of growth through acquisitions.
ON THE RADAR - VBA, a provider of cloud-based benefits software for health care payers, has closed a $156 million majority growth equity transaction led by Spectrum Equity. Spectrum Equity was represented by a Latham & Watkins team led by Boston partner Hans Brigham. Counsel information wasn't immediately available for VBA. Stay up on the latest state and federal litigation, as well as the latest corporate deals, with Law.com Radar.
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