🧩 Reddit wants Proskauer off Perplexity's case
PLUS: Disney's $20 million AI bankruptcy bid
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Welcome to Lookzy. In today's Lookzy:
Reddit says Proskauer twice promised not to represent Perplexity
A judge says hundreds of removed trees cost DOJ its credibility
Disney bids for a piece of Character.ai in bankruptcy
Getty's take-private plan is expected to wipe out public shareholders
THE VERDICT
Arguing today's litigation news
Reddit challenges Proskauer's switch. Reddit says Proskauer Rose twice promised not to represent Perplexity, then dropped Reddit “like a hot potato” to take the other side. It is asking a Manhattan federal judge to disqualify the firm from its scraping and copyright suit against Perplexity, which denies the underlying claims. Reddit says Proskauer's earlier whistleblower work touched its data-licensing and privacy policies; Proskauer says the matters are unrelated and denies any agreement or disqualifying conflict.
Check the consent yourself. Norway's privacy regulator fined Xandr, now Microsoft's adtech unit, NOK 92 million ($9.61 million) for unlawfully relaying Grindr-derived data revealing sexual orientation through automated ad auctions. Microsoft is reviewing the decision; Xandr has three weeks from receipt to appeal. The regulator's largest penalty uses Xandr's turnover; Microsoft did not own it during the 2018–2020 conduct. The data potentially reached thousands of advertisers, and the regulator rejected Xandr's argument that it could assume Grindr had consent. Xandr had to check for itself.
Put it in an order. About 500 trees came down at East Potomac Golf Links over the weekend without the advance notice U.S. District Judge Ana Reyes had demanded in May. Reyes temporarily halted further removal Sunday, then said Monday that DOJ had lost all credibility. The government calls the work part of a 2019 safety-and-restoration plan; plaintiffs allege environmental-law violations and unlawful splitting of the project. Reyes warned that defying the new order could trigger contempt. She said she had not started contempt proceedings over the weekend's removal only because her May direction was oral, not a written order.
THE DEAL
Wheelin' and dealin' today's corporate news
Disney's AI license bid. Disney is offering $20 million for a nonexclusive perpetual license to specified Character.ai IP and certain claims. The bid excludes the operating platform. Character Technologies filed Chapter 11 in Delaware with Disney as its proposed stalking-horse bidder, subject to better offers and court approval. Disney will separately provide transition services through former Character employees it hired. Wilson Sonsini represents Character.ai; Skadden represents Disney. The platform remains up while Character.ai seeks a buyer to keep it running. The company says the platform will be wound down if none emerges.
Getty's take-private plan. Getty Images' public shareholders are expected to receive nothing under a restructuring agreement that would put the company in Getty-family and Koch Equity Development ownership. The owners committed up to $533 million in new equity, not a purchase price. Getty plans a prepackaged Chapter 11 filing in the coming weeks, with solicitation, court and regulatory approvals still ahead. Backers already include holders of 83.5% of its unsecured bonds and all revolver lenders.
Buying before Q-Day. IonQ agreed to buy cybersecurity company Elisity for up to $1.3 billion in stock, including up to $150 million in performance earnouts. The deal, expected to close in Q4 subject to regulatory approval and customary conditions, would pair IonQ's quantum-security tools with Elisity's system for restricting access within enterprise networks. The pitch is preparation for “Q-Day,” when quantum computers could break widely used encryption.
BOILERPLATE
Basta's expected return. Kirkland is expected to bring back Paul Basta, according to people familiar with the move. He left in 2017 and became a Paul Weiss restructuring co-head. The reported return comes as Paul Weiss builds around another former Kirkland restructuring partner, Jamie Sprayregen.
Three from Latham. Latham & Watkins partner Jesse Sheff and counsel Seung-Ju Paik and Preeta Paragash are expected to join DLA Piper's capital-solutions and private-credit platform, Bloomberg reports, citing people familiar with the move. Sheff's clients have included Apollo and BlackRock.
Alright, back to billing. That's all, folks!
