United States: Litigation, Mediation & Arbitration

A New York appellate court has issued a significant ruling on corporate veil-piercing, holding that company owners can face personal liability for judgment debts when they engage in asset-stripping transactions designed to frustrate creditors—even if the underlying debt arose from a legitimate arm's-length transaction.

As generative AI becomes increasingly integrated into litigation workflows, courts are grappling with how these tools should be used with confidential discovery materials. A recent Colorado district court decision examines the balance between enabling AI-assisted legal work and protecting sensitive information, distinguishing between consumer-grade platforms and enterprise tools with robust safeguards.

On Sept. 18, 2026, the U.S. Department of Justice announced updates to Justice Manual provisions governing False Claims Act (FCA) litigation. The updates (1) limit the use of nonbinding agency guidance to establish FCA liability and (2) require DOJ attorneys to assess whether the government’s interests warrant dismissal “in each case” at the time the agency decides to decline to intervene in the case. The prior version of the Justice Manual did not mandate that DOJ attorneys make that assessment at the time the agency declined to intervene.