Artificial Intelligence (AI) is currently one of the most prominent drivers of corporate strategy, investment narratives, and market valuation across industries.
As companies incorporate AI into their operations and public disclosures, investor expectations around the transformative potential of these technologies have intensified. This heightened attention has contributed to a rise in securities class actions alleging misleading AI-related disclosures, including claims of “AI washing.”
In this first installment of an Insights series on AI-related securities litigation, we analyze securities class actions that involve AI-related disclosures. We review complaints alleging violations of Section 10(b) of the Exchange Act and Section 11 of the Securities Act filed from 2021 through Q1 2026 and describe the types of misrepresentations that are asserted by plaintiffs, and other characteristics, in order to evaluate the complexities that such cases may present when conducting an economic analysis of the underlying issues.
Key takeaways from the analysis:
- AI-related securities class actions have increased over time.
- AI-related cases are concentrated but not limited to technology companies.
- AI washing is important, but it is not the only AI-related allegation plaintiffs assert.
- Most cases involve multiple AI-related allegations.
- Section 11 claims appear relatively more frequently in AI-related cases than other securities class actions.
- AI-related cases can involve substantial economic stakes and complexity.
Read more about AI-related securities litigation here.
