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Meghan Newcomer

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Meghan Newcomer focuses her practice on white-collar criminal defense, securities litigation, complex civil litigation, and government and internal investigations. Meghan has substantial experience defending individuals in white-collar criminal matters and has assisted with multiple trials in federal court.

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In two complaints filed last week, The Intercept Media, Inc, Raw Story Media, Inc. and AlterNet Media, Inc. became the latest companies to sue OpenAI for copyright infringement in violation of the Digital Millennium Copyright Act. The Intercept also included Microsoft as a defendant.

Both complaints were filed by self-identified “news organizations,” and allege that those organizations’ copyrighted works were used to train OpenAI’s generative AI systems, ChatGPT, on how to mimic human speech and writing. According to the news organizations, when deciding what information to include in the training materials fed to ChatGPT: Continue Reading Copyright Infringement Lawsuits Against OpenAI and Microsoft Are Mounting

Last Tuesday, the Authors Guild and 17 authors, including George R.R. Martin, Jonathan Franzen, Elin Hilderbrand, John Grisham and Jodi Picoult, filed a proposed class action complaint against OpenAI, alleging direct, vicarious and contributory copyright infringement. The Plaintiffs seek “redress for Defendants’ flagrant and harmful infringements of Plaintiffs’ registered copyrights in written works of fiction.”

Plaintiffs’ complaint alleges that: Continue Reading Authors Guild and 17 Well-Known Authors Claim OpenAI Infringes Their Copyrighted Works

On Thursday, Judge Castel sanctioned two lawyers and their law firm $5,000 in connection with their widely publicized submission of fake cases generated by ChatGPT.

The relevant events began on March 1, when the plaintiff’s lawyers submitted an “affirmation” in opposition to the defendant’s motion to dismiss, which first cited the fake cases. On March 15, the defendant a reply brief questioning the existence of many of the cases cited in plaintiff’s “affirmation.”

After reading the reply and being unable to locate a number of the cases himself, Judge Castel ordered plaintiff’s lawyers to produce the cases cited in their opposition. Plaintiff’s counsel submitted an affidavit attaching the excerpts of the “cases” on April 25th. Judge Castel reviewed the “purported decisions” and described them as showing “stylistic and reasoning flaws that do not generally appear in decisions” from federal courts and containing legal analysis that was “gibberish.” On May 4, he ordered plaintiff’s lawyers to show cause why they should not be sanctioned. On May 25, one of the lawyers finally admitted that he had used ChatGPT to conduct his legal research, not understanding that it could invent fake cases. Continue Reading Judge Castel Sanctions Lawyers Who Submitted Fake Cases Generated By ChatGPT

Yesterday, the Second Circuit overturned Judge McMahon’s December 2021 decision rejecting the Purdue Pharma bankruptcy on the grounds that the Bankruptcy Code did not permit releases of third-party direct claims against non-debtors. As we previously covered, Judge McMahon’s opinion found that the bankruptcy court lacked authority to issue releases in favor of the Sackler family. 

While acknowledging that both sides put forth arguments “about fairness and accountability, particularly as it relates to the Sacklers, in releasing parties from liability for actions that cause great societal harm” the Second Circuit concluded that the only questions it needed to resolve were (1) whether the Bankruptcy Code permits nonconsensual third-party releases of direct claims against non-debtors, and (2) if so, were such releases proper here in light of all equitable considerations and the facts of this case. The Court answered both questions in the affirmative:Continue Reading Second Circuit, Reversing Judge McMahon’s Order, Affirms Purdue Pharma Bankruptcy

On Wednesday, Judge Vyskocil denied a request by Manhattan District Attorney Alvin Bragg for a TRO enjoining the enforcement of the subpoena issued to Mark F. Pomerantz by Congressman Jim Jordan in his role as Chair of the House Committee on the Judiciary. We previously covered DA Bragg’s TRO and Complaint here.

