As part of the SCAC’s ongoing tracking of current trends of interest, we are announcing the addition of cases involving Artificial Intelligence as our newest current trend.

Artificial Intelligence-related filings are those in which the company at issue (1) develops AI models, (2) manufactures products used in AI infrastructure, or (3) uses AI models for business purposes; and in addition the allegations are related to AI, or misrepresentations or failures to disclose risks associated with the use of AI. AI-related filings include those with allegations related to machine learning and autonomous driving, among others.

The Clearinghouse has to date identified 33 AI shareholder lawsuits. The earliest case captured under the trend was filed on March 24, 2020.

One AI case related to autonomous driving was filed on February 27, 2023 against Tesla, Inc., in which the plaintiff alleges that defendants significantly overstated the efficacy, viability, and safety of the Company’s Autopilot and FSD technologies and that these technologies created a serious risk of accident and injury associated with the operation of Tesla vehicles.

The most recent case related to Artificial Intelligence is the action filed against Oddity Tech Ltd on July 19, 2024. A plaintiff shareholder filed the lawsuit against Oddity, a consumer tech platform focused on the beauty and wellness market, based on allegations that the company overstated its AI technology and capabilities and the extent to which this technology drove the Company's sales.

The Clearinghouse will add to this new trend category as more such lawsuits are filed.