Posts with «company legal & law matters» label

Uber doesn't need to offer wheelchair-accessible vehicles in all cites, judge rules

A federal court has ruled that Uber does not need to provide wheelchair-accessible service in every US market, ABC News has reported. The company's decision to provide such a service only in certain cities was not in violation of federal law and would be overly burdensome, said Chief Judge Richard Seeborg of the federal San Francisco Court. 

Two users of motorized wheelchairs in New Orleans and Jackson, Mississippi sued Uber over the lack of accessible services in those cities. Since Uber couldn't accommodate non-foldable wheelchairs, they claimed that it was in violation of the Americans with Disabilities Act (ADA) that prohibits businesses from discriminating against people based on their disabilities. They further argued that Uber has a "deep-rooted accessibility problem," treating it as an "afterthought." The trial for the case lasted nearly five years. 

Uber said in its defense that it would be too expensive to offer wheelchair service in every city if it needed to contract with providers of wheelchair-accessible vehicles. Judge Seeborg agreed, saying that the plaintiffs gave "scant evidence" that Uber could do so cost-effectively and that wait times would still be "significant" if it did. "The anticipated cost here is too high for the limited service that would result, making the proposed modification unreasonable," he said. 

The judge did reject Uber's argument that it didn't need to provide wheelchair-accessible services everywhere because it has done so in some cities, noting that the ADA looks at each modification for reasonableness.

Uber does accommodate wheelchair users in other cities like New York, Los Angeles, San Francisco and Boston. New Orleans considered mandating the service, but Uber lobbied against those efforts, according to the court records. "We welcome the outcome and are proud of our efforts to improve accessibility for all users, including through Uber WAV,” said an Uber spokesperson in a statement.

Noting that the decision arrived on the eve of the anniversary of the ADA's passage into law, lead plaintiff Scott Crawford decried the ruling. "Uber made no sincere attempt to provide accessible service, but instead claimed it was too burdensome," he said. "This could have been economically resolved years ago.'

The US Treasury is investigating Kraken for enabling crypto trading in sanctioned countries

It's rough seas for crytpocurrency exchanges these days and the latest to be buffeted is one of the world's largest, Kraken. It's reportedly under investigation by the US Treasury Department over possible sanctions violations for letting users in Iran and elsewhere trade digital tokens, according to The New York Times

Kraken is a private exchange valued at $11 billion co-founded by chief executive Jesse Powell in 2011. The Treasury Department's Office of Foreign Assets Control (OFAC) has been investigating the company since 2019 and may impose a fine, according to the NYT's sources. It would be the largest crypto company to face enforcement action related to US sanctions imposed in 1979 prohibiting the export of goods or services to Iran.

Sanctions issues at Kraken first came up in November 2019 when an employee sued the company for doing business with prohibited countries. That suit was settled, but the OFAC began investigating the company the same year over accounts in Iran, along with other sanctioned countries including Syria and Cuba.

Powell allegedly posted a spreadsheet to a company Slack channel showing that Kraken had 1,522 accounts in Iran, 149 in Syria and 83 in Cuba as of last month, according to the NYT. The data supposedly came from residence information on "verified accounts." 

Kraken declined to comment to the NYT, but said that it "closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues." A Treasury spokesperson said the agency was committed to enforcing "sanctions that protect US national security," but also gave no further details. 

OFAC has previously fined other cryptocurrency exchanges over similar sanctions violations. BitGo was hit with a $98,000 fine in 2020 over 183 violations, and BitPay face a $500,000-plus fine last year for 2,102 violations.

Cryptocurrency exchanges are facing more than the usual scrutiny these days. Last year, the world's largest crytpo exchange Binance faced a US money laundering probe for being a major destination of illicit cryptocurrency. Crypto lender Celcius is under investigation by multiple states after it froze transactions, and the Winklevoss twins' crytpo exchange Gemini is facing lawsuits over a $36 million crypto theft. 

SEC investigates Coinbase, says it may have illegally sold unregistered securities

Coinbase is facing a US Securities and Exchange Commission (SEC) probe into whether it allowed users to trade digital tokens that should have been registered as securities, Bloomberg has reported. Coinbase, involved indirectly in another probe by the SEC and state of New York, recently caught the regulator's eye after expanding the number of tokens it offers for trading. 

