News & Analysis as of

Software Misrepresentation

Morrison & Foerster LLP

Time to Assess the Damage: Implications from THJ Systems v. Sheridan

THJ Systems Ltd & Anor v. Sheridan & Anor [2024] EWHC 3195 (Ch) addressed two key issues in respect of damages related to (i) breach of contract and (ii) copyright infringement, following a determination of liability in...more

Goodwin

Texas AG Reaches First-of-its-Kind Settlement With Healthcare AI Company Over Hallucination Rate Claims

Goodwin on

In a recent settlement, the Texas attorney general resolved allegations that Pieces Technologies, Inc. (Pieces), a healthcare generative AI company, misrepresented the hallucination rate of its generative AI product to...more

Vinson & Elkins LLP

Failure to Act: SEC Brings Individual Charges Against CFO and Audit Committee Chair in Corporate AI Fraud Case

Vinson & Elkins LLP on

On September 16, 2024, the United States Securities and Exchange Commission (“SEC” or the “Commission”) brought charges against Kubient, Inc.’s (“Kubient”) former chairman and chief executive officer (“CEO”) for allegedly...more

Holland & Knight LLP

Novel Settlement Reached in Generative AI Deceptive Trade Practices Healthcare Investigation

Holland & Knight LLP on

The state of Texas, by and through its Attorney General Ken Paxton, reached a first-of-its-kind settlement agreement with Pieces Technologies Inc. (Pieces) following an investigation into Pieces' alleged violations of the...more

A&O Shearman

Western District Of Washington Grants Motion To Dismiss Proposed Class Action Against Software Company And Its Board Of Directors

A&O Shearman on

On March 1, 2024, Judge Marsha J. Pechman of the United States District Court for the Western District of Washington dismissed with prejudice a putative shareholders’ class action against a software company (the “Company”)...more

Sheppard Mullin Richter & Hampton LLP

FTC Judge Orders Tax Filing Software Company to Stop Advertising Products as “Free”

On September 8, the FTC’s Chief Administrative Law Judge (“ALJ”) issued an initial decision finding that a company providing tax filing software services engaged in deceptive advertising practices in violation of Section 5 of...more

Dorsey & Whitney LLP

Software Provider and DOJ Reach $8.6M Settlement for FCA Case Involving Alleged Cyber Security Shortcomings

Dorsey & Whitney LLP on

Amid increased public and government attention to cyber security, a qui tam plaintiff’s lawsuit has resulted a large settlement for a government contractors’ purported misrepresentations regarding compliance with government...more

Robinson+Cole Data Privacy + Security Insider

Federal Trade Commission Approves Settlement with Lenovo Over Ad Software

The Federal Trade Commission (FTC) has approved its proposed settlement with Lenovo, Inc. over the installation of pre-installed advertising software called VisualDiscovery onto Lenovo laptops. According to the FTC, the...more

Morrison & Foerster LLP - Class Dismissed

Ninth Circuit Affirms Dismissal of Fraud-Based UCL Claims Based on Lack of Reliance

The Ninth Circuit Court of Appeals’ recent decision in Haskins v. Symantec Corp., Case No. 14-16141 (9th Cir. June 20, 2016), supports the requirement that plaintiffs must allege exposure to and reliance on specific...more

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