Expert Analysis

• How To Reconcile AI Opacity And Advisers' Fiduciary Duties

  

  Firms that treat fiduciary compliance as a foundation for responsible artificial intelligence adoption will be best positioned when the U.S. Securities and Exchange Commission moves from implicit expectations to explicit rules regarding advisers' core duties, as those are unlikely to change, says Ivor Wolk at Manatt.

• New Risks Emerge As States Push Proxy Voting Legislation

  

  Recent state proxy voting laws have increasingly emphasized financial returns while intensifying scrutiny of proxy advisory firms and stewardship practices, creating new compliance challenges and risks, according to attorneys at Morgan Lewis.

• Framing Membership Filings To Anticipate FINRA's Concerns

  

  Recent updates to the Financial Industry Regulatory Authority’s membership application program should remind firm management to treat the filing process not as a compliance chore, but as a test of operational and regulatory readiness where they can anticipate and address FINRA's concerns, says Andrew Mount at Eversheds Sutherland.

• 2 AI Snafus Show Why Attys Can't Outsource Judgment

  

  The recent incident involving Sullivan & Cromwell where citations in a filed motion were fabricated by artificial intelligence, as well as a punitive ruling from the Sixth Circuit in U.S. v. Farris, demonstrate that the obligation to supervise AI has belonged and always will belong to lawyers, says John Powell at the Kentucky School Boards Association.

• Assessing The 9th Circ.'s Recent Stock Drop Dismissal Trend

  

  The recent decision in Nova Scotia Health Employees' Pension Plan v. Comerica is an important circuit-level addition to the growing trend of Ninth Circuit securities class action dismissals on loss causation grounds, which have used a contextual analysis premised on stock drops that are modest, typical and short-lived, say attorneys at Paul Weiss.

• How 'Spillover' Effects Can Skew AI Securities Class Actions

  

  Event study evidence is often central in securities litigation at class certification and beyond, but in an environment where earnings forecasts and statements can have spillover market implications, particularly when concerning artificial intelligence, the task of parsing out the price impact of news requires careful consideration, say Erik Johannesson, Olivia Wurgaft and Nguyet Nguyen at Brattle Group.

• Series

  Playing Magic: The Gathering Makes Me A Better Lawyer

  

  The competitive card game Magic: The Gathering offers me a training ground for the strategic thinking skills crucial to litigation, challenging me to adapt to oft-updated rules, analyze text as complicated as any statute and anticipate my opponent’s next moves, says Christopher Smith at Lash Goldberg.

• Why The Wells Process Is No Longer A One-Sided Exercise

  

  The U.S. Securities and Exchange Commission's recently revamped Enforcement Manual rewrites the informational asymmetry that has defined SEC defense for decades, providing counsel with several new strategies to produce better submissions, give better advice and achieve better outcomes, says Ashwin Ram at Buchalter.

• Improving Well-Being In Law, 10 Years After Landmark Study

  

  An important 2016 study revealed significant substance abuse and mental health issues among lawyers, and while the findings helped normalize the conversation around these topics, a decade later, structural change is still needed, says Denise Robinson at PLI.

• Federal 401(k) Plan Would Create Fiduciary Litigation Risks

  

  President Donald Trump recently previewed an initiative to make a public 401(k)-style plan option available to all American workers who lack access to an employer-sponsored retirement plan, raising novel and complex litigation issues that merit careful attention, say attorneys at Willkie.

• 8 Reasons To Consider Maryland As A 'DExit' Option

  

  While Nevada and Texas have garnered the most attention as alternative states of incorporation for companies considering leaving Delaware, Maryland offers considerable benefits too, including a predictable statutory framework, robust anti-takeover protections, sophisticated business courts with decades of experience, and more, say attorneys at Miles & Stockbridge.

• Opinion

  Exxon's Retail Voting Program Is A Trap For Retail Investors

  

  The U.S. Securities and Exchange Commission approved Exxon Mobil's first-of-its-kind proxy voting program last September, but ahead of the company's annual shareholder meeting next month, it's clear that retail shareholders have delegated their voice to the entity their vote exists to check, says Christina Sautter at Southern Methodist University.

• What DOL Proposal Signals For 401(k)s, Alternative Assets

  

  The U.S. Department of Labor recently published a highly anticipated proposed rule that could establish more defined pathways for 401(k) plan fiduciaries to consider investment options with greater alternative asset exposure, and help fund sponsors and investment managers develop such options, say attorneys at Cleary.

• SEC's Enforcement Slowdown May Raise Oversight Questions

  

  After six months of enforcement activity, it's clear that fiscal year 2026 will see an unprecedented decline in U.S. Securities and Exchange Commission enforcement activity relative to past years, but whether the SEC will be viewed as sufficiently policing the securities markets at the end of the fiscal year is more uncertain, say attorneys at Covington.

• What To Expect From The SEC's New SOX Group

  

  In a potential shift away from Public Company Accounting Oversight Board enforcement, the U.S. Securities and Exchange Commission's formation of a new group to investigate and litigate potential violations of the Sarbanes-Oxley Act brings both risks and benefits for auditors, say attorneys at King & Spalding.