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Federal Judge Rules ChatGPT Records Can Be Used as Evidence in Crypto Fraud Case

A Manhattan federal judge has allowed prosecutors to obtain ChatGPT records from a crypto executive accused of fraud, establishing that AI chat logs can be treated as searchable digital evidence. The ruling rejects claims that conversations with AI chatbots are protected by attorney-client privilege, marking a significant development as courts begin treating AI communications like emails and search history in legal proceedings.

Policy3 sources

Federal Judge Rules ChatGPT Records Can Be Used as Evidence in Crypto Fraud Case

Policy3 sources

Nvidia's banned chips triple in price on China's black market as crackdown tightens supply

Banned Nvidia chips are commanding extraordinary prices on China's black market as US export controls and smuggling crackdowns squeeze supply. The DGX B300 now sells for $1.1 million—nearly triple its US retail price—while five-year-old A100 servers have jumped from $22,300 to $82,000. Chinese tech firms are scrambling for alternatives as both legal and illegal supply routes collapse.

Technology3 sources

Nvidia's banned chips triple in price on China's black market as crackdown tightens supply

Technology3 sources

Legal tech startup sues US government after losing access to Anthropic's Fable 5 AI model

Legion LegalTech Corp filed a lawsuit challenging a US Commerce Department directive that forced Anthropic to disable its most advanced AI models for foreign nationals worldwide. The San Jose-based legal tech firm claims the June 12 order caused immediate and irreparable harm to its business, cutting off its Canadian development team and disrupting operations that depend on Anthropic AI models for drafting legal documents.

Policy6 sources

Legal tech startup sues US government after losing access to Anthropic's Fable 5 AI model

Policy6 sources

Major gas stations face AI price-fixing lawsuit as California drivers seek damages for inflated fuel costs

A proposed class action lawsuit filed in California accuses BP, Walmart, 7-Eleven, and other major operators of using AI-driven pricing software to coordinate fuel prices, allegedly pushing costs up by 30 cents per gallon. The suit targets over 1,700 gas stations and claims violations of California's new anti-algorithmic price-fixing law, AB 325, which took effect in January 2026.

Policy8 sources

Major gas stations face AI price-fixing lawsuit as California drivers seek damages for inflated fuel costs

Policy8 sources

Workday must face lawsuit over AI bias in job screening tools used by 80% of U.S. employers

A federal judge ruled that Workday must face claims its AI-powered HR software discriminated against job applicants under California anti-discrimination laws and the Americans with Disabilities Act. The 2023 class action is the first to broadly challenge algorithmic decision-making in AI screening software now used by more than 80% of U.S. employers and virtually all Fortune 500 companies.

Policy2 sources

Workday must face lawsuit over AI bias in job screening tools used by 80% of U.S. employers

Policy2 sources

AI law firm Garfield AI wins first English court case, sparking debate over legal profession's future

Garfield AI secured a landmark victory at Wandsworth County Court, handling all pre-trial legal work for just £400 in a £7,000 debt recovery case. The AI-powered law firm prepared witness statements and court documents before a human barrister argued the case. While the win demonstrates AI's potential to improve access to justice, recent AI hallucinations at firms like Pinsent Masons highlight the critical need for human oversight in the legal profession.

Technology3 sources

AI law firm Garfield AI wins first English court case, sparking debate over legal profession's future

Technology3 sources

TikTok serves 59% AI slop to new users, with children's content hit hardest at 57%

A Kapwing study analyzed 10,742 TikTok videos and found that 59% of content shown to new accounts is AI slop—three times higher than YouTube's 21%. Children's content faces the worst impact, with 57% of kids' videos being AI-generated junk. Educational categories like science, health, and history are also heavily saturated with low-quality AI-generated content.

Entertainment4 sources

TikTok serves 59% AI slop to new users, with children's content hit hardest at 57%

Entertainment4 sources

Preity Zinta gets Bombay High Court nod to sue Google, Meta over AI-generated deepfake videos

Bollywood actor Preity Zinta has received permission from the Bombay High Court to sue Google, Meta, and 15 other technology firms over AI-generated deepfake videos, manipulated images, and chatbot personas. The case alleges infringing personality rights, copyright infringement, and reputational harm, adding to a growing list of Indian celebrities taking legal action against AI misuse.

