News & Updates
Corporate Transparency Act – Update, March 2, 2025
Lawyers Mutual wishes to bring to your attention another update on The Corporate Transparency Act (“CTA”). On March 2, 2025, the U.S. Department of the Treasury released a press release titled, “Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies.” This press release comes just weeks after the United States District Court, Eastern District of Texas’s decision in Samantha Smith and Robert Means v. U.S. Department of Treasury, NO. 6:24-cv-336 (E.D. Tex., 2/17/25) which stayed the nationwide injunction. As a result of that decision, the CTA and its reporting obligations were once again back in full force. Failure to comply with the CTA meant significant penalties for noncompliance. However, the Treasury Department’s March 2nd press release clarifies the enforcement of the CTA as it relates to U.S. citizens and domestic companies.
Hinshaw Law recently published an article[1] which explains the March 2, 2025 update to the CTA and its enforceability. As Hinshaw’s article states, “…the Treasury Department announced, in no uncertain terms, that it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies (or their beneficial owners) associated with the "beneficial ownership information" (BOI) reporting requirements under the CTA.”
The Hinshaw article also states, “The Treasury Department further noted that even when forthcoming changes to the CTA (as discussed in our prior update) take effect, they will still not be enforcing any related penalties or fines against U.S. citizens or domestic reporting companies (or their beneficial owners).”
LMICK encourages you to read both the U.S. Department of the Treasury’s press release, as well as Hinshaw Law’s article for further information. LMICK will continue to monitor the state of the CTA and bring to your attention any updates and developments.
[1] This article titled, “UPDATE: U.S. Department of the Treasury Terminates Enforcement of the Corporate Transparency Act Against U.S. Citizens and Domestic Companies“, was originally published in the Hinshaw & Culbertson LLP “Lawyers’ Lawyer” Newsletter. Republished with permission. Visit www.hinshawlaw.com for more information.
Mother Nature and Planning Ahead
After last month’s heavy flooding that impacted the Commonwealth, LMICK wishes to remind you that disaster planning for you and your practice is critical. In last month’s LMICK Minute, Issue #53, we provided information on steps to take “After Disaster Strikes.” Now that Spring is here, so is the potential for tornados and more inclement weather. As such, LMICK recommends that you review the information in the hyperlinked articles below to help you and your office plan ahead and prepare for the season’s unpredictable weather.
- Client Notification Requirements and Template Letter
- ABA Ethical Obligations to Clients in the Wake of a Disaster
- ABA Formal Opinion 482
Should your practice sustain any damage or disruption from any inclement weather, or you are still recovering from last month’s flooding, below are the links previously provided in LMICK Minute, Issue #53, which provides guidance for how to cope with disasters after they have stricken.
LMICK wishes you and your practice a joyful Spring, free from any adverse weather!
Kentucky Legal Food Frenzy Has Kicked Off!
On March 18, 2025, Feeding Kentucky and the Office of the Attorney General, along with the KBA Young Lawyers Division, kicked off their 9th Annual Legal Food Frenzy. The Food Frenzy raises funds for Kentucky’s seven regional food banks to ensure they are fully stocked during the summer months and equipped to provide for Kentucky families in need. The Competition runs from March 18-April 7, 2025. You may register your organization at this link. Please note that if your organization has multiple offices across the state, each office will need to register with their respective regional food bank. This is a great cause that undoubtedly will assist numerous individuals and families across the Commonwealth! LMICK is proud to support the Young Lawyers Division in the Legal Food Frenzy.
Two New OnDemand CLEs are Now Available
LMICK is happy to announce that there are two new OnDemand CLEs available to its customers! The first CLE, “Horseshoes and Violating SCR 3.130 (3.3) (Candor to the Tribunal) – When Coming Close has Consequences”, is worth one ethics hour of CLE credit. The panelists for this CLE include Kentucky Circuit Court Judges, Hon. Brian C. Edwards (Jefferson Circuit Court, Division 11), Hon. Jerry D. Crosby (12th Judicial Circuit) and District Court Judge, Hon. Denotra Spruill Gunther (Fayette District Court). In this CLE, the Panelists discuss situations they have observed in which attorneys have violated, or come close to violating, SCR 3.130 (3.3). A violation of a lawyer’s duty of candor toward the tribunal can have serious consequences and implications for both the attorney and the case. Hear from these distinguished jurists on how to avoid violations of SCR 3.130 (3.3) while still zealously representing your clients in court.