Before addressing the merits of the TRO request, Judge Vyskocil faulted DA Bragg for filing the order to show cause for the TRO without notice to Defendants and before serving them with the Complaint. She characterized the first 35 pages of the Complaint as “nothing short of a public relations tirade against former President and current presidential candidate Donald Trump,” before concluding “that this action is merely a motion to quash a subpoena dressed up as a lawsuit.” Continue Reading Judge Vyskocil Denies DA Bragg’s Request to Enjoin Pomerantz’s Testimony, but Second Circuit Grants Stay Pending Appeal

Today, Manhattan DA Alvin Bragg filed a complaint and motion for a TRO and preliminary injunction seeking to quash a subpoena that was served by a Congressional committee on former Special ADA Mark Pomerantz. The subpoena seeks testimony about the New York State criminal prosecution and investigation of former President Trump. Judge Vyskocil declined to issue a TRO, but ordered expedited briefing and set a hearing on the preliminary injunction motion for next week.

The subpoena target, Mr. Pomerantz, participated in the Manhattan DA’s investigation of former President Donald Trump and his businesses. Congressman Jim Jordan served the subpoena in his capacity as Chairman of the House Committee on the Judiciary, and the subpoena seeks a deposition of Mr. Pomerantz on April 20.

DA Bragg’s Complaint argues that Mr. Jordan is seeking “highly sensitive and confidential local prosecutorial information that belongs to the Office of the District Attorney and the People of New York” and that “[b]asic principles of federalism and common sense, as well as binding Supreme Court precedent” forbid such a request from Congress, which has no authority to supervise state criminal prosecutions: Continue Reading Judge Vyskocil Schedules Hearing Next Week in Challenge to Congressional Subpoena for Testimony About Manhattan DA’s Trump Investigation

Today, Judge Engelmayer dismissed with prejudice a putative securities class action filed against DraftKings, Inc., and denied Plaintiffs’ leave to replead. Plaintiffs’ Second Amended Complaint alleged that a company that DraftKings had acquired in the course of going public, SBTech (Global) Limited (“SBTech”), had secretly operated in “black-market” jurisdictions, thereby exposing DraftKings to regulatory and criminal risks. It further alleged that DraftKings made materially false and misleading statements about, and failed to disclose, SBTech’s violations of foreign law and their potential consequences.

Plaintiffs argued that DraftKings’s shares traded at artificially inflated prices until June 15, 2021, when a short seller, Hindenburg Research published a report that revealed SBTech’s ostensible operations in black market jurisdictions and the risks to which the merger with SBTech allegedly exposed DraftKings. That day, DraftKings’s shares fell 4.17%.

In dismissing the Second Amended Complaint, the Court focused on Plaintiffs’ reliance on the Hindenburg report without having verified the information contained in the report:Continue Reading Judge Engelmayer Dismisses Putative Securities Class Action Because Allegations Were Based On Unconfirmed Allegations in Short Seller’s Report

Earlier this month, Judge Cote entered a default judgment against Dmitry Starovikov and Alexander Filippov in Google’s action seeking a permanent injunction against them as the operators of a blockchain enabled “botnet.” Judge Cote had entered a Temporary Restraining Order against the Defendants on December 7, 2021, covered here.

Google first sought entry of a default judgment in February after the named Defendants failed to respond to the Complaint, despite service by the methods authorized in the TRO. The default was entered by the Clerk of Court on February 8, but vacated by Judge Cote on Defendants’ motion, which argued “that they had not been served, that the Court lacked jurisdiction over them, and that they had meritorious defenses, including that Google had failed to state a claim against them.”Continue Reading Judge Cote Grants Google Permanent Injunction Against “Botnet” Operators, Following Failure to Cooperate with Discovery

On Wednesday, Judge Carter granted Major League Baseball’s Motion to Dismiss the Complaint of four Minor League Baseball teams alleging that MLB violated the Sherman Act by orchestrating an agreement among its clubs to eliminate 40 minor league teams from affiliation with major league clubs. As discussed in a previous post, Plaintiffs argued the Supreme Court had signaled its willingness to reconsider MLB’s exemption from antitrust scrutiny in NCAA v. Alston, 141 S. Ct. 2141 (2021).
Continue Reading Judge Carter: MLB’s Antitrust Exemption “Shields” MLB from Minor League Baseball Teams’ Sherman Act Suit