After taking a conservative approach to listing cryptocurrencies, Coinbase now lets Americans trade more than 150 tokens, according to Bloomberg. If any of those are considered to be securities, it would need to register as an exchange with the SEC. A token is considered to be a security if it involves investors putting up funds for a company in order to profit from the work of its leadership.

Last week, the commission accused a former Coinbase employee of violating insider-trading rules by helping his brother and a friend buy dozens of different types of tokens before they were listed on the platform. Coinbase itself wasn't accused of any wrongdoing, but the SEC said it considered nine of the dozens of digital tokens traded by the men to be securities, including seven listed by the exchange. 

In a response by chief legal officer Paul Grewal, Coinbase said that it "does not list securities on the platform. Period." As evidence of that, it said that the US Department of Justice "reviewed the same facts [as the SEC] and chose not to file securities fraud charges against those involved." 

Coinbase has previously complained that there's no regulatory framework for digital asset securities. As it happened, the company filed a petition for rule making to clarify those rules just before the SEC filed charges. "Instead of crafting tailored rules in an inclusive and transparent way, the SEC is relying on these types of one-off enforcement actions to try to bring all digital assets into its jurisdiction, even those assets that are not securities," Grewal wrote. 

Apple and Koss settle dispute over wireless headphone patents

Apple and Koss have ended their feud over wireless headphone patents shortly before trial. As Reutersnotes, the two told a Waco, Texas-based federal court on Saturday that they had reached a settlement over Koss' claims Apple had infringed on patents for wireless audio technology. The terms of the settlement haven't been disclosed, but the two firms said they made peace on "all matters in controversy." The trial was supposed to have started today.

Koss sued Apple, Bose, JLab, Plantronics and Skullcandy in 2020 over allegations wireless earbuds and headphones like AirPods were copying technology from the Striva line of WiFi audio devices. In filing the lawsuit, Koss argued that rivals were "catching up" to its early work and needed to pay compensation. Apple countersued, arguing that Koss' patents were invalid.

Lawsuits against Bose, Skullcandy and others are still pending. While it's unclear if those cases will move forward in light of this settlement, there's little doubt that Apple and Koss were eager to avoid a courtroom fight.

We've asked Apple and Koss for comment and will update if we hear back.

Uber avoids federal prosecution over data breach that exposed data of 57 million users

Uber has officially accepted responsibility for hiding a 2016 data breach that exposed the data of 57 million passengers and drivers. On Friday, the company entered into a non-prosecution agreement with the Federal Trade Commission (FTC), reports Reuters. As part of the deal, Uber admitted it failed to inform the agency of the cyberattack. It also agreed to cooperate in the prosecution of former chief security officer Joe Sullivan who was fired by the company shortly after the incident came to light.

Uber did not immediately respond to Engadget’s request for comment. The company first revealed the details of the data breach in 2017. Instead of sharing what it knew about the incident with the government and users, the company paid hackers $100,000 to the delete the information and stay quiet. “None of this should have happened, and I will not make excuses for it,” said Dara Khosrowshahi, Uber’s then recently appointed CEO, at the time of the disclosure. “While I can’t erase the past, I can commit on behalf of every Uber employee that we will learn from our mistakes.” In 2018, Uber paid $148 million to settle allegations by US state attorneys general the company was too slow to disclose the incident.

T-Mobile will pay $350 million to settle lawsuits over massive data breach

If you were a T-Mobile customer in August 2021, you may get a few dollars from the carrier in the near future. It has agreed to settle a consolidated class action lawsuit filed against the company over a data breach that exposed the personal information of 76.6 million "current, former and prospective customers." Back when T-Mobile's CEO, Mike Sievert, admitted and apologized for the breach, the carrier said the individual who hacked its network used "specialized" tools and knowledge of its infrastructure in order to gain access to its testing environment. That individual then stole customer data from the network and sold them on hacker forums.

The type of information that the bad actor sold varies per person, but it could include the name, birth date and social security number for each individual. T-Mobile got in touch with people affected by the data leak shortly after it came to light and offered them two free years of access to McAfee’s ID Theft Protection Service. Now, they're also getting monetary compensation, though it will likely be a few dollars at most. While the $350 million settlement may sound substantial, a huge chunk of that amount will go towards paying off legal fees. The rest will be divided among tens of millions of affected customers. According to the SEC filing spotted by GeekWire, the company will also spend $150 million on data security technologies throughout this year and the next.

The settlement still has to be approved by the court. But if it does, it will "resolve substantially all of the claims brought by the company’s current, former and prospective customers who were impacted by the 2021 cyberattack." You can read the full proposed settlement here.

