SEC officials have for months been signaling their concerns about companies overstating their AI credentials, a phenomenon that the officials and others have called “AI washing.” As set out and partially transcribed in a September 5, 2024, TheCorporateCounsel.net post (here), SEC Chair Gary Gensler recently recorded a video in which he reiterated concerns
Jim Peterson
Notwithstanding the prevalent ESG backlash in the U.S., companies still face pressure, from a variety of sources, to present and substantiate their sustainability credentials. One question with respect to sustainability from the accounting perspective is who will provide assurance for sustainability information and under what conditions? In the following guest post, Jim Peterson
In a post last week, I wrote about the recurring question of who is an “officer” for purposes of determining qualification for advancement, indemnification, and insurance benefits. I received several comments about the post, including a note from Keith Paul Bishop of the Allen Matkins law firm, who writes the California Corporate & Securities Law
Every year after Labor Day, I take a step back to survey the most important current trends and developments in the world of Directors’ and Officers’ liability and insurance. This year’s review is set out below. As the following discussion shows, this is a particularly interesting time in the world of D&O.
Individuals serving as corporate officers take on significant potential liability exposures in the performance of their duties. As a result, most companies provide their officers with advancement, indemnification, and insurance protection for liabilities incurred while acting as corporate officers. However, it is not always clear who is an “officer” for purposes of claiming the benefits
The SEC has already made it clear that it intends to pursue enforcement actions against firms that misrepresent their Artificial Intelligence (AI) capabilities. In the latest example of the SEC’s commitment in that regard, earlier this week the SEC filed an enforcement action against an investment advisory firm, its holding company, and the two firms’
Here we are, well into the fifth year since the initial outbreak of COVID-19 in the U.S., and yet coronavirus-related securities lawsuits are still being filed. In the latest example, earlier this week plaintiffs’ lawyers filed a securities class action lawsuit against the electronics manufacturing firm Methode Electronics based in part on allegations concerning problems
Daniele Favalli
Alessio Zolpi
In the following guest post, Daniele Favalli and Alessio Zolpi take a look at the availability of D&O insurance in connection with criminal proceedings in Switzerland. Daniele is an attorney admitted to the Zurich bar. He is a partner and co-head of the Dispute Resolution Team of the Zurich-based law firm
All eyes have recently been focused on the U.S. Department of Justice’s announcement of its new corporate whistleblower awards program. The DOJ’s program potentially could have a significant impact on future corporate crime prosecutions, but meanwhile the Securities Exchange Commission’s whistleblower program has been up and running for years and indeed just passed the thirteenth
At this point, there is nearly universal agreement that artificial intelligence (AI) is (or at least will be) transformative. It is also clear that as companies struggle to adapt to the new technology, they also face a host of challenges, including disclosure and regulatory risks, and the related risk of litigation. As a result, AI