Policy2 sources

Preity Zinta gets Bombay High Court nod to sue Google, Meta over AI-generated deepfake videos

Policy2 sources

77% of Psychologists Report Patients Using AI Chatbots for Mental Health Support

A new American Psychological Association survey reveals that over three-quarters of U.S. psychologists have patients using AI chatbots for mental health support, diagnosis, and even intimate relationships. While some patients report feeling validated, 36% are developing dependency on chatbots, and 15% show signs of distorted thinking—raising urgent questions about the risks of AI in mental health care.

Health3 sources

77% of Psychologists Report Patients Using AI Chatbots for Mental Health Support

Health3 sources

UK watchdog orders Google to make search rankings fairer and more transparent

The UK Competition and Markets Authority has imposed new conduct requirements on Google, demanding fairer search rankings and data portability rights. Google must provide businesses with advance notice of changes, use objective ranking criteria for organic results and AI Overviews, and allow users to share search data with third parties. The tech giant has six months to comply.

Policy3 sources

UK watchdog orders Google to make search rankings fairer and more transparent

Policy3 sources

DOJ intervenes in xAI lawsuit, claims Grok AI essential for military operations amid pollution dispute

The Department of Justice has asked a federal court to dismiss an NAACP lawsuit against xAI over dozens of unpermitted gas turbines powering its Mississippi data centers. The DOJ argues that shutting down the turbines would threaten national security, citing Grok AI's role in recent military strikes in Iran. The NAACP counters that xAI is illegally polluting communities already burdened by high asthma rates.

Policy12 sources

DOJ intervenes in xAI lawsuit, claims Grok AI essential for military operations amid pollution dispute

Policy12 sources

Microsoft faces shareholder lawsuit over Azure slowdown and AI spending concealment claims

A securities class action lawsuit accuses Microsoft of hiding critical information about its Azure cloud business slowdown and surging AI infrastructure costs. The case centers on a January earnings report that triggered a 10% stock drop, erasing $357 billion in market value in a single day.

Business5 sources

Microsoft faces shareholder lawsuit over Azure slowdown and AI spending concealment claims

Business5 sources

Federal judge dismisses Elon Musk's xAI trade secret lawsuit against OpenAI with prejudice

A federal judge permanently dismissed xAI's lawsuit accusing OpenAI of stealing Grok chatbot secrets, marking Elon Musk's second legal loss against OpenAI in four weeks. Judge Rita Lin ruled that asking job candidates about prior work is routine, not trade secret misappropriation, with implications for AI hiring practices across the industry.

Policy6 sources

Federal judge dismisses Elon Musk's xAI trade secret lawsuit against OpenAI with prejudice

Policy6 sources

Anthropic faces lawsuit alleging false advertising over Claude Max subscription usage limits

AI company Anthropic is facing a proposed class-action lawsuit alleging it misled subscribers about usage limits on its premium Claude Max plans. Plaintiff Karl Kahn claims the $100 Max 5x and $200 Max 20x tiers deliver significantly less usage than advertised, with opaque rate limits making it nearly impossible for customers to verify what they're actually getting. The case highlights growing tensions over AI subscription costs and transparency.

Policy9 sources

Anthropic faces lawsuit alleging false advertising over Claude Max subscription usage limits

Policy9 sources

Litigation emerges as real AI guardrail as lawsuits outpace regulation in shaping deployment

As AI models evolve faster than legislation can keep pace, litigation is emerging as the primary force shaping AI guardrails. The Mercor data breach, which resulted in seven class-action lawsuits, demonstrates how existing legal frameworks are being applied to AI issues without waiting for new AI-specific regulations. Experts argue that pragmatism driven by liability threats will curb harmful AI deployment far earlier than formal regulation.

Policy2 sources

Litigation emerges as real AI guardrail as lawsuits outpace regulation in shaping deployment

Policy2 sources

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