AdobeStock_711416963-300x200Acquisitions can significantly enhance a company’s capabilities and market reach, but they also can bring substantial cybersecurity and privacy risks. These risks are particularly pronounced in states like California and Texas, where more stringent data protection requirements and privacy laws apply. Properly addressing these risks is critical to ensuring a smooth transition and maintaining compliance with legal requirements. This article highlights some factors that mitigate post-acquisition cybersecurity and privacy risks, including document retention, records management, legal preservation, and data privacy.

Document Retention

Document retention policies are crucial post-acquisition to mitigate cybersecurity risks and ensure legal compliance. In California, under the stringent provisions of the California Consumer Privacy Act (CCPA) companies must retain personal data only for as long as necessary for disclosed purposes and securely dispose of it thereafter. Similarly, Texas, under its Business and Commerce Code Section 521.052, mandates the protection and proper disposal of sensitive personal information, emphasizing the importance of employing secure document destruction methods. Key strategies include identifying critical data for long-term retention, aligning retention policies with state-specific requirements to avoid penalties, and implementing secure disposal methods to safeguard against unauthorized access to sensitive information.

Artificial Intelligence (AI) and generative AI have been revolutionizing various sectors, and the legal industry is no exception. The deployment of these technologies is transforming how legal professionals operate, enhancing efficiency and opening new avenues for creative problem-solving. The use of AI in the legal domain encompasses a diverse range of services:

  1. Legal Research Using Specialized Technology Legal research can be time-consuming. AI-powered legal research platforms like Co-Counsel can analyze and summarize vast amounts of legal data to identify statutes, and regulations. These technologies can sift through databases to find relevant information quickly. By leveraging natural language processing (NLP) and machine learning algorithms, these tools help lawyers build stronger cases faster using fewer resources.
  2. Rewriting Emails and Letters Generative AI excels in tasks involving language generation and rewriting. Lawyers frequently draft, revise, and personalize emails and letters. AI can assist by providing polished drafts, suggesting edits, and ensuring that the tone and language are appropriate for the intended audience. This not only saves time but can enhance the clarity and effectiveness of communication.

AdobeStock_38444038-300x201Business Partnership Lawsuits — Disputed Between LLC Members, Shareholders, General Partners, or Limited Partners

Nobody enters a business partnership or relationship expecting to end up in litigation, but disputes may arise that can only be resolved through a formal legal process. If you are involved in such a lawsuit, the San Jose partnership lawyers at Structure Law Group can provide you with professional advice, guidance, and representation throughout the process.

Why Partnership Lawsuits Happen

AdobeStock_558703638-300x169When it comes to forming a new startup, a California limited liability company (LLC) offers a number of advantages. As the name suggests, an LLC protects the personal assets of individual members from business creditors. And since the LLC is a “pass through” entity, any profits are taxed on the returns of individual members.

But while this arrangement may be ideal for founder-run startups with just a few equity holders, once the business seeks financing from venture capital or other investors, it is often necessary to convert to a corporation. More precisely, a California LLC may need to convert to a Delaware Corporation. The California corporations attorneys at Structure Law Group can advise you on the benefits and drawbacks of making this move. Contact us today to schedule an initial consultation.

When Is a Conversion Necessary?

AdobeStock_79495533-300x200Business disputes arise for many reasons. For example, a vendor might have a unpaid invoice that is several months overdue. Or an insurance company may refuse to pay on a claim after your factory suffered fire damage. Or perhaps you recently had a fallout with a partner and have been going back-and-forth on how to separate them from the business.

At a certain point in the process, you may need to send a formal document known as a demand letter to try and break the logjam. Conversely, another party may send you a demand letter. In either case, it is always best to work with an experienced California business litigation attorney who can advise you of your rights and responsibilities when it comes to demand letters. The team at Structure Law Group assists many California businesses in this area, and we can put that expertise to work for you.

How a Demand Letter Works

AdobeStock_600446210-300x200Anytime you wish to file a lawsuit against someone in California, you need to be mindful of the statute of limitations. This is the legal deadline for initiating action on a particular type of claim. Failure to comply with the statute of limitations often means your case will be dismissed without consideration of the merits.

An experienced California business litigation attorney can help ensure that you meet the statute of limitations and all other legally mandated deadlines in your lawsuit. The last thing you want is for your case to be thrown out of court before it has even begun. The team at Structure Law Group can guide you through this process and make sure that does not happen.

What Are the Deadlines?

AdobeStock_750357071-300x200The rapid evolution of artificial intelligence (AI) is reshaping the world through new trends, regulations, and shifts in user behavior. While AI offers numerous benefits, it also introduces significant risks, particularly concerning accuracy, accountability, data privacy, and security. By proactively implementing mitigation strategies, businesses can harness AI’s potential while protecting their operations and reputation. Below, we explore key considerations for deploying AI across business processes while minimizing legal and regulatory risks.

AI Accuracy and Accountability

A major obstacle to fully realizing AI’s capabilities is concerns about its accuracy and accountability. The core of this issue lies in the quality and quantity of the data used to train AI models. The accuracy of AI models directly reflects the data sets they are trained on. If these data sets are biased or inaccurate, the resulting algorithms can perpetuate hidden discrimination against certain groups. This lack of transparency raises questions about the reliability of the output data, which can be misleading, biased, or incorrect.

AdobeStock_272289224-300x182A partnership involves two or more people agreeing to do business together for profit, even when you do not intend or there is no written agreement to form the partnership. Legal partnerships must comply with registration, filing, and tax requirements applicable to any business, and a Texas partnership attorney can assist people throughout the state who are considering forming partnerships.

You need to decide which kind of partnership you want to create, as there are several different kinds. General partnerships are the most common kind of partnership, and partners are entirely personally liable for all partnership debts; limited partnerships (LPs) allow for both limited and general partners, and the limited partners will not be liable for business debts beyond their own investments in the business although general partners will remain fully liable for an LP’s debts; limited liability partnerships (LLPs) afford protection to partners from business liabilities they had no hand in creating themselves; and limited liability limited partnerships (LLLPs) allow limited partners to have liability for business debts capped at the total amount of their investments.

Choose Your Partnership Name

AdobeStock_625494364-300x200The escape clause is a clause, term, or condition in a real estate contract allowing one party to the contract to avoid performing their duties in relation to the contract. Escape clauses can offer both buyers and sellers of homes to exercise legal rights but can also be subject to abuse, so it is important to work with experienced Austin, TX real estate attorneys when you are in the process of buying or selling a home in Texas.

When an agreement is created for the sale of a house, a buyer might include an escape clause to allow themselves the opportunity to escape from the contract without being liable for breach of contract. Similarly, a seller might include an escape clause to allow them to accept a better offer for a home.

How Escape Clauses Work

AdobeStock_300361069-300x200Texas is an at-will employment state, meaning at-will employees may be terminated at any time for any reason, as long as it is not an illegal reason when the decision is in the best interest of an employer. Terminating employees is rarely an easy decision, and any business struggling with employment decisions should work with an Austin employment lawyer.

The Texas Workforce Commission (TWC) notes that no advance notice of termination or resignation is necessary, but when advance notice of resignation is given, it may be accepted, rejected, or modified by an employer. When a notice period is rejected, an employer does not have to pay for the time not worked by an employee since the duty to pay ends on the date a work separation becomes effective.

Planning Terminations