News & Analysis as of

Securities Fraud Artificial Intelligence Misleading Statements

Vinson & Elkins LLP

Oversold and Underdelivered: SEC Charges Former Startup CEO with “AI Washing” Securities Fraud

Vinson & Elkins LLP on

On June 11, 2024, the United States Securities and Exchange Commission (the “SEC”) charged Illit Raz, the former CEO and founder of the since-shut-down artificial intelligence recruiting startup Joonko Diversity Inc....more

BCLP

SEC and DOJ Heighten Focus on AI Washing

BCLP on

The SEC recently charged Ilit Raz, the CEO of Joonko Diversity Inc., a failed recruitment startup, with "AI washing" based on allegedly false claims that her company had developed an “automatic recruiting solution” to help...more

Patterson Belknap Webb & Tyler LLP

Increase in Securities Litigation and Regulatory Scrutiny Concerning Artificial Intelligence

Several recent lawsuits, and comments by the U.S. Securities and Exchange Commission (“SEC”) and Federal Trade Commission (“FTC”), underscore the increasing litigation and regulatory scrutiny concerning the use of artificial...more

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