Insights

On March 25, 2026, in Cox Communications, Inc. v. Sony Music Entertainment, the U.S. Supreme Court reversed a $1 billion verdict against Cox. The judgment was the result of a jury trial in which Sony claimed that Cox was liable for contributory copyright infringement because it knew that its customers were using its service to infringe yet did not respond with sufficient diligence to prevent that infringement.

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states.

In its latest attempt to establish a national AI regulatory standard and quash “cumbersome” state AI laws, the White House on Friday, March 20, 2026, released legislative recommendations for a National Policy Framework on Artificial Intelligence. 

On March 12, 2026, the U.S. Commodity Futures Trading Commission (CFTC) took formal steps toward establishing additional regulations for prediction markets. The agency issued an Advanced Notice of Proposed Rulemaking (ANPRM) soliciting public input on potential new rules, and separately, released staff guidance outlining its views on how existing rules apply to prediction market platforms currently in operation. These developments signal a significant shift in the regulatory landscape for an industry that has grown rapidly over the past year.

The New Jersey Legislature is considering two bills, that if enacted, would prohibit business entities from using either consumers' personal data or “personalized algorithmic pricing” to set prices for merchandise or services, including groceries. If enacted, the new laws would have broad implications for companies across industries that rely on algorithmic or data-informed pricing strategies. In her recent State Budget Address, New Jersey Governor Mikie Sherrill pledged to sign the proposals into law if they reach her desk.

In Wake Chapel Church, Inc. v. Church Mutual Insurance Company, the Fourth Circuit affirmed a $1.1 million jury verdict in favor of a policyholder, reaffirming that under North Carolina law insurers cannot defeat all-risk coverage by pointing to a postulated inherent defect or other excluded cause if a covered peril also contributed to the loss.

On March 10, 2026, the Department of Justice released the first-ever Department-wide Corporate Enforcement and Voluntary Self-Disclosure Policy (the “Department-wide CEP” or “Policy”), which applies to all non-antitrust corporate criminal cases across the Department. The new policy has been anticipated since December 2025, when Deputy Attorney General Todd Blanche announced the Department’s plans to release a new, single corporate enforcement policy for all criminal matters. According to the Department, the new policy is designed to “help ensure consistency across the Department” and “transparently describe the Department’s policies and decisionmaking.”

On March 3, 2026, a bipartisan coalition of state attorneys general and state charity regulators (the “States”) sent a letter[1]to GoFundMe expressing their concerns about GoFundMe's creation of donation web pages for more than 1.4 million charities without their prior knowledge or consent.

Chambers Ranks Crowell & Moring International Trade Practice and Lawyers in 2026 Global Guide

The New Jersey Family Leave Act (NJFLA) entitles eligible employees to up to 12 weeks of unpaid, job-protected leave per 24-month period for bonding with a new child, caring for a seriously ill family member, or responding to certain public health emergencies. The law covers employers with 30 or more employees worldwide, and employees must have at least one year on the job and 1,000 hours worked in the preceding 12 months to qualify. Unlike the federal Family and Medical Leave Act (FMLA), the NJFLA does not cover an employee’s own serious health condition, but instead pairs with New Jersey’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs, which provide partial wage replacement — funded through employee payroll contributions — when employees are out on qualifying leave. 

Because effective Directors & Officers insurance (D&O) is becoming even more important for companies and their leaders, particularly for peace of mind and financial soundness in our highly litigious society, we provide this coverage alert.  

On February 20, 2026, the Department of Justice’s Antitrust Division (DOJ) and Ohio Attorney General (Ohio AG) sued OhioHealth Corporation (OhioHealth), alleging that OhioHealth had unlawfully restrained trade in the market for general acute care inpatient hospital services in the Columbus metropolitan statistical area and the narrower Central Columbus area, respectively. The DOJ and Ohio AG allege violations of Section 1 of the Sherman Act, as well as the Valentine Act (Ohio’s antitrust statute), claiming that OhioHealth leveraged its market power to impose contractual restrictions that blocked payors from working with competing health systems to design “budget-conscious” lower-cost health plans.

On February 20, 2026, the Supreme Court issued a pivotal ruling in Trump v. V.O.S. Selections, negating the President’s ability to impose tariffs under IEEPA. The case stemmed from President Trump’s invocation of IEEPA to levy tariffs on imports from Canada, Mexico, China, and other countries, citing national emergencies. Challengers argued—and the Court agreed—that IEEPA does not delegate tariff authority to the President. The power to tariff is vested in Congress by the Constitution and cannot be delegated to the President absent express authority from Congress.

On January 14, 2026, State Senator Zellnor Myrie proposed legislation in the New York State Senate that would amend New York law to make it a criminal offense to operate a virtual currency business in New York without the proper license. By introducing the possibility of criminal penalties, Senate Bill S. 8901, the Cryptocurrency Regulation Yields Protections, Trust, and Oversight Act (CRYPTO Act), would mark a significant regulatory shift in the state’s oversight of virtual currency businesses, given New York’s prominence in virtual currency regulation in the U.S.

AI tools have significantly transformed how companies operate, but they come with serious legal risks that are only now taking shape. A recent ruling by a federal judge in the U.S. District Court for the Southern District of New York highlights one such risk: certain inputs and outputs from commercial AI models may not be considered privileged attorney-client communications or protected by the work-product doctrine.

On January 27, 2026, the U.S. District Court for the Northern District of Texas ruled favorably for policyholders in a major ongoing cyber-insurance dispute between Southwest Airlines and Liberty Insurance when it accepted the Magistrate Judge's findings and recommendations in Southwest Airlines Co. v. Liberty Insurance Underwriters Inc., Civil Action No. 3:19-CV-2218-E, the court reinforced critical legal protections for policyholders facing coverage denials. 

On July 8, 2025, the U.S. Court of Appeals for the Eighth Circuit vacated the Federal Trade Commission’s (FTC) Rule Concerning Subscriptions and Other Negative Option Plans, commonly known as the “Click-to-Cancel” rule. As detailed in a previous client alert, the rule was intended to regulate negative option plans[1]— such as subscriptions and automatic renewals — by imposing stringent requirements on businesses, including streamlined cancellation processes and enhanced disclosure obligations. The Eighth Circuit vacated the Click-to-Cancel rule because it found that the FTC had failed to comply with mandatory procedural requirements. As a result, the rule is no longer in effect, and businesses are not currently subject to its mandates.

On January 29, 2026, the U.S. Department of Justice (DOJ) Antitrust Division (Division) and U.S. Postal Service announced the first-ever payment under the antitrust whistleblower rewards program, awarding $1 million to an individual whose information led to a $3.28 million fine as part of a deferred prosecution agreement with EBLOCK Corporation, an online auction platform for used vehicles.

In GuideOne National Insurance Co. v. Systems 2000 Plumbing Service, Inc., the U.S. District Court for the Southern District of New York addressed whether excess insurer GuideOne was required to provide coverage under a “follow form” excess policy based on mutual mistake or illusory coverage principles. The insured, Systems 2000, is a plumbing contractor that worked exclusively in residential apartment buildings. It held a $2 million primary general liability insurance policy with Travelers and a $4 million excess insurance policy with GuideOne, both of which were effective March 15, 2021. Eight days later, there was a fire in a Manhattan apartment building where Systems 2000 had been performing work. Systems 2000 made timely claims under both policies for coverage related to the fire.

Liesbeth Truyens, Economic Sanctions and Commercial Disputes Lawyer, Joins Crowell & Moring’s Brussels Office