An anonymous reader quotes a report from the Associated Press: New York is suing Coinbase and Gemini, two of the newest players in the prediction market industry, arguing that the companies' unregulated and unlicensed platforms are illegal gambling operations. Attorney General Letitia James' lawsuit, filed Tuesday in state court in Manhattan, seeks to bar the companies' platforms from operating in the state unless and until they obtain licenses from the state Gaming Commission. "Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution," James said in a statement. "Gemini and Coinbase's so-called prediction markets are just illegal gambling operations, exposing young people to addictive platforms that lack the necessary guardrails." Both companies began as cryptocurrency trading platforms before branching into the prediction space, which has been dominated by Kalshi and Polymarket. [...] New York's lawsuit alleges that the Coinbase and Gemini are seeking "to avoid the legal and financial consequences" of the state's close regulation of gambling "by offering what is quintessentially wagering under the guise of offering 'event contracts' on a 'prediction market.'" By operating without licenses, the lawsuit says, Coinbase's and Gemini's prediction market businesses aren't paying the same taxes as licensed casinos and mobile sportsbooks, which are taxed by the state at a rate of approximately 51% of gross revenues. In addition, the lawsuit says, Coinbase and Gemini allow users as young as 18, while state law prohibits wagering by anyone under 21.

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Florida's attorney general has launched a criminal investigation into OpenAI over allegations that the accused gunman in a shooting at Florida State University last year used ChatGPT to help plan the attack. OpenAI says the chatbot is "not responsible for this terrible crime" and only provided factual information available from public sources. NPR reports: The Republican attorney general, James Uthmeier, said at a press conference in Tampa on Tuesday that accused gunman Phoenix Ikner consulted ChatGPT for advice before the shooting, including what type of gun to use, what ammunition went with it, and what time to go to campus to encounter more people, according to an initial review of Ikner's chat logs. "My prosecutors have looked at this and they've told me, if it was a person on the other end of that screen, we would be charging them with murder," Uthmeier said. "We cannot have AI bots that are advising people on how to kill others." Uthmeier's office is issuing subpoenas to OpenAI seeking information about its policies and internal training materials related to user threats of harm and how it cooperates with and reports crimes to law enforcement, dating back to March 2024. At the press conference, Uthmeier acknowledged the investigation is entering into uncharted territory and is uncertain about whether OpenAI has criminal liability. "We are going to look at who knew what, designed what, or should have done what," he said. "And if it is clear that individuals knew that this type of dangerous behavior might take place, that these types of unfortunate, tragic events might take place, and nevertheless still turned to profit, still allowed this business to operate, then people need to be held accountable." [...] Ikner, 21, is facing multiple charges of murder and attempted murder for the April 2025 shooting near the student union on FSU's Tallahassee campus, where he was a student at the time. His trial is set to begin on Oct. 19. According to court filings, more than 200 AI messages have been entered into evidence in the case.

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A Manhattan federal jury found that Live Nation and Ticketmaster illegally maintained monopoly power in the ticketing market. The findings follow an antitrust case brought by states after a separate DOJ settlement. CNN reports: The verdict was reached following a lengthy trial in New York federal court that included testimony from top executives in the music and entertainment industries. Jurors began deliberating on Friday. The Justice Department and 39 state attorneys general, including California and New York, and Washington, DC, sued Live Nation in 2024 alleging its combination with Ticketmaster and control of "virtually every aspect of the live music ecosystem" have harmed fans, artists, and venues. During the second week of trial, in a move that surprised even the judge, the Justice Department reached a secret settlement with Live Nation. A handful of states signed onto the deal, but more than two dozen proceeded to trial. Under the DOJ deal, Live Nation agreed to allow competitors, like SeatGeek or StubHub, to offer tickets to its events, cap ticketing service fees at 15%, and divest exclusive booking agreements with 13 amphitheaters. The deal includes a $280 million settlement fund for state damages claims for the handful of states that signed onto the deal. The DOJ settlement requires the judge's approval.

