A federal appeals court has ruled that states can regulate prediction markets like Kalshi as gambling, handing state regulators their biggest legal victory yet against the booming industry. "There are still related lawsuits pending across the country, and legal experts believe the matter will ultimately be settled by the Supreme Court," reports CNN. "But Friday's ruling from the Ninth Circuit Court of Appeals is the largest courtroom victory to date for the states as they seek to regulate prediction sites." CNN reports: The 3-0 ruling came from a panel of three Trump-appointed judges. The case originated from Nevada, where regulators tried to shut down the Kalshi prediction site. [...] "The substance of the sports event contracts offered on Kalshi's (exchange) is sports gambling, regardless of whether Kalshi calls them swaps," the appeals panel wrote Friday, adding that "Kalshi's attempts to distinguish its sports event contracts from sportsbooks betting are unpersuasive." The judges also said it was "disingenuous" for Kalshi to argue in court that its products weren't sports-betting when it previously used that phrasing in marketing materials. Kalshi spokeswoman Dani Lever said in a statement: "Despite the Ninth Circuit's opinion, we still believe the CFTC regulations as written do not prohibit sports contracts, and in any event, the CFTC is working to clarify those regulations. We will be seeking further review." "It's the first ruling against Kalshi at the appellate level, and the opinion seemed to be pretty brutal for the company," said Dustin Gouker, an independent journalist who covers the prediction industry. "This gets us one step closer to an almost inevitable Supreme Court case on the legality of sports event contracts."

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An anonymous reader quotes a report from The Guardian: A US judge ruled on Thursday that the Trump administration broke the law when it designated Anthropic as a supply chain risk earlier this year, finding that the government had unlawfully targeted the AI firm for refusing to comply with defense department demands. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," Judge Rita Lin said in a 59-page decision. Lin's ruling barred the federal agencies named in the lawsuit from enforcing Donald Trump's order to stop using Anthropic's tools and overturned the designation of the company as a "supply chain risk" by the defense secretary, Pete Hegseth. The status, usually reserved for foreign firms, would have blocked government agencies from doing business with Anthropic. The case emerged out of a months-long feud between Anthropic and the Pentagon at the start of the year. Anthropic refused to allow the government to use its Claude AI model for fully autonomous lethal weapons or domestic mass surveillance, resulting in Hegseth accusing the company of "arrogance and betrayal". Lin put a temporary pause on the government's punitive measures in March, stating that the government's actions looked like an attempt to "cripple Anthropic" for exercising its first amendment rights. The ruling this week makes that temporary suspension permanent, although the government may appeal. "We welcome the court's ruling that this supply chain risk designation was unlawful," an Anthropic spokesperson said.

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Meta has agreed to pay up to $18 billion and make major changes to Facebook and Instagram to settle claims from most U.S. states that the platforms were designed to addict children and misled users about their safety. For the next decade, teens will be limited to two hours a day and blocked from using the apps between midnight and 6 a.m. without parental consent. Meta will, however, still be allowed to use personalized recommendations and targeted advertising. Reuters reports: The settlements include more than $17.6 billion of payments to 48 U.S. states, Washington, D.C., Puerto Rico, American Samoa and the Northern Mariana Islands. Meta will also pay $459 million to resolve states' privacy claims related to the Cambridge Analytica scandal, where the British consulting firm collected personal data of millions of Facebook users. California would receive the highest payout, $2.2 billion, and New York and Texas would each receive more than $1 billion. Some of the payout is contingent on whether Alphabet's YouTube and ByteDance's TikTok impose similar protections for children. [...] The settlement requires approval by U.S. District Judge Yvonne Gonzalez Rogers, who oversaw the trial that began on August 18. Gonzalez Rogers still oversees thousands of lawsuits by individuals, school districts, and state and local governments accusing social media companies of harming children. Meta itself still faces thousands of lawsuits by individuals, school districts and municipalities. The next trials are slated for October in Los Angeles.

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The long legal battle over ownership of Linux "is closer than ever to ending," reports the Register, "after a panel of three judges ruled a claim against IBM and Red Hat isn't valid, and that time has expired for further action." In 2021, an heir to SCO settled with IBM for $14.25 million — a sum that reflects the fact SCO had for years failed to produce strong evidence to back its claims. Another of SCO's legal successors, Xinuos, filed a new claim that IBM should be on the hook because Big Blue knew it did not own the code it contributed to Linux but instead had a non-exclusive license to use it. Xinuos argued that when IBM contributed Project Monterey code to Linux [25 years ago], it breached that license. Xinuos eventually took that argument to the US District Court for the Southern District of New York — and failed to convince it that IBM and Red Hat had a case to answer. Xinuos appealed, and on August 10th the United States Court of Appeals for the Second Circuit decided [PDF] not to revisit the District Court's decision, agreeing that the original legalese governing Project Monterey means it's too late to re-litigate the matter. The Appeals Court also agreed that Xinuos tried to frame the case as a licensing issue but failed, instead arguing that the issue was really about ownership. That ain't all, folks, because Xinuos intends to file a petition to have the case re-heard by the full bench of the Court of Appeals. That hardly ever happens, unless the court finds significant errors or major legal issues that make a rehearing worthwhile. Law firm Kaplan says the Second Circuit has allowed reviews of less than 0.03 percent of the cases it has handled. So perhaps this matter is now close to a final resolution. Back in 2000 Slashdot interviewed one of the presidents of SCO.

