Washington Governor Signs AI Companion Chatbot Regulation into Law
What Happened
10 entries in In-House Counsel Tracker
What Happened
Core event: Major AI companies have launched public relations and engagement initiatives, described as a "charm offensive," to counter widespread unpopularity of artificial intelligence revealed by recent polls, aiming to ease public concerns about risks like misinformation, job loss, privacy invasion, and bias.[1][3][5]
Core event: Sen. Bernie Sanders published an op-ed on April 3, 2026, expressing dire concerns about AI's threats to jobs, democracy, privacy, and human survival, prompting a counter-op-ed on April 6 titled "Opinion | Bernie Sanders Is Wrong About AI Innovation," which argues AI combined with human ingenuity drives progress.[3][1]
The State AG Report – 04.02.2026 is a curated newsletter by Cozen O'Connor summarizing recent state attorneys general (AGs) and federal regulatory actions across the US, published on April 6, 2026.[3][7][11]
Apple's App Store saw 235,800 new apps submitted in Q1 2026, an 84% increase from Q1 2025, reversing a 48% decline from 2016-2024, driven by vibe coding—AI tools like Cursor, Claude Code, and Anthropic's offerings that generate code from natural language prompts.[1][5][6] This follows 557,000-600,000 new apps in 2025, with Sensor Tower noting 56% monthly submission growth by Dec 2025 and 54.8% in Jan 2026.[1][2][3][5] Vibe coding, coined by OpenAI cofounder Andrej Karpathy in Feb 2025, enables rapid app creation even by novices, flooding submissions and straining review processes, with times rising from 24 hours to 30 days.[1][3][6]
On April 1, 2026, the U.S. Court of Appeals for the Seventh Circuit unanimously held in Clay v. Union Pacific Railroad Co. (and consolidated cases) that the August 2024 amendment to Illinois' Biometric Information Privacy Act (BIPA) Section 20 applies retroactively to all pending cases, limiting plaintiffs to one recovery of statutory damages ($1,000 for negligent or $5,000 for intentional violations) per person per method of biometric collection, rather than per-scan damages that could yield millions or billions per case[1][2][3][4].
Core event: Recent releases of unflattering body cam footage from Tiger Woods' March 2026 Florida DUI arrest—showing him surprised during handcuffing, admitting to medications (zero alcohol breath test), and mentioning a call to "the president"—and Justin Timberlake's June 2024 Sag Harbor, NY DWI arrest have gone viral, fueling memes and jokes despite Woods' not guilty plea and Timberlake's guilty plea to impaired driving (fine and community service).[1][6][7] Timberlake sued Sag Harbor Village and police on March 1, 2026, to block full release of 8 hours of footage under FOIL, citing privacy invasion, stigma, and "irreparable harm" from exposing vulnerable moments like his "ruin the tour" comment.[2][4]
Jones Day, a prominent US law firm, confirmed on April 6, 2026, that hackers accessed a limited number of dated files belonging to 10 unnamed clients via a phishing attack. The breach was claimed by the Silent Ransom Group (SRG, aka Luna Moth, Chatty Spider, UNC3753), which posted a file directory, negotiation screenshots, and data on its dark web extortion site starting March 30, 2026. SRG demanded $13 million to delete the data, threatening further leaks and targeting partner Greg Castanias, head of the firm's Federal Circuit practice, with references to his alleged Epstein files ties; all affected clients were notified, per spokesperson Dave Petrou.[1][2][4][5][6]
Jones Day, a prominent U.S. law firm, confirmed on April 6, 2026, that hackers conducted a phishing attack, allowing an unauthorized party to access a limited number of dated files for 10 unnamed clients. The Silent Ransom Group (SRG) claimed responsibility, posting a file directory, screenshots of negotiations demanding $13 million, and leaked data on their dark web site starting March 30, 2026. The firm notified all affected clients and stated the breach was contained, with no indication of further attacks or data publication beyond the initial leak.[2][3][5]
In U.S. v. Heppner (No. 25-cr-503, S.D.N.Y.), Judge Jed S. Rakoff ruled on February 10, 2026 (bench ruling), and February 17, 2026 (written opinion) that defendant Bradley Heppner's 31 documents—generated via Anthropic's consumer Claude AI using info from his counsel—lacked attorney-client privilege or work-product protection, making them discoverable by prosecutors.[1][2][4][5][8][11] Rakoff cited three privilege failures: Claude is not a lawyer, thus no client-attorney communication; no confidentiality expectation per Claude's policy allowing data use for training and disclosure to third parties (including regulators); and Heppner used it voluntarily for advice Claude disclaims providing, not at counsel's direction.[1][3][5][8][9][11] The work-product claim failed as materials weren't prepared anticipatorily for litigation under counsel's supervision.[1][6][8]
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