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February 27, 2025 - R+C Newsletter

Data Privacy + Cybersecurity Insider

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CYBERSECURITY

DOGE Blocked from Access to Department of Treasury Payment Systems

On February 21, 2025, a federal district court judge from the Southern District of New York issued a preliminary injunction against the Department of Government Efficiency’s (DOGE), access to Treasury Department payment systems, stating access was provided in a “chaotic and haphazard manner.” The order resulted from a suit filed by 19 state Attorneys General against DOGE for unauthorized access to Americans’ data. It prevents anyone affiliated with DOGE from accessing federal payment systems until further order.” Read More


DATA PRIVACY

Trap and Trace Litigation: Why is this a Trend for Plaintiffs’ Attorneys?

Beware of demand letters from plaintiffs’ attorneys for allegations of illegal use of pen registers, trap and trace pixels, and search bar pixels—why? This “trap and trace” litigation is a growing trend for plaintiffs’ attorneys because they can leverage existing wiretap laws (particularly in California under the California Invasion of Privacy Act (CIPA)) to argue that common online tracking technologies like cookies, pixels, and website analytics tools essentially function as “trap and trace” devices, allowing them to file complaints against companies for collecting user data without proper consent, even though these technologies were originally designed for traditional phone lines, not the internet, opening up a large pool of potential plaintiffs and potentially significant damages. Read More


ARTIFICIAL INTELLIGENCE

Lawyers Sanctioned for Citing AI Generated Fake Cases

In another “hard lesson learned” case, on Monday, February 24, 2025, a federal district court sanctioned three lawyers from the national law firm Morgan & Morgan for citing artificial intelligence (AI)-generated fake cases in motions in limine. Of the nine cases cited in the motions, eight were non-existent. Read More


PRIVACY TIP #433

Privacy and Security Personnel Throughout Federal Government Fired

The Trump administration has systematically fired federal privacy- and security-focused employees since taking office.

Three members of the bipartisan, independent agency, the Privacy and Civil Liberties Oversight Board (which was established by Congress in 2004 “to ensure that the federal government's efforts to prevent terrorism are balanced with the need to protect privacy and civil liberties”) were fired on January 27, 2025.  Find out more in this week's Privacy Tip. Read More


RECENT EVENTS AND NEWS

Linn Freedman Quoted on How Businesses Can Navigate “The Wild West” of AI

Artificial Intelligence team co-chair Linn Freedman was recently quoted in a Hartford Business Journal article titled “Law firms create AI teams to help businesses navigate ‘Wild, Wild West’ of artificial intelligence, as states mull regulations” published on February 24, 2025. In the article, Linn discusses the intricacies of generative artificial intelligence (Gen AI) adoption for businesses. She emphasized that the firm’s AI team is assisting clients with kicking the tires on AI vendors including how they are using company data, negotiating contracts on the proper use of data, and developing AI Governance programs and policies for employees. “I think there’s still an education gap,” Linn said. “People are using generative AI tools, putting proprietary and sensitive information in, and not knowing what the risk is.”

She emphasizes that “companies need to really assess” the purpose of using AI tools, to question the sensitivity of the data collected, and “what’s happening to the data” due to the litany of data privacy and security laws.

In addition, Linn also acknowledges the “freewheeling spirit” of AI adoption, likening it to the rise of social media two decades ago, which also saw limited regulation, stating, “I do believe that in this sphere of AI regulation, states will be the leader when it comes to trying to put guardrails around what is really the Wild, Wild West.” Read the article in full.