News & Analysis as of

Machine Learning Enforcement Actions Securities and Exchange Commission (SEC)

Sheppard Mullin Richter & Hampton LLP

SEC Creates New Tech-Focused Enforcement Team

On February 20, the SEC announced the creation of its Cyber and Emerging Technologies Unit (CETU) to address misconduct involving new technologies and strengthen protections for retail investors. The CETU replaces the SEC’s...more

Venable LLP

SEC's New Cyber and Emerging Technologies Unit to Replace Crypto Unit and Focus on Fraud, AI, Social Media, and Hacking in...

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Recently, the Securities and Exchange Commission announced the creation of a Cyber and Emerging Technologies Unit (CETU), a group of 30 fraud specialists and attorneys spread across the SEC's offices around the country to...more

Secretariat

Mitigating AI Risks: Insights from Regulatory Guidance and Enforcement

Secretariat on

Introduction - The rapid rise of Artificial Intelligence (AI), particularly Generative AI, has transformed various industries. From finance, where AI algorithms help manage investment portfolios and detect fraud, to...more

Cooley LLP

SEC Announces New Cyber and Emerging Technologies Unit

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On February 20, 2025, the US Securities and Exchange Commission (SEC) announced the creation of a new enforcement unit – the Cyber and Emerging Technologies Unit (CETU). The SEC’s announcement made clear that the new unit...more

Lowenstein Sandler LLP

SEC Charges Public Company with AI Washing

On January 14, 2025, the U.S. Securities and Exchange Commission (SEC) charged Presto Automation Inc. (Presto) with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 for misleading artificial...more

Ropes & Gray LLP

AI-Washing Enforcement in the Final Days of the Gensler Administration

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As former Securities and Exchange Commission (“SEC”) Chair Gary Gensler’s term came to a close following his resignation announcement in November 2024, the SEC issued another order targeting what has proved to be one of...more

Moore & Van Allen PLLC

The Desk: January Issue

So, we’ll start off with our familiar and cherished Enforcement Roundup, touch on emergency funding for the CFTC’s Whistleblower Program, talk about the CFTC’s advisory on artificial intelligence, get you ready for updates to...more

McDermott Will & Emery

AI and the Law: Emerging Trends in Enforcement

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Deemed the Fourth Industrial Revolution, artificial intelligence (AI) has emerged as the newest watershed technological development of the 21st century, as evidenced by its near ubiquity in discussions of everything from how...more

NAVEX

New Year, New Administrations, New Responses

NAVEX on

Global election results mean the coming years are going to be full of change for compliance. This article, from our 2025 Top 10 Trends in Risk & Compliance explores how you can prepare....more

Baker Botts L.L.P.

SEC Continues Focus on AI and Cyber-Risk Related Enforcement Cases

Baker Botts L.L.P. on

The SEC kicked off its fiscal year by bringing enforcement actions focused on AI and cyber disclosures. As discussed in more detail below: •These actions again show SEC Enforcement prioritizing “hot button” issues like AI...more

Clark Hill PLC

Right To Know - September 2024, Vol. 21

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Cyber, Privacy, and Technology Report - Welcome to your monthly rundown of all things cyber, privacy, and technology, where we highlight all the happenings you may have missed....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 56

Dechert LLP on

SEC Fines the New York Stock Exchange’s Parent Company $10 million for Failure to Promptly Notify Its Subsidiaries of Cybersecurity Breach - On May 22, 2024, the Securities and Exchange Commission (“SEC”) imposed a $10...more

Carlton Fields

Cinch Up! AI Enforcement Starts With Washing Charges

Carlton Fields on

In March 2024, the SEC announced that it settled two cases against investment advisers Delphia (USA) Inc. and Global Predictions Inc. for making false and misleading statements about their purported use of artificial...more

Mayer Brown

Securities and Exchange Commission Brings First Enforcement Actions Over “AI-Washing”

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On March 18, 2024 the US Securities and Exchange Commission (“SEC” or the “Commission”) announced that it had settled charges in separate actions against two investment advisers, Delphia (USA) Inc. (“Delphia”) and Global...more

Bilzin Sumberg

SEC Issues First AI-Related Civil Penalties and Warns Against “AI Washing”

Bilzin Sumberg on

​​​​​​​The Securities and Exchange Commission on Monday, March 18, 2024, entered into settlements with Delphia (USA) and Global Predictions, which agreed to pay civil penalties totaling $225,000 and $175,000, for “AI...more

ArentFox Schiff

Investigations Newsletter: Deputy Attorney General Monaco Warns Industries: “Fraud Using AI is Still Fraud”

ArentFox Schiff on

On March 7, Deputy Attorney General Lisa Monaco delivered the keynote remarks at the American Bar Association’s (ABA) 39th National Institute on White Collar Crime. She noted that artificial intelligence (AI) “holds great...more

Skadden, Arps, Slate, Meagher & Flom LLP

Understanding SEC’s Focus Amid Lack of Final AI Rules

Last year, the U.S. Securities and Exchange Commission (SEC) proposed ambitious rules relating to artificial intelligence (AI) that have drawn significant commentary and criticism. While it is unlikely that any changes in the...more

Bracewell LLP

What is AI Washing? The SEC’s Latest Target

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Is AI the new green? Recent comments by Securities and Exchange Commission Chair Gary Gensler suggest the regulator is primed to begin turning its enforcement efforts against so-called “AI washing,” presenting a new area of...more

Fenwick & West LLP

“Business as Usual” as Securities Enforcement Leaders Gather Virtually for Securities Enforcement Forum West 2020

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Like most of the rest of the world, the speakers and attendees at Securities Enforcement Forum West 2020 last week had to adapt this year by trading in their microphones on the stage of a grand ballroom for an array of home...more

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