Securities Litigation

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In our recent round-up of the top D&O stories so far this year, one of the top developments in 2026 we noted is the growing amount of AI-related D&O litigation. The AI-related litigation trend has continued to develop, as new AI-related lawsuits continue to be filed. In recent days, plaintiffs’ lawyers have filed two further AI-related securities class action lawsuits, first, against the Chinese Internet company Baidu, and, separately, against the AI-powered Internet advertising firm AppLovin. Both new lawsuits are based on AI-washing type allegations. The new lawsuit against Baidu also reflects the surging levels of securities litigation this year involving Chinese companies, as discussed further below.

Continue Reading AI-Related Securities Suit Filings Continue to Surge
Nessim Mezrahi
Stephen Sigrist

In the following guest post, Nessim Mezrahi and Stephen Sigrist present their view that U.S. securities litigation risk is increasing significantly, driven by geopolitical instability and weakening investor confidence in the AI investment proposition, and that growing market capitalization losses, increased shareholder scrutiny, and the potential for an AI-related market correction are creating heightened securities litigation exposure. Nessim Mezrahi is co-founder and CEO, and Stephen Sigrist is a senior vice president, at SAR LLC. Our thanks to Nessim and Stephen for allowing us to publish their article on our site.

Continue Reading Guest Post:  Increasing Deterioration in U.S. Securities Litigation Risk

In the following guest post, Ed Whitworth, the Head of Financial Lines at Inigo, Millie Refalo, Senior Underwriter at Inigo, and Yera Patel, Head of Casualty & Financial Lines Claims and Analytics at Inigo, summarize the results of a recent survey Inigo conducted of U.S. securities litigation defense counsel. The original of the survey summary previously was published on Inigo’s blog, here. We would like to thank Ed, Millie, Yera, and Inigo for allowing us to publish the report summary on this site.

Continue Reading Guest Post: Inigo’s 2026 Defense Counsel Survey

For many years, cybersecurity-related issues have been recognized as a potential source of D&O claims and liability. More recently, other D&O claims concerns, including artificial intelligence (AI), geopolitical issues, and even market manipulation allegations, have become more conspicuous, and cybersecurity-related issues have been less prominent. However, a securities suit filed earlier this month against Israeli-based web data collection company Alarum Technologies highlights that cybersecurity-related issues remain an important potential source of D&O claims and also shows how cybersecurity-related concerns continue to evolve. A copy of the August 5, 2026, complaint against Alarum can be found here.

Continue Reading Cybersecurity Vulnerabilities Lead to Securities Suit Against Israeli Company

As The D&O Diary has emphasized in numerous posts in recent months (most recently here), geopolitical issues represent an increasing source of D&O risk. The geopolitical issues include, among other things, sanctions, tariffs, and export controls. Another geopolitical issue that can have an impact on D&O risk is the enforcement of anti-money laundering (AML) laws. In the latest example of AML enforcement translating into D&O risk, in late July a plaintiff shareholder filed a securities class action lawsuit against British money transfer technology company Wise Group, a company whose U.S. bank charter application was denied due to AML concerns. A copy of the July 31, 2026, complaint can be found here.

Continue Reading Anti-Money Laundering Enforcement and Securities Litigation Risk

Both the number of securities class action lawsuit filings and the number and total value of securities lawsuit settlements during the first half of 2026 were on track for the highest annual levels in several years, according to reports published this week by National Economic Research Associates (NERA) and Cornerstone Research, respectively. The NERA report, entitled “Recent Trends in Securities Class Action Litigation: H1 2026 Update,” can be found here. The Cornerstone Research report, entitled “Securities Class Action Settlements,” can be found here. The D&O Diary’s own analysis of the securities suit filings in the year’s first six months can be found here.

Continue Reading Securities Suit Filings and Settlement Numbers and Values Increased in 1H26

The third episode of The D&O Diary Podcast Series is now live. Building on our June 30, 2026, post discussing first-half federal court securities class action lawsuits, this episode explores the factors and  trends driving the number of current suit filings.

In this podcast, we discuss the overall increase in the total number of federal court securities suits during the first six months of 2026; the continued emergence of AI-related securities litigation; and the significant role that stock manipulation and promotion-related claims in the number of securities suits that have been filed so far this year. We also examine what these developments may mean for public companies, directors and officers, and D&O insurers in the months ahead.

Continue Reading The D&O Diary Podcast Series – Episode 3: Securities Class Action Suit Filing Trends

For more than two decades, The D&O Diary has chronicled successive waves of securities litigation involving foreign companies with shares listed on U.S. exchanges. The Chinese reverse merger cases of the early 2010s centered on alleged accounting fraud. More recently, a new cluster of lawsuits has emerged involving low-float stocks, artificial intelligence announcements, SPACs, and alleged market manipulation. 

A lawsuit filed in the Southern District of Texas on June 23, 2026, brings many of these themes together and may signal an emerging variant of cross-border securities fraud. The complaint combines four themes that have increasingly appeared in D&O litigation: sanctions, cryptocurrency, low-float trading, and cross-border market manipulation.

Continue Reading New Lawsuit Suggests Evolution in Cross-Border Securities Fraud

The current Trump administration’s tariff policies have created operating challenges for many companies, challenges that in at least some cases have translated into securities class action lawsuits. In the latest example, the solar panel company First Solar has been hit with a tariff-related securities class action lawsuit after the company experienced complications in its international operations due to the tariffs. A copy of the new First Solar securities class action lawsuit can be found here.

Continue Reading Solar Panel Company Hit with Tariff-Related Securities Suit