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Kevin M. LaCroix is an attorney and Executive Vice President, RT ProExec, a division of RT Specialty. RT ProExec is an insurance intermediary focused exclusively on management liability issues.

Just days after the U.S. Supreme Court agreed to take up the Facebook/Cambridge Analytica securities case concerning risk factor disclosures (as discussed here), the Court has now agreed to take up yet another securities case, this time in a case involving Nvidia and involving the standards for pleading scienter and falsity under the PSLRA. The NVIDIA case involves alleged fraud in connection with the company’s disclosures concerning its sales of graphics processing units (GPU) to cryptocurrency companies as a component of its overall GPU sales. The specific questions the case presents to the Supreme Court concern what and how a plaintiff must plead when pleading scienter and falsity. Because the case involves the PSLRA’s “exacting pleading requirements,” the case potentially could prove to be very significant. A copy of the Court’s June 17, 2024 Order granting the petition for writ of certiorari can be found here.Continue Reading Supreme Court Agrees to Take Up Nvidia Securities Suit On Pleading Standards Issues

Rua Augusta, in the Baixa district, Lisbon

The D&O Diary is on assignment in Europe, with a first stop in the beautiful Portuguese city of Lisbon (known to the locals as Lisboa). Travel can take you lots of places, but if you are really fortunate, travel will take you to Lisbon, one of the world’s great places and one of The D&O Diary’s all-time favorite destinations.Continue Reading Bela Lisboa

In a speech last December, as well as in several subsequent statements, SEC Chair Gary Gensler has emphasized the agency’s concerns with companies that are over-hyping their artificial intelligence (AI) capabilities in ways that mislead investors. In March, the agency filed enforcement actions against two investment advisors that allegedly misled investors about the firms’ AI-enabled services.

In the latest example of the agency’s AI-related campaign, earlier this week the agency filed an enforcement action against the CEO and Founder of Joonko Diversity, Inc., an Artificial Intelligence-based employee recruitment startup, alleging among other things that the individual made false AI-related claims about the company’s services. In bringing the action, the agency emphasized the significance of the action’s AI-related allegations. A copy of the agency’s June 11, 2024, press release about the action can be found here. The agency’s complaint in the action can be found here.Continue Reading SEC Files “AI-Washing” Enforcement Action Against AI-Based Start-Up Founder

Napa Valley

The D&O Diary was on assignment last week in Napa Valley in California. Although I have visited Napa several times in the past, it has been a while since I have been there. I had forgotten what a beautiful place it is and how much fun it is to visit.

My primary purpose

In the following guest post, Ed Whitworth, the Head of Financial Lines at Inigo, and Yera Patel, Chief Legal officer and Head of Financial Lines Claims for 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. I would like to thank Ed, Yera, and Inigo for allowing me to publish the report summary on this site. I welcome guest post submissions from responsible authors on topics of interest to the blog’s readers. Please contact me directly if you would like to submit a guest post. Here is the authors’ article. Continue Reading Guest Post: Inigo’s 2024 Defense Counsel Survey

Here at The D&O Diary, our job is to watch for emerging trends in corporate and securities litigation. There is plenty to watch. Because we are always so attentive to what is new, it sometimes surprises us when a development appears that reflects an old or even seemingly played-out trend. That was our reaction to seeing the new COVID-related complaint filed this week against the health Insurer Humana, in which the plaintiff alleges that the company misled investors about the company’s rising costs associated with increased patient utilization rates due to post-pandemic pent-up demand. It is, in fact, a little surprising that even now, more than four years after the coronavirus first emerged in the U.S., COVID-related lawsuits are still being filed. A copy of the Humana complaint can be found here.Continue Reading Health Insurer Hit with COVID-Related Securities Suit

In recent months, much of the discussion of ESG issues has focused on the impact of the ESG backlash.  However, the predominance of the backlash movement in the current ESG discussion does not mean that interest in addressing ESG-related concerns has disappeared; in certain circles at least, ESG concerns remain on the agenda. The most interesting recent development along these lines is the May 9, 2024, issuance of a Request for Proposals (RFP) by the Michigan Department of Attorney General, in which the Department has solicited attorneys to act as Special Assistant Attorneys General (SAAG) to pursue climate change-related lawsuits against fossil fuel companies and others. The Department’s notice is reminder that for all of the noise surrounding the ESG backlash, the threat of ESG-related litigation is continuing.Continue Reading Michigan AG Solicits Attorney Help for Climate Change Litigation