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An anonymous reader quotes a report from Bloomberg: Alphabet's Google is facing billions of dollars in potential damage claims as part of mass arbitration tied to the company's online search and advertising technology businesses, which courts have ruled were illegal monopolies. Advertisers are banding together to seek payouts through mass arbitration proceedings. While many companies that displayed ads purchased through Google -- including USA Today Co. and Advance Publications -- have sued for damages since the rulings in 2024, advertiser contracts with the search giant require mandatory arbitration over legal disputes. In arbitration, legal disputes are handled by a mediator, a process that tends to favor companies in individual claims. Mass arbitration -- where 25 or more claims against the same company are pooled together -- have become more common and provide a greater likelihood of settlement awards for claimants. Ashley Keller, a Chicago lawyer whose firm has handled mass arbitrations against DoorDash, Postmates and TurboTax-maker Intuit, said he's already signed up a "significant number" of advertisers to participate in claims against Google. The first of those are expected to be filed this week. "Two federal judges have already adjudicated Google to be a monopolist," Keller said in an interview with Bloomberg. "It seems sensible to seek redress." Keller, who is also representing Texas and other states in a lawsuit against Google for monopolization of advertising technology, estimates potential claims for online search and display ads could reach $218 billion or more, based on calculations from an economist his firm has hired. Similar mass arbitrations have lasted 12 to 24 months between the filing of claims and resolution, he said. "Given the nature of these matters, we cannot estimate a possible loss," Google said in a recent corporate filing. "We believe we have strong arguments against these open claims and will defend ourselves vigorously."

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An anonymous reader quotes a report from Ars Technica: The Trump administration has stepped up an effort to unmask a Reddit user who criticized Immigration and Customs Enforcement (ICE). After failing to obtain information through a summons issued (PDF) to Reddit, the government reportedly issued a subpoena demanding that Reddit provide the information and appear before a grand jury in Washington, DC. The Intercept described the subpoena today. "According to a subpoena obtained by The Intercept, Reddit has until April 14 to provide a wide range of personal data on one of its users, whom US Immigration and Customs Enforcement agents have been trying unsuccessfully to identify for more than a month," the article said. The legal saga began in US District Court for the Northern District of California. On March 12, the anonymous Reddit user whose information is being sought filed a motion (PDF) to quash a summons seeking a host of information from Reddit. The summons was issued by the Department of Homeland Security and directed Reddit to turn information over to an ICE senior special agent. The summons cited authority under 19 U.S. Code 1509, which is part of the Smoot-Hawley Tariff Act of 1930. The motion to quash said the summons is not authorized by the law, which deals with imports of boats, alcoholic drinks, and animals, among other things. "J. Doe is a US citizen who has not traveled out of the country, is not engaged in any international commerce, has no business concerns outside the United States, and primarily uses their Reddit account to engage in political speech relevant to their local community," said the filing by the Civil Liberties Defense Center (CLDC), which represents the Reddit user. "Yet the government claims the right to obtain Doe's name, telephone number, home address, banking and credit card information, IP addresses, telephone model number(s), and the names of any other accounts associated with their Reddit account. The information sought by the government in no way pertains to customs or importing or exporting merchandise, and is clearly intended to chill free speech." "We should be very, very, very concerned that they've now taken one of these to a grand jury," said David Greene, senior counsel for the Electronic Frontier Foundation. "It's something to be taken very seriously." A Reddit spokesperson told Ars today that "we seek to inform users of any legal process compelling disclosure of their data, as we did in this case, because users should have the agency to protect their own information and are often better positioned to challenge requests that impact them." "We do not voluntarily share information with any government, especially not on users exercising their rights to criticize the government or plan a protest. We review every inquiry for legal sufficiency and routinely object to requests that are overbroad or threaten civil rights. When legally compelled to disclose data, we provide only the minimum required and notify the user whenever possible so they can defend their interests."

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A federal appeals court denied Anthropic's bid to temporarily block the Pentagon's blacklisting, meaning the company remains shut out of Defense Department contracts while the case continues, even though a separate court has allowed other federal agencies to keep using Claude for now. CNBC reports: "In our view, the equitable balance here cuts in favor of the government," the appeals court said in its decision. "On one side is a relatively contained risk of financial harm to a single private company. On the other side is judicial management of how, and through whom, the Department of War secures vital AI technology during an active military conflict. For that reason, we deny Anthropic's motion for a stay pending review on the merits." With the split decisions by the two courts, Anthropic is excluded from DOD contracts but is able to continue working with other government agencies while litigation plays out. Defense contractors will be prohibited from using Claude in their work with the agency, but they can use it for other cases. [...] In the ruling on Wednesday, the court acknowledged that Anthropic "will likely suffer some degree of irreparable harm absent a stay," but that the company's interests "seem primarily financial in nature." While the company claimed the DOD was standing in the way of its right to free speech, "Anthropic does not show that its speech has been chilled during the pendency of this litigation," the order said. Because of the harm Anthropic is likely to suffer, the appeals court said "substantial expedition is warranted." An Anthropic spokesperson said in a statement after the ruling that the company is "grateful the court recognized these issues need to be resolved quickly" and that it's "confident the courts will ultimately agree that these supply chain designations were unlawful." "While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI," Anthropic said.

