Victory in United States District Court for the District of Maryland in AI-related Securities Lawsuit
On March 20, 2026, the United States District Court for the District of Maryland dismissed with prejudice a securities class action lawsuit alleging fraud by a publicly traded AI learning platform, iLearning. United States District Court Judge Deborah K. Chasanow found that the plaintiffs’ claims against the executives, including a board member of a private equity firm, failed because they lacked standing to sue, as well as for failure to adequately plead material omissions or misrepresentations. Cole Schotz P.C., in partnership and coordination with Kozyak Tropin & Throckmorton, is thrilled at the Court’s decision in dismissing this securities lawsuit.
“Frivolous lawsuits targeting AI corporations and their executives stifle growth and innovation.” said Phil Selden, Member at Cole Schotz P.C.’s Washington, D.C. Office. “We are thrilled that the United States District Court for the District of Maryland dismissed, with prejudice, this lawsuit and are grateful for leadership and partnership from Kozyak Tropin & Throckmorton, in helping the Court reach a thoughtful outcome in an important AI securities fraud case,” remarked Selden.
The Cole Schotz team was led by Member Phil Selden and Special Counsel Alicia L. Shelton.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication. No aspect of this advertisement has been approved by the highest court in any state.
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