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Retraction Watch reports: A trial date has been set in a $1 billion defamation case against Elsevier that alleges the company published what plaintiffs say was a manipulated study about an air purifying technology over objections from peer reviewers. The case has already cost Elsevier a $10,000 sanction from a judge. Global Plasma Solutions (GPS), which makes air quality products, sued Elsevier in 2022 after the publisher declined to retract a 2021 paper in Building and Environment about GPS' needlepoint bipolar ionization technology, which it heavily marketed during the COVID-19 pandemic as an air purifier. The complaint claims Elsevier is responsible for the authors' alleged omission of data and misleading conclusions in the paper that fueled "massive" financial losses for the company, its lawyers claim. Elsevier knew the paper "failed peer review" under its "own standards," but moved forward with the article despite this knowledge, according to GPS, which now goes by GPS Air. The complaint has survived a bid by Elsevier to dismiss the case, and a trial has been set for Dec. 7. In allowing the case to proceed, U.S. Magistrate Judge David Keesler said in a May 2024 opinion that GPS has "plausibly alleged actual malice" by Elsevier defined as "knowledge of falsity or reckless disregard for the truth." Chief Judge Martin Reidinger of the U.S. District Court for the Western District of North Carolina upheld Keesler's recommendation in July 2025... Citing internal and discovery documents, GPS alleges an assessment of 19 journals revealed Elsevier has published more than 1,200 articles either without any peer review, or against the recommendations of the reviewers. Thanks to long-time Slashdot reader sandbagger for sharing the article.

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Independent music publisher Round Hill is suing Suno and Anthropic for allegedly using hundreds of copyrighted songs without permission to train their AI systems. The company says potential damages could exceed $1 billion, arguing there is "nothing fair" about building multibillion-dollar AI businesses on copyrighted material while rights holders receive nothing. From The Hollywood Reporter: Round Hill is a prominent music publisher whose copyrights include the Goo Goo Dolls' "Iris," Bonnie Tyler's "Total Eclipse of the Heart," the Kinks' "Lola" and Dio's "Holy Diver." The company provided a list of 500 songs that the defendants had infringed upon. Round Hill said in the suits that the company plans to "amend to list potentially ten thousand or more of their musical compositions," with those damages potentially exceeding $1 billion. "While in other cases for copyright infringement, Defendant has waxed poetic about the necessity of progress and AI's value to society, there is simply no reason -- other than rote expediency -- to have that progress come at the cost of copyrights holders," prominent music attorney Richard Busch, representing Round Hill, wrote in the suits. Round Hill further argued that the latter "'expediency' arguments completely falter" when taking into account Suno and Anthropic's significant cash valuations they've earned while "exploiting illicit copies of copyrighted works, including the Round Hill Works." "There is simply nothing fair about a company using theft to build for purely commercial purposes a multi-billion dollar business while those from which they steal receive nothing," Round Hill said. Suno also faces a lawsuit from Universal Music Group and Sony Music Group.

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Disney and ABC are suing the FCC to block an early review of eight station licenses, arguing the Trump administration is using the agency's regulatory power to punish the network over programming and editorial decisions it dislikes. Reuters reports: In a lawsuit (PDF) filed in U.S. District Court in Washington, Disney said the FCC was seeking to coerce and retaliate against "a network that refuses to bow to the administration's demands," calling the agency's actions an "extraordinary assault on free speech." Trump has waged an aggressive series of attacks on the news media and the latest move follows a two-year-long battle between Trump and Disney. Last month, Trump again called for ABC stations to lose their licenses because the network refused to air a prime-time speech on elections. The court case will pose a key test of the free speech rights of media outlets. Disney and ABC asked the court (PDF) to quickly issue a temporary restraining order halting the license renewal proceedings and preventing the FCC from scheduling a hearing. The company said the public comment period ended earlier this month and the FCC could act at any time. The lawsuit alleges that the administration is violating the company's First Amendment free speech rights, saying that the FCC "is using its regulatory power to retaliate against (Disney and ABC) for programming and editorial decisions the administration dislikes." The FCC said the move stemmed from a year-long investigation into whether Disney's diversity policies amounted to unlawful discrimination, an allegation the company denies. U.S. District Judge Loren AliKhan issued an order on Tuesday directing the company and the FCC to propose a schedule for considering the request for a temporary restraining order and told the agency to notify her if it moves to start the process of revoking the ABC licenses.

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