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Misrepresentation Misleading Statements

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

Ankura

Classwide Calculations May Get Price Premium Damages Wrong

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Economic damages in many consumer class actions — including false advertising and product defect class actions — are estimated using a “price premium” approach. In these matters, plaintiffs assert that putative class members...more

A&O Shearman

Supreme Court Hears Oral Argument On Standard For Pleading Securities Fraud In Private Civil Suits

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On November 13, 2024, the United States Supreme Court heard oral argument in an appeal from a decision of the United States Court of Appeals for the Ninth Circuit in a putative class action asserting claims under the...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

Bowditch & Dewey

What Massachusetts Owner-Occupied Residential Property Owners (and Solar Panel Installers) Need to Know Before Contracting for...

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In July, 2024, the Connecticut Attorney General filed suit alleging that certain solar panel installers had violated the Connecticut Unfair Trade Practices Act (“CUTPA”) by: - engaging in conduct that violates public...more

Hinch Newman LLP

FTC Announces Final “Click-to-Cancel” Recurring Subscriptions and Memberships Rule

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On October 16, 2024, the Federal Trade Commission announced a final “click-to-cancel” rule that will require sellers to make it as easy for consumers to cancel their enrollment as it was to sign-up. Most of the final rule’s...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

Fenwick & West LLP

SEC Charges Biotech Co. with Misleading IPO Investors

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On September 13, the SEC charged Zymergen Inc., a biotechnology company, with misleading IPO investors about the company’s market potential and sales prospects....more

Mintz

Recent Greenwashing Litigation Focuses on Consumer Products

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Over the past couple of weeks, there have been a pair of greenwashing lawsuits filed--by both private plaintiffs and government regulators--that highlight the current focus on consumer products as a centerpiece of...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

Hinch Newman LLP

1MM FTC Settlement With Online Used Car Dealer Over Alleged Misrepresentations and Failing to Deliver on Time

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On July 2, 2024 the Federal Trade Commission announced that it initiated action against online used car dealer Vroom for allegedly misrepresenting that it thoroughly examined all vehicles before listing them for sale and...more

Awatif Mohammad Shoqi Advocates & Legal...

A Comprehensive Overview of the 2023 Commercial Fraud Law

UAE introduces Federal Decree-Law No. 42/2023 to Combat Commercial Fraud, repealing Federal Law No. 19/2016, and emphasizing a comprehensive legal framework. The new law aims to protect consumers, preserve goods' integrity,...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update: March 1, 2024

The Nutter Securities Enforcement Update is a periodic update of noteworthy recent securities enforcement activity, settlements, decisions, and charges. We provide brief summaries that highlight recent enforcement action...more

White & Case LLP

New Settlements Demonstrate the SEC’s Ongoing Efforts to Hold Companies Accountable for AI-Washing

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In the past few months, we have published several alerts concerning the increase in regulatory attention to "AI washing," or making unfounded claims regarding artificial intelligence ("AI") capabilities.1 Senior officials at...more

Vondran Legal

Viral DRM on a copyright lawsuit rampage in California

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Viral DRM is a content creator specializing in weather videos. Their content is attractive to many people who love to watch storm and weather videos. Recently, Viral DRM has been on a rampage filing lawsuits in California...more

Goldberg Segalla

CA Federal District Court Grants Dismissal In Favor of Personal Care Manufacturer in PFAS Misrepresentation Action

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On January 12, 2024, a northern California federal district court dismissed the PFAS-related class-action case of Lowe v. Edgewell Personal Care Company on the grounds that its plaintiffs had not plausibly alleged injury from...more

Mayer Brown

New California Anti-Greenwashing Law Goes Live on January 1, 2024 – What you need to know if you make certain “green” claims.

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California recently passed the Voluntary Carbon Market Disclosures Act (AB 1305) (VCMDA). The new “anti-greenwashing” law is one of the first laws in the U.S. to not only regulate the voluntary carbon market, but also require...more

Davis Wright Tremaine LLP

Stay ADvised: Brand Protection & Advertising Law News - December 2023

In This Case, What You Can't See in Fact Is Not There: FTC Takes Down the Makers of the Invisible COVID Mask - After what has seemed like a lull in both diagnosed COVID cases and the enforcement variety—both the virus and...more

Patton Sullivan Brodehl LLP

Receiver for LLC Can be Bound by Operating Agreement’s Arbitration Provisions

Courts often appoint receivers to manage the affairs of LLCs when the internal management is conflicted or broken. General equity receivers (as opposed to more limited receiverships such as deed of trust receivers) enjoy...more

A&O Shearman

Eastern District Of New York Sustains Securities Act Claims And Dismisses Exchange Act Claims In A Putative Class Action Against...

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On September 25, 2023, Judge Pamela K. Chen of the United States District Court for the Eastern District of New York granted in part and denied in part a motion to dismiss a putative securities class action alleging that an...more

Hinch Newman LLP

Direct Seller Defeats FTC Pyramid Scheme Allegations

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In November 2019, the Federal Trade Commission filed a lawsuit against direct selling wellness company Neora, LLC (f/k/a Nerium International, LLC) and its Chief Executive Officer alleging that the company operates as an...more

Society of Corporate Compliance and Ethics...

Let’s call it what it is

Sometimes I think we need fewer terms to describe the same or similar things. In the environmental, social, and governance (ESG) world, much is made—rightfully so—of greenwashing, which occurs when an organization makes false...more

Moritt Hock & Hamroff LLP

Publishers Clearing House: A Cautionary Tale on the Risks of ‘Dark Patterns’ Marketing

Publishers Clearing House (PCH) is well known for surprising major sweepstakes winners with a Prize Patrol knock on their doors. But the recent lawsuit filed by the Federal Trade Commission (FTC) against the company was...more

BCLP

Tweets and Emojis: Teaching Moment for 13Ds and 144s

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What happened? The U.S. District Court for D.C. recently rejected a motion to dismiss a lawsuit claiming fraud in an alleged “pump and dump scheme” arising out of...more

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