NYC Law & Legislation News

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NY Pediatric Data Breach Leads to $2.64M Settlement

New York Attorney General Letitia James and Connecticut Attorney General William Tong announced a settlement with Boston Children's Health Physicians and IT management company XTIUM following a 2024 cybersecurity breach that exposed sensitive information belonging to approximately 825,000 New York residents and 62,871 Connecticut residents. Investigators found that the pediatric health network failed to address known security weaknesses, including an unencrypted archive containing more than one million patient billing records. The companies agreed to pay $2.64 million in combined penalties, including $2.1 million to New York, and implement stronger cybersecurity protections. The breach exposed Social Security and driver's license numbers belonging to more than 170,000 New York residents, along with other personal, medical and financial information.

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NYC Horse Carriage Phaseout Proposed for 2028

New York City Council Speaker Julie Menin announced that the Council will vote October 22 on Romanch's Law, legislation that would phase out horse-drawn carriage operations in Central Park by June 1, 2028. The proposal follows the June death of 18-year-old Romanch Mahajan, who was thrown from a runaway carriage in the park. If approved and enacted, the measure would stop the issuance of new carriage licenses and require the city to establish employment-transition programs for drivers and other affected workers. Those programs would include career counseling, job referrals, training opportunities and assistance with finding humane placements for horses. The legislation has 29 Council co-sponsors, according to the Speaker's announcement.

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Letitia James Warns NYC Voters About AI Election Fakes

New York Attorney General Letitia James has released an updated guide to help voters identify and report AI-generated election misinformation ahead of the November 3 general election. The guide warns that increasingly realistic fake videos, images and audio recordings can mislead voters about candidates, polling locations, deadlines and voting requirements. James also cautions against relying on AI chatbots for election information because they can provide incorrect or outdated answers. The Attorney General's Office encourages New Yorkers to verify voting details through official election websites, avoid sharing suspicious content and report suspected misinformation. Early voting is scheduled for October 24 through November 1, with the state's Election Protection Hotline available during the voting period.

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Mayor Mamdani Orders NYPD Use-of-Force Review

Mayor Zohran Mamdani has directed the NYPD to conduct its first comprehensive review of use-of-force policies in a decade, with community engagement planned over the coming months. The administration also announced measures addressing disciplinary cases involving officers who retire before proceedings are completed. The changes follow the retirement of an officer facing charges connected to the 2024 fatal police shooting of 19-year-old Win Rozario. Additional measures include $2.6 million for the NYPD Inspector General, expanded retirement notifications, procedures for state decertification referrals and improved information sharing with families following critical incidents. The administration says the reforms are intended to strengthen oversight, accountability and public transparency.

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Man Gets 18 Months in NY for $8M AI Music Streaming Fraud

A North Carolina man was sentenced in Manhattan federal court to 18 months in prison for using AI-generated music and automated streaming accounts to fraudulently collect millions of dollars in royalties. Michael Smith previously pleaded guilty to conspiracy to commit wire fraud after prosecutors said he created thousands of accounts on major music streaming platforms and used bots to continuously play songs he controlled. Smith used hundreds of thousands of AI-generated songs to spread the fraudulent streams across a large catalog and avoid detection. His bot accounts ultimately generated billions of streams and more than $8 million in fraudulent royalty payments, according to the U.S. Attorney's Office for the Southern District of New York. Smith was also ordered to forfeit more than $8.09 million.

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RPC Names Scott Schechter Partner in NY Expansion

International law firm RPC has appointed insurance coverage specialist Scott Schechter as a partner in New York as the firm expands its international insurance practice. Schechter will help develop a dedicated New York-based insurance team focused on complex claims involving U.S. exposures, including financial lines and cyber matters. The expansion is designed to connect RPC's New York capabilities with its existing insurance teams in the United Kingdom, Singapore and Hong Kong. RPC said the investment responds to growing client demand for cross-border advice involving high-value, multi-jurisdictional claims. Schechter's appointment follows several other insurance-focused hires by the firm and is part of a broader international growth strategy that includes the development of its New York office.

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NY Secures $400M Sandoz Generic Drug Settlement

New York has joined a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals stemming from multistate litigation over generic drug pricing. Attorney General Letitia James and a coalition of 47 other attorneys general alleged that pharmaceutical companies coordinated the supply and sale of generic drugs to inflate prices and reduce competition. Sandoz will pay approximately $320.6 million plus interest over seven years, bringing the total to $400 million, with funds designated for impacted consumers across participating states and territories. New Yorkers who purchased certain generic prescription drugs between May 2009 and December 2019 may qualify for compensation. The broader litigation against other generic drug manufacturers remains ongoing.

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Cooley Expands NY Securities Litigation With Nicholas Caselli

Cooley has added Nicholas Caselli as a partner in its securities litigation and enforcement practice and global litigation department in New York. Caselli represents clients in securities class actions, shareholder derivative cases and M&A-related disputes, including matters involving technology and life sciences companies. The firm said his recruitment is part of its effort to expand its securities litigation capabilities in New York, building on a practice historically prominent on the West Coast. Caselli joins Cooley from Freshfields, where he practiced in New York. His arrival follows several other additions to Cooley's New York litigation team as the firm's global litigation department continues to expand.

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NYC Click-to-Cancel Rule Takes Effect With $525 Fines

New York City's Click-to-Cancel rule is now in effect, giving consumers new protections against businesses that make subscriptions difficult to cancel. The rule requires businesses offering qualifying automatic-renewal or continuous-service subscriptions to provide straightforward cancellation methods and clearly disclose subscription terms and consumer rights. Businesses that violate the requirements can face restitution and civil penalties starting at $525 per violation. The city has also launched an online portal where New Yorkers can report problems including difficult cancellations, undisclosed automatic renewals and subscription terms that were not clearly explained. City officials say New York City is the first municipality in the country to implement a Click-to-Cancel rule.