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Legal & Privacy Brief

2026-06-19

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Show Notes - 2026-06-19

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Legal & Privacy Brief - June 19, 2026

Today: Labcorp settles a 2018-2019 data breach class action for $35 million. The Supreme Court ruled 5-4 that federal district courts cannot review non-final state court judgments under the Rooker-Feldman doctrine, and sided 6-3 with a Texas gun owner, holding that 18 USC 922(g)(3) cannot automatically bar marijuana users from firearm possession without showing they were incapacitated. The Trump DOJ is trying to shield Elon Musk's Memphis xAI data center from a Clean Air Act lawsuit by invoking national security.

Enforcement Actions

Trump DOJ Invokes National Security to Block Memphis Air Pollution Lawsuit

The Department of Justice filed a motion to dismiss a Clean Air Act lawsuit against Elon Musk's xAI data center in Memphis, arguing that attempts to shut down the facility's natural gas turbines threaten national security by cutting power to AI systems that support Department of War operations. The lawsuit, filed by the Southern Environmental Law Center, Earthjustice, and the NAACP, alleges that xAI operates 57 turbines without required permits, releasing formaldehyde and other contaminants into minority neighborhoods with high asthma rates. The facility was originally approved with a promise to build a water-recycling plant to avoid straining local water supplies, but construction on that component has stalled.

Bulgaria Approved Surveillance Tech Sales to Repressive Regimes (2018-2023)

Human Rights Watch obtained export licensing records showing that Bulgaria allowed surveillance firm Circles to sell its products to law enforcement and intelligence agencies in El Salvador, UAE, Serbia, Azerbaijan, Guatemala, Bahrain, Jordan, Malaysia, Morocco, and Panama between 2018 and 2023. The tools include Pixcell (captures internet data, phone calls, messages), Landmark (real-time mobile phone geolocation), and Voice Over Location Enabler software (SS7-based voice call interception with location data). Circles was co-founded by Tal Dilian, the executive behind blacklisted spyware firm Intellexa. A Greek court found Dilian guilty in February on charges related to Intellexa's use in spying on journalists and politicians. The European Commission stated that member states are "solely responsible for licensing decisions on dual-use exports."

Litigation Updates

$35M Labcorp Data Breach Class Action Settlement (August 2018 - March 2019)

A $35 million class action settlement has been reached for individuals who received Labcorp diagnostic services between August 2018 and March 2019. Details on the breach, affected data types, and claims process were not disclosed in the brief notice, but class members may be eligible for cash payments. The settlement covers one of the larger healthcare data breach resolutions in recent years.

TransUnion Class Action Certified Over Alleged Sham Debt Collector Scheme

A North Carolina federal court certified a class action alleging that TransUnion sold consumer reports to Liberty Credit Management, a company accused of participating in a fraudulent debt collection scheme affecting more than 800,000 consumers. The certification allows the case to proceed as a class action, potentially exposing TransUnion to significant liability if the plaintiffs prove that the credit reporting agency knew or should have known about Liberty Credit Management's fraudulent practices.

Synchrony Bank Faces Class Action Over Alleged TCPA Violations

A new class action claims Synchrony Bank unlawfully attempted to collect on alleged debts using artificial or prerecorded voices without prior express consent, in violation of the Telephone Consumer Protection Act (TCPA). TCPA cases continue to generate significant liability for financial institutions and debt collectors, with statutory damages of $500 to $1,500 per call.

Federal Court Allows Plaintiff to Cure Standing Defect Through Early Amendment (Zigler v. Lyft)

The Northern District of California denied Lyft's motion to dismiss a putative class action after the plaintiff voluntarily amended her complaint under Rule 15 to cure standing issues. Plaintiff Tracy Zigler's initial complaint alleged she paid a premium for a "Priority Pickup" ride but did not receive the benefit. Lyft moved to dismiss with evidence that Zigler never purchased "Priority Pickup." Zigler amended to allege she paid a premium for "Standard" rides compared to "Wait & Save" and added two new plaintiffs who purchased "Priority Pickup." The court held that early, timely amendments can cure jurisdictional defects, rejecting Lyft's argument that Lierboe v. State Farm bars all amendments to cure standing. The decision cited Royal Canin USA v. Wullschleger, 604 U.S. 22 (2025), which held that amendments can both destroy and create jurisdiction.