The second OnDemand CLE that is now available is, “How to Ethically and Practically Pause Your Practice” This CLE is also worth one ethics hour of CLE credit. The speakers are Angela Logan Edwards, Esq., President and CEO of Lawyers Mutual; Yvette Hourigan, J.D., CEAP, APSS; and Laura Day DelCotto. This CLE explores the ethics and practicalities of pausing your practice when life interferes. Attendees will learn how the duty of competence (1.1) and diligence (1.3) are negatively impacted when lawyers are not at their best selves and continue to practice. The panel will discuss what policies or procedures can be put in to place to proactively (and practically) ensure the lawyer continues to meet their ethical obligations during a pause in practice.
These and other OnDemand CLEs are available from LMICK at OnDemand CLEs.
Practice Management
Safeguarding Confidentiality in the Age of AI
As part of LMICK’s continued AI series, this month LMICK wants to discuss the issue of safeguarding client confidentiality when using AI technology. In prior LMICK Minute Issues, LMICK has discussed ethical considerations lawyers face when using AI in their legal practice, particularly around the protection of confidential and secure information. These concerns include:
1. Data Privacy and Confidentiality
- Risk of Data Exposure: AI systems often require access to large datasets for training and operation. If sensitive client information is included, there’s a risk of unauthorized access or exposure.
- Cloud-Based Solutions: Many AI tools are cloud-based, raising questions about where data is stored, who has access, and whether the data is encrypted during storage and transit.
- Breach of Attorney-Client Privilege: Sharing confidential information with third-party AI providers might inadvertently waive attorney-client privilege.
2. Cybersecurity Threats
- Vulnerabilities in AI Systems: AI tools may have exploitable vulnerabilities that hackers can target, such as through adversarial attacks or exploiting poorly secured APIs.
- Phishing and Social Engineering: Cybercriminals may exploit AI-generated content to craft more convincing phishing schemes targeting law firms.
- Ransomware Attacks: If an AI system is compromised, sensitive legal data could be encrypted and held hostage.
3. Regulatory Compliance
- Data Protection Laws: Compliance with laws like GDPR, CCPA, or HIPAA (in healthcare-related legal matters) is critical when using AI. Lawyers must ensure that AI providers meet these requirements.
- Jurisdictional Issues: Different jurisdictions may have varying standards for data protection and AI usage, which complicates compliance for firms operating across borders.
4. Vendor Reliability and Security
- Third-Party Risks: Relying on external vendors for AI solutions introduces risks if the vendor has inadequate cybersecurity measures.
- Insider Threats: AI providers might not adequately vet their employees or contractors, increasing the risk of insider data breaches.
Strategies to Mitigate These Risks
To address these concerns, lawyers can adopt the following measures:
- Due Diligence on Vendors: Assess AI vendors for compliance with legal and cybersecurity standards. Ensure vendor agreements include robust confidentiality clauses, data handling practices, and compliance with any applicable laws. Verify how the AI vendor uses the data (e.g., for model training) and whether client data will remain confidential.
- Data Encryption: Ensure all data shared with AI systems is encrypted both in transit and at rest. Avoid sharing unnecessary client-specific information.
- Limited Data Sharing: Avoid providing unnecessary confidential information to AI systems.
- Regular Audits: Conduct cybersecurity audits of AI tools and processes. Regularly review AI usage logs and data flows to ensure compliance with policies and security measures. Periodically check that third-party AI tools remain compliant with privacy and confidentiality standards.