Lawsuit accuses Chicago authorities of misusing gunshot detection system in a murder case

A 65-year-old man named Michael Williams spent almost a year in jail over the shooting of a man inside his car before prosecutors asked a judge to dismiss his case due to insufficient evidence. Now, the MacArthur Justice Center has sued the city of Chicago for using ShotSpotter, which it calls an "unreliable" gunshot detection technology, as critical evidence in charging him with first-degree murder. The human rights advocate group out of Northwestern University accuses the city's cops of relying on the technology and failing to pursue other leads in the investigation.

Williams was arrested in 2021 over the death of Safarian Herring, a young man from the neighborhood, who asked him for a ride in the middle of unrest over police brutality in May that year. According to an AP report from March, the key piece of evidence used for his arrest was a clip of noiseless security video showing a car driving through an intersection. That's coupled with a loud bang picked up by ShotSpotter's network of surveillance microphones. ShotSpotter uses a large network of audio sensors distributed through a specific area to pick up the sound of gunfire. The sensors work with each other to triangulate the shot's location, so perpetrators can't hide behind walls or other structures to mask their crime.

However, a study conducted by the MacArthur Justice Center in 2021 found that 89 percent of the alerts the system sends law enforcement turn up no evidence of any gun-related crime. "In less than two years, there were more than 40,000 dead-end ShotSpotter deployments," the report said. The group also pointed out that ShotSpotter alerts "should only be used for initial investigative purposes." San Francisco's surveillance technology policy (PDF), for instance, states that its police department must only use ShotSpotter information to find shell casing evidence on the scene and to further analyze the incident.

The lawsuit accuses Chicago's police department of failing to pursue other leads in investigating Williams, including reports that the victim was shot earlier at a bus stop. Authorities never established what's supposed to be Williams' motive, didn't find a firearm or any kind of physical evidence that proves that Williams shot Herring, the group said.

On its website, ShotSpotter posted a response to "false claims" about its technology, calling reports about its inaccuracy "absolutely false." The company claims its technology has a 97 percent accuracy rate, including a 0.5 percent false positive rate, and says those numbers were independently confirmed by Edgeworth Analytics, a data science firm in Washington, D.C. It also answers the part of the lawsuit that criticizes Chicago's decision to place most of it sensors in predominantly Black and Latino neighborhoods, which could lead to potentially dangerous clashes with the police. ShotSpotter said it's a false narrative that its coverage areas are biased and racially discriminatory and that it works with clients to determine coverage areas based on historical gunfire and homicide data .

As AP reports, the lawsuit is seeking class-action status for any Chicago resident who was stopped because of a ShotSpotter alert. The MacArthur Justice Center is also seeking damages from the city for the mental anguish and loss of income Williams had experienced throughout the whole ordeal, as well as for the legal fees he incurred. Further, the group is asking the court to ban the technology's use in the city altogether.

JUST FILED: The MJC is suing the City of Chicago for its continued use of ShotSpotter, a surveillance technology that claims to detect gunfire but generates thousands of unfounded alerts, fueling discriminatory policing, false charges and illegal stops. https://t.co/3qkpJZT8wl

— MacArthur Justice Center (@MacArthrJustice) July 21, 2022

US files its first criminal charges over insider trading of cryptocurrency

American authorities are continuing to crack down against insider trading of digital assets. The New York Timesreports that federal prosecutors in New York City have charged three people with wire fraud relating to an insider trading scheme for cryptocurrency, including former Coinbase exchange employee Ishan Wahi. This is the first time officials have levelled charges relating to insider trading of digital currency, according to Southern District of New York attorney Damian Williams.

As with a companion civil case from the Securities and Exchange Commission, prosecutors allege Wahi shared confidential information about future asset listings with his brother Nikhil Wahi and his brother's friend Sammer Ramani. The data, shared between "at least" June 2021 and April 2022, helped Nikhil and his friend buy assets before the listing boosted their value. The two would then sell their assets for a profit. The purchases of 25 or more assets netted a profit of more than $1.1 million, according to the SEC.

Coinbase started an internal investigation in April in response to a Twitter post about unusual trading activity. Ishan Wahi booked a flight to India right before Coinbase was set to interview him, but he and his brother were arrested in Seattle this morning. Ramani is still at large and believed to be in India, the SEC said.

