In Episode 6 of the D&O Diary Podcast Series, we sit down with Dan Holloway, Head of Global Management Liability & Professional Indemnity at Allianz Commercial, to discuss the results of a recent global survey examining industry perspectives on AI and its impact on D&O liability and insurance.
The survey, conducted jointly by
Over the past year, market-manipulation lawsuits have become a growing feature of the securities litigation landscape, with plaintiffs targeting alleged spoofing, short-selling, pump-and-dump schemes, and other trading-related misconduct. The latest such case, filed on July 31, 2026, in the Middle District of Florida, names hedge fund Pentwater Capital Management and its founder, Matthew Halbower, as defendants (Pentwater SCA). The complaint alleges that they manipulated the market for Avis Budget Group (Avis) shares by orchestrating a short squeeze and then selling into the resulting price spike.
Unlike pump-and-dump securities suits premised on allegedly false or misleading statements, the Pentwater SCA is based on the defendants’ trading activity itself. The lawsuit arguably represents an example of a growing trend in market-manipulation-related securities class action litigation while underscoring an increasingly important issue for D&O underwriters: securities litigation risk arising not from disclosure deficiencies, but from market-structure and trading-related factors capable of driving extreme stock-price volatility.
A copy of the Pentwater SCA can be found here.
Continue Reading Short Squeeze Lawsuit Filed Against Pentwater Capital
The securities class action lawsuit filed against Intuit, Inc. on August 17, 2026, represents another notable development in one of the most significant securities litigation trends of the year. According to our count, the Intuit case is the 20th AI-related securities class action filed in 2026, underscoring the continued evolution of AI-related litigation beyond traditional allegations of AI-washing and overstated artificial intelligence capabilities.
Similar to the securities class action filed against ZoomInfo Technologies on July 13, 2026, the complaint against Intuit alleges that, while the company promoted the benefits of artificial intelligence, it failed to disclose the extent to which AI was simultaneously creating competitive pressures for key parts of its business.
A copy of the complaint filed against Intuit can be found here.
Continue Reading Intuit Hit with AI-Related Securities Suit
Two notable securities litigation trends over the past year have been the rise of AI-related lawsuits and claims stemming from geopolitical developments, particularly U.S.-China tensions. A securities class action complaint filed on August 4, 2026, in the Southern District of New York against Alibaba Group Holding Limited (Alibaba) and the company’s CEO combines both themes in a single action (Alibaba SCA). The complaint alleges that Alibaba misled investors concerning both its AI-related activities and the risks associated with its alleged status as a “Chinese military company” under U.S. law.
Continue Reading Securities Suit Against Alibaba Combines Two Key Litigation Trends
A frequently recurring coverage issue litigated in Delaware courts is the treatment of related claims and the consequences that flow from a determination that multiple proceedings are related. A recent Delaware Superior Court decision revisits those issues, this time in a dispute involving an insurer’s reliance on related-claims language in a policy retention provision to deny coverage for a derivative action.
Continue Reading Delaware Court: Retention Provision Is Not a Related-Claims Exclusion
A newly filed securities class action lawsuit against AI computing company Blaize Holdings is an example of how a lawsuit involving an AI company may have little or nothing to do with artificial intelligence.
The lawsuit filed against Blaize on August 4, 2026, in the Central District of California, alleges that the company misled investors about major customer contracts, improperly recognized revenue, and created a false impression of growth (Blaize SCA). While Blaize markets itself as an edge AI infrastructure company, the allegations reflect a traditional securities fraud theory rather than claims involving AI governance, AI safety, or AI-related regulation.
As discussed below, the case offers a classic securities fraud fact pattern and may offer important takeaways for D&O underwriters of AI companies.
Continue Reading Securities Suit Filed Against AI Company Blaize
The wave of securities class actions alleging market manipulation involving recently public, low-float companies continues to grow. Notably, many of these lawsuits have involved non-U.S. companies that recently completed IPOs on U.S. exchanges. Two new pump-and-dump lawsuits, filed within a day of one another in the Southern District of New York against China-based iTonic Holdings Ltd. and Park Ha Biological Technology Co., Ltd., increase the number of market manipulation cases filed in 2026 to 13.
Continue Reading Pump-and-Dump Securities Suit Filing Trend Continues to BuildThe D&O insurance implications of M&A litigation often extend beyond claims against the company and its directors and officers. When financial advisers are drawn into transaction-related litigation, companies that have agreed to indemnify them may be required to reimburse defense costs and settlement payments, raising questions about the extent to which those amounts could be covered under a public company D&O insurance program.
A pending coverage dispute arising out of Cornerstone Building Brands’ 2022 take-private transaction highlights those issues. At the center of the dispute is whether amounts a company pays to indemnify its financial adviser for defense costs and settlement payments constitute covered Loss under a public-company D&O policy. Below is a discussion of Cornerstone’s coverage complaint, the parties’ competing summary judgment arguments, and potential D&O underwriting implications.
Continue Reading Coverage Dispute Tests Limits of Side C Coverage
Artificial intelligence-related securities litigation continues to accelerate, with plaintiffs increasingly targeting not only alleged misstatements about AI products and capabilities, but also companies’ disclosures regarding their investments in AI and the impact of those investments on business operations. A couple of recently filed lawsuits challenge AI-related spending and capital allocation decisions, which may underscore whether growing investor scrutiny of whether management adequately disclosed the financial risks, costs, and tradeoffs associated with aggressive AI initiatives.
Continue Reading Another AI Spending-Related Securities Class ActionIn recent years, the D&O Diary has followed the growing debate over whether companies should reincorporate outside Delaware, particularly in states such as Nevada and Texas. We have also followed Delaware’s efforts to address the trend through measures including the enactment of SB 21 and the Delaware Supreme Court’s decision upholding the statute.
And we queried whether DExit could prove to be a new source of D&O exposure. A newly amended class action complaint against Dropbox may provide yet another example of that risk, as shareholders are challenging Dropbox’s reincorporation to Nevada, alleging that the move was undertaken to protect management and the controlling stockholder from accountability for underlying business and governance decisions.
Continue Reading Dropbox Derivative Suit Over a DExit