- Training and Awareness: Educate legal teams on recognizing and mitigating AI-related cybersecurity risks. Establish policies for AI usage within the firm, including acceptable tools and prohibited practices. Train employees on how to use AI responsibly, highlighting potential risks and the importance of data confidentiality.
- Compliance with Ethical Obligations: Ensure AI use complies with rules of professional conduct and confidentiality obligations specific to the jurisdiction. If AI tools require sharing client data externally, obtain informed client consent before proceeding.
- Custom AI Solutions: When feasible, use custom AI tools developed specifically for the firm, hosted on private servers to ensure maximum control over data. Opt for local processing when using AI tools to prevent data from being uploaded to external servers.
- Incident Response Planning: Develop a clear response plan for potential data breaches, including notification procedures for clients and regulators. Have specialists on hand to handle AI-related risks and incidents.
In addition, the American Bar Association’s online article titled, “Ethical Obligations to Protect Client Data when Building Artificial Intelligence Tools: Wigmore Meets AI”, provides additional information on the ethical obligations attorneys face when using AI, as well as additional risk mitigation measures.
By balancing the innovative potential of AI with robust cybersecurity and ethical practices, lawyers can better protect sensitive information while reaping the benefits of these technologies.
Questions? Contact Jared Burke (
State Courts and the Usage of AI
A recent article from Lexology[2], discusses how the judiciary in state courts around the nation are handling the usage of AI. Their article is titled, State Courts Prepare for Age of AI, and it discusses that, “Judges have their own ethics codes and, within them, their own professional obligation to demonstrate technological competence – a fact underlined by recent judicial ethics opinions from Michigan and West Virginia. Included within the judge’s technology competence obligation is the imperative to supervise the legal community’s use of artificial intelligence in their courtrooms.”
According to the article, “Seventy-six percent of corporate law departments and sixty-eight percent of law firms in the United States already use artificial intelligence technologies at least once a week.” The article goes on to point out that there are a number of state courts who have created AI task forces or issued guidance on AI and its usage in the practice of law (GA, WV, CT, MD, NJ, UT, and NY). LMICK wishes to remind you that KBA Ethics Opinion E-457 and ABA Formal Opinion 512 provide Kentucky lawyers with guidance on the usage of AI.
AI is here to stay, and both judges and practitioners need to stay on top of its developments as well as the ethical and legal ramifications of its usage. LMICK’s AI series will hopefully continue to provide you with helpful AI information as well as tips and tricks on how it can be integrated into, and have a positive impact on, your practice.
Questions? Contact Jared Burke (
[2] Lexology is the “number one global legal intelligence platform for mitigating risk, staying abreast of change, and finding expert counsel, built on insights, forward-looking analysis, and expert guidance from the world’s leading law firms.”
Lawyer Well-Being
AI Usage Outside of Your Legal Practice to Improve Well-Being
The American Bar Association recently published an online article titled, “Career Development and Wellness” which discusses how AI can improve and assist with a lawyer’s overall well-being. The article states, “As lawyers figure out how to responsibly, ethically, and effectively integrate AI into their legal practices, a good place to start might be where lawyers generally struggle the most – their health and well-being.”
In LMICK Minute Issue #52 we discussed how to create AI “prompts” and pitfalls to avoid when creating them. The ABA article provides sample prompts to plug into AI as it relates to health and well-being. For example, if you are struggling to figure out a fitness routine that fits your schedule, the article provides the following sample prompt:
“Create a workout schedule for the next 8 weeks, prioritizing at least 4 days per week of strength training, one day a week of Zone 2 cardio, one day a week of Zone 4 interval training with one day of rest, and one or two fun fitness activities like biking or paddle boarding. Please make sure I get at least 150 minutes of cardio each week.”
As the article points out, you can modify the prompt to your level of fitness knowledge or desired workout availability, level of fitness, desired results within a particular time frame, etc.