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An anonymous reader quotes a report from The Drive: Farmers have been fighting John Deere for years over the right to repair their equipment, and this week, they finally reached a landmark settlement. While the agricultural manufacturing giant pointed out in a statement that this is no admission of wrongdoing, it agreed to pay $99 million into a fund for farms and individuals who participated in a class action lawsuit. Specifically, that money is available to those involved who paid John Deere's authorized dealers for large equipment repairs from January 2018. This means that plaintiffs will recover somewhere between 26% and 53% of overcharge damages, according to one of the court documents (PDF) -- far beyond the typical amount, which lands between 5% and 15%. The settlement also includes an agreement by Deere to provide "the digital tools required for the maintenance, diagnosis, and repair" of tractors, combines, and other machinery for 10 years. That part is crucial, as farmers previously resorted to hacking their own equipment's software just to get it up and running again. John Deere signed a memorandum of understanding in 2023 that partially addressed those concerns, providing third parties with the technology to diagnose and repair, as long as its intellectual property was safeguarded. Monday's settlement seems to represent a much stronger (and legally binding) step forward. The report notes that a judge's approval of the settlement is still required but likely to happen. John Deere also faces another lawsuit by the U.S. FTC, accusing the company of forcing farmers to use its authorized dealer network and driving up their costs for parts and repairs.

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An anonymous reader quotes a report from TorrentFreak: Following on the heels of the landmark Cox v. Sony ruling, the Supreme Court has vacated the contributory copyright infringement verdict against ISP Grande Communications, ordering the Fifth Circuit to reconsider its decision in light of the new precedent. [...] The order (PDF) effectively removes the case from the Supreme Court docket, urging the Fifth Circuit Court of Appeals to take another look at its decision in light of the new ruling. Given the similarities between the two cases, it is no surprise that the Supreme Court came to this conclusion. It is now up to the Fifth Circuit to revisit whether Grande's conduct meets the intent threshold that was established in Cox. That is a significantly higher bar than the one applied in the original verdict, which found that continuing to provide service to known infringers was enough to establish material contribution. The music companies previously said they sent over a million copyright infringement notices, but that Grande failed to terminate even a single subscriber account in response. However, without proof of active inducement, these absolute numbers carry less weight now. Whether this translates into a win for Grande on remand remains to be seen. For now, however, the original $47 million verdict is further away than ever.

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An anonymous reader quotes a report from Reuters: A federal appeals court ruled on Monday that New Jersey gaming regulators cannot prevent Kalshi from allowing people in the state to use its prediction market to place financial bets on the outcome of sporting events. A three-judge panel of the Philadelphia-based 3rd U.S. Circuit Court of Appeals ruled 2-1 (PDF) in finding that the U.S. Commodity Futures Trading Commission has exclusive jurisdiction over the sports-related event contracts that Kalshi allows people to trade on its platform. The ruling marked the first time a federal appeals court has ruled on what has become the central issue in an escalating battle over the ability of state gaming regulators to police the activity of prediction market operators. Kalshi and companies like it allow users to place trades and profit from predictions on events such as sports and elections. States argue that firms like Kalshi are operating without required state licenses, in violation of gaming laws, including bans on wagers by those under 21. Those states include New Jersey, which last year sent Kalshi a cease-and-desist letter stating that its listing of sports-related event contracts on its platform violated state gambling laws that prohibit betting on collegiate sports. Kalshi sued the state, arguing its event contracts qualify as "swaps," a type of derivative contract, that under the Commodity Exchange Act can only be regulated by the CFTC, which had granted the company a license to operate a designated contract market (DCM). A lower-court judge had sided with New York-based Kalshi and issued a preliminary injunction, prompting New Jersey to appeal. But a majority of the judges on the 3rd Circuit panel concluded the Commodity Exchange Act likely preempted state law. "Kalshi's sports-related event contracts are swaps traded on a CFTC-licensed DCM, so the CFTC has exclusive jurisdiction," U.S. Circuit Judge David Porter wrote. The ruling was in line with the position advanced in other litigation by the CFTC under President Donald Trump's administration. The regulator last week sued Arizona, Connecticut and Illinois to prevent them from pursuing what it called unlawful efforts to regulate prediction markets.

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