News-June-24-2026
June 24, 2026 — AI law coverage focused on a new Microsoft Copilot investor suit and a multistate probe into OpenAI's ChatGPT safety and data practices.[1][2]
Contents
- Microsoft faces Copilot investor-disclosure lawsuit
- OpenAI receives multistate chatbot-safety subpoena
Microsoft faces Copilot investor-disclosure lawsuit
The City of St. Clair Shores Police and Fire Retirement System filed a proposed securities class action in federal court in Seattle against Microsoft and executives Satya Nadella, Amy Hood, Jared Spataro, and Rajesh Jha over statements about Microsoft Copilot adoption.[1] The complaint, filed June 12, seeks to represent investors who bought Microsoft stock between May 1, 2025 and January 28, 2026, and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.[1] The fund alleges Microsoft presented Copilot as strongly adopted while masking problems with brand positioning, user experience, usage, data silos, computing capacity, organization, interoperability, and conversion of Microsoft 365 users into paid Copilot seats.[1] The allegations have not been tested in court, Microsoft and the named executives had not responded as of the report, and no court had ruled on the claims.[1]
OpenAI receives multistate chatbot-safety subpoena
OpenAI received a subpoena from several states as part of a multistate probe into customer safety issues involving ChatGPT as the company prepared for a potential initial public offering.[2] OpenAI said it would respond constructively to the inquiry and already had measures intended to protect customers.[2] The probe follows criticism that ChatGPT allegedly offered encouraging responses to users contemplating suicide or criminal acts, and it also concerns scrutiny over OpenAI's handling of health data and other personal information.[2]