Securities
Apr. 22, 2026
Defending AI-washing claims in the new enforcement era
The rise of "AI-washing" securities litigation shows how courts are applying traditional defenses like puffery, scienter and safe harbor to AI-related claims, while highlighting emerging liability risks and steps companies should take to document and control AI disclosures.
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
In Part 1 of this article series, we
traced the escalation of AI-washing from the SEC's first administrative actions
in 2024, through a surge of private securities class actions, to the DOJ's
first criminal indictment in 2025--and examined the three factors that turn a
civil disclosure problem into a criminal prosecution. ("
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