Regulatory Guidance

UK Data Protection Complaints Handling Requirements (Effective June 19, 2026)

New statutory data protection complaints handling requirements took effect in the UK on June 19, 2026. Controllers must: (1) have a process for handling data protection complaints; (2) give individuals a way to make complaints (can be as simple as an email address); (3) acknowledge receipt within 30 days; (4) respond without undue delay; and (5) communicate the outcome without undue delay. Privacy notices must flag that individuals have the right to complain and explain how to exercise it. The ICO indicated that businesses can incorporate data protection complaints into existing privacy, data subject rights request, or customer complaints procedures, provided complaints are appropriately identified and escalated.

Congress Passes Copyright Office Overhaul (H.R. 6028)

The House of Representatives passed H.R. 6028, the "Legislative Branch Agencies Clarification Act," in a voice vote last week. The bill removes the Library of Congress' supervisory role over the Copyright Office, transfers several powers directly to the Register of Copyrights, and makes the Register a presidential appointee confirmed by the Senate. The legislation also moves DMCA Section 1201 rulemaking authority from the Librarian of Congress to the Register of Copyrights. EFF and Public Knowledge oppose the bill, arguing it makes the Copyright Office more political and weakens public-interest checks and balances. The bill awaits Senate action.

Canada Advancing Bill C-22 (Lawful Access Bill) Without Debate

Canada is advancing Bill C-22, the Lawful Access Bill, without serious debate on proposed amendments. The bill requires metadata retention, expands information sharing with foreign governments, and establishes a mechanism allowing Canada's Ministry of Public Safety to demand that companies create backdoors, effectively breaking encryption. Signal, Apple, Google, and several VPN providers oppose the bill, with some indicating they may cut Canadians off from certain features or shut down services in Canada if it passes. The Canadian government wants the bill passed before June 19. Citizen Lab and the Canadian Civil Liberties Association conclude that most elements are unsalvageable.

Privacy Developments

UK Moves Forward with Under-16 Social Media Ban (Effective Spring 2027)

The UK government announced plans for a social media ban for users under 16, set to take effect in Spring 2027. The ban applies to Snapchat, TikTok, YouTube, Instagram, Facebook, and X. The Children's Wellbeing and Schools Bill requires "highly-effective age assurance measures" to prevent children under 16 from becoming or being users of "all regulated user-to-user services." An amendment proposed in the House of Commons would raise the age to 18 and grant the Secretary of State authority to specify internet services and features subject to restriction. The provision also requires internet service providers to limit the time kids spend online and restrict who can contact them. EFF and digital rights groups oppose the measure, arguing there is no reliable, privacy-preserving method of verifying the age of every internet user.

UK Home Office Deploying Facial Age Estimation at Border (2027)

The UK Home Office plans to deploy Facial Age Estimation (FAE) to assess asylum-seeking children starting in 2027. EFF, Foxglove, Human Rights Watch, and 60+ organizations raised concerns in a letter to the Minister of State for Border Security and Asylum. Key issues: (1) FAE is biased and performs poorly on women and people of color; (2) the Home Office admits FAE systems are imprecise for 16-18 year olds, with "top systems" having an "error margin of around 2.5 years"; (3) unclear lawful basis for collecting and processing photographs or data from asylum-seeking children to train the system; (4) no published results from "extensive testing" or Equality/Data Protection Impact Assessments. The coalition requested clarification within 21 days.

Plaza Home Mortgage Alerts Customers and Employees of Data Security Incident

San Diego-based mortgage lender Plaza Home Mortgage notified customers and employees of a security incident in which an unauthorized party may have accessed personal information. No details on the scope of the breach, data types affected, or number of individuals were disclosed.

Policy Changes

JAWBONE Act Introduced to Prevent Government Coercion of Online Speech

Senators Ted Cruz and Ron Wyden introduced the Justice Against Weaponized Bureaucratic Overreach to Networked Expression (JAWBONE) Act. The bipartisan legislation creates a federal cause of action against government officials who coerce or attempt to coerce broadcasters, interactive computer services, or AI providers into taking actions against lawful, First Amendment-protected speech. It also establishes a transparency system for government communications with intermediaries about user expression. The bill addresses concerns about government jawboning, where officials pressure private companies to censor speech. EFF supports the bill but notes that not every communication from a government agency to a platform is unconstitutionally coercive, and social media platforms retain First Amendment rights to moderate user speech.