Wahi's lawyers maintained their client's innocence, and said he would "vigorously" defend against the charges. Ramani and the attorney for Wahi's brother haven't commented on the charges. Coinbase said it had turned over information to the Justice Department and had fired Wahi as part of a "zero tolerance" policy for this behavior.

This is far from the largest crypto case. Lending firm BlockFi recently paid $100 million to settle securities violations, while Telegram had to return $1.2 billion to investors for its own violations on top of paying $18.5 million. However, the charges are intended more to send a warning. The government wants to make clear that fraud is illegal whether it's "on the blockchain or on Wall Street," as Williams explained to The Times. This is as much about discouraging would-be crooks as it is punishment for the defenders.

The Morning After: Why Nikon and Canon are giving up on DSLR cameras

The end is nigh for DSLR cameras. Nikon is reportedly halting the development of new SLR cameras, marking the end of a 63-year run. Canon already confirmed its final flagship DSLR. Sony, which jumped onto the mirrorless train early, moved to selling only mirrorless cameras last year.

Until recently, reflex cameras were regarded as a better option than mirrorless for action photography, so what happened? Mirrorless models improved so dramatically – and so quickly – that they rendered DSLRs moot. Having said that, many pro photographers are holding onto their DSLRs, with the main reason being speed. But in the future, even that might be bested by future mirrorless cameras. Engadget’s Steve Dent explains more.

-Mat Smith

The biggest stories you might have missed

Ultimate Ears' latest earbuds fit like in-ear monitors

After you mold some tips to your ears, a custom-made set arrives in 2-4 weeks.

Ultimate Ears, best known for its Bluetooth speakers, is having another attempt at custom-fit buds, only this time the company is making the process more like how you’d order a set of in-ear monitors (IEMs) with the UE Drops.

The main attraction of UE Drops is the custom fit, which is coordinated via the company's FitKit. Once you place your order, Ultimate Ears will ship you a FitKit that the company says includes the "technology and information" to guide you through the process of taking your "earprint."

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Lego celebrates 50 years of Atari with an elaborate 2600 set

Slide open the front panel to reveal a pop-up gaming room scene.

Lego

Atari is marking its 50th anniversary with a Lego collaboration: a piece-by-piece recreation of the Atari 2600, which debuted in 1977. The Lego kit includes a little ‘80s gaming diorama inside the computer case, and is made up of 2,532 pieces. It will be available on August 1st and costs $240/€240. Lego says the movable joystick included even feels like the original.

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Apple settles lawsuit over its reviled 'butterfly' keyboard for $50 million

You may not get a huge payout, however.

Apple could soon compensate MacBook owners for their troubles with faulty "butterfly" keyboards. The company has agreed to pay $50 million to settle a class-action lawsuit alleging that it knew about and concealed the unreliable designs of keyboards on MacBook, MacBook Air and MacBook Pro models released between 2015 and 2019. Apple eventually began reverting to more conventional keyboards starting with the 16-inch MacBook Pro from late 2019. Attorneys said they expected a $395 payout for people that had to replace multiple keyboards, $125 for one full replacement and $50 if you only replaced keycaps.

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Demand for the Justice League 'Snyder Cut' was reportedly amplified by bots

A report showed that 'at least' 13 percent of online discourse was generated by bots.

Warner

The campaign that helped pave the way for the "Snyder Cut" version of Justice League was boosted by a large number of bots and fake accounts, according to a report from Rolling Stone. An investigation commissioned by WarnerMedia said that: "At least 13 percent of the accounts that took part in the conversation about the Snyder Cut were deemed fake."

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Judge grants Twitter expedited trial against Elon Musk

Twitter's lawsuit will head to court in October.

Twitter has scored an early victory in its lawsuit against Elon Musk over his attempted exit from a $44 billion takeover deal. In an initial hearing, Delaware Court of Chancery chancellor Kathaleen McCormick has granted Twitter's request for an expedited, five-day trial beginning in October. The company originally sought a four-day trial in September as part of its effort to make Musk "honor his obligations." Musk's lawyers wanted the court to delay the trial to February 2023.

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Judge grants Twitter expedited trial against Elon Musk

Twitter has scored a victory in its lawsuit against Elon Musk over his attempted exit from a $44 billion takeover deal. In an initial hearing, Delaware Court of Chancery chancellor Kathaleen McCormick has granted Twitter's request for an expedited, five-day trial beginning in October. The company had originally sought a four-day trial in September.

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