• |

    Nov. 20, 2019

U.K. and U.S. Sign First E-Evidence Pact Under the CLOUD Act: Fewer Hurdles, More Clarity and New Questions

The U.S. and U.K. have signed a trailblazing agreement extending law enforcement’s reach over electronic evidence. The pact aims to speed each government’s ability to obtain data in domestic criminal investigations and U.S. businesses should prepare for the increased burden of government requests and questions from customers. In the first of a two-part article series, we look at the new definitions in this first example of a CLOUD Act bilateral agreement, the process it prescribes and the questions it raises. The second installment will cover privacy issues and obstacles to future agreements. See “Deputy Assistant Attorney General Seeks to Dispel CLOUD Act Misunderstandings One Year In” (May 22, 2019).

AI for Fund Managers and Beyond: How to Automate the Legal Department and Maintain Privacy

Artificial intelligence can be used to increase the effectiveness of in-house legal departments, allowing attorneys to focus more of their time on value-adding, strategic services. Leveraging AI in this way does, however, entail risks, so companies must ensure it is properly integrated and, given that AI may increase the types of data that they collect, reassess their compliance with applicable privacy laws. This final article of a three-part series evaluates how entities can automate their legal departments and what they should do to ensure that they maintain their data subjects’ privacy. The first article explored how AI can be used, how to determine what functions to automate, what obstacles may interfere with implementing AI solutions and whether humans are still needed in the process. The second article analyzed what the U.S. government and others are doing to both promote AI and foster its responsible use; how fund managers should diligence and contract with third-party AI service providers; and what risks of bias exist. See “Using Big Data Legally and Ethically While Leveraging Its Value (Part One of Two)” (May 17, 2017); Part Two (May 31, 2017).

Present and Former SEC Attorneys and Defense Counsel Discuss Cyber Disclosure and Cyber Enforcement

Public companies are generally required to disclose events and risks that are material to their business, but what “material” means in the environment can be hard to discern, and the SEC appears to be taking issue with risk-factor disclosures even when the risks in question may not be material, several present and former SEC officials said at the recent Securities Enforcement Forum 2019. They discussed the available guidance on cybersecurity disclosures, the challenges involved in deciding when to disclose a cyber incident, and provided lessons from recent enforcement actions and the additional challenges that arise when multiple agencies are involved.  See “Meeting Expectations for SEC Disclosures of Cybersecurity Risks and Incidents (Part One of Two)” (Aug. 12, 2015); Part Two (Aug. 26, 2015).

Klinedinst Welcomes Senior Counsel in San Diego

James Snyder has joined Klinedinst as a senior counsel in the firm’s San Diego office, where he advises on matters related to data privacy and security, finance, corporate structuring and contracts.

Most-Read Articles