Open Courts Act of 2026 Would Eliminate PACER Fees

EFF joined a broad coalition supporting the Open Courts Act of 2026, legislation that would modernize federal courts' electronic filing systems and eliminate PACER fees. PACER currently collects more than $150 million annually in fees from the public for access to court records, which are public documents. The bill would replace PACER and CM/ECF with a modern, unified platform designed to improve public access, strengthen cybersecurity, and reduce long-term costs. The legislation builds on a similar proposal that previously won bipartisan support in the Senate Judiciary Committee but did not become law.

Trump Administration AI Policy: Retaliation Against Anthropic

The Trump administration designated Anthropic a "supply chain risk," effectively banning agencies and government contractors from doing business with the company, after Anthropic resisted government demands to use its models for autonomous weapons and domestic surveillance. A court issued a preliminary injunction preventing sanctions from taking effect. In a recent executive order, the administration imposed export controls banning foreign nationals from using Anthropic's Mythos and Fable models, forcing Anthropic to shut down the models. EFF and civil liberties organizations filed an amicus brief arguing the sanctions are unconstitutional retaliation for protected speech. The administration justified the export controls by claiming Mythos-class models could exploit software vulnerabilities, but other LLMs with similar capabilities are not subject to export controls.

Supreme Court Decisions

Rooker-Feldman Doctrine Applies to Non-Final State Court Judgments (T.M. v. University of Maryland Medical System Corp.)

The Supreme Court held 5-4 that the Rooker-Feldman doctrine bars federal district courts from reviewing state court judgments regardless of whether the judgment is final or subject to further state court review. Justice Sonia Sotomayor wrote for the majority that limiting the doctrine to final judgments would "create anomalous outcomes" and disrupt "cooperation and comity." The case involved a Maryland woman (T.M.) seeking federal court review of a consent order from a state court lawsuit related to her involuntary hospital admission. Justice Amy Coney Barrett dissented, joined by Chief Justice Roberts and Justices Kagan and Gorsuch, arguing the opinion leaves the doctrine "worse off." Justice Clarence Thomas wrote a 14-page concurrence defending the doctrine.

Supreme Court Rules Federal Law Cannot Automatically Bar Drug Users from Gun Possession (United States v. Hemani)

The Supreme Court ruled in United States v. Hemani that the federal government cannot prosecute individuals under 18 USC 922(g)(3), which bars "unlawful users of or addicted to any controlled substance" from possessing firearms, without showing the individual was regularly incapacitated. Justice Neil Gorsuch wrote for the majority that the government's reliance on early American laws targeting "habitual drunkards" failed the Bruen test because those laws required showing someone was "practically incapacitated and incapable of managing their affairs," not merely that they regularly used intoxicants. The case involved Ali Hemani, a Texas man found with a Glock 19, 60 grams of marijuana, and 4.7 grams of cocaine who admitted using marijuana approximately every other day. The 5th Circuit previously ruled the law unconstitutional as applied to habitual drug users not shown to be under the influence when possessing a gun.

Appeal Waivers Unenforceable When They Would Cause Miscarriage of Justice (Hunter v. United States)

The Supreme Court ruled 8-1 that defendants can sometimes appeal a conviction or sentence even when they agreed not to do so, if enforcing the waiver would result in a "miscarriage of justice." The case involved Munson Hunter, who pleaded guilty to aiding and abetting wire fraud and waived his right to appeal except for ineffective assistance of counsel claims. Hunter wanted to challenge a supervised release condition requiring mental health treatment and medication, but the 5th Circuit ruled the appeal waiver barred the challenge. Justice Elena Kagan wrote for the majority that the 5th Circuit should have reviewed whether enforcing the waiver would leave in place "the kind of egregious error that would bring the judicial system into disrepute." The Court remanded for the 5th Circuit to apply that standard. Justice Clarence Thomas dissented alone, arguing there was "no basis for excusing Hunter from his appeal waiver."

Compliance Takeaways


Analysis based on 33 legal and regulatory articles collected June 19, 2026.