Artificial Intelligence

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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

A securities class action filed against ZoomInfo Technologies, Inc. and certain of its directors and officers on June 25, 2026, highlights what may be the next phase of AI-related securities litigation. Unlike many earlier AI-related lawsuits, which alleged that companies overstated their AI capabilities, the Zoom complaint alleges that the company accurately described its AI initiatives but failed to disclose that AI was simultaneously disrupting its legacy business model.

If this theory gains traction, it could represent another evolution in AI-related securities litigation: from alleged AI washing to alleged underdisclosure of AI-related business risks.

Continue Reading AI-Related Securities Litigation Continues to Evolve

The D&O Diary is pleased to announce that the second installment in its podcast series is now available online. This latest podcast discusses artificial intelligence from the perspective of D&O risk, specifically including AI-related litigation, regulation, and board governance. The episode, like our recent D&O Diary post on AI, D&O Risk, and the Limits of Underwriting, also discusses the challenge that AI presents for D&O insurance underwriters.

Continue Reading D&O Diary Podcast Series – Episode 2: Artificial Intelligence (AI)

Over the last several years, artificial intelligence (AI) has evolved into a central component of many companies’ growth strategies. As organizations increasingly integrate AI into their operations, products, and business models, the associated litigation risks have begun to emerge as well. The D&O Diary has been tracking the rise of AI-related litigation, from early AI-washing cases to a growing number of securities suits involving AI infrastructure investments, AI-enabled business models, and AI-related disclosure issues.

Continue Reading AI, D&O Risk, and the Limits of Underwriting

The D&O Diary has been chronicling how securities plaintiffs continue to expand litigation theories beyond traditional “AI-washing” claims. The recent securities class action against data protection company Commvault Systems, Inc. demonstrates how AI hype and strategy can become entangled with traditional securities claims, even when actual AI integration is not the central issue of the lawsuit.

Continue Reading AI-Adjacent Securities Litigation

Artificial intelligence (AI) is an increasingly important part of business strategy for many companies. As AI has become increasingly important in the corporate world, some commentators suggest that corporate boards not only need AI fluency but in fact need a specialized AI expert.  These suggestions about board expertise may present challenges for many boards, as boards seek to balance a host of competing objectives and interests. An April 15, 2026, memo from the Debevoise & Plimpton law firm (here) takes a pragmantic approach, proposing that the appropriate AI governance framework “will differ for each company and should align with the company’s strategic needs and relationship to technology.”

Continue Reading AI and Corporate Governance: Do Boards Need an AI Expert?

Financial news sites were ablaze recently with the news that a co-founder and board member of the data server company Super Micro Computer had been indicted, along with two other company executives, for allegedly conspiring to smuggle high-end Nvidia chips into China, in violation of U.S. export control laws. With news that sensational, and in light of the ensuing stock price drop, it was only a matter of time before plaintiffs’ lawyers would file a securities class action lawsuit. And, sure enough, late last week, a plaintiff shareholder did file a securities suit against the company.

The complaint in the new lawsuit, which can be found here, is interesting in and of itself, relating as it does to the sensational circumstances involved. But the lawsuit is arguably even more interesting for what it represents – that is, as an illustration of the ways that geopolitical issues can – and increasingly are – translating into securities class action lawsuits.

Continue Reading Geopolitics, Export Controls, and D&O Risk

In recent months, the filing of securities class action lawsuits involving artificial intelligence (AI)-related allegations has become an increasingly important part of overall securities suits filing volume. By and large, the AI-related suits have involved relatively smaller corporate defendants. Late last week, however, a plaintiff shareholder filed an AI-related securities suit against the technology behemoth Oracle, alleging that the company made misrepresentations in its disclosures concerning its AI infrastructure-related capital expenditures. For securities litigation trend watchers, the new lawsuit has a number of interesting features, as discussed below.

Continue Reading Oracle Hit with Massive AI Infrastructure-Related Securities Suit