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ARTICLE · 10 AUGUST 2021

Three Point Shot - Summer Edition 2021

Proskauer Rose LLP
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Welcome to Three Point Shot, a newsletter brought to you by the Sports Law Group at Proskauer.

United StatesMedia, Telecoms, IT, Entertainment
Neil H. Abramson
Neil H. Abramson
Elise Bloom
Elise Bloom
Michael Cardozo
Michael Cardozo
Scott Cooper
Scott Cooper
Rob Day
Rob Day
Tony Downes
Tony Downes
Robert Freeman
Robert Freeman
Wayne Katz
Wayne Katz
Jason Krochak
Jason Krochak
+7 more
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Welcome to Three Point Shot, a newsletter brought to you by the Sports Law Group at Proskauer. Three Point Shot brings you the latest in sports law-related news and provides you with links to related materials. In this issue, we feature contributions from our talented group of summer associates. Thanks to Andrew K. Johnson, Benjamin G. Childress, and William S. Wyman for their hard work on these articles.

Your feedback, thoughts and comments on the content of any issue are encouraged and welcome. We hope you enjoy this and future issues.

Edited by Robert E. Freeman

Two, Four, Six, Eight, SCOTUS Sets the Record Straight...in Cheerleader Speech Case

Whether foreseeable or ironic, the impassioned words (or F-bombs) of a dejected junior varsity cheerleader recently brought a rather important First Amendment question before the Supreme Court. That is, whether a public school can lawfully remove a student from an extracurricular activity for profanity-laden

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California Requires Disclosure Of AI-Generated People In Advertising

California has enacted a groundbreaking AI disclosure law requiring advertisers to clearly identify when synthetic performers appear in their marketing materials. The legislation, set to take effect in 2027, includes a private right of enforcement that could potentially open the door to class action litigation against brands using AI-generated performers without proper disclosure.
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FCC Tightens Equipment Rules

The Federal Communications Commission has adopted sweeping new restrictions targeting equipment containing components from entities on its Covered List, fundamentally reshaping how manufacturers, online marketplaces, and equipment modifiers must approach FCC compliance. These rules establish unprecedented prohibitions on logic-bearing hardware components, impose strict display requirements for e-commerce platforms, and clarify when existing authorizations can support equipment modifications.
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California Signs Landmark Online Child Safety Package

California has enacted the nation's most comprehensive online child safety legislation, banning addictive social media features for minors under 16, establishing strict companion chatbot regulations, and imposing enhanced civil penalties for platforms that harm children. Companies operating social media platforms or chatbots accessible to California children must now assess their products, audit features, and prepare compliance programs ahead of the laws' effective dates.
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Nationwide EAS Test Coming November 17, 2026

FEMA and the FCC will conduct a nationwide test of the Emergency Alert System on November 17, 2026, requiring participation from all radio and television stations, cable systems, and satellite services. EAS Participants must file three separate forms through the EAS Test Reporting System, with specific deadlines ranging from October 30, 2026, through January 2027. Certain translator and repeater stations are exempt from the registration and filing requirements.
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Wiley Rein
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Ninth Circuit Vacates CFAA Injunction Against Perplexity's Comet AI Agent

The Ninth Circuit Court of Appeals vacated a preliminary injunction against Perplexity AI, determining that when an AI agent acts at a user's direction, it is the user—not the AI company—who "accesses" computer systems under federal and California computer fraud statutes. This landmark appellate decision addresses how existing computer-access laws apply to agentic artificial intelligence and has significant implications...
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Jones Day
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Text-Message Marketing In Texas, One Year After SB 140

Texas Senate Bill 140 (SB 140) took effect 1 September 2025, and applies to conduct occurring on or after that date. The bill amended Section 302 of the Texas Business and Commerce Code to extend registration and disclosure requirements to text messages by expanding the definition of “Telephone solicitation,” which previously applied only to a “telephone call,” to include certain transmissions of text or graphic messages and images. In addition, SB 140 added a definition of “Telephone call” that incorporates the definition found in Section 304, which includes certain text or graphic messages and images, but excludes certain agreed-to transmissions.
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K&L Gates
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Generative AI Is Reshaping The Defense Of Complex Litigation

Generative AI is transforming litigation defense by enabling in-house legal teams to manage costs and complexity more effectively across the entire case lifecycle. From early research and drafting through expert witness strategy and trial preparation, AI tools are helping defense teams work faster and more consistently. How are these technologies reshaping the way sophisticated counsel approaches multidistrict litigation, mass torts, and large-scale document management?
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SEC Advances “Responsible Retailization” Through A Potential Accredited Investor Exam And Potential Regulated Fund Reforms

On September 30, 2026, the Securities and Exchange Commission (SEC) issued two rule proposals and five notices aimed at expanding investors’ access to private markets. The package would add ways to qualify as an accredited investor, including passing a new exam administered by the Financial Industry Regulatory Authority (FINRA), broaden performance-based compensation and modernize regulated funds, including interval funds and business development companies (BDCs).
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DOL Pulls The Plug On Plan To Move FLSA Interpretations Out Of The CFR

The U.S. Department of Labor's Wage and Hour Division has withdrawn its controversial proposal to remove nine parts of longstanding Fair Labor Standards Act interpretive guidance from the Code of Federal Regulations. What does this reversal mean for employers who have relied on these decades-old interpretations, and how does the Supreme Court's Loper Bright decision reshape the legal weight of agency guidance going forward?
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Parliament’s Position On SFDR 2.0

The European Parliament's Committee on Economic and Monetary Affairs has adopted its position on the Sustainable Finance Disclosure Regulation reform, establishing key divergences with the European Commission and Council on professional investor exemptions and fossil fuel investment criteria. With trilogue negotiations set to begin in October 2026, private markets managers face critical decisions about how to position their funds under the new three-category framework expected to take effect in early 2029.
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False Claims Act Roundup Series: Q2 2026 – Federal And State Agencies Use Data To Operationalize Enforcement

The Department of Justice has operationalized its fraud-enforcement architecture through data analytics, targeting healthcare providers with multi-district strike forces, Medicare Advantage risk-adjustment actions, and accelerated qui tam review processes. How are federal and state agencies using publicly available data to drive False Claims Act enforcement, and what proactive steps should healthcare organizations take to identify and remediate potential exposure before becoming the focus of government atte
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Separate Confidentiality Agreement Rendered Arbitration Agreement Unconscionable

A California Court of Appeal examined whether an arbitration agreement signed during employee onboarding was enforceable when paired with a confidentiality agreement that created a one-sided dispute resolution structure. The court analyzed both procedural and substantive unconscionability, focusing on how the combined documents favored the employer's ability to litigate certain claims while forcing the employee into arbitration for wage-and-hour disputes.
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