The D&O Diary has been closely following the growing D&O risks arising from geopolitical developments and the increasing number of securities suits that have followed in their wake. The latest lawsuit in this developing line of cases was filed on October 8, 2026, against Webull Corporation, a digital brokerage platform that became publicly traded following a SPAC merger in April 2025. The complaint alleges that the company misrepresented the extent of its operational ties to China and understated the regulatory and geopolitical risks associated with those connections.

The complaint against Webull comes amid continuing scrutiny of U.S.-China commercial and technological ties. For companies with operations, personnel, technology infrastructure, supply-chain dependencies, or other business connections to China, evolving geopolitical tensions have created both operational and disclosure challenges. The following discussion reviews the allegations against Webull and potential implications for D&O underwriters.

Continue Reading Continuing Geopolitical Disclosure Risk Underscored in New Securities Suit

On September 14, 2026, the U.S. Department of Justice (DOJ) announced that Accenture agreed to pay $25 million to settle allegations that its hiring, promotion, and workplace-development practices discriminated on the basis of race or sex. The settlement resolves allegations that Accenture Federal Services (AFS) falsely certified compliance with federal anti-discrimination requirements applicable to government contractors. It comes just weeks after the DOJ’s settlement with Deloitte and follows the government’s April settlement with IBM over similar allegations. According to the settlement agreement, Accenture denied the government’s allegations without admitting liability.

The Accenture settlement is the latest example of the Trump Administration’s effort to use the False Claims Act (FCA) to challenge what it characterizes as unlawful DEI-related employment practices by federal contractors, an approach advanced through the DOJ’s Civil Rights Fraud Initiative launched in 2025. Together with the two earlier FCA settlements involving major federal contractors accused of similar conduct, the resolution suggests a broader enforcement trend may be emerging, one that could have significant implications for companies, their directors and officers, and D&O insurers.

Continue Reading Latest FCA Settlement Highlights Developing Anti-DEI Enforcement Trends

When I first heard the news last week that the U.S. Department of Treasury and other federal agencies had imposed penalties and settlements against Bank of America totaling more than $1.2 billion for anti-money laundering and trade sanctions violations, I told colleagues that we would not have to wait long for a follow-on D&O lawsuit. Sure enough, just days after the Treasury Department announcement, a plaintiff shareholder filed a securities class action lawsuit against the Bank and certain of its executives based on the defendants’ alleged misrepresentations concerning the bank’s compliance and internal controls. This type of lawsuit following in the wake of regulatory enforcement actions raises important and interesting issues, as discussed further below.

Continue Reading AML Penalties-Related Securities Suit Hits Bank of America

A new securities class action lawsuit filed against Endava plc, a technology consulting and digital transformation company that has promoted its transition to an “AI-native” business model, represents the 28th AI-related securities class action lawsuit filed in 2026. The lawsuit also raises an increasingly important question in the evolving AI-related litigation landscape: what makes a securities suit “AI-related”?

Continue Reading Endava Hit with Latest AI-Related Securities Suit
Tokyo, viewed from our hotel room

My Asian assignment for The D&O Diary continued last week with a long-weekend visit to Tokyo, which is both one of the world’s largest cities and one of the world’s great places, as well. The city streches beyone the horizon in every direction, a seemingly limitless urban expanse that is vast and orderly, efficient, and culturally rich.

Continue Reading Tokyo

The number of large corporate bankruptcy filings during the twelve-month period ending June 30, 2026, was down compared to the preceding twelve months, but remained elevated compared to long-term historical averages, according to a new report from Cornerstone Research. In the firm’s press release about the report, the report’s co-author is quoted as saying that the elevated bankruptcy rate reflects “persistent challenges of the broader economic environment for companies that rely on debt financing.” The report, which is entitled “Trends in Large Corporate Bankruptcy and Financial Distress: Midyear 2026 Update,” can be found here. Cornerstone Research’s press release about the report can be found here.

Continue Reading Large Corporate Bankruptcy Filings Down, But Still Above Historic Levels

On September 28, 2026, a securities class action lawsuit was filed against Qfin Holdings, Inc. (Qfin), a China-based company that describes itself as operating an AI-driven credit technology platform used for credit assessment, borrower acquisition, and related financial services. The plaintiffs allege that the company overstated the resilience and effectiveness of its AI-enabled business model while downplaying the adverse effects of tightening regulations and liquidity constraints. A copy of the complaint can be found here.

The same day, shareholders also filed a securities suit against Fluence Energy, Inc., a provider of energy-storage systems, optimization software, and related products used by utilities and, increasingly, data-center operators. While the Fluence complaint does not involve allegations concerning AI technology itself, it repeatedly references the company’s efforts to capitalize on accelerating demand from data centers and hyperscale customers and alleges that manufacturing and supply-chain challenges prevented it from meeting growth expectations associated with that rapidly expanding market. A copy of the complaint can be found here.

Continue Reading New Complaints Highlight AI Platforms and Data Center Infrastructure D&O Risk
Petronas Towers, Kuala Lumpur

My Asian assignment for The D&O Diary continued last week with a stop in Kuala Lumpur, Malaysia’s capital and largest city. Kuala Lumpur is a modern and dynamic city that features an iconic skyline, bustling streets, and a renowned food scene. It was a return visit for me to this endlessly fascinating place.

Continue Reading Kuala Lumpur

Episode 8 of The D&O Diary Podcast series is now live. In this latest episode, we are joined by Boris Feldman, Partner and Global Co-Head of Technology, Media & Telecommunications at Freshfields. Widely recognized as one of Silicon Valley’s leading securities defense lawyers, Boris has spent more than four decades representing technology companies, directors and officers, and venture-backed enterprises in shareholder litigation, giving him a unique perspective on the evolution of securities litigation and corporate liability risks.

In our conversation, Boris discusses how securities litigation has changed over the course of his career and reflects on the profound impact of the Private Securities Litigation Reform Act. He also offers insights into the distinctive culture and risk tolerance of Silicon Valley boards and management teams, explaining how that culture has influenced both corporate decision-making and litigation risk.

We also explored the next generation of securities litigation exposures. Boris shares his thoughts on the SEC’s current enforcement environment, the rapidly developing role of artificial intelligence, and the ways AI may shape future disclosure, governance, and securities lawsuits. He discusses not only AI as a source of corporate risk, but also how plaintiffs’ lawyers themselves may use AI as a litigation tool. The discussion also touches on emerging areas of litigation involving social media platforms, technology companies, and the infrastructure demands created by AI and data center growth.

As always, Boris brings a practical, candid, and often entertaining perspective to the conversation. His observations provide valuable context for understanding where securities litigation has been and where it may be headed next.

🎧 Listen now on: 

Apple Podcasts: https://podcasts.apple.com/us/podcast/the-d-o-diary-podcast/id1896880954?i=1000794074822

Spotify: https://open.spotify.com/episode/31b6UJKCea23w7TZkj2lQX?si=4a9d41eee25749d3

YouTube: https://youtu.be/wLewk0by8qA

If you enjoy the podcast, please consider following the series and sharing it with colleagues. Thank you for the tremendous support thus far!