Securities,
Criminal
Apr. 21, 2026
AI-washing moves from hype to liability
As companies race to signal AI adoption, regulators and plaintiffs' attorneys are scrutinizing those claims more closely than ever -- turning a civil disclosure problem into potential criminal liability.
Ashwin J. Ram
Partner and Co-Chair
Buchalter LLP
White Collar & Investigations Practice
Phone: (213) 891-5035
Email: aram@buchalter.com
Univ of Kansas SOL; Lawrence KS
Two-thirds of S&P 500 companies now mention AI in their annual reports, up from 28% in 2021. As companies race to signal AI adoption, regulators and plaintiffs' attorneys are scrutinizing those claims more closely than ever.
In 2025, 17 AI-related securities class actions were filed in federal court--up from seven in 2023. The SEC has brought enforcement actions against investment advisers and public companies alike. And in April 2025, for the first ...
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