The number of large corporate bankruptcy filings during the twelve-month period ending June 30, 2026, was down compared to the preceding twelve months, but remained elevated compared to long-term historical averages, according to a new report from Cornerstone Research. In the firm’s press release about the report, the report’s co-author is quoted as saying that the elevated bankruptcy rate reflects “persistent challenges of the broader economic environment for companies that rely on debt financing.” The report, which is entitled “Trends in Large Corporate Bankruptcy and Financial Distress: Midyear 2026 Update,” can be found here. Cornerstone Research’s press release about the report can be found here.

Continue Reading Large Corporate Bankruptcy Filings Down, But Still Above Historic Levels

On September 28, 2026, a securities class action lawsuit was filed against Qfin Holdings, Inc. (Qfin), a China-based company that describes itself as operating an AI-driven credit technology platform used for credit assessment, borrower acquisition, and related financial services. The plaintiffs allege that the company overstated the resilience and effectiveness of its AI-enabled business model while downplaying the adverse effects of tightening regulations and liquidity constraints. A copy of the complaint can be found here.

The same day, shareholders also filed a securities suit against Fluence Energy, Inc., a provider of energy-storage systems, optimization software, and related products used by utilities and, increasingly, data-center operators. While the Fluence complaint does not involve allegations concerning AI technology itself, it repeatedly references the company’s efforts to capitalize on accelerating demand from data centers and hyperscale customers and alleges that manufacturing and supply-chain challenges prevented it from meeting growth expectations associated with that rapidly expanding market. A copy of the complaint can be found here.

Continue Reading New Complaints Highlight AI Platforms and Data Center Infrastructure D&O Risk
Petronas Towers, Kuala Lumpur

My Asian assignment for The D&O Diary continued last week with a stop in Kuala Lumpur, Malaysia’s capital and largest city. Kuala Lumpur is a modern and dynamic city that features an iconic skyline, bustling streets, and a renowned food scene. It was a return visit for me to this endlessly fascinating place.

Continue Reading Kuala Lumpur

Episode 8 of The D&O Diary Podcast series is now live. In this latest episode, we are joined by Boris Feldman, Partner and Global Co-Head of Technology, Media & Telecommunications at Freshfields. Widely recognized as one of Silicon Valley’s leading securities defense lawyers, Boris has spent more than four decades representing technology companies, directors and officers, and venture-backed enterprises in shareholder litigation, giving him a unique perspective on the evolution of securities litigation and corporate liability risks.

In our conversation, Boris discusses how securities litigation has changed over the course of his career and reflects on the profound impact of the Private Securities Litigation Reform Act. He also offers insights into the distinctive culture and risk tolerance of Silicon Valley boards and management teams, explaining how that culture has influenced both corporate decision-making and litigation risk.

We also explored the next generation of securities litigation exposures. Boris shares his thoughts on the SEC’s current enforcement environment, the rapidly developing role of artificial intelligence, and the ways AI may shape future disclosure, governance, and securities lawsuits. He discusses not only AI as a source of corporate risk, but also how plaintiffs’ lawyers themselves may use AI as a litigation tool. The discussion also touches on emerging areas of litigation involving social media platforms, technology companies, and the infrastructure demands created by AI and data center growth.

As always, Boris brings a practical, candid, and often entertaining perspective to the conversation. His observations provide valuable context for understanding where securities litigation has been and where it may be headed next.

🎧 Listen now on: 

Apple Podcasts: https://podcasts.apple.com/us/podcast/the-d-o-diary-podcast/id1896880954?i=1000794074822

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YouTube: https://youtu.be/wLewk0by8qA

If you enjoy the podcast, please consider following the series and sharing it with colleagues. Thank you for the tremendous support thus far!

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

The overall number of Delaware Chancery Court M&A lawsuit settlements increased in 2025, but aggregate, average, and median settlement values decreased during the year, according to a new report from Cornerstone Research. The report, which is entitled “M&A Litigation Settlements in the Delaware Court of Chancery: 2012-2025 Review & Analysis,” attributes the 2025 declines in settlement values to the number of SPAC merger-related lawsuit settlements during the year. Cornerstone Research’s September 23, 2026, press release about the report can be found here. The report itself can be found here.

Continue Reading Del. Chancery Court M&A Lawsuit Settlement Values Decreased in 2025

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
Singapore

This past week, I was on assignment for The D&O Diary in Singapore, the prosperous and verdant city-state in equatorial Southeast Asia. With its clean and orderly streets and its lush parks, as well as its fabulous food scene, Singapore is one of my favorite places to visit, and this return trip reconfirmed my appreciation for the place.

Continue Reading Singapore

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