An anonymous reader quotes a report from Ars Technica: The Supreme Court today rejected Verizon's attempt to get a $47 million refund from the Federal Communications Commission. In a list of orders (PDF) issued by the court, Verizon's petition was denied without explanation. The denial apparently ends any possibility of Verizon asking a lower court to review the fine and order the FCC to issue a refund. However, AT&T and T-Mobile are continuing to challenge similar fines on grounds that selling device-location data did not violate US telecom law. AT&T, T-Mobile, and Verizon were fined a total of $196 million in 2024 for selling mobile users' real-time location data without their customers' consent. The carriers sold device-location information to data aggregators, who resold it to other firms. The carriers paid the fines and sought to have them overturned in courts, claiming their Seventh Amendment right to a jury trial was violated. Challenges by AT&T and Verizon were combined into a single case, and the Supreme Court ruled against the carriers in June of this year. The court ruled that the FCC penalty process does not violate the Seventh Amendment because the carriers could have obtained jury trials if they refused to pay the fines and waited for the government to try to collect. The ruling (PDF) against the carriers was 8-1, with Justice Clarence Thomas dissenting.

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Meta is heading to trial in a case brought by dozens of states accusing it of deliberately designing addictive features, misleading users about safety, and illegally collecting data from children under 13. Meta says the states are seeking penalties as high as $1.4 trillion, though the judge has already called that figure "unreasonable." The case could, however, influence thousands of similar lawsuits against the company. Engadget reports: The trial kicks off Tuesday in federal court in Oakland, California, after Meta lost a last-ditch attempt to get the case dismissed last week. It could see testimony from top officials at Meta, including Mark Zuckerberg, and could result in record-breaking penalties for the company. The case stems from a 2023 lawsuit brought against Meta from dozens of states, which accused Meta of intentionally creating addictive features and violating consumer protection laws. The action came after a multi-state investigation into the company's safety practices that officials said revealed serious harms to children and teens. During the trial, federal Judge Yvonne Gonzalez Rogers will hear claims from California, Colorado, Kentucky and New Jersey that Meta violated state consumer protection laws by intentionally misleading the public about the safety of its apps. Those four states and 25 others are also suing Meta over alleged violations of the Children's Online Privacy Protection Act (COPPA). The states allege Meta broke the law because it knew Instagram and Facebook had users under the age of 13 and collected data about them without permission. [...] For Meta, the stakes are especially high because the company is currently facing thousands of other lawsuits that accuse it of harming users. Juries in Los Angeles and New Mexico have already ruled against Meta in high-profile trials that deal with similar issues. (Meta has said it will appeal in both cases.) Another loss could not only be a financial blow, it could give other lawsuits an easier path forward. And while Meta isn't exactly hurting for money, its legal costs are adding up. The company said it spent $2.4 billion on legal costs in the second quarter of 2026 alone. The jury in the case has already been selected and opening arguments are set to begin Tuesday, August 18. The trial is expected to last about six weeks. Unlike in a standard jury trial, the eight-member jury will serve in an "advisory" role, as Law360 explains. The judge will have full power over the final verdict and penalties. Along the way, the trial could also see testimony from some of Meta's most visible executives, including CEO Mark Zuckerberg and Instagram chief Adam Mosseri. Both men are likely to testify, according to Reuters. [...] Audio from the trial will be live streamed on the court's YouTube channel. A spokesperson for Meta issued the following statement: "The State AGs may call this a landmark case, but their limited claims are unsubstantiated and their financial demands are vastly disproportionate. The AGs offer no proof anyone in their states was misled, claim benign features like having an additional Instagram account somehow harmed their residents, and attempt to penalize Meta for industry-wide challenges like age verification," the spokesperson continued. "Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout. We stand by our record of creating strong protections for teens, and look forward to making our case in court."

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The CFTC has ordered Kalshi to keep operating in New York, claiming the state's lawsuit against the prediction market created a "market emergency." They said it acted "to ensure market stability" and "ordered the exchange to continue to operate in accordance with the Commodity Exchange Act's Core Principles." Ars Technica reports: The market emergency alleged by the CFTC is that New York Attorney General Letitia James sued Kalshi on July 31. James' lawsuit seeks a court order to permanently enjoin Kalshi "from operating an unlawful gambling business" in the state. The lawsuit also demands that Kalshi "make full restitution to customers who have engaged in betting" and pay financial penalties. "New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings," CFTC Chairman Michael Selig said yesterday. "Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws... New York has no business regulating these interstate financial markets. The commission is required by law to ensure order in these markets, and that is what we have done today." [...] The CFTC says it alone has the power to regulate platforms such as Kalshi and Polymarket under the Commodity Exchange Act, a US law that gives the CFTC exclusive jurisdiction over designated contract markets (DCMs). "These are financial exchanges that offer financial instruments and operate across state lines," Selig said yesterday. "They match the bid from a resident of one state with the offer of a resident from another state and submit the trade to a clearinghouse that backstops the transactions of customers throughout the country."

