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Sarah Abrams

The incidence of AI-related securities litigation is by this point well-established. But as the laws, regulations, and legal environment relating to AI have continued to evolve, so too has the AI-related litigation risk. In the following guest post, Sarah Abrams, Head of Claims Baleen Specialty, a division of Bowhead Specialty, examines the recent settlement of the securities class action litigation involving Snapchat and considers its potential implicationd for future AI-related litigation risk. I would like to thank Sarah for allowing me to publish her article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Sarah’s article. Continue Reading Guest Post: Will the Snapchat Settlement Become a Benchmark For AI-Related Risk?

Sarah Abrams

Readers may be aware of Anthropic’s recent settlement of its high-profile AI copyright infringement case. The lawsuit and its settlement clearly involve important intellectual property issues. In the following guest post, Sarah Abrams, Head of Claims Baleen Specialty, a division of Bowhead Specialty, considers whether the lawsuit and its settlement may also point toward D&O liability and insurance issues as well. I would like to thank Sarah for allowing me to publish her article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like submit a guest post. Here is Sarah’s article.Continue Reading Guest Post: Is Claude the Next Napster?

A new wave of AI-powered scams is targeting companies by impersonating their most trusted leaders – the CEO, the CFO, and other senior executives. Cybercriminals are now using generative AI tools to create hyper-realistic video and audio deepfakes of company executives to trick lower-level employees into handing over millions of dollars in cash, critical data, and other business assets. While these kinds of scams aren’t necessarily new, AI language and image models are making the scams increasingly effective and more prevalent, according to a recent Wall Street Journal article. The August 18, 2025, article, entitled “AI Drives Rise in CEO Impersonator Scams,” can be found here.Continue Reading The Growing Threat of AI Deepfake Attacks

Burkhard Fassbach

The increasing prevalence of artificial intelligence (AI) tools and processes present companies with a host of opportunities and risks. These opportunities and risks in turn create challenges for corporate boards as they try to navigate the changing environment. In the following guest post, Burkhard Fassbach, considers the corporate governance implications AI presents for companies and their boards. Burkhard is a D&O lawyer in private practice in Germany. I would like to thank Burkhard for allowing me to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Burkhard’s article.Continue Reading Guest Post: Navigating AI Governance

Artificial Intelligence (AI) tools and processes are becoming increasingly pervasive in many industry sectors and in many phases of business. AI use is also spreading to corporate processes and functions. For example, as I recently noted, some companies many be using AI tools to draft the MD&A in their periodic reports. And, at least according to a recent post in the Harvard Law School Forum on Corporate Governance by lawyers from the Debevoise law firm, some corporate boards may be “adopting AI meeting tools to assist with the drafting of board and committee minutes.” As the memo’s authors note, board adoption of AI tools for these purposes may offer some benefits, but the use of the tools also entails risk, which board members will want to take into account in using the tools.

The June 23, 2025, law firm memo, entitled “AI Can Draft Board Minutes – But Should It? Considerations for Public Companies,” can be found here.Continue Reading AI Tools in the Boardroom

As I have noted in recent posts (most recently, for example, here), the proliferation of AI in many industries is changing the way business gets done. According to a new study, AI could also be changing the language companies use to report to regulators and to communicate with their investors, in ways that potentially could increase the companies’ securities class action litigation exposure.Continue Reading Tone Portrait: Artificial Intelligence and MD&A

In recent months, a number of companies have been hit with AI-washing securities class action lawsuits alleging that the defendant companies overstated their AI-related capabilities or opportunities (such as, for example, the securities suit filed late last week against Tempus AI, as discussed here). While there have been quite a number of AI-washing related securities suits, I have long though that the larger and longer-term AI-related securities litigation risk is not as much with respect to allegations that companies overstated their AI capabilities, as from allegations that companies understated their AI-related risks.

In a new securities class action lawsuit that reflects these latter kinds of risk, last week a plaintiff shareholder sued online platform Reddit, alleging that the company misled investors by downplaying the impact on the company’s site traffic and ad revenue from Google’s adoption of artificial intelligence search results. As discussed below, these kinds of AI-risk related allegations could represent a potential new area of AI-related securities litigation risk. A copy of the June 18, 2025, complaint against Reddit can be found here.Continue Reading Reddit Downplayed Impact of Google’s AI-Related Changes, Suit Alleges

Among the many executive orders launched at the outset of the current Trump administration was the January 23, 2025 Executive Order that declared the administration’s commitment to maintaining the U.S. at the “forefront of artificial intelligence (AI) innovation.” The Executive Order set out the administration’s commitment to removing policies and directives that “act as barriers to American AI innovation.”

The Executive Order meant a variety of things when it referred to removing barriers, and the statement does at least raise the question about what the administration’s – and in particular, the SEC’s – enforcement approach to AI will be, if the goal is to remove barriers. As discussed below, there are signs to suggest that the administration will continue to monitor and address AI-related misrepresentations, notwithstanding its commitment to removing barriers to AI innovation.  Continue Reading What About AI-Related Enforcement Under the Trump Administration?