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Artificial Intelligence Misleading Statements

Mitchell, Williams, Selig, Gates & Woodyard,...

Arkansas Legislative Update: New Technology, Privacy and Cybersecurity Laws

The Regular Session of the 95th General Assembly is set to adjourn sine die on Monday, May 5, 2025. During this session, the Arkansas legislature passed several bills relating to technology, privacy and cybersecurity which...more

White & Case LLP

Evolution of AI Washing Enforcement: DOJ Enters the Picture

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On April 9, the US Department of Justice and Securities and Exchange Commission announced parallel cases against the founder and former CEO of an artificial intelligence startup for allegedly misleading investors about his...more

DLA Piper

DOJ and SEC Send Warning on “AI Washing” with Charges Against Technology Startup Founder

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The US Department of Justice (DOJ) announced a criminal indictment and the Securities and Exchange Commission (SEC) announced a civil complaint against the founder and former CEO of an e-commerce technology startup. DOJ and...more

Harris Beach Murtha PLLC

SEC Enforcement Action in SDNY Highlights Risks for AI Companies

On April 9, 2025, the Securities and Exchange Commission (SEC) filed a complaint in the U.S. District Court for the Southern District of New York against Alberto Saniger Mantinan, the founder and CEO of Nate, Inc. The SEC...more

WilmerHale

Year in Review: 2024 AI Securities Litigation Trends

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Claims relating to statements about artificial intelligence (“AI”) have rapidly become a focal point in securities litigation. Similar to the past surge of “greenwashing” claims tied to climate change disclosures, in 2024 we...more

Troutman Pepper Locke

Misleading Artificial Intelligence Claims by Marketer of Website Accessibility Widget Lead to $1 Million FTC Settlement

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On January 3, the Federal Trade Commission (FTC) issued a press release announcing that accessiBe Inc. and accessiBe Ltd. (collectively, accessiBe) agreed to pay $1 million to settle allegations of deceptive advertising...more

Husch Blackwell LLP

Looking Ahead to the 10-K and Proxy Season: New Requirements and Considerations for the 2025 Reporting Season

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As we approach 2025, we want to remind registrants about several new rules that will impact disclosure for the 2024 Form 10-K and 2025 proxy season, note the 2025 deadlines for filings with the Securities and Exchange...more

Robinson+Cole Data Privacy + Security Insider

Second FTC AI Facial Recognition Case Against Company for Making False and Misleading Statements about Software

This week, the Federal Trade Commission (FTC) issued a proposed consent order to settle allegations against IntelliVision Technologies Corp. (IntelliVision) for making false, misleading, and unsubstantiated claims that its...more

Morrison & Foerster LLP

Top 5 SEC Enforcement Developments for October 2024

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Each month, we publish a roundup of the most important SEC enforcement developments for busy in-house lawyers and compliance professionals. This month, we examine: •Accounting fraud charges for allegedly concealing costs; ...more

BCLP

Artificial Intelligence Stays in the SEC's Cross-Hairs

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As news stories about AI have surged, so have enforcement actions by the SEC alleging fraudulent statements about AI capabilities....more

Seward & Kissel LLP

SEC Charges Investment Company, CEO and Board Member for Alleged Misleading Statements Regarding Use of Artificial Intelligence

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Who may be interested: Registered Investment Companies; Boards of Directors; Compliance Staff; Registered Investment Advisers - Quick Take: The SEC recently settled charges against a registered investment adviser (Adviser)...more

Quarles & Brady LLP

Texas Attorney General Obtains Settlement of Alleged False and Misleading Statements About Healthcare Artificial Intelligence...

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On September 18, 2024, the Attorney General (AG) of Texas announced a settlement with an artificial intelligence-focused healthcare technology company to resolve allegations of false and misleading statements about the...more

Fenwick & West LLP

False Claims of Patent Protection Can Be False Advertising Under Lanham Act

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Patented technologies or features can be valuable selling points, setting your products apart from the competition. But when advertising or marketing materials overstate the scope of patent or other IP rights, they may create...more

WilmerHale

Texas Attorney General’s Office Reaches Settlement with AI Company Over Deceptive Claims

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On September 18, the Texas Attorney General (AG) announced a settlement agreement with Pieces Technologies, Inc. (“Pieces”), a Dallas-based healthcare artificial intelligence (AI) research and development firm, resolving...more

King & Spalding

Department of Justice Continues to Focus on AI This Week

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On September 23, 2024, the U.S. Department of Justice (Department) announced that it had updated its guidance to prosecutors on how to evaluate the effectiveness of a corporation’s compliance program. The guidance, known as...more

Hinch Newman LLP

What Digital Marketers and Influencers Need to Know About the FTC Final Rule Banning Fake Consumer Reviews and Testimonials

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As previously blogged about here, following notices of proposed rulemaking in 2022 and 2023, on August 22, 2024 the Federal Trade Commission finalized a rule that will impose monetary civil penalties false and misleading...more

Fox Rothschild LLP

AI Companies Need to Be Transparent, Texas AG Says

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The Texas Attorney General recently took action against Pieces Technologies Inc., resolving claims that the company made a series of false and misleading statements about the accuracy and safety of its Artificial Intelligence...more

Baker Donelson

AI Firm Reaches Settlement With Texas Attorney General Over Misleading Accuracy Claims

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Texas Attorney General, Ken Paxton, (the Attorney General) announced on September 19, 2024, a landmark settlement with Pieces Technologies (Pieces) over allegations of false and misleading claims about the capabilities of its...more

Husch Blackwell LLP

Texas Attorney General Reaches Generative AI Settlement

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Keypoint: The Texas Attorney General reaches a first-of-its-kind settlement with a healthcare company that provides generative AI products. On September 18, 2024, the Texas Attorney General announced that it had reached a...more

Shipkevich PLLC

New Rule Issued by FTC Focuses on Fake and AI-Generated Reviews, Imposes Heavy Civil Penalties

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The Federal Trade Commission (FTC) issued a new Final Rule (the “Rule”) on Wednesday, August 14, 2024, targeting unfair and deceptive acts or practices specifically related to consumer reviews and testimonials, allowing the...more

Foley & Lardner LLP

Don’t Buy The Buzzwords: “AI Washing” Gets Its Reckoning

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Since the release of ChatGPT 3.5 in November 2022, public interest in artificial intelligence (AI) has surged in a classic example of a hype cycle. As with past technological breakthroughs, companies may be tempted to...more

Dechert LLP

Dechert Cyber Bits - Issue 59

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U.S. Court Axes Most of SEC's SolarWinds Data Breach Suit - The U.S. District Court for the Southern District of New York recently dismissed much of the U.S. Securities and Exchange Commission’s (“SEC”) suit against...more

Vinson & Elkins LLP

Oversold and Underdelivered: SEC Charges Former Startup CEO with “AI Washing” Securities Fraud

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On June 11, 2024, the United States Securities and Exchange Commission (the “SEC”) charged Illit Raz, the former CEO and founder of the since-shut-down artificial intelligence recruiting startup Joonko Diversity Inc....more

BCLP

SEC and DOJ Heighten Focus on AI Washing

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The SEC recently charged Ilit Raz, the CEO of Joonko Diversity Inc., a failed recruitment startup, with "AI washing" based on allegedly false claims that her company had developed an “automatic recruiting solution” to help...more

Vinson & Elkins LLP

Cooperation and Compliance: Navigating Artificial Intelligence at the Securities Enforcement Forum

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On May 23, 2024, the Securities Enforcement Forum West debuted its first-ever panel on the impact of artificial intelligence (“AI”) on securities enforcement, regulation, compliance, and practice, signaling an increased focus...more

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