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Monthly Archives

June 2025

"AI Washing" and SEC Crackdowns: What Los Angeles Startups Need to Know

“AI Washing” and SEC Crackdowns: What Los Angeles Startups Need to Know

The use of artificial intelligence ("AI") has exploded in popularity and impacted nearly every sector of the economy. The transformative nature of AI has prompted many public companies to try and capitalize on the vast capabilities associated with AI tools and applications. It is becoming increasingly common for companies, during investor conference calls, to proclaim their use of AI. Such declarations have resulted in sharp stock price increases driven by the promise of rapid growth.…
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Piercing the Corporate Veil and Subsidiary Companies: What You Need to Know

For any business operating in and around Los Angeles, taking steps to mitigate the risk of legal liability is critically important. One of the most common methods for protecting a business from such liability is structuring the corporate entity in a manner that protects it from a court “piercing the corporate veil.” For context, the term “piercing the corporate veil” refers to the situation where a court decides to ignore a recognized liability shield (the…
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