If you want to try and change your diet and are not sure what dietary plan to follow, the article also provides the following sample prompt:
“Please prepare a meal plan for the next week for (number of people) with a total number of calories per person of approximately (number of calories). We follow a (type of diet or dietary restrictions) diet. Please include recipes and shopping list for the week. We plan to eat out on Wednesday night and need lunches only on Tuesday through Thursday.”
As you can see, AI can be used not only in your legal practice, but also in your everyday life to ease the burden of many of life’s daily chores and goals. LMICK recommends that you read the entire article to learn how AI can further benefit your well-being.
Questions? Contact Jared Burke (
“The Power of Mental Health Breaks”
The Northern Kentucky Bar Association’s “Lawyers Living Well” Committee recently published an online article titled, “The Power of Taking Mental Health Breaks”. As the article points out, “In our fast-paced world, taking breaks is often overlooked, but it’s one of the most effective ways to combat stress and boost productivity.”
Attorneys work in high-stress environments, often dealing with long hours, heavy caseloads, and emotionally intense situations. Taking mental health breaks can provide several key benefits:
- Improved Focus and Productivity – Regular breaks can prevent burnout, helping attorneys stay sharp, make better decisions, and maintain efficiency in their work.
- Reduced Stress and Anxiety – Stepping away from work, even briefly, helps lower stress levels, preventing chronic stress-related issues like anxiety, insomnia, or emotional exhaustion.
- Better Emotional Resilience – Handling complex cases or difficult clients can be emotionally draining. Mental health breaks help attorneys regulate emotions and build resilience.
- Enhanced Work-Life Balance – Prioritizing mental health allows attorneys to set boundaries and maintain a healthier balance between professional and personal life.
- Increased Creativity and Problem-Solving Skills – A refreshed mind is more likely to think outside the box and find innovative legal solutions.
- Stronger Professional Relationships – Attorneys who take care of their mental health are more likely to engage positively with colleagues, clients, and judges, improving professional interactions.
- Better Physical Health – Chronic stress can lead to physical ailments like headaches, digestive issues, or high blood pressure. Mental health breaks can reduce these risks.
- Higher Job Satisfaction and Longevity – Preventing burnout increases job satisfaction, leading to a more sustainable and fulfilling legal career.
Taking mental health breaks isn’t a luxury—it’s essential for long-term success and well-being in a demanding legal profession.
Questions? Contact Jared Burke (
Know That Help is Always Available
If you are struggling with grief, sadness, anxiety, or any other emotion or stressor that is negatively impacting your daily life, please reach out for help. All Kentucky lawyers are eligible for four free visits with a mental health professional through the Kentucky Lawyers Assistance Program. For more information about the variety of confidential resources KYLAP offers, please visit www.KYLAP.org.
Upcoming Events
We look forward to seeing you!
We are proud to support the organizations that support you and your work! We will be out and about this winter, leading CLEs and sponsoring events. We hope you can join us at one of these currently scheduled events (and make sure to come say hello)!
April 17: KJA The Art of Advocacy in Mediation, Zoom
April 22: KJA Advocating for the Vulnerable, Zoom
April 23: KJA Strategies for Reviewing and Negotiating Releases, Zoom
April 23-24: AAML, Louisville
April 24: KJA Ethics & a Day at the Races, Frankfort/Lexington
May 6: KJA Exposing Bad Faith, Zoom
May 9: KJA From Investigations to Verdict, Louisville
May 13: KJA Workers’ Comp Essentials, Zoom
May 15-16: KJA Women Lawyers’ Caucus Seminar, Louisville
May 16: NKBA, Small and Solo Section, Zoom
May 21: KJA Judging the Law: Trends, Challenges and Judicial Decision-Making, Zoom
May 28: KJA You Just Got Removed, Now What?, Zoom
May 30: KJA When Insurers Want a Piece: Managing Subrogation in PI Cases, Louisville
We want to hear from you! Have a CLE topic you would like to see? Send suggestions to
Need a CLE Speaker? We would love to speak to your group! You can check out our updated list of available topics and request to schedule, here.
Angela Logan Edwards – President/CEO
Courtney Risk – Education & Engagement Specialist