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A New Mexico court ordered (PDF) Meta to create a $567 million fund to address harms linked to youth mental health and child sexual exploitation after finding its platforms constituted a public nuisance. "In sum, the Court finds that New Mexico is in the midst of a teen mental health crisis affecting public health and public safety in and throughout the state, and that Meta's platforms are a significant contributing cause to the crisis," wrote Chief Judge Bryan Biedscheid in the decision. The fund comes on top of $375 million in civil penalties, though the judge declined to mandate changes to features such as infinite scroll and autoplay, citing potential First Amendment and Section 230 concerns. Tech Policy Press reports: The decision follows the second phase of in the State of New Mexico v. Meta Platforms Inc., which consisted of a bench trial. Its central question was whether Meta's platforms amounted to a public nuisance in New Mexico, and, if the court found that they did, what remedy would be needed to address it. In March, a Santa Fe jury found Meta liable for violations of New Mexico's Unfair Practices Act, awarding $375 million in civil penalties. The jury deliberated less than a day following that nearly seven-week trial. The $567 million abatement fund would be in addition to the civil penalties, according to today's decision. New Mexico Attorney General Raul Torrez sued Meta in December 2023, alleging the company made false public statements about the safety of its platforms while knowing internally that its products facilitated child sexual exploitation. The court denied Meta's Section 230 defense in May 2024. In today's decision, the court again asserted that "Section 230 does not preclude the State's public nuisance claim," but the decision attempted to thread the needle on issues that the court determined might have run "afoul" of the statute, or of the First Amendment, such as issuing remedies around any particular product feature.

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Apple is now seeking a preliminary injunction to prevent OpenAI and Jony Ive's io startup from developing AI hardware allegedly based on stolen Apple trade secrets. "The iPhone maker also claims that more of its former employees may be involved with the trade secrets theft," reports TechCrunch. From the report: In a new filing, Apple is requesting expedited discovery from the accused OpenAI employees, senior systems engineer Chang Liu and Chief Hardware Officer Tang Yew Tan; OpenAI, and its foundation; and io, the device startup co-founded by Apple's former lead designer Jony Ive. Apple also notes that its continued investigation has so far revealed 11 other former Apple employees beyond Liu and Tan may have been witnesses or otherwise involved in the case, and others who were previously named in the original complaint, like OpenAI employee Yu-Ting Peng. The filing marks an escalation in Apple's legal battle with OpenAI, as it suggests Apple has uncovered new evidence that the misconduct goes beyond the former employees named in the original complaint. "For example, another former Apple employee seems to have met with Mr. Liu and Ms. Peng in advance of Ms. Peng's interview at OpenAI and discussed with them during that meeting Apple proprietary information relating to unannounced products," the filing states. "Yet another former Apple employee took screenshots of confidential Apple documents relating to an unannounced Apple product before an interview at OpenAI." "And, after Apple filed its complaint, multiple former Apple employees now working at OpenAI reached out to discuss returning Apple-issued work devices they kept when they left Apple," Apple claims, suggesting there were more who were possibly involved with the scheme. Apple is pushing the court to allow for expedited discovery because it believes it has good cause to suspect that there are others involved in the theft of its intellectual property. The company noted that its motion for a preliminary injunction is also pending. Apple's request for a preliminary injunction is "both based on false information and completely unnecessary because we do not have, nor want, any of their trade secrets," said OpenAI in a blog post. "We're much more interested in building innovative products and technologies that push the frontier," OpenAI's statement reads.

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New York has sued prediction-market platform Kalshi, alleging it operates an "illegal gambling operation" without state authorization. "No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple," said New York Attorney General Letitia James in a press release announcing the lawsuit. "By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process." CNBC reports: In a case filed in a Manhattan state court (PDF), the lawsuit claims that Kalshi accepts wagers as a gambling business in disregard for the state's constitution and laws by not being registered with the New York State Gaming Commission. Governor Kathy Hochul in the press release said the state is taking the action to stop what it views as illegal behavior and bring the company into compliance with New York law. The lawsuit is seeking a permanent injunction against Kalshi. The suit by the state is also seeking a total restitution to users who have placed trades on the platform, a $100,000 penalty for each attempt to offer sports wagering, and another penalty three times the amount the company has gained while allegedly operating in violation of New York law. The state estimates that could total $36 billion.

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