Securities Litigation

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In the following guest post, Larry Fine and John Orr discuss a recent Fourth Circuit decision that could have significant implications for securities class action litigation and D&O insurance. Examining the court’s ruling in the Boeing securities lawsuit, they consider whether heightened judicial scrutiny of plaintiffs’ damages methodologies may make class certification a more contested and less predictable stage of securities litigation. They also explore the potential ramifications for defense strategies, litigation costs, and D&O insurance coverage. Larry Fine and John Orr are with Willis’s Financial and Executive Risks (FINEX), North America. Larry is the Management Liability Coverage Leader, and John is the D&O Liability Product Leader. Our thanks to Larry and John for allowing us to publish their article on our site.

Continue Reading Is the Era of Predictable Securities Class Certification Coming to an End?

I am sure that many of you, like me, when you heard the news about Nvidia CEO Jensen Huang’s extramarital affair with a woman who may have been a Chinese spy, immediately thought, “Well, that could make for an interesting D&O claim.” It certainly didn’t take long for the first lawsuit related to the circumstances to be filed. On November 9, 2026, a plaintiff shareholder filed a securities class action lawsuit against the company and Huang, with allegations relating to Huang’s supposed affair. The securities class action complaint can be found here.

Continue Reading Nvidia CEO’s Chinese Spy Affair Leads to Securities Suit

One of the most distinctive and material securities class action lawsuit filing trends this year has been the massive recent surge of artificial intelligence (AI)-related securities suit filings. Sure, there have been AI-related securities suit filings before, but this year the numbers of these kinds of lawsuits have spiked. In the latest illustration of this developing phenomenon, over the last several days plaintiffs’ attorneys have filed new AI-related securities suits against Google’s parent company Alphabet, and against the Internet language learning company Duolingo. In both cases, the plaintiffs alleged that the companies misrepresented their respective AI-related capabilities, opportunities, or prospects.

Continue Reading AI-Related Securities Suit Filing Surge Continues

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

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