The D&O Diary’s busy fall travel schedule continued with back-to-back visits to Toronto and New York City, where I participated in a PLUS panel, led an educational session for The Bridge, and delivered a guest lecture at Columbia University.
PLUS Canada
The D&O Diary has been closely following the rise in securities class actions filed in 2026 stemming from alleged market manipulation. A recently filed securities class action lawsuit against Datavault AI Inc. arises from what plaintiffs characterize as a stock-promotion campaign built around artificial intelligence, blockchain technology, quantum computing, and data-monetization opportunities. Formerly known as WiSA Technologies, Inc., the company rebranded following its acquisition of intellectual-property assets from Data Vault Holdings Inc. and promoted a business model centered on data exchanges, high-performance computing, and technology licensing.
The September 25, 2026, complaint also builds upon allegations asserted in a securities suit filed against the company a month earlier by extending the class period, adding additional corrective disclosures, and incorporating allegations concerning liquidity, financing activities, and going-concern issues. As discussed below, the Datavault AI lawsuit underscores how D&O exposure can emerge when optimistic statements about growth prospects and financing opportunities are later followed by disclosures concerning liquidity challenges and financial performance.
Continue Reading Datavault AI Hit with Market-Manipulation-Related Securities Suit
As we have detailed in prior posts (most recently here), one of the key securities class action litigation filing trends this year has been the emergence of a host of securities suits alleging various types of market manipulation, including, in particular pump-and-dump schemes. In the latest example of this trend, on September 10, 2026, a plaintiff shareholder filed a securities lawsuit against the Singapore-based Ryde Group (RYDE) in a complaint alleging that the defendants engaged in a pump and dump scheme. This new lawsuit is the 15th market manipulation complaint to be filed so far this year.
Continue Reading New Market Manipulation-Related Securities Suit Filed Against Ryde Group
Michael W. Peregrine and Nathan Barnett
In the following guest post, Michael W. Peregrine and Nathan Barnett examine a recent Delaware Chancery Court decision dismissing oversight claims against Boeing directors arising from the January 2024 mid-air door-plug incident. As they explain, the decision provides important guidance on the continuing application of the Delaware courts’ Caremark doctrine, reaffirming that bad faith remains the essential prerequisite for oversight liability, clarifying the distinction between compliance risks and business risks, and offering additional insight into what constitutes a true “red flag” for board oversight purposes. The authors also discuss the practical governance lessons boards can draw from the decision and the importance of maintaining a robust compliance framework. Michael Peregrine is a retired lawyer and a fellow of the American College of Governance Counsel, and Nathan Barnett is a partner with McDermott, Will &Schulte LLP. Our thanks to Michael and Nathan for allowing us to publish their article on our site.
Continue Reading Guest Post: New Caremark Decision Provides Good News About Bad Faith
The U.S. IPO market has continued its strong resurgence in 2026. According to the latest IPO statistics compiled by Benjamin P. Edwards, Associate Dean for Faculty Development and Research and Professor of Law at the William S. Boyd School of Law at the University of Nevada, Las Vegas (UNLV), and his research team, IPO activity through August reflects a robust issuance environment featuring a mix of traditional operating company IPOs, direct listings, and a surprisingly strong return of SPAC offerings.
The SPAC resurgence is particularly noteworthy because it follows a period in which many de-SPAC companies struggled to meet the optimistic projections that helped fuel the prior SPAC boom. And, while sponsors are once again launching blank-check companies, courts continue to issue significant rulings arising from de-SPAC transactions completed during the 2020-2021 SPAC boom.
Continue Reading IPO Activity Roars Back While SPAC Litigation’s Long Tail Continues
As the 2026 proxy season recedes into the rearview mirror, several clear themes have emerged. Perhaps the most notable is that, despite years of intense focus on environmental and social issues, shareholder attention has increasingly returned to traditional governance concerns. Governance proposals not only proved more resilient than other proposal categories, but they also received
For both public and private companies and their boards, directors and officers (D&O) insurance continues to be a critical component for mitigating potentially significant financial exposure from litigation. In the following guest post, Scott N. Sherman and Edgar A. Neely IV discuss key D&O policy terms and concepts for directors to know for that selection process. Scott and Edgar are both partners at the Nelson Mullins law firm. We would like to thank Scott and Edgar for allowing us to publish their article on this site. Here is the authors’ article.
Continue Reading Director Checklist for D&O Policies: 10 Key Terms and Provisions Boards Should Assess
The D&O Diary has been following the evolving litigation and management liability issues arising from the Trump Administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, the subsequent judicial decisions invalidating those tariffs, and the wave of refund litigation that has followed. As these developments have unfolded, tariff-related litigation has expanded beyond refund actions and shareholder claims to include consumer lawsuits alleging that companies improperly passed tariff costs on to customers.
One recent example is the litigation filed against Levi Strauss & Co. (Levi’s) in California and Louisiana. The allegations against Levi’s reflect the continued filing of tariff-related claims at a time when the scope and applicability of U.S. tariffs remain in flux. Although the tariffs imposed under IEEPA were invalidated by the Supreme Court, other tariffs and tariff-related trade measures remain in effect, including recent U.S. tariffs on Canadian imports and Canada’s corresponding countermeasures. These continuing trade actions demonstrate how rapidly changing tariff policies can create significant challenges for corporate governance, disclosure practices, and risk management.
Continue Reading Tariffs and the Continuing Wave of “Double Recovery” Consumer Class Actions
As crypto-related litigation continues to mature, the focus has shifted beyond the threshold question of whether digital assets constitute securities. Increasingly, private plaintiffs are pursuing claims that resemble traditional securities litigation including allegations involving disclosure failures, market misconduct, and investor losses. At the same time, the Clarity Act, legislation that would have established a statutory framework for digital asset regulation and clarified the respective roles of the SEC and CFTC, failed to advance through congress. Yet digital assets continue to move further into the financial mainstream, with reports that major U.S. banks are exploring a joint stablecoin initiative.
Against that backdrop, a recent decision in the long-running Jump securities class action arising from Terraform Labs (Terraform) collapse underscores the evolving nature of crypto-related litigation. In a September 2, 2026, opinion, the Northern District of California largely denied motions to dismiss, allowing core securities fraud and market manipulation claims to proceed. Beyond its high-profile factual backdrop, the ruling highlights how crypto litigation is increasingly being analyzed through familiar securities law concepts rather than focusing solely on whether a particular digital asset qualifies as a security.
Continue Reading Crypto Securities Suit Survives Motion to Dismiss
In the following guest post, Chris Mosley and John Orr discuss the findings from the 2026 North America edition of the Global Directors’ and Officers’ Survey, developed by Willis, a WTW business, in collaboration with Reed Smith LLP. As the survey results show, cyber risk remains the leading concern for directors and officers in North