Search results for: AI Governance

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
Glenn Oborne

In the following guest post, Glenn Oborne, Director at Ingen Partners, a specialist governance recruitment and consultancy firm, argues that the greatest risk of a prolonged governance vacancy is not disruption of board administration, but the loss of continuity, oversight, and accountability that connects director questions, management commitments, and emerging warning signs across time. Even when meetings, reports, and compliance processes continue smoothly, fragmented responsibility can make it harder for boards to identify developing issues, demonstrate effective oversight, and defend their decision-making if later scrutinized by regulators or shareholders. Our thanks to Glenn for allowing us to publish his article on our site. Here is Glenn’s article.

Continue Reading Guest Post: The Oversight Risk in Governance Vacancies

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

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
Paul Noon

In the following guest post, Paul Noon,  OBE, Emeritus Professor of AI and Innovation and former Deputy Vice Chancellor at Coventry University, argues that UK company directors face growing legal and governance risks from AI under both the UK Companies Act and the EU AI Act, whose broad extraterritorial scope can apply even to UK companies with no EU presence if their AI systems affect people in the EU. The author also considers the implications for U.K. boards. We would like to thank Paul for allowing us to publish his article on our site. Here is his article.

Continue Reading Guest Post: The UK Board’s AI Blind Spot

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 Action

One of the most urgent current issues in the D&O insurance marketplace is the question of how artificial intelligence (AI) will impact the D&O liability and insurance landscape. In order to get a sense of the industry’s current thinking on AI-related issues, The D&O Diary, in collaboration with Allianz Commercial, recently prepared and distributed a survey seeking readers’ views on several AI-related topics.

The survey drew 250 responses from industry professionals located in the United States, Germany, the United Kingdom, Canada, and 21 other countries. The strong response provides a detailed picture of how the insurance industry views this new and challenging technological frontier.

Continue Reading Industry Survey Results: AI’s Impact on D&O Liability and Insurance
Thomas Boley

In the following guest post, Thomas Boley, an associate at the Wiley Rein LLP law firm, takes a closer look at the Up-C corporate structure, and considers the claims that can arise due to the issues the corporate structure can present, as well as the insurance coverage issues that these claims may involve. Our thanks to Thomas for allowing us to publish his article as a guest post on this site. Here is Thomas’s article.

Continue Reading Guest Post: D&O Risks in Up‑C Dilution Claims

As readers know, in recent years, red state politicians and other litigants, in service of an anti-ESG backlash agenda, have launched a series of suits challenging the sustainability practices and policies of companies, asset managers, and other market participants. On May 20, 2026, the Texas Attorney General (AG) launched the latest of these kinds of suits, filing an action against proxy advisory firm Institutional Shareholder Services (“ISS”), alleging the company deceptively prioritized undisclosed ESG factors over objective financial analysis.  The lawsuit was filed in conjunction with similar state court lawsuits brought in Nebraska, Iowa and West Virginia. 

Continue Reading Texas Targets ISS in Expanding Anti-ESG Campaign