Blogs

National advertising campaigns of old required multi-day model shoots, multi-camera video productions, and multi-disciplinary graphic creation. Generative AI advertising, however, has opened a new chapter in marketing ideation and production. For retailers in particular, these tools make it faster and cheaper to create digital ads, seasonal promotions, product images, and social media content—often without involving traditional agencies or creative teams. Even old commercials and brand stories, once thought to be merely corporate history, are getting new life and are being reimagined and repurposed. While the speed-to-market and costs perspective advantages of AI generated advertising are adulated by their developers, the risks—and who bears the responsibility for those risks—are often understated. 

In a recent client alert, Hunton insurance attorneys Geoffrey B. Fehling and Charlotte E. Leszinske discuss D&O insurance considerations for shareholder derivative liability claims.  A recent complaint filed in the federal court alleges that an opportunistic investor used his status as a shareholder to pressure the company into business deals that would benefit him personally, on threat of a derivative action.  See Maddox Defense, Inc. v. Envirotech Vehicles, Inc. v. Diveroli, et al., No. 26-cv-2992.  The shareholder is alleged to have held himself out as the company’s representative in a lucrative government contract, and when things went south, sued.  He then allegedly offered to drop the lawsuit if the company entered into different contracts to its detriment and his benefit.

The decision underscores the importance of maintaining D&O liability insurance to protect against shareholder lawsuits, especially those brought derivatively on behalf of the company, as those claims can pose unique challenges on indemnification, exclusions, and other coverage issues. 

On May 21, 2026, the New York Department of Financial Services issued an industry letter warning regulated entities that emerging frontier AI models may significantly increase cyber risk by enabling threat actors to identify and exploit vulnerabilities with greater speed, scale, and sophistication.

The Office of Management and Budget (OMB) has proposed wide-ranging changes to the regulatory requirements (currently known as the “Guidance for Federal Financial Assistance”) underlying billions of dollars in grant awards annually. The proposed revisions make (and rebrand) the guidance as binding, contain new anti-diversity, equity, and inclusion (“DEI”) mandates, give the federal government broader powers to terminate grant awards, and prohibit fixed-price awards, among other things.

Since established by Congress in 1978, the Department of Energy has had a program for loans to minority business enterprises. As stated in the regulations implementing the Department of Energy Implementing Act (the “Act”), the purpose of the loans are to “assist such enterprises in participating fully in research, development, demonstration and contract activities of the Department of Energy.”