When I first heard the news last week that the U.S. Department of Treasury and other federal agencies had imposed penalties and settlements against Bank of America totaling more than $1.2 billion for anti-money laundering and trade sanctions violations, I told colleagues that we would not have to wait long for a follow-on D&O lawsuit. Sure enough, just days after the Treasury Department announcement, a plaintiff shareholder filed a securities class action lawsuit against the Bank and certain of its executives based on the defendants’ alleged misrepresentations concerning the bank’s compliance and internal controls. This type of lawsuit following in the wake of regulatory enforcement actions raises important and interesting issues, as discussed further below.

Continue Reading AML Penalties-Related Securities Suit Hits Bank of America

A new securities class action lawsuit filed against Endava plc, a technology consulting and digital transformation company that has promoted its transition to an “AI-native” business model, represents the 28th AI-related securities class action lawsuit filed in 2026. The lawsuit also raises an increasingly important question in the evolving AI-related litigation landscape: what makes a securities suit “AI-related”?

Continue Reading Endava Hit with Latest AI-Related Securities Suit
Tokyo, viewed from our hotel room

My Asian assignment for The D&O Diary continued last week with a long-weekend visit to Tokyo, which is both one of the world’s largest cities and one of the world’s great places, as well. The city streches beyone the horizon in every direction, a seemingly limitless urban expanse that is vast and orderly, efficient, and culturally rich.

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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.

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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

Spotify: https://open.spotify.com/episode/31b6UJKCea23w7TZkj2lQX?si=4a9d41eee25749d3

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