In a Law360 Expert Analysis article, WilmerHale Partners Mike Bongiorno and Jessica Lewis and Associates Max Atkins, Michele Cusi, and Weifeng Yang examine how companies' AI-related statements are being tested through traditional securities litigation frameworks. Reviewing two recent cases, the authors explain that courts are applying established Private Securities Litigation Reform Act (PSLRA) principles to AI washing claims, allowing suits to proceed only where plaintiffs identify specific, verifiable statements about present conditions and plead contemporaneous internal facts that contradict them. The authors also offer practical takeaways for companies speaking about AI in public disclosures.
Excerpt: "Early 2026 decisions confirm a consistent through line. AI washing claims do not mark a doctrinal shift but instead reflect the standard application of settled PSLRA principles to new technologies. AI may change the facts, but it does not change the law. Claims continue to proceed only where plaintiffs identify concrete, verifiable statements and plead particularized facts showing those statements were false or misleading when made. Absent that, the PSLRA's gatekeeping function remains